Joint estimation of farmers' stated willingness to pay for agricultural services

In many developing countries, to sustain the provision of agricultural services to farmers, many have advocated the use of service fees. Successful implementation of such schemes requires understanding of determinants of farmers' willingness to pay. In this paper we use a multivariate probit approac...

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Autores principales: Ulimwengu, John M., Sanyal, Prabuddha
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2011
Materias:
Acceso en línea:https://hdl.handle.net/10568/154618
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author Ulimwengu, John M.
Sanyal, Prabuddha
author_browse Sanyal, Prabuddha
Ulimwengu, John M.
author_facet Ulimwengu, John M.
Sanyal, Prabuddha
author_sort Ulimwengu, John M.
collection Repository of Agricultural Research Outputs (CGSpace)
description In many developing countries, to sustain the provision of agricultural services to farmers, many have advocated the use of service fees. Successful implementation of such schemes requires understanding of determinants of farmers' willingness to pay. In this paper we use a multivariate probit approach to investigate farmers' stated willingness to pay for different agricultural services including soil fertility management, crop protection, farm management, improved produce quality /varieties, on-farm storage (post-harvest), improved individual and group marketing, and disease control. Data are from the Uganda National Household Survey 2005/2006. Controlling for individual characteristics and regional heterogeneity, our results suggest that farmers with access to information on proposed agricultural service are less willing to pay for it. Similarly, access to extension service tends to reduce farmers' willingness to pay. Market access plays also a significant role; farmers with available market are more willing to pay for agricultural services than those without available market. On the reverse, distance to the market is inversely correlated with the willingness to pay for agricultural services. The results also suggest that land ownership matters; indeed, increase in the size of land owned by farmers increases their willingness to pay for agricultural services. As expected, farmers' income, especially agricultural income significantly increases farmers' willingness to pay for agricultural services. Overall, decisions to pay or not for these services are not independent from each other implying that joint supply of these services should be recommended.
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spelling CGSpace1546182025-11-06T05:57:45Z Joint estimation of farmers' stated willingness to pay for agricultural services Ulimwengu, John M. Sanyal, Prabuddha farmers willingness to pay markets households extension programmes land ownership probit analysis In many developing countries, to sustain the provision of agricultural services to farmers, many have advocated the use of service fees. Successful implementation of such schemes requires understanding of determinants of farmers' willingness to pay. In this paper we use a multivariate probit approach to investigate farmers' stated willingness to pay for different agricultural services including soil fertility management, crop protection, farm management, improved produce quality /varieties, on-farm storage (post-harvest), improved individual and group marketing, and disease control. Data are from the Uganda National Household Survey 2005/2006. Controlling for individual characteristics and regional heterogeneity, our results suggest that farmers with access to information on proposed agricultural service are less willing to pay for it. Similarly, access to extension service tends to reduce farmers' willingness to pay. Market access plays also a significant role; farmers with available market are more willing to pay for agricultural services than those without available market. On the reverse, distance to the market is inversely correlated with the willingness to pay for agricultural services. The results also suggest that land ownership matters; indeed, increase in the size of land owned by farmers increases their willingness to pay for agricultural services. As expected, farmers' income, especially agricultural income significantly increases farmers' willingness to pay for agricultural services. Overall, decisions to pay or not for these services are not independent from each other implying that joint supply of these services should be recommended. 2011 2024-10-01T14:02:43Z 2024-10-01T14:02:43Z Working Paper https://hdl.handle.net/10568/154618 en Open Access application/pdf International Food Policy Research Institute Ulimwengu, John M.; Sanyal, Prabuddha. 2011. Joint estimation of farmers' stated willingness to pay for agricultural services. IFPRI Discussion Paper 1070. https://hdl.handle.net/10568/154618
spellingShingle farmers
willingness to pay
markets
households
extension programmes
land ownership
probit analysis
Ulimwengu, John M.
Sanyal, Prabuddha
Joint estimation of farmers' stated willingness to pay for agricultural services
title Joint estimation of farmers' stated willingness to pay for agricultural services
title_full Joint estimation of farmers' stated willingness to pay for agricultural services
title_fullStr Joint estimation of farmers' stated willingness to pay for agricultural services
title_full_unstemmed Joint estimation of farmers' stated willingness to pay for agricultural services
title_short Joint estimation of farmers' stated willingness to pay for agricultural services
title_sort joint estimation of farmers stated willingness to pay for agricultural services
topic farmers
willingness to pay
markets
households
extension programmes
land ownership
probit analysis
url https://hdl.handle.net/10568/154618
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