To grow or not to grow? Factors influencing the adoption of and continuation with Jatropha in North East India

The study examines the personal, physical, economic, institutional, and risk and uncertainty factors that determine the adoption of and continuation with Jatropha plantations in North East India. The study is based on a sample of 144 present-growers, 137 past-growers, and 145 non-growers of Jatropha in the states of Assam and Arunachal Pradesh. Farmer characteristic such as their willingness to take risks and whether they have land that is not in use in agriculture play an important role. Two institutional factors are critical - availability of credit and extension services. If farmers are able to grow Jatropha in land that is really not suitable for agriculture, they are more likely to stick with the plantation. Non-farm labor availability and travel and time related to transportation of labor and seedlings also matter. The study recommends the extension of government credit facilities to the farmers as the opportunity cost of labor and land, the initial low returns, and the approximately 5-year payback period from Jatropha cultivation exert a negative and significant influence on farmers' desire to continue with Jatropha cultivation. The study also recommends that the government consider increasing the market price of Jatropha to ensure sustainability of the industry in the region.