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Demographic Influences on Willingness to Pay for Cold Tolerance Technology?

  • McCorkle, Becky
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    New technologies in agriculture have the potential to increase production levels, reduce risk, and improve profits for farm operators. However, in order for this to take place the technologies must appeal to producers, creating enough interest that they decide to invest in them. Gauging the level of interest in a technology and the types of producers who will be interested in trying it are important steps in technology development. Cereal crops such as wheat are important to agriculture in Canada in terms of both acreage and revenue. Researchers in Canada are currently attempting to develop more cold tolerant cereal crops to reduce the risk of frost damage and increase the area available to produce these crops. A producer survey including questions on past adoption behavior, attitudinal characteristics, and demographics as well as a set of dichotomous choice questions on new varieties was conducted and analyzed using a regression and willingness to pay calculations. Demographics were the focus during these activities. It was determined that producers from areas experiencing frost regularly with high incomes and large land bases had a higher propensity to adopt and higher willingness to pay for this technology.

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    File URL: http://purl.umn.edu/113236
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    Article provided by Agricultural and Applied Economics Association in its journal SS-AAEA Journal of Agricultural Economics.

    Volume (Year): (2007)
    Issue (Month): ()
    Pages:

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    Handle: RePEc:ags:ssaaea:113236
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    1. Karshenas, Massoud & Stoneman, Paul, 1990. "Rank, Stock, Order And Epidemic Effects In The Diffusion Of New Process Technologies : An Empirical Model," The Warwick Economics Research Paper Series (TWERPS) 358, University of Warwick, Department of Economics.
    2. Phoebe Koundouri & CĂ©line Nauges & Vangelis Tzouvelekas, 2006. "Technology Adoption under Production Uncertainty: Theory and Application to Irrigation Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 657-670.
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