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Supporting Agricultural Extension: Could Farmers Contribute?


  • Horna, J. Daniela
  • von Oppen, Matthias


Is extension an effective tool for increasing social welfare? The objective of this study is to evaluate the feasibility of farmer financial participation in extension as an alternative to increase its efficiency. While extension costs have been high, the impact at farmers' welfare has not yielded the expected results. Rice production in Nigeria and Benin is used as a study case. Rice is an important food crop and cash crops and both countries have conditions to produce it locally. Two concepts are used to evaluate private participation: farmers' capability to pay (CTP) and requirement to pay (RTP) for extension. Farmers' capability to pay is evaluated from the expected increase benefit due to extension work. Requirement to pay is deducted from extension costs. Results show that rice farmers could initially contribute with 25% of the extension costs in Nigeria and 10% in Benin. While financial participation from farmers is a possibility, the role of the government is still needed to guarantee social welfare.

Suggested Citation

  • Horna, J. Daniela & von Oppen, Matthias, 2006. "Supporting Agricultural Extension: Could Farmers Contribute?," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25324, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae06:25324

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    References listed on IDEAS

    1. 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.
    2. Birkhaeuser, Dean & Evenson, Robert E & Feder, Gershon, 1991. "The Economic Impact of Agricultural Extension: A Review," Economic Development and Cultural Change, University of Chicago Press, vol. 39(3), pages 607-650, April.
    3. Hite, James, 1993. "Rural Development, Privatization and Public Choice: Substance Depends upon Process," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 25(01), pages 89-98, July.
    4. Hite, James C., 1993. "Rural Development, Privatization And Public Choice: Substance Depends Upon Process," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 25(01), July.
    5. 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.
    6. Evenson, Robert E., 2001. "Economic impacts of agricultural research and extension," Handbook of Agricultural Economics,in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 11, pages 573-628 Elsevier.
    7. 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.
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    More about this item


    Teaching/Communication/Extension/Profession; Q16; O3;

    JEL classification:

    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights


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