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

  • HORNA, J. DANIELA
  • SMALE, MELINDA
  • OPPEN, MATTHIAS VON

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.

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Article provided by Cambridge University Press in its journal Environment and Development Economics.

Volume (Year): 12 (2007)
Issue (Month): 06 (December)
Pages: 799-825

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Handle: RePEc:cup:endeec:v:12:y:2007:i:06:p:799-825_00
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  1. McFeeters, Don, 2004. "The Art Of Entrepreneurship In An Extension Unit," 2004 Annual meeting, August 1-4, Denver, CO 20375, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Ariel Dinar, 1996. "Extension Commercialization: How Much to Charge for Extension Services," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 1-12.
  3. Baidu-Forson, J. & Waliyar, F. & Ntare, B. R., 1997. "Farmer preferences for socioeconomic and technical interventions in groundnut production system in Niger: Conjoint and ordered probit analyses," Agricultural Systems, Elsevier, vol. 54(4), pages 463-476, August.
  4. Baidu-Forson, Jojo & Ntare, Bonny R. & Waliyar, Farid, 1997. "Utilizing conjoint analysis to design modern crop varieties: Empirical example for groundnut in Niger," Agricultural Economics, Blackwell, vol. 16(3), pages 219-226, August.
  5. Dalton, Timothy J., 2004. "A household hedonic model of rice traits: economic values from farmers in West Africa," Agricultural Economics, Blackwell, vol. 31(2-3), pages 149-159, December.
  6. Baidu-Forson, Jojo & Ntare, Bonny R. & Waliyar, Farid, 1997. "Utilizing conjoint analysis to design modern crop varieties: empirical example for groundnut in Niger," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 16(3), August.
  7. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
  8. Green, Paul E & Srinivasan, V, 1978. " Conjoint Analysis in Consumer Research: Issues and Outlook," Journal of Consumer Research, University of Chicago Press, vol. 5(2), pages 103-23, Se.
  9. Gary Crow, 1997. "Estimating the Values of Cattle Characteristics Using an Ordered Probit Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 463-476.
  10. Jupiter Ndjeunga & Carl H. Nelson, 2005. "Toward understanding household preference for consumption characteristics of millet varieties: a case study from western Niger," Agricultural Economics, International Association of Agricultural Economists, vol. 32(2), pages 151-165, 03.
  11. Ariel Dinar & Gabriel Keynan, 2001. "Economics of Paid Extension: Lessons from Experience in Nicaragua," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 769-776.
  12. White, Howard, 2002. "Combining Quantitative and Qualitative Approaches in Poverty Analysis," World Development, Elsevier, vol. 30(3), pages 511-522, March.
  13. James C. Hanson & Richard E. Just, 2001. "The Potential for Transition to Paid Extension: Some Guiding Economic Principles," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 777-784.
  14. Massimiliano Mazzanti, 2003. "Discrete choice models and valuation experiments," Journal of Economic Studies, Emerald Group Publishing, vol. 30(6), pages 584-604, October.
  15. Adesina, Akinwumi A. & Zinnah, Moses M., 1993. "Technology characteristics, farmers' perceptions and adoption decisions: A Tobit model application in Sierra Leone," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 9(4), December.
  16. Garth John Holloway & Simeon K. Ehui, 2001. "Demand, Supply and Willingness-to-Pay for Extension Services in an Emerging-Market Setting," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 764-768.
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