Declining water supply is the main cause of rising water fee for agricultural use. Moreover, in non-technical irrigation, poor irrigation infrastructure exacerbates water scarcity. Thus, the purpose of this study is to identify farmer willingness to pay for non-technical irrigation and its determinants. Structured questionnaire was used to collect data from 100 farmers. Contingent valuation method was employed to elicit farmer WTP and multiple linear regression was used to find its determinants. The result shows that farmer average WTP is Rp 3,055,168 /ha/year. It accounts for 20 percent of total farmer revenue and almost 20 times fee for technical irrigation. Economic and technical variables are the significant determinants of WTP while social variables seem insignificant to WTP. This result indicates high economic value of water, and to improve irrigation management we recommend establishing irrigation infrastructure gradually by mobilizing farmer resources (capital and management) and strengthening WUA.
The purpose of this study was to identify the willingness of farmers to pay for small-scale irrigation (SSI) and its determinants. Additionally, this study analysed the physical water availability in the study area using 16 years’ (2004–2019) historical data of streamflow, rainfall and forest cover change. A structured questionnaire was used to collect the data from 100 farmers. A contingent valuation method was employed to elicit farmers’ willingness to pay (WTP) for irrigation water. The results show that the average WTP of farmers is US$ 215.84/ha/year. It accounts for 20% of farm revenue and is almost 20 times the water fee in large-scale irrigation systems. The study area experienced significant deforestation in the last two decades suffering a decrease of 11.72% of forest cover. It decreases the amount of stored rainwater and decreases the streamflow causing water scarcity during the dry season. Farm size, farmer income, distance to a small dam and usage of water-pump are the significant determinants. The results indicate that water scarcity caused by poor infrastructure increases the economic value of water in a SSI system.
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