Adapting to Changing Rainfall and Developing Off‐Farm Employment: Implications for the Adoption of Direct Seeding in Rice Production

ABSTRACT Rice is the main staple food for more than half of the world's population and the income from rice is an essential source for livelihoods of millions of households. We examine whether direct seed in rice production is an adaptation of rice farmers to rainfall changes and farm labor scarcity. The results show that the deficit changes of rainfall positively associate with the application of direct‐seeded rice. After addressing the simultaneity between direct‐seeded rice application and off‐farm employment, we find a positive correlation of off‐farm employment with direct‐seeded rice application. Thus, stimulating direct‐seeded rice application is recommended for enhancing the adaptation of rice farmers to rainfall changes and for fostering rural transformation.