What drives smallholder farmers' willingness to pay for a new farm technology? Evidence from an experimental auction in Kenya.
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ABSTRACT:
SUBMITTER: Channa H
PROVIDER: S-EPMC6558993 | biostudies-literature |
REPOSITORIES: biostudies-literature
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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: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.
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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: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: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
Project description:This study examines the impact of ethical attitude on the willingness to pay for farm animal welfare improvement in Germany. Little is known about the pluralism of moral attitudes that may exist behind farm animal welfare issues and its relationship to customers' willingness to pay for it. Via a large survey (n = 1334) we are able to identify different moral dimensions by employing validated scales. We find utilitarian alongside deontological attitudes as well as a mixture of both. Thus, presupposing a standard moral attitude is too simple. This has implications for decision-making on markets, since the implicit normative assumptions of a utilitarian position in economics has to be critically assessed. Furthermore, we asked for the willingness to pay for various aspects of farm animal welfare improvement. We find significant positive correlations between willingness to pay and environmental concern, altruism and less apathy. Measured in Euro, a higher environmental concern has the strongest effect on WTP for all five moral scales. Outliers with higher bids are willing to pay almost five times for any aspect of farm animal welfare than the rest of the sample. A more detailed analysis of outliers demonstrates that market-based approaches have restrictions in capturing certain moral values. Moreover, the motivations behind zero bids reveal that moral concerns outweigh indifference towards animal welfare by far. This has implications how policy can be designed to serve people's demand for higher animal welfare standards. Two other findings are of interest. First, we find a very high number of people assigning an intrinsic value to animals (90%). Second, zero bids and outlier treatment in WTP-studies deserves more careful consideration, since WTP-estimates are easily skewed by excluding these groups.
| S-EPMC6091959 | biostudies-literature
Project description:Long-lasting insecticidal nets (LLINs) are one of the main interventions recommended by the World Health Organization for malaria vector control. LLINs are ineffective if they are not being used. Subsequent to the completion of a cluster randomized cross over trial conducted in rural Greater Accra where participants were provided with the 'Bɔkɔɔ System'-a set of solar powered net fan and light consoles with a solar panel and battery-or alternative household water filters, all trial participants were invited to participate in a Becker-DeGroot-Marschak auction to determine the mean willingness to pay (WTP) for the fan and light consoles and to estimate the demand curve for the units.Results demonstraed a mean WTP of approximately 55 Cedis (~13 USD). Demand results suggested that at a price which would support full manufacturing cost recovery, a majority of households in the area would be willing to purchase at least one such unit.
| S-EPMC5547488 | biostudies-other
Project description:[This corrects the article DOI: 10.1371/journal.pone.0202193.].
| S-EPMC6173451 | biostudies-literature