What drives smallholder farmers' willingness to pay for a new farm technology? Evidence from an experimental auction in Kenya.
Ontology highlight
ABSTRACT:
SUBMITTER: Channa H
PROVIDER: S-EPMC6558993 | biostudies-literature | 2019 May
REPOSITORIES: biostudies-literature
Publications
What drives smallholder farmers' willingness to pay for a new farm technology? Evidence from an experimental auction in Kenya.
Channa Hira H Chen Amy Z AZ Pina Patricia P Ricker-Gilbert Jacob J Stein Daniel D
Food policy 20190501
We use an incentive compatible experimental auction to measure demand for a new agricultural technology, a triple layered hermetic storage bag. When used properly, the bag creates an airtight seal that reduces storage loss from insect pests and neutralizes aflatoxin contamination in stored grain. We find that demand for this new technology is highly elastic (4.3) and that the wholesaler could increase profit by lowering the price. We also find that farmers' valuation for the bag is not significa ...[more]
Similar Datasets
Project description:Edible insects are increasingly being considered as sustainable alternatives to fish and soybean meals in animal feed because of their high nutritional quality and environmental benefits. However, successful introduction of a new product to the market depends on the target user's acceptance. Thus, evaluating the potential demand of insect-based feeds would provide relevant information for policy development. The present study assessed farmers' knowledge on edible insects as feed, their acceptance of integrating insect meals in animal feeds and willingness to pay (WTP) for insect-based feed (IBF) using a contingent valuation method. A household survey was conducted among 957 randomly selected farmers including: 409 poultry, 241 fish and 307 pig farmers in four counties in Kenya. Results of the study reveal that over 70 and 80% of poultry and fish farmers, respectively, are aware that insects can be used as a feed ingredient. In addition, over 60 and 75% of poultry and fish farmers, respectively, consider insects as a good component of feed. Poultry, pig and fish farmers interviewed accepted and showed willingness to pay for IBF. Regression analysis indicated that age, gender, education, marital status, distance to feed trader, awareness of insects as feed, attitude towards insects, acceptance of insect species, availability of agricultural inputs, use of commercial feeds, availability of training and market information had a significant influence on the WTP for IBF. Therefore, increased extension services to educate famers on the nutritional benefits of insect meals in animal feeds and existing market opportunities are expected to improve farmers' attitude towards utilization and consequently enhance WTP for IBF, which in return would significantly reduce the existing pressure on conventional fishmeal feed resources. Our findings provide the first insights into the market opportunities of including insect meals in the animal feed value chain in Kenya.
| S-EPMC7094868 | biostudies-literature
Project description:This paper analyzes smallholder farmers' willingness to pay (WTP) for the purchase of scale-appropriate farm mechanization in the hill ecologies of Nepal using the case of mini-tiller technology: a small, 5-7 horsepower two-wheel tractor primarily used for agricultural land preparation. Using primary survey data from 628 randomly-selected households, we find that farm size, local wage rates, out-migration, access to credit services, and associations with agricultural cooperatives positively influence the WTP for mini-tillers while the number of draft animals owned negatively influence the WTP for mini-tillers. On average, farmers were willing to pay 31% less than the actual price of a mini-tiller. Results also exhibited a heterogeneous demand in which the lowest quartile farm size households, typically the poorest farm households, were willing to pay 26% less for the mini-tiller than the top quartile of farms. In the context of labor scarcity and rising rural wages, agricultural policy on farm mechanization in Nepal should aim to prioritize small farms through robust service provision models in order to increase the level of farm mechanization in the country.
