scholarly journals Willingness to pay for rainfall risk insurance by smallholder farmers in Central Rift Valley of Ethiopia: The case of Dugda and Mieso Districts

2015 ◽  
Vol 10 (28) ◽  
pp. 2738-2747 ◽  
Author(s):  
Teshome Hiwot ◽  
Bogale Ayalneh
Keyword(s):  
Willingness To Pay ◽  
Rift Valley ◽  
Smallholder Farmers ◽  
Risk Insurance

scholarly journals Willingness to pay for Rainfall based Insurance by Smallholder Farmers in Central Rift Valley of Ethiopia: The Case of Dugda and Mieso Woredas

2014 ◽  
Vol 1 (2) ◽  
pp. 117-152
Author(s):  
Hiwot Teshome Abebe ◽  
Ayalneh Bogale
Keyword(s):  
Willingness To Pay ◽  
Smallholder Farmers ◽  
Household Head ◽  
Insurance Premium ◽  
Tobit Model ◽  
Farm Income ◽  
The Mean ◽  
Income Variability ◽  
Risk Insurance ◽  
Small Holder

Current climate variability is already imposing significant challenge to Ethiopia. Therefore,  farmers  have  faced  income  variability  in  almost  every  production  season. Problems associated with dependence on rain fed agriculture are common in Ethiopia. Smallholder farmers’ vulnerability from such income variability is also common. Over the years, a range of risk management strategies have been used to reduce, or to assist farmers to absorb, some of these risks. Since insurance is potentially an important instrument to transfer part of the risk, this study try to describe the nature of weather related risks faced by smallholder farmers, assess small holder farmers willingness to pay for the rainfall risk insurance and examine factors that affect the maximum farmers are willing to pay for the rainfall risk insurance. The data was collected from 161 sample households from the two woredas of the study area using closed ended value elicitation format followed by open ended follow up questions. The study uses Logit model to estimate the mean willingness to pay in the close ended format in addition with Tobit model to examine factors that affecting small holder farmer willingness to pay as well as intensity of payment. The mean willingness to pay values are found to be 129.98 and 183.41 birr per hectare for the open and close ended formats respectively. The total willingness to pay for the study area was found to be birr 5,740,244 per year. The tobit model shows six potential explanatory variables affect the willingness to pay value. Income of household and ownership of radio have positive and significant effect on the value of willingness to pay, whereas off-farm income, age of household head, number of livestock owning and availability of public and private gifts have negative and significant effect on willingness to pay value. If the rainfall risk insurance premium is affordable and households have enough information about the service they are willing to pay for the service. Eventually policy makers need to be aware that socio-economic and institutional characteristics of households influence the willingness to pay for rainfall risk insurance services.

Impact of community-based exclosure to smallholder farmers’ livelihood and their willingness to pay: empirical evidences from Tigrai, Ethiopia

2021 ◽  
Author(s):  
Gidey Kidu Mezgebo ◽  
Teklay Negash Gebrezgiabher ◽  
Metkel Aregay Gebreyesus ◽  
Kidane Tesfay Gebrezgiabher ◽  
Leake Gebreslassie Weldegiwergis ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Smallholder Farmers ◽  
Community Based

scholarly journals Smallholder farmers willingness to pay for privatized agricultural extension services in Tigray National Regional State, Ethiopia

2020 ◽  
Vol 24 (4) ◽  
pp. 29-38
Author(s):  
Kidane Tesfay Gebreegziabher ◽  
Gidey Kidu Mezgebo
Keyword(s):  
Willingness To Pay ◽  
Smallholder Farmers ◽  
Group Discussion ◽  
Household Survey ◽  
Agricultural Extension ◽  
Sampling Procedure ◽  
Farm Size ◽  
Extension Service ◽  
Extension Services ◽  
Agricultural Extension Service

