ECONOMIC INCENTIVES AND PSYCHOLOGICAL BARRIERS IN THE TRANSITION TO SMART AGRICULTURE

DURGESHWARY KOLHE; ARSHAD BHAT

doi:10.22159/ijags.2025v13i6.56920

Authors

DURGESHWARY KOLHE Department of Psychology, School of Vedic Sciences, MIT-ADT University, Pune, Maharashtra, India
ARSHAD BHAT Department of Liberal Arts, Amity Institute of Liberal Arts, Amity University Mumbai, Maharashtra, India

DOI:

https://doi.org/10.22159/ijags.2025v13i6.56920

Keywords:

Smart Agriculture, Agriculture 4.0, Technology Adoption, Economic Incentives, Psychological Barriers

Abstract

The transition to smart agriculture represents a complex interplay between economic incentives and psychological barriers, fundamentally reshaping traditional farming practices. This comprehensive analysis examines the multifaceted challenges and opportunities in agricultural technology adoption, with a focus on the intersection of economic motivations and psychological resistance to adoption. The study reveals that while the economic benefits of smart agriculture are substantial, including increased productivity and resource optimization, psychological barriers often impede adoption despite clear financial advantages. Explores how behavioral economics principles, such as loss aversion and prospect theory, influence farmers’ decision-making processes in technology adoption. It examines the critical role of social networks, peer influence, and community dynamics in facilitating or hindering the transition to smart farming practices. The analysis identifies key psychological barriers, including resistance to change, risk perception, and trust issues with AI-driven systems, while proposing targeted strategies to overcome these challenges. Special attention is given to successful implementation strategies that combine economic incentives with psychological support mechanisms. These include educational programs, behavioral nudges, and community-based adoption models that have proven effective in various agricultural contexts. The study concludes that successful transition to smart agriculture requires a balanced approach that addresses both economic and psychological factors, emphasizing the importance of holistic implementation strategies that consider farmers’ practical and emotional needs. This investigation highlights the need for integrated solutions that bridge the gap between technological innovation and human factors in agricultural transformation.

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