What drives smallholder farmers’ willingness to pay for a new farm technology? Evidence from an experimental auction in Kenya

Channa, Hira; Chen, Amy Z.; Pina, Patricia; Ricker‐Gilbert, Jacob; Stein, Daniel

doi:10.1016/j.foodpol.2019.03.005

Cited by 53 publications

(33 citation statements)

References 28 publications

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“…It seems that innovation adoption decisions are strongly influenced by farmers' exposure to and awareness of the benefits of the technology (Rogers, 1983). Our finding is consistent with Channa et al (2019) and Qaim and De Janvry (2003). For the sensor arrays, however, the estimated coefficients for tool knowledge were insignificant.…”

Section: Household Characteristicssupporting

confidence: 89%

“…New agricultural innovations are key for improving productivity and profitability and achieving sustainable development (Channa et al, 2019), especially in developing countries (Doss, 2006;Feder et al, 1985). Studies suggest that the uptake of innovation is a dynamic process through which individuals gradually learn about an innovation and adopt it (Baumüller, 2012).…”

Section: Agricultural Technology Adoption Theorymentioning

confidence: 99%

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Irrigators’ willingness to pay for the adoption of soil moisture monitoring tools in South-Eastern Africa

Abebe

Zuo

Wheeler

et al. 2020

International Journal of Water Resources Development

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Contingent valuation is used to elicit irrigators' willingness to pay for soil moisture tools in irrigation schemes in Africa, with various econometric methods employed to mitigate potential bias. Key results include that there is a neighbourhood effect influencing adoption, and that being located downstream and spending more on irrigation water positively and statistically significantly influenced willingness to pay for tools. The result suggests that although focusing on economic incentives and promoting farmer learning by those using the tools may promote greater adoption, there is likely to still be a need for co-investment by other bodies.

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Section: Household Characteristicssupporting

confidence: 89%

Section: Agricultural Technology Adoption Theorymentioning

confidence: 99%

Irrigators’ willingness to pay for the adoption of soil moisture monitoring tools in South-Eastern Africa

Abebe

Zuo

Wheeler

et al. 2020

International Journal of Water Resources Development

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show abstract

“…One of the lessons from experimental economics is that the closer researchers approach real transactions, the more likely respondents will express their true preferences. Previous studies of the value of grain moisture information and measurement devices have demonstrated devices and elicited preferences (Shinamoto et al, 2017;Channa et al, 2018). This study goes beyond previous studies in that grain moisture measurement devices were sold to farmers who pay with their own funds.…”

Section: Methodsmentioning

confidence: 82%

“…800 Taka) for a grain moisture meter. Moisture meter sales were mostly to farmers with over 1.2 hectares of land and several tons of rice production annually Channa et al (2018). reported a willingness to pay by Kenyan farmers of an average of US$1.20 for a hygrometer that can measure the temperature (T) and relative humidity (RH) of the air around the grain.…”

mentioning

confidence: 99%

An experimental approach to estimating the value of grain moisture information to farmers in Bangladesh

Akter

Islam

Haque

et al. 2018

Journal of Stored Products Research

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In the developing world grain storage losses are high and in humid areas inadequate grain drying is often a source of storage problems. Farmers and traders depend on traditional grain moisture estimation methods which are subject to a wide error margin. Grain storage decisions could be improved if farmers and traders had a low cost grain moisture meter that fit their needs. The goal of this study was to determine the desired grain moisture meter functionality and to estimate the value of grain moisture measurement for small holder farmers and for small-scale grain traders, using Bangladesh as a case study. This study was based on interviews with 140 randomly selected Bangladeshi rice farmers in 2016 and 2017, discussions with millers at 30 rice mills and a voucher based moisture meter sales program. It shows that except for rice kept for seed and home consumption, most Bangladeshi farmers sell their rice shortly after harvest to satisfy cash needs and to eliminate storage risks. They say that they would store more rice on-farm if they had better storage methods including cost-effective grain moisture testing. Survey results show that the average farm storage loss was 52 kg or 563 Taka (US$6.78) annually. Using experimental economics methods, farmers were given the opportunity to purchase a probe type grain moisture meter through vouchers with a range of prices. Twenty three of the 140 of the participants (i.e. 16%) purchased at an average of price of 374 Taka (i.e. US$4.67). No farmer purchased a voucher price over 800 Taka (US$10.00). Those who purchased moisture meters had larger farms and produced more rice than those who did not exercise the voucher. They were also younger on average, have more education and more off farm income than non-purchasers.

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“…We make several contributions to the literature on adoption of welfare enhancing technologies, and in particular yield enhancing technologies. Our main contribution to the literature is on information barriers to adoption of agricultural technologies and the role certification could play for signalling quality of a credence good (Fuglie et al ., 2006; De Groote, 2011; Guei et al ., 2011; Banerji et al ., 2016; Poku et al ., 2018; Channa et al ., 2019).…”

Section: Introductionmentioning

confidence: 99%

Information Barriers to Adoption of Agricultural Technologies: Willingness to Pay for Certified Seed of an Open Pollinated Maize Variety in Northern Uganda

Mastenbroek¹,

Sirutyte²,

Sparrow³

2020

J Agricultural Economics

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We examine smallholder farmers’ willingness to pay for agricultural technology and whether information is a constraint to adoption of certified maize seed in Northern Uganda. The uptake of improved maize varieties by smallholder farmers in Uganda remains persistently low, despite the higher yield potential compared to traditional varieties. A recently growing body of literature identifies information constraints as a potential barrier to adoption of agricultural technologies. We used incentive compatible Becker‐DeGroot‐Marschak auctions to elicit willingness to pay for quality assured improved maize seed by 1,009 smallholder farmers, and conducted a randomised evaluation to test the effect of an information intervention on farmers’ knowledge of seed certification. Our results show that the randomised information treatment enhanced farmers’ knowledge of certified seed. However, using the information treatment as an instrumental variable for knowledge, we find no evidence of a causal effect of knowledge on willingness to pay, suggesting that even though farmers are information constrained, this constraint does not affect adoption of certified seed directly. Nevertheless, only 14% of sampled farmers were willing to pay the market price, which corresponds closely with actual observed demand for certified seed in the previous season. This suggests that there are other barriers to adoption than information and awareness.

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What drives smallholder farmers’ willingness to pay for a new farm technology? Evidence from an experimental auction in Kenya

Cited by 53 publications

References 28 publications

Irrigators’ willingness to pay for the adoption of soil moisture monitoring tools in South-Eastern Africa

Irrigators’ willingness to pay for the adoption of soil moisture monitoring tools in South-Eastern Africa

An experimental approach to estimating the value of grain moisture information to farmers in Bangladesh

Information Barriers to Adoption of Agricultural Technologies: Willingness to Pay for Certified Seed of an Open Pollinated Maize Variety in Northern Uganda

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