Farmers' Willingness to Pay for 2-Wheel Tractor Hiring Services in Northwestern Ethiopia: A Contingent Valuation Study

Astewel D. Takele, Yihenew G. Selassie, Solomon Tekset

Abstract


This study sought to determine farmers’ willingness to pay (WTP) for 2-wheel tractor hiring services in Northwestern Ethiopia. Survey questionnaire related to CVM was designed and face-to face interview were made to collect the data. Moreover, focus group discussion used to generate qualitative information on household characteristics. Both purposive and stratified sampling techniques were used based on gender, wealth class and soil type of the sampled households. For the study, a total of 144 farm households were considered using double bounded contingent valuation methods approach with an open-ended follow-up question. The study result indicated that the mean amount of money farmers is willing to pay was 1121.026 ETB (56.05 USD) per hectare. Econometric results confirm that the education level of households, land size of households, male labor availability and soil type were the factors that affecting the farmers’ level of willingness to pay positively. However, age of households and tropical livestock unit (TLU) were the factors that affected the same negatively. About 80% of the sampled farmers were willing to use 2-wheel THS. The finding of this study showed that farmers demand for improved 2-wheel THS is high. Hence, there is a need to consider the above factors to introduce 2-wheel tractor hiring service for cultivation practice in the study area.

 


Keywords


Willingness to pay, 2-wheel tractor, Tractor hiring service, Contigent valuation

Full Text:

PDF

References


Anemut Belete, (2006). Determinants of farmers’ willingness to pay for the conservation of National Parks: the case of Simen Mountains National Park.

Aune, J. B., M. T. Bussa, F. G. Asfaw and A. A. Ayele( 2001). The ox ploughing system in Ethiopia: can it be sustained? Outlook on Agriculture 2001, 30: 275-280.

ATA, (2014). Ethiopian National Agricultural Mechanization Strategy Vision, Systemic Challenges and Strategic Interventions , August 2014,

Alberini, A. and Cooper, J. (2000). Application of Contingent Valuation Method in Developing Countries”. Economic and Social Development Paper. FAO, No. 146, Rome.

Aliberini A. (1995). optimal designs for discrit choice contigent valuationsurveys:singl- bound, double-bound and bivariate models, J.Environ. Econom.management 28,287-306

Blachandran, P. G. 2003. Constraints on Diffusion and Adoption of Agro-mechanical Technology in Rice Cultivation in Kerala:

Available Online at: http://kkrpcds.org/publication/ downloads/ 59.pdf.

Belhaj, M. (2003). Estimating the benefits of clean air contingent valuation and hedonic price methods. International Journal of Global Environmental Issues, 3(1), 30–46.

https://doi.org/10.1504/IJGENVI.2003.002410

Bennett, J.and R. Blamey, (2001). The Choice modeling approach to environmental valuation. Edward Elgar publishing. Cheltenham.

CIMMYT (International maize and wheat improvement center) (2014). Farm mechanization and conservation Agriculture for sustainable intensification (facasi) project. Market analysis for small mechanizatioN.Ethiopia. October,2014.

Cameron, T.A and Quiggin J. (1994). Estimating using Continent valuation data a dichotomous choice with follow up questionnaire. Journal of environment and management;27(3):218-34,1994.

Carson, R. T. (1985). Three Essays on Contingent Valuation (Welfare Economics, Non-Market Goods, Water Quality). Ph.D Thesis. Department of Agriculture and Resource Economics. University of California, Berkeley.

Cooper C J, Hanemann M., and Signorello G. (2006) .One-and-One-Half-Bound Dichotomous Choice Contingent Valuation Posted Online March 13, 2006. https://doi.org/10.1162/003465302760556549

Cooper, C.J. Hanemann, M.,Sgnorello G., (2001). One–and–one half –bound Dichotomous choice contingent valuation.

Celerina, A. Maranan, C.L. (1980). Comparative evaluation of tractor and carabao Use in rice land preparation, Nueva ECIJA, Philippines Development. Journal of Philippine, Number twenty one volume XII, No. 1, 1985.

Dasgupta, Siddhartha, John Foltz, and Bonnie Jacobsen(200). Trout Steaks: Consumer Perceptions of a New Food Item. Journal of Food Distribution.31(3):37-48, November 2000.

Daniel Temesgen and Teferi Tola Determinates of small holder farmers willingness to pay for agricultural extension services: A case study from Eastern Ethiopia. African Journal of Agricultural Research,2015.

Dagninet Amare and Wolelaw Endalew, (2016). Agricultural Mechanization: Assessment of Mechanization Impact Experiences on the Rural Population and the Implications for Ethiopian Smallholders Bahir Dar Agricultural Mechanization and Food Science Research Center, Bahir Dar, Ethiopia.

Dbuble bound. Warolin L. (1998). Willingness to pay for an insurance against locust invasion in rural Ethiopia. Project paper for MSc. degree minor field study. University of Gothenburg, Sweden.

Gebremariam, G. G. (2012). Households’willingness to pay for soil conservation practices in Adwa Woreda, Ethiopia: A contingent valuation study. Zomba: University of Malawi.

F.Rasouli, H. Sadighi, and S. Minaei,( 2009). Factors Affecting Agricultural Mechanization: A Case Study on Sunflower Seed Farms in Iran J. Agric. Sci. Technol. (2009) Vol. 11: 39-48

Guush Berhane (2014). Emerging Demand for Tractor Mechanization in Ethiopia IFPRI/Ethiopia. Strategy Support Program Mechanization and Agricultural Transformation in Asia and Africa Sharing Development Experiences June 18-19, 2014 Beijing, China.

