Territorial Capital and Farmers’ Intention Towards Organic Farming: Evidence from Rural Areas in Paraguay

Abstract

This study investigates the determinants of farmers’ intention to convert to organic farming, focusing on the role of perceived territorial capital in rural Paraguay. Despite increasing demand for sustainable agricultural systems, the adoption of organic farming remains uneven, particularly in developing countries. Existing literature has mainly examined economic, socio-demographic, and psychological factors, while the role of territorial context has received less attention. The analysis relies on primary data collected through a structured survey of 167 conventional farmers across four Paraguayan departments. A logistic regression model is used to evaluate the effect of different dimensions of territorial capital— environmental, institutional, economic, and infrastructural—together with socio-economic and organisational characteristics, on farmers’ intention to convert within the next five years. The results indicate that perceived environmental capital significantly increases the probability of conversion intention (AME = 0.097, p < 0.05), while social capital, proxied by cooperative membership, raises it by 17.5 percentage points (p < 0.05). In contrast, perceived institutional capital shows a negative association (AME = -0.059, p < 0.10), and market orientation toward local markets reduces the probability of conversion (AME = -0.314, p < 0.05). Economic and infrastructural factors are not statistically significant. Overall, the study contributes by incorporating a territorial perspective into the analysis of adoption intentions and underlines the importance of strengthening environmental resources and social networks to support agro-ecological transitions.