Economics Under the classical model of adoption, the more an innovation will provide concrete economic benefits, the greater the rate of adoption. Nevertheless, all else being equal, it is reasonable to expect that the more economically beneficial an innovation is, the greater the rate of adoption. The term risk refers to farmers' concerns about the likelihood that capital and other resources invested in adopting the technology will not produce any benefits. The risk is not only in terms of capital outlay but can also involve the yield of one or a number of seasons. In the case of environmental innovations, risk can relate to the productive capacity of the farm itself.
All new technologies are subject to debate about their applicability and effectiveness.
In a situation where there is already some uncertainty, not adopting a new technology is an appropriate management strategy where conflicting information is available. In addition to the perceived profitability of the innovation, it is necessary also to consider the capital required to adopt it. Many innovations require considerable capital outlay on machinery, seeds, agrichemicals and earthworks. Often, adoption of new techniques may require the farmer to forego income until the new system is established. In this situation, the farmer must have the resources not only to adopt the new technology but also to survive the period until the new innovation produces income.