Migrant worker sowing seeds of prosperity in rural Kenya.

Unlock Rural Prosperity: How Migration and Money Transfers Can Revolutionize Farming

Samir D’Costa in Business & Economy June 2025 • 4 min read.

"Discover how migration, remittances, and strategic public investment can transform rural agriculture, driving tech adoption and economic growth."

In many developing nations, particularly in rural Africa, adopting modern farming technology faces significant hurdles. Risk and lack of available funds are major obstacles for farmers looking to upgrade their methods and increase their yields. However, new research sheds light on how migration and money transfers from family members working elsewhere could be game-changers.

A study focusing on rural Kenya reveals that when people migrate from these areas and send money back home (remittances), it can significantly boost the adoption of advanced farming techniques. These financial inflows help rural households overcome financial constraints, enabling them to invest in technologies like improved seeds.

This article dives into the findings of this research, exploring how migration, remittances, and even government support can revolutionize agriculture in rural communities. By understanding these dynamics, we can pave the way for strategies that enhance agricultural productivity, stimulate economic growth, and improve the well-being of millions.

How Migration and Money Transfers Boost Technology Adoption in Farming

Migrant worker sowing seeds of prosperity in rural Kenya.

The research in Kenya used data from the World Bank to investigate the impact of migration and remittances on the use of improved seeds. The study employed a method called two-stage least-squares estimates, which showed that both migration and the resulting remittances had a positive influence on farmers choosing to plant improved seeds.

However, a more detailed analysis using three-stage least-squares estimates revealed an interesting nuance: the adoption of new technologies was more closely linked to migration itself than to the remittances. This suggests that the flow of ideas, knowledge, and changing attitudes associated with migration, in addition to the money, plays a crucial role.

Migration: The movement of people from rural areas opens doors to new information and perspectives. Migrants often bring back knowledge of innovative farming practices, which can encourage others in their community to adopt these technologies.
Remittances: The money sent home provides families with the financial flexibility to invest in improved seeds, fertilizers, and other essential resources. This reduces the financial risk associated with trying new methods.
Public Transfers: Government and non-governmental aid in the form of money or subsidies can also play a vital role in easing credit constraints and encouraging technology adoption.

The study highlighted that new farming technologies are defined as improved seeds of maize or rice. Further analysis showed that there's a positive correlation between public transfers and technology adoption, implying that households receiving public transfers are more likely to adopt new technologies.

Seizing the Opportunity: How to Support Migrant-Driven Agricultural Transformation

The study's findings suggest that to promote agricultural development and technology adoption, governments and organizations should consider strategies that leverage migration and remittances. This could include initiatives to reduce the cost of sending money, provide financial training to remittance-receiving households, and support returning migrants in sharing their knowledge and experiences.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.1111/1477-9552.12295, Alternate LINK

Title: The Impact Of Migration, Remittances And Public Transfers On Technology Adoption: The Case Of Cereal Producers In Rural Kenya

Subject: Economics and Econometrics

Journal: Journal of Agricultural Economics

Publisher: Wiley

Authors: Sam Kaninda Tshikala, Genti Kostandini, Esendugue Greg Fonsah

Published: 2018-10-10

Everything You Need To Know

How do migration and remittances specifically influence the adoption of new farming technologies in rural communities?

The research focusing on rural Kenya reveals a strong connection between migration, remittances, and the adoption of advanced farming techniques, such as improved seeds. Migration itself introduces new information and perspectives. Migrants often bring back knowledge of innovative farming practices. When migrants send money back home (remittances), it provides families with the financial flexibility to invest in these technologies, like improved seeds, fertilizers, and other resources, reducing the financial risk associated with trying new methods. The study used two-stage least-squares estimates to show this positive influence, and a more detailed analysis using three-stage least-squares estimates emphasized that migration's role is significant, suggesting the flow of ideas, knowledge, and changing attitudes alongside the money plays a crucial role.

What are the primary obstacles preventing farmers in developing nations from adopting modern farming technologies?

In many developing nations, especially in rural Africa, two main obstacles hinder the adoption of modern farming technology: risk and the lack of available funds. Farmers often hesitate to invest in new methods due to the financial risk involved. Additionally, they may lack the necessary capital to purchase improved seeds, fertilizers, and other essential resources. Overcoming these financial constraints is crucial for enabling farmers to upgrade their methods and increase their yields.

Besides remittances, how else can public or governmental support contribute to technology adoption in farming?

Public transfers, which include financial aid or subsidies from governments and non-governmental organizations, can significantly help ease credit constraints for farmers. Such support enables them to overcome financial limitations and invest in new technologies, like improved seeds. The study highlighted that a positive correlation exists between public transfers and technology adoption, indicating that households receiving public transfers are more likely to embrace new technologies.

What specific farming technologies were the focus of the study, and how were they defined as 'new' technologies?

The study specifically examined the adoption of improved seeds of maize or rice. These were defined as 'new' technologies. By focusing on these specific types of seeds, the research could analyze how migration, remittances, and public transfers impacted farmers' decisions to invest in these potentially more productive varieties. The use of improved seeds serves as a proxy for the adoption of modern farming practices in general.

What strategic steps can governments and organizations take to leverage migration and remittances for agricultural development and technology adoption?

To promote agricultural development, governments and organizations should consider strategies that leverage migration and remittances. This includes initiatives to reduce the cost of sending money to maximize the financial benefit for families. Providing financial training to households receiving remittances can help them make informed investment decisions. Supporting returning migrants to share their knowledge and experiences can foster the spread of innovative farming practices, which can encourage others in their community to adopt these technologies. These measures can help maximize the positive impact of migration and remittances on agricultural productivity and economic growth.