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Rice is a strategic commodity and staple food; thus, rice productivity should grow faster than the population. A public agricultural agency launched technology modernisation to improve rice farm performance. This study aims to assess the impact of technology modernisation on rice farming performance and evaluate farmer acceptance of such technology.

This study was conducted in 2023-2024, based on selected demonstration farms (demfarm) carried out during 2021-2022 in East Java, Indonesia, one of the rice bowls. Microeconomic theory of production and the double-differences approach were used as fundamental analyses. Farmers were purposively selected to participate in the demfarm. For comparison, farmers with existing technology adjacent to the demfarm were chosen accordingly. Rice production is considered an economic performance indicator, and factors related to socio-demographic and technical aspects were conceptualised using innovation and diffusion theory.

The results of demfarm were apparent. Technology modernisation improved rice farming’s economic performance. Farmer acceptance of such technology was relatively high at the first stage. There was no conflict between technology and local culture and norms. The technological package will likely be disseminated to farmers after adequate socialisation.

This study engaged farmer innovators and early adopters in the demonstration farm. This needs more actions from farmers who are not categorised as innovators and early adopters, which dominate the farmer population.

Extension officials need field guidance to ensure continual technology adoption because of technology complexity.

The originality of the study is based on a field experiment and direct observation throughout a crop cycle, and the analysis is established using a solid theory and analytical framework.