| S-EPMC6919353 | biostudies-literature
Project description:In Ethiopia, cereal crops play a significant role in food security and income for most smallholder farmers. In the Gubalafto district, the environment is ideal for growing vital cereal crops such as sorghum, maize, and teff. However, various factors such as weevils, rodents, mold infestation, and lack of suitable storage materials were blamed for a post-harvest loss of cereal at the storage stage in the district. Hence, this research study was intended to identify factors affecting households' willingness to pay for metal silo cereal storage technology and the maximum willingness to pay for the technology. The study used both primary and secondary sources to gather the data. A total of 385 sample households were selected using a systematic random sampling technique. The semi-structural questionnaire was used to collect the primary data during a face-to-face interview, and double-bounded questions were also followed by open-ended questions. Combinations of data analysis methods such as descriptive, inferential statistics, and econometrics models were used. a binary probit regression model was used to identify factors that influenced farmers' willingness to pay for metal silo cereal storage technology. A bivariate probit regression model was also used to estimate the household's willingness to pay for metal silo cereal storage technology. The survey results showed that the majority (71.69%) of the sample households were willing to pay for metal silo cereal storage technology due to the severity of cereal post-harvest loss. Moreover, the binary probit model results revealed that household educational status, total household annual income, market accessibility, and extension service positively and significantly affected the household's willingness to pay decisions. The mean willingness to pay of households in open-ended and double-bounded methods was 4157 Ethiopian birr and 5147 Ethiopian Birr (ETB), respectively. In general, the result of the study revealed that farmers were more willing to adopt metal silo cereal storage technology due to its high-storage quality. Therefore, as a part of the recommendations, there should be great integration among farmers, metal manufacturing factories, local and regional governments to supply and offer metal silos technology for farmers at a reasonable price and time. Moreover, training should be arranged on how to use the metal silo technology to prevent post-harvesting loss during the storage time.
| S-EPMC10391935 | biostudies-literature
Project description:BACKGROUND:Although Kenya has a relatively high number of registered biopesticide products, little is known about biopesticide use by smallholders. This paper documents farmers' current use and perception of chemical pesticides and biopesticides, their willingness to pay for biopesticides, and the key challenges to biopesticide uptake. RESULTS:A survey found that chemical pesticides are used widely by smallholders despite awareness of the risks to human health and the environment. Almost half of respondents showed awareness of biopesticides, but current use in the survey localities was low (10%). Key reasons for the low use of biopesticides by smallholders in this study are: perceptions of effectiveness, primarily speed of action and spectrum of activity, availability and affordability. Smallholders who used biopesticides cited effectiveness, recommendation by advisory services and perception of safety as key reasons for their choice. Although farmers viewed both pesticides and biopesticides as costly, they invested in the former due to their perceived effectiveness. Average willingness to pay, above current chemical pesticide expenditures per cropping season was 9.6% (US$5.7). Willingness to pay differed significantly between counties, and was higher among farmers with more education or greater awareness of the health risks associated with pesticide use. CONCLUSION:This study confirms the low use of biopesticide products in the survey areas, alongside high use of conventional chemical pesticides. In order to promote greater uptake of biopesticides, addressing farmers' awareness and their perceptions of effectiveness is important, as well as increasing the knowledge of those providing advice and ensuring registered products are available locally at competitive prices. © 2020 The Authors. Pest Management Science published by John Wiley & Sons Ltd on behalf of Society of Chemical Industry.
| S-EPMC7586800 | biostudies-literature
Project description:The use of mobile phones has increased rapidly in many developing countries, including in rural areas. Besides reducing the costs of communication and improving access to information, mobile phones are an enabling technology for other innovations. One important example are mobile phone based money transfers, which could be very relevant for the rural poor, who are often underserved by the formal banking system. We analyze impacts of mobile money technology on the welfare of smallholder farm households in Kenya. Using panel survey data and regression models we show that mobile money use has a positive impact on household income. One important pathway is through remittances received from relatives and friends. Such remittances contribute to income directly, but they also help to reduce risk and liquidity constraints, thus promoting agricultural commercialization. Mobile money users apply more purchased farm inputs, market a larger proportion of their output, and have higher profits than non-users of this technology. These results suggest that mobile money can help to overcome some of the important smallholder market access constraints that obstruct rural development and poverty reduction.
