Impacts of accessing extension on agricultural production profit

Abstract

This research is to assess the impact of promoting agricultural extension and expanding agricultural production by the visiting of extension staffs on household profits from agriculture. After collecting the 2016 VARHS standard data, we apply the DID model to analyze the results showing that farmers have the ability to increase in total profits when applying the extension system. However, the relationship is not linear, specifically if the ratio of the number of times of applying extension of the extension system and the profit is over 0.086, it will cause a negative relationship. In other words, the application of agricultural extension at this time does more harm than good. We also model household effects and fix time to remove the influence of unobserved factors. The impact of local extension services on agricultural profits for this group of beneficiaries is 45.5%.