International Journal of Agricultural Science Research Vol. 3(12), pp. 268-277, December 2014 ISSN 2327-3321 ©2014 Academe Research Journals

Full Length Research Paper

Factors affecting farmers’ willingness to pay for agricultural extension services: The case of Haramaya District, Ethiopia

Teferi Tolera¹*, Daniel Temesgen² and D. Sundaraa Rajan³

¹Center for Environment and Development, College of Development Studies, Addis Ababa University, Ethiopia.

²Pastoralist Forums, Ethiopia.

³Wolaita Sodo University, Ethiopia.

*Corresponding author. E-mail: ttolera2009@gmail.com.

Accepted 15 December, 2014

Abstract

As a result of the rapid changing situation of agriculture, inability of public extension services to be responsive to the needs of farmers and changing of policy environment, new paradigm is emerging. The focus of this new paradigm is pluralism, the emergence of multiplicity of actors providing extension services. This study was designed to assess factors affecting farmers’ willingness to pay (WTP) for extension services in Haramaya District, Ethiopia. A total of 134 households were selected randomly and interviewed using interview schedules prepared for the purpose. The data were analyzed using both descriptive and econometric model (Logit model). The results of the study from the analysis of determinants of the willingness to pay from logit model showed a significant positive relationship between WTP and household income, and farm size. Other household characteristics such as household age, media exposure, and family size were found negatively and significantly related with WTP. Finally, this study recommended that by targeting farmers, with high level of income, large farm sizes, and household with small family size, the commercialization of extension services would take the advantages of these features and hence their greater abilities to pay for extension services.

Key words: Willingness to pay, agricultural extension, Haramaya, Ethiopia, logit.