Abstract
In this paper, the authors use survey data from over 800 households to examine the impact of demonstration plots and associated activities (distribution of small packs of agricultural inputs) on smallholder farmers' decisions to buy agricultural inputs in Tanzania. Using propensity score matching and inverse probability-weighted adjustment models, the authors estimated the effect of access to demonstration plots alone and demonstration plots combined with small packs of agricultural inputs on a household's decision to purchase improved inputs. The results indicate that access to demonstration plots and demonstration plots with small packs increased the probability of purchasing improved inputs by 13-17 percentage points. This paper suggests that demonstration plots and demonstration plots with small packs are an effective model for enhancing improved technology adoption and are further increased when those inputs are available within a 5km radius. The results point to the importance of strengthening farmers' organizations and last-mile agricultural input suppliers in order to enhance and facilitate access to information, appropriate production techniques, and improved inputs. The results also indicate the importance of investing in infrastructure to reduce transportation costs that limit market efficiency for appropriate technologies.