Tropentag, September 16 - 18, 2026, Göttingen "Towards multi-functional agro-ecosystems promoting climate-resilient futures"

Do financial subsidies improve farmers’ innovativeness in northern Benin?

¹University of Parakou,NA Faculty of Agronomy, Research Laboratory on Innovation for Agricultural Development (LRIDA), Benin
²University of Parakou Faculty of Agronomy, Research Laboratory for Innovation in Agricultural Development (LRIDA)

Abstract

Financial subsidies in the agricultural sector are usually intended to support farmers in increasing their yields and, therefore, their income. However, they often fail to improve farmers’ production because they are often used to address producers' short-term needs. This study examines the effects of financial subsidies on farmers’ innovativeness, conceptualised through their propensity to innovate, capacity to innovate, and innovation practices. Thus, a field survey with a Likert-scale questionnaire was administered to 146 farmers, and two focus group discussions were conducted. Data were analysed using descriptive statistics and multiple linear regressions. The results indicate significantly higher levels of innovativeness among subsidy beneficiaries than among non-beneficiaries. Subsidy beneficiaries’ propensity to innovate (5.83 vs. 4.67), capacity to innovate (5.27 vs. 3.71), and practice of innovation (5.66 vs. 4.24) are significantly higher than those of non-beneficiaries. Indeed, financial subsidies enabled 28.63% of beneficiaries to reduce financial constraints and eliminate the stress associated with seeking funding for their agricultural activities; it enables 37.33% of beneficiaries to gain access to more efficient production resources and higher-quality inputs, as well as training in fund management and new technical production; and 25.48% of beneficiaries effectively adopt new techniques and use acquired equipment. These innovativeness components are determined by education level, validated and received subsidy amounts, farmers’ own financial contributions, and monitoring mechanisms, which affect each component. These findings suggest that financial subsidies can be an effective lever for enhancing agricultural innovativeness, provided that implementation mechanisms are better structured to match farmers’ needs and promote co-investment, thereby strengthening engagement and sustaining innovation results.

Keywords: Benin., capacity to innovate, farmer’s innovativeness, financial subsidie, innovate practice, propensity to innovate

Contact Address: DEDEDJI Nanyégbé Aimée, University of Parakou,NA Faculty of Agronomy, Research Laboratory on Innovation for Agricultural Development (LRIDA), 00229 0166415001, Parakou, Benin, e-mail: dededjiaimeeyahoo.com