Farmers must innovate to adapt to ongoing changes; however, many are becoming psychologically powerless, and farming is increasingly viewed as an unattractive profession among younger generations. This study examined the mediating role of work engagement between psychological empowerment and innovative work behavior among farmers, as well as differences in these variables between younger and older farmers. Data were collected from 403 participants using validated scales for the three variables. Analyses were conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.1.12 and the Mann–Whitney U test. The results indicate that psychological empowerment significantly influences both work engagement and innovative work behavior. Work engagement, however, does not significantly influence innovative work behavior and therefore does not function as a mediator. The predominantly top-down pattern of innovation dissemination from extension agents to farmers appears to be a key reason for the lack of a mediating effect. Although innovation is externally introduced, farmers’ engagement emerges as a consequence of implementing these innovations rather than as a driver of innovative behavior. These findings suggest that top-down and bottom-up approaches to promoting innovative work behavior have different impacts on work engagement. Prior studies conducted in bottom-up contexts have shown that work engagement mediates psychological empowerment and innovative work behavior; workers who already value their work tend to show greater innovation. In contrast, in this study, innovation was provided by extension agents, making work engagement an outcome rather than a mediator. The study also found that younger farmers exhibit higher levels of psychological empowerment, work engagement, and innovative work behavior compared to older farmers. Interventions are therefore needed for older farmers—particularly those aged 40–50 years—to enhance these three variables. Although younger farmers show higher quality in these areas, their numbers remain limited. As such, efforts to increase young people’s interest in farming are crucial. Creating a bottom-up innovation environment may be one effective strategy for fostering such interest.