Gujarati, D.(2004). Basic Econometrics. Fourth Edition. The McGraw-Hill Companies, New York.

Hanemann, M., Loomis, J. and Kaninen, B.(1991). Statistical Efficiency of Double Bounded Dichotomous Choice Contingent Valuation”. American Journal of Agricultural Economics, 73(4), 1255-63.

Hanneman, W. M. (1984). Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses. American Journal of Agricultural Economics, 66, 332-341.

Hiroyuki Takeshima, (2016). Market Imperfections for Tractor Service Provision in Nigeria .International Perspectives and Empirical Evidence

Jantzen J., (2006). The economic value of natural and environmental resources. Background document training TME. Institute for Applied Environmental Economics.

Jonathan Kuje Yohanna Ango, Usman Fulani and Williams Aka'ama(2011) . A Survey of Mechanization Problems of the Small Scale (Peasant) Farmers in the Middle Belt of Nigeria .Journal of Agricultural Science .Vol. 3, No. 2; June 2011

Kasahun and Colin (2014). The Political Economy of Agricultural Extension Policy in Ethiopia: Economic Growth and Political Control Development Policy Review, 32 (S2): s197-s213 .

Kanyoka, P., Farolfi, S. and Morardet, S.(2008). Households’ preferences and willingness to pay for multiple use water services in rural areas of South Africa: An analysis based on choice modeling. Department of Agricultural Economics, University of Pretoria, Pretoria, RSA., 2008.

kahalid, A.R., (2008). Economic valuation of good and service of coastal habits. The regional training workshop, March24-28, 2008.

Kasaye, B. (2015). Farmers willingness to pay for improved soil conservation practices on communal lands in Ethiopia. Addis Ababa: Addis Ababa University.

Lemi Gonfa, (2015). Farmers’ Willingness to Pay for Improved Forage Seed in LIVES Districts of West Shewa Zone, Ethiopia

Melaku T. (2011). Oxenization versus Tractorization: Options and Constraints for Ethiopian Framing System. International Journal of Sustainable Agriculture 3 (1):11-20, 2011

Melesse, T.(2000). Animal-drawn implements for improved cultivation in Ethiopia: participatory development and testing.

Melese T.92017). Conservation of tillage systems and water conservation productivity . implication of small holder farmers in Semi-Arid Ethiopia., 20 Feb, 2017.

Mitchell, R. and Carson, R, (1989). Using surveys to value public goods: the contingent valuation method (John Hopkins Press, Baltimore, 1989).

Mburu, J., (2005). Economic Valuation and Environmental Assessment. Training manual for training, held 15-26 August 2005 at Kakamega Golf Hotel, Kenya.

Mabiso. Estimating consumers´ willingness-to-pay for Country-of-origin labels in fresh apples and tomatoes: A Double-hurdle probit analysis of U.S. data using factor scores, 2005.

Njoko S. (2014). Small holder farmers willingness and ability to pay for improved irrigaton; a case of Msinga Loacl manusipality.KwaZulu-natal provence.

Reta Wegary , (2013). Farmers’ willingness to pay for locally produced Potato seed tubers and groundnut seed: the case of Haramaya and babile districts of east Hararghe zone, Oromia regional state, Ethiopia.

Simiret,Y. (2015).Two-wheel (single axle) tractors introduced to power agriculture in the highlands of Ethiopia.

Stein Holden and Bekele Shiferaw(. Land degradation, drought and food in a less favored area in the Ethiopian high land:, a bio -economic model with market information.

Teller, C., Gebreselassie, T. and Hailemariam, A. (2007). The Lagging Demographic and Health Transitions in Rural Ethiopia: Socio-economic, agro-ecological and health service factors affecting fertility, mortality and nutrition trends’.

Tadess etal. (2014). The Marginalized and Poorest in Different Communities and Settings of Ethiopia Draft, April, 2004

Tang, Z, Z Nan and J Liu (2013). The willingness to pay for irrigation water: A case study in northwest China. Global Nest Journal, 15, 76–84.

Tamrat Gebise (2014). Tractor Service Price Determinants among Smallholder Farmers in Ethiopia. Open Science Repository Agriculture. Open Science Repository Agriculture May, 2014.

Tilahun, M., Mathijs, E., Muys, B., Vranken, L., Deckers, J., Gebregziabher, K., Bauer, H. (2011). Contingent valuation analysis of rural households’ willingness to pay for frankincense forest conservation. Paper presented at the 2011 International Congress, Zurich: European Association of Agricultural Economists.

Wooldridge, J. R. M. (2002). Econometric analysis of cross section and panel data. Cambridge, MA: The MIT Press.

World Bank,(2015). The 4th Ethiopia Economic Update: Overcoming Constraints. In The Manufacturing Sector.

Yamane, T. (1967). Statistics: An introductory Analysis, 2nd Ed., New York. Harper and Row.

Young, R., (2005). Determining the economic value of water: concepts and methods. Resources for the Future. Resources for the Future (RFF) Press.




DOI: https://doi.org/10.24203/ajafs.v6i6.5592

Refbacks

  • There are currently no refbacks.


Copyright (c) 2018 Asian Journal of Agriculture and Food Sciences

Creative Commons License
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.