Assessing the Impact of Financial Incentives in Extension Programmes: Evidence From Ireland

We evaluate whether the effectiveness of a participatory extension programme changes when an incentive is introduced that financially rewards farmers for participation. Using data from a dairy farm extension programme operated in Ireland, the evaluation assesses whether farmers who joined before the financial incentive was introduced receive larger benefits from the extension programme than farmers who joined after the financial incentive. The results from a propensity score matching analysis reveal that farmers who joined before the incentive significantly improved their farm performance, as measured in gross margins and yields, while farmers who joined after the incentive did not significantly benefit from the extension programme. This implies that the incentive to participate is a windfall gain to these later participants.