Willingness to pay for agricultural mechanization services by smallholder farmers in Malawi

One of the main barriers to adopting smallholder agricultural mechanization in developing countries is the mismatch between the economies of scale of machines and farm size. Private sector-led mechanization services hold a promise to address this challenge, but there is a lack of evidence on demand...

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Autores principales: Tufa, Adane H., Alene, Arega D., Ngoma, Hambulo, Marenya, Paswel Phiri, Manda, Julius, Md Abdul Matin, Thierfelder, Christian L., Chikoye, David
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2024
Materias:
Acceso en línea:https://hdl.handle.net/10568/131636
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author Tufa, Adane H.
Alene, Arega D.
Ngoma, Hambulo
Marenya, Paswel Phiri
Manda, Julius
Md Abdul Matin
Thierfelder, Christian L.
Chikoye, David
author_browse Alene, Arega D.
Chikoye, David
Manda, Julius
Marenya, Paswel Phiri
Md Abdul Matin
Ngoma, Hambulo
Thierfelder, Christian L.
Tufa, Adane H.
author_facet Tufa, Adane H.
Alene, Arega D.
Ngoma, Hambulo
Marenya, Paswel Phiri
Manda, Julius
Md Abdul Matin
Thierfelder, Christian L.
Chikoye, David
author_sort Tufa, Adane H.
collection Repository of Agricultural Research Outputs (CGSpace)
description One of the main barriers to adopting smallholder agricultural mechanization in developing countries is the mismatch between the economies of scale of machines and farm size. Private sector-led mechanization services hold a promise to address this challenge, but there is a lack of evidence on demand for smallholder mechanization services. This study estimates the farmers' willingness to pay for mechanization services using the double-bounded contingent valuation method and data from 1512 households. Results show that, on average, farmers are willing to pay 11%, 33%, and 5% more than prevailing market rates for land preparation, maize shelling, and transportation services, respectively. The amounts farmers are willing to pay for the mechanization services vary by sex, age group, size of cultivated land, the value of farmer assets, market access, and agroecology. Men are willing to pay 26%, 25%, and 11% more than women for land preparation, maize shelling, and transportation services. Moreover, 40% of female and 90% of male farmers are willing to pay more than or equal to the prevailing market rate for land preparation services. The high demand for mechanization services among smallholder farmers points to the need for making the machinery available to rural communities through mechanization service providers or machinery hiring centers run by the private sector. The paper concludes by discussing the contextual factors and policy options for promoting smallholder mechanization in Malawi. [EconLit Citations: O33, Q11, Q13, Q16].
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spelling CGSpace1316362025-11-11T10:00:22Z Willingness to pay for agricultural mechanization services by smallholder farmers in Malawi Tufa, Adane H. Alene, Arega D. Ngoma, Hambulo Marenya, Paswel Phiri Manda, Julius Md Abdul Matin Thierfelder, Christian L. Chikoye, David mechanization field preparation wheeled tractors willingness to pay food science food security smallholders rural communities malawi land preparation One of the main barriers to adopting smallholder agricultural mechanization in developing countries is the mismatch between the economies of scale of machines and farm size. Private sector-led mechanization services hold a promise to address this challenge, but there is a lack of evidence on demand for smallholder mechanization services. This study estimates the farmers' willingness to pay for mechanization services using the double-bounded contingent valuation method and data from 1512 households. Results show that, on average, farmers are willing to pay 11%, 33%, and 5% more than prevailing market rates for land preparation, maize shelling, and transportation services, respectively. The amounts farmers are willing to pay for the mechanization services vary by sex, age group, size of cultivated land, the value of farmer assets, market access, and agroecology. Men are willing to pay 26%, 25%, and 11% more than women for land preparation, maize shelling, and transportation services. Moreover, 40% of female and 90% of male farmers are willing to pay more than or equal to the prevailing market rate for land preparation services. The high demand for mechanization services among smallholder farmers points to the need for making the machinery available to rural communities through mechanization service providers or machinery hiring centers run by the private sector. The paper concludes by discussing the contextual factors and policy options for promoting smallholder mechanization in Malawi. [EconLit Citations: O33, Q11, Q13, Q16]. 2024-01 2023-08-23T15:03:40Z 2023-08-23T15:03:40Z Journal Article https://hdl.handle.net/10568/131636 en Open Access application/pdf Wiley Tufa, A., Alene, A., Ngoma, H., Marenya, P., Manda, J., Matin, M. A., Thierfelder, C., & Chikoye, D. (2023). Willingness to pay for agricultural mechanization services by smallholder farmers in Malawi. Agribusiness, 40(1), 248–276. Portico. https://doi.org/10.1002/agr.21841
spellingShingle mechanization
field preparation
wheeled tractors
willingness to pay
food science
food security
smallholders
rural communities
malawi
land preparation
Tufa, Adane H.
Alene, Arega D.
Ngoma, Hambulo
Marenya, Paswel Phiri
Manda, Julius
Md Abdul Matin
Thierfelder, Christian L.
Chikoye, David
Willingness to pay for agricultural mechanization services by smallholder farmers in Malawi
title Willingness to pay for agricultural mechanization services by smallholder farmers in Malawi
title_full Willingness to pay for agricultural mechanization services by smallholder farmers in Malawi
title_fullStr Willingness to pay for agricultural mechanization services by smallholder farmers in Malawi
title_full_unstemmed Willingness to pay for agricultural mechanization services by smallholder farmers in Malawi
title_short Willingness to pay for agricultural mechanization services by smallholder farmers in Malawi
title_sort willingness to pay for agricultural mechanization services by smallholder farmers in malawi
topic mechanization
field preparation
wheeled tractors
willingness to pay
food science
food security
smallholders
rural communities
malawi
land preparation
url https://hdl.handle.net/10568/131636
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