| S-EPMC4186858 | biostudies-literature
Project description:Declining soil fertility continues to hinder agricultural production especially among resource-constrained smallholder farmers in sub-Saharan Africa, prompting for evaluation of the strategies used by these farming communities. In this study, we assess soil fertility management among smallholder farmers in Mount Kenya East region. The aim is to examine underlying factors conditioning the uptake of integrated soil fertility management (ISFM) practices in this region; determine the adoption relationship between the practices; and to cluster these techniques. Data for this study was collected between January-March 2019 through a household survey based on a farm household questionnaire and complemented with semi-structured interview with farmers and extension officers. Statistical analyses were generated using SPSS. We use hierarchical clustering analysis to visualize ISFM combination patterns, and correlation matrix in factor analysis to determine the inter-relationship between different ISFM practices. Fisher's exact test and Welch's t-test were used to examine the association between explanatory variables and adoption of ISFM practices. Results show that the decision to invest in fertility practices was correlated with a number of farmers' socio-economic, farm-related factors and institutional characteristics. Fertilizer application correlated significantly with manure use, agroforestry and minimum tillage. ISFM techniques were separated into 3 sets following Ward's hierarchical clustering, namely, manure, fertilizer use and agroforestry (cluster 1 or C1), slash-no-burn, residue burn and fallowing (C2); and residue application and minimum tillage (C3). The study recommends creation of an enabling environment including innovative financing opportunities to facilitate farmers' investment capacities in ISFM and cushion them from potential income loss resulting from implementation of some technologies.
| S-EPMC8010630 | biostudies-literature
Project description:BackgroundDespite the importance of labour market participation and the high number of people with disabilities in rural Africa who rely on subsistence agriculture to survive, very few studies have documented labour market outcomes among farmers with and without disabilities in Africa.ObjectiveWe examined how labour market participation differed by disability and other factors among smallholder farmers in Western Kenya.MethodsWe use cross-sectional data collected between January and April 2022 from sorghum farmers enrolled in a trial evaluating the impact of a programme designed to improve labour market participation among sorghum farmers in rural Western Kenya. Disability and Labour market outcomes were assessed using questions from the Washington Group /ILO Labor Force Survey Disability Module the ILO Labour Force Survey module respectively. Univariate and multiple regression analyses were conducted to identify socio-demographic characteristics and other related factors associated with labour market participation.ResultsAmong 4459 participants, disability was reported by 20.3% of women and 12.3% of men. Labour market participation was reported by 77.1% and 81.3% of women and men, respectively. Adjusting for demographic confounders, having a disability was associated with a lower likelihood of labour market participation (odds ratio 0.59, 95% confidence interval, 0.42-0.83, P = 0.001). These findings were similar in a modified model that looked at functional difficulties separately from anxiety and depression. Women, older participants, and those who were dependent on others were also more likely not to report participation in the labour market.ConclusionsIncreased recognition and understanding of functional limitations among smallholder farmers is vital for the success of economic empowerment programmes aimed at increasing labour market participation among the most vulnerable populations.
