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Abstract
Many studies show that interaction with extension services impact farmer’s technology adoption
decisions and profitability levels. However, analysis of extension impact across all farm systems
whilst controlling for endogeneity biases is less common.
This research attempts to redress that research gap by firstly discussing the various biases related to
the motivation to engage with extension services, omitted variable bias and measurement error, and
subsequently applying instrumental variable (IV) regression estimation to the relationship between
extension engagement and farm level outcomes, namely family farm income over a pooled panel
dataset. Distance to the local advisory office and the introduction of a policy change were chosen as
valid and relevant instruments.
The results indicate a positive impact of extension engagement on farm income, and imply that an
ordinary least squares approach underestimates the benefits of extension engagement. Accordingly,
increased advisory activity could improve the performance of the sector significantly, and this could
be a useful policy tool to achieve the targets as set out by the Irish governments Food Wise 2025 plan.