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Farmer willingness to pay for seed-related information: rice varieties in Nigeria and Benin

Published online by Cambridge University Press:  01 December 2007

J. DANIELA HORNA ,
MELINDA SMALE  and
MATTHIAS VON OPPEN
J. DANIELA HORNA*
Affiliation:
Institute of Agricultural Economics and Social Sciences for the Tropics and Subtropics, University of Hohenheim
MELINDA SMALE
Affiliation:
International Institute of Food Policy Research (IFPRI); International Plant Genetic Resources Institute (IPGRI)
MATTHIAS VON OPPEN
Affiliation:
Institute of Agricultural Economics and Social Sciences for the Tropics and Subtropics, University of Hohenheim
*
* Corresponding to: J. Daniela Horna, IFPRI. 2033 K Street NW, Washington, DC 20006-1002, USA. Tel: +1 (202) 862 5605. Fax: +1 (202) 467 4439. Email: dhorna@cgiar.org, jdhorna@uni-hohenheim.de
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Abstract

This study examines farmers’ preferences for seed of new rice varieties (improved and NERICA) and their willingness to pay (WTP) for information embodied in the seed, in villages of Nigeria and Benin. Information might not generate rivalry among its users but excludability is certainly a characteristic of information and its delivery can generate incentives for private participation. Conjoint utility analysis is used to estimate the structure of farmers’ preferences for rice seed. Farmers prefer one variety based on the utility they obtain from its attributes, which depends on their own social and economic characteristics. Contingent methods are used to elicit preferences and rice seed price. The marginal values of attributes are estimated with an ordered probit regression. The WTP for seed-related information is derived from the utility model. The results have implications for the best way to finance extension services in the areas of intervention, particularly for new rice varieties.

Type
Research Article
Information
Environment and Development Economics , Volume 12 , Issue 6 , December 2007 , pp. 799 - 825
Copyright
Copyright © Cambridge University Press 2007

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