| S-EPMC11226002 | biostudies-literature
Project description:When deciding whether to invest in an improvement to animal welfare, farmers must trade-off the relative costs and benefits. Despite the existence of effective solutions to many animal welfare issues, farmers' willingness to pay for them is largely unknown. This study modelled pig farmers' decisions to improve animal welfare using a discrete choice experiment focused on alleviating aggression between growing/finishing pigs at regrouping. Eighty-two UK and Irish pig farm owners and managers were asked to choose between hypothetical aggression control strategies described in terms of four attributes; installation cost, on-going cost, impact on skin lesions from aggression and impact on growth rate. If they did not like any of the strategies they could opt to keep their current farm practice. Systematic variations in product attributes allowed farmers' preferences and willingness to pay to be estimated and latent class modelling accounted for heterogeneity in responses. The overall willingness to pay to reduce lesions was low at £0.06 per pig place (installation cost) and £0.01 per pig produced (running cost) for each 1% reduction in lesions. Results revealed three independent classes of farmers. Farmers in Class 1 were unlikely to regroup unfamiliar growing/finishing pigs, and thus were unwilling to adopt measures to reduce aggression at regrouping. Farmers in Classes 2 and 3 were willing to adopt measures providing certain pre-conditions were met. Farmers in Class 2 were motivated mainly by business goals, whilst farmers in Class 3 were motivated by both business and animal welfare goals, and were willing to pay the most to reduce aggression; £0.11 per pig place and £0.03 per pig produced for each 1% reduction in lesions. Farmers should not be considered a homogeneous group regarding the adoption of animal welfare innovations. Instead, campaigns should be targeted at subgroups according to their independent preferences and willingness to pay.
| S-EPMC6839880 | biostudies-literature
Project description:Forming and comparing subjective values (SVs) of choice options is a critical stage of decision-making. Previous studies have highlighted a complex network of brain regions involved in this process by utilising a diverse range of tasks and stimuli, varying in economic, hedonic and sensory qualities. However, the heterogeneity of tasks and sensory modalities may systematically confound the set of regions mediating the SVs of goods. To identify and delineate the core brain valuation system involved in processing SV, we utilised the Becker-DeGroot-Marschak (BDM) auction, an incentivised demand-revealing mechanism which quantifies SV through the economic metric of willingness-to-pay (WTP). A coordinate-based activation likelihood estimation meta-analysis analysed twenty-four fMRI studies employing a BDM task (731 participants; 190 foci). Using an additional contrast analysis, we also investigated whether this encoding of SV would be invariant to the concurrency of auction task and fMRI recordings. A fail-safe number analysis was conducted to explore potential publication bias. WTP positively correlated with fMRI-BOLD activations in the left ventromedial prefrontal cortex with a sub-cluster extending into anterior cingulate cortex, bilateral ventral striatum, right dorsolateral prefrontal cortex, right inferior frontal gyrus, and right anterior insula. Contrast analysis identified preferential engagement of the mentalizing-related structures in response to concurrent scanning. Together, our findings offer succinct empirical support for the core structures participating in the formation of SV, separate from the hedonic aspects of reward and evaluated in terms of WTP using BDM, and show the selective involvement of inhibition-related brain structures during active valuation.
| S-EPMC10332630 | biostudies-literature
Project description:This study was conducted to assess the potential impact of applying a new groundnut planting density on welfare of smallholder farmers in northern Ghana. We used data from on-farm experiments, focus group discussions, and a household survey. We followed three steps in our analysis. First, we conducted cost-benefit analysis in which we showed the economic advantage of the new technology over the farmers' practice. Second, we predicted adoption rates along timeline using the Adoption and Diffusion Outcome Prediction Tool (ADOPT). Third, using the results of the first and the second steps, we estimated the potential impact of the technology on poverty at household level using a combination of methods such as economic surplus model and econometric model. The cost-benefit analysis shows that increasing plant density increases farmers' financial returns i.e., the benefit-cost-ratio increases from 1.05 under farmers' practice to 1.87 under the best plant density option, which is 22 plants/sqm. The adoption prediction analysis shows that the maximum adoption rate for the best practice will be 62% which will take about nine years to reach. At the maximum adoption rate the incidence of extreme poverty will be reduced by about 3.6% if farmers have access to the international groundnut market and by about 2% if they do not have. The intervention will also reduce poverty gap and poverty severity. The results suggest that policy actions which can improve farmers' access to the international market will enhance farmers' welfare more than the situation in which farmers have access to domestic markets only. Furthermore, promoting a more integrated groundnut value-chain can broaden the demand base of the produce resulting in higher and sustainable impact of the technology on the welfare of groundnut producers and beyond.
| S-EPMC8759684 | biostudies-literature