The main objective of FIF is to encourage innovation by farmers in production, processing and marketing and to help the spread of successful innovations amongst farmers receiving funds from FIF, as well as other farmers. The risks and costs associated with new or unknown innovations is often a critical limitation for farmers. The FIF aims to reduce these associated costs and risks by providing funds in a cost-sharing arrangement with self-identified farmer groups willing to adopt new technologies. Thus far, the FIF has been implemented in Oromia, Gambela, Benishangul-Gumuz, Afar, Somali, and the Southern Nations, Nationalities, and People's regions
In this study analysis of data collected from Amhara and Tigray regions. The aim is to examine the effects of the program on technology adoption, agricultural productivity and income, willingness to pay for technological innovations, labor supply, and capital investments. The sample size will include both beneficiaries, as well as comparable non-beneficiaries. The inclusion of the non-beneficiaries is intended to measure possible spillover effects of the FIF. Additionally, another survey of 240 Development Agents (DAs) will be carried out in the two regions.