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A number of drivers of innovation in rural areas have been identified by different researchers. However, the robustness of these drivers through different business environments (i.e. stable vs. turbulent business environments) has not fully been explored so far. The objective of this article is to fill this gap by analysing farmers' incentives to innovate before and after a policy shock referred to as the Sugar Regime reform. For this purpose, a probit econometric model was adopted and run withfatcat:rsizq243nndy3atjf7ssbap2ji