Farmer’s Willingness to Pay for Teff Threshing Services in West Shawa Zone

Abstract

Farmer’s Willingness to Pay for Teff Threshing Services using the contingent valuation method was considered as a solution for more scaling up of teff threshing machine. These studding assessed farmers mean willingness to pay for and to identify the determinant of farmers’, mean willingness to pay for threshing services. In this study, three-stage sampling procedure was used to select four districts, six kebeles and 142 specific sample farm households. Descriptive and econometric analyses were employed. out of the 142 household heads, 90 (63%) of them said "yes" or they were willing to accept the initial bids and the remaining 52 (37%) said "no" or they were not willing to accept the initial bids. 116 birr was the mean willingness to pay for one quintal of teff threshing services. Based on these values, the aggregate WTP for threshing services was computed at 6,704,556 birr per one quintal services in the selected four districts based on the mean from the double bounded dichotomous choice. The results obtained through Bivariate Probit model to examine factors affecting mean willingness to pay showed that age of households (hhs) head, education level of hhs heads, hhs whom is student left from school for threshing services and land holdings under teff in 2011/12 were identified to have significant positive influence to willingness to the practices. While no. of male family member with age more than fifteen years engaged on agriculture with full time and distance of hhs residence from main market, first bid and second bid were identified to have significant negative influence on willingness to pay for threshing services.

Keywords: Contingent valuation method, teff threshing services, threshing machine and Willingness to Pay

DOI: 10.7176/JESD/13-23-03

Publication date: December 31^st 2022