Adaptation to uncertainty such as climate change requires assembling a diverse portfolio of technologies, and keeping the flexibility to transfer and adopt needed technology. However, small farms and related businesses are risk-averse. These hindrances can rarely be surmounted unless the transferred technology profitably has high chances of quickly solving an evident problem. The effectiveness of technology transfer in the agricultural sector in the context of climate change response strategies would depend to a great extent on the suitability of transferred technologies to the socio-economic and cultural context of the recipients, considering development, equity, and sustainability issues. This is particularly relevant when applied to North-South technology transfers in this sector.
Governments can facilitate transfer with incentives by regulating and by improving institutions.
For example, farmers need stronger incentives to adapt to a changing environment. However, if subsidies and distortions of markets make farmers less susceptible to fluctuations in yield and price, they will also tone down signals of climate change, and thus slowing technology transfer. For example, cereal prices have been almost exempt of the 5 to 6 times rise of prices for almost everything in the course of the 55 years post wartime period. The success of a response to an actual climate demonstrates that necessary technology can be developed, transferred and adopted. A new rice variety was developed in Sierra Leone to exploit seasonal rain and require less pesticide.