This study assessed farmers’ willingness to pay for privatization of agricultural extension services and examined factors that determine willingness to pay for those services. Multistage sampling procedure was used in selecting 240 households. Data were collected using household survey, focus group discussion and key informant interview tools. Data were analyzed using percentage and logit model. Results showed that 58% of the respondents were willing to pay for the privatization of agricultural extension services. Farm size, age, family size, credit access, frequency of extension contact and income were significantly influenced farmers’ willingness to pay for privatization of agricultural extension services. Privatization of agricultural extension services encourages graduates of agricultural sciences to launch consultancy firms and this engenders professional entrepreneurship. Number of visits, socioeconomic, and institutional factors must be given emphasis for privatizing the agricultural extension service in Ethiopia. Moreover, government should launch privatization parallel to the public agricultural extension services Keywords: Agricultural extension service, willingness, privatization. Ethiopia

Smallholder preferences and willingness-to-pay measures for microcredit

2018 ◽  
Vol 10 (3) ◽  
pp. 462-481 ◽  
Author(s):  
Zhao Ding ◽  
Awudu Abdulai
Keyword(s):  
Willingness To Pay ◽  
Interest Rates ◽  
Latent Class ◽  
Smallholder Farmers ◽  
Mixed Logit ◽  
Latent Class Models ◽  
Preference Heterogeneity ◽  
Content Type ◽  
Lower Interest Rate ◽  
Class Models

Purpose The purpose of this paper is to examine smallholders’ preferences and willingness to pay for microcredit products with varying attribute combinations, in order to contribute to the debate on the optimal design of rural microcredit. Design/methodology/approach Data used in this study are based on a discrete choice experiment from 552 randomly selected respondents. Mixed logit and latent class models are estimated to examine the choice probability and sources of preference heterogeneity. Endogenous attribute attendance models are applied to account for attribute non-attendance (ANA) phenomenon, focusing on separate non-attendance probability as well as joint non-attendance probability. Findings The results demonstrate that preference heterogeneity and ANA exist in the smallholder farmers’ microcredit choices. Averagely, smallholder farmers prefer longer credit period, smaller credit size, lower transaction costs and lower interest rate. Guarantor collateral method and installment repayment positively affect their preferences as well. Moreover, respondents are found to be willing to pay more for the attributes they consider important. The microcredit providers are able to attract new customers under the current interest rates, if the combination of attributes is appropriately adjusted. Originality/value This study contributes to the debate by assessing the preference trade-off of different microcredit attributes more comprehensively than in previous analyses, by taking preference heterogeneity and ANA into account.

scholarly journals Willingness to Pay for Irrigation Services in the Cold Winter Deserts of Uzbekistan

2021 ◽  
Vol 14 (1) ◽  
pp. 94
Author(s):  
Girma T. Kassie ◽  
Hasan Boboev ◽  
Ram Sharma ◽  
Akmal Akramkhanov
Keyword(s):  
Willingness To Pay ◽  
Latent Class ◽  
Smallholder Farmers ◽  
Careful Consideration ◽  
Latent Class Models ◽  
Discrete Choice Experiments ◽  
Cold Winter ◽  
Irrigation Systems ◽  
Key Characteristics ◽  
Water Scarce

Irrigation facilities in the cold winter deserts (CWDs) of Uzbekistan are very traditional and poorly managed, resulting in low water use efficiency and low productivity. Improving the irrigation facilities in these deserts is a key priority for the country. This study intended to contribute towards the development of the irrigation systems through identification and quantification of the relative implicit values smallholder farmers confer to the key characteristics of irrigation facilities. We elicited preferences with discrete choice experiments, estimated willingness to pay for these attributes using random parameters logit models, and analyzed heuristics in the choice process using a series of latent class models. Our results show that farmers have clear preferences for higher watering frequency and no interest in sharing irrigation water with downstream users. We also observed that there are distinct groups of farmers with comparable but different levels of preference. The development of irrigation facilities in the water-scarce parts of Uzbekistan would benefit from careful consideration of the preferences of the target communities and targeting of the schemes based on the broad heterogeneities within the communities. This will aid in the maintenance of irrigation systems and, as a result, increase agricultural production and productivity.

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