Research on World Agricultural Economy

The Impact of Government Subsidies on the Adoption of Sustainable Farming Practices and Their Long-Term Effects on Rural-Agricultural Economic Development Practices

Hayder M. Ali

Department of Information Technology, College of Science, University of Warith Al‑Anbiyaa, Karbala 78614, Iraq

Sathiyasuntharam Velayutham

Department of Computer Science and Engineering, School of Computer Science and Engineering, Sharda University, Greater Noida 201306, India

Komali Govindu

Department of Computer Science and Engineering, Koneru Lakshmaiah Education Foundation, Guntur 522502, India

Durai Arumugam Sivakolunthu Sreevelu Latha

Department of Information Technology, Easwari Engineering College, Chennai 600089, India

Aseel Smerat

Hourani Center for Applied Scientiϔic Research, Al‑Ahliyya Amman University, Amman 19328, Jordan; Department of Biosciences, Saveetha School of Engineering, Saveetha Institute of Medical and Technical Sciences, Chennai 602105, India

Malathi Eswaran

Department of Computer Technology, Kongu Engineering College, Perundurai 638060, India

Zokir Mamadiyarov

Department of Finance and Tourism, Termez University of Economics and Service, Termez 190100, Uzbekistan; Department of Economics, Mamun University, Khiva 220900, Uzbekistan; Department of Bank Accounting and Auditing, Tashkent State University of Economics, Tashkent 100003, Uzbekistan

Sudhakar Sengan

Department of Computer Science and Engineering, PSN College of Engineering and Technology, Tirunelveli 627152, India

DOI: https://doi.org/10.36956/rwae.v7i2.2739

Received: 14 September 2025 | Revised: 11 November 2025 | Accepted: 18 November 2025 | Published Online: 5 June 2026

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Abstract

The study proves the importance of smart farming (SF) practices in addressing environmental changes (EC) and helping sustainable agriculture (SA). It investigates the effects of government subsidies (GS), farmer awareness (FA), and market access (MA) on SF adoption in Bihar, India, utilizing data from 582 farmers in five distinct regions. The research employs structural equation modeling (SEM) to analyze relationships among GS factors like farm size (FS), water resource management (WRM), soil quality (SQ), SF adoption, and the impact of FA and MA on financial outcomes. Results highlight that GS provides direct and indirect benefits for SF practices, particularly when FA is increased. GS impacts SF through an indirect pathway (GS → FA → SF) and proves a direct effect on SF adoption, with MA acting as a mediator. The findings indicate that SF adoption critically supports rural GDP growth and emphasize the importance of research and development for economic advantages. Also, SQ and WRM are very important to the adoption method. Farmers who practice SA are predicted to make more cash flow by having better market access, which is good for the sustainable environment. The model's validity is validated by fit measures, indicating robust results.

Keywords: Smart Farming; Organic Farming; Structural Equation Modelling; Machine Learning; Environmental Factors; Farmer Awareness

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