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MD. EKTEAR UDDIN*
*Department of Development Studies, College of Humanities and Development Studies, China Agricultural University, Beijing

QIJIE GAO
Department of Development Studies, College of Humanities and Development Studies, China Agricultural University, Beijing

Purpose: Globally, many extension professionals and policy-makers are advocating fee based services, in addressing the fund shortage and sustainable provision of agricultural advisory services. Hence, the article attempts to expose the farmers’ willingness to pay (WTP) as agricultural extension in Bangladesh is experiencing chronic fund crisis. Methodology: This study used contingent valuation method (CVM) for investigating farmers’ WTP. Logit and Tobit model was employed to assess the determinants of WTP and amount willing to pay (AWTP) respectively. Besides, different qualitative methods were employed to have a deeper understanding of the research problems. Findings: WTP was conditioned by providing quality extension services at farm and/or home of the farmers. The study also focused on farmers preferred mode of payment, criteria influencing payment decisions and the type of services for which they are willing to pay. Paid model can contribute to quality extension services, if started with a market-oriented commodity-based approach accompanied by adequate crop insurance support. Practical implications: The study considered international experiences and national crisis in delivering extension services that provoke actions towards changing the extension policy of Bangladesh. The findings also quicken the factors that influence the paid extension service delivery for the crop farmers of Bangladesh. Originality: Although, many studies have been conducted on the privatization of agricultural extension around the globe, we are not aware of any single study on crop farmers’ willingness to pay for the extension services in Bangladesh.

  Insufficient fund, Extension services, Willingness to pay, Contingent valuation.
  Jatholida village of Bogra district and Bhobokhali village of Mymensingh district
  
  
  Knowledge Management
  Willingness, Extension

In fact, those reforms considered almost all the major issues except the crucial issue of alternative funding. No initiative for managing the shortage of extension funding is visible even from the part of any other organization. This situation inspired the researchers to study crop farmer willingness to pay for agricultural extension services in Bangladesh, with the aim of presenting alternative funding mechanisms.

The study was carried out purposively in the Jatholida village of Bogra district and Bhobokhali village of Mymensingh district. The study areas belong to Karatoya-Bangali Floodplain and Old Brahmaputra Floodplain, the two important Agro-ecological Zones (AEZs) of Bangladesh. Among the 30 AEZs there are some piedmont plain, tract (strip of high land), basin, haor, beel and some river floodplains, most of which are average productive due to soil reaction, hydrology and natural disaster. Haor is a bowl shaped vast area of water that becomes flooded in every monsoon. During rainy season it looks like a sea and the villages inside look like islands. It remains submerged for seven months. According to IUCN Bangladesh has about 400 haors. Beel is a large shallow depth water body that contains the additional water of rain and becomes dry during summer. During dry season it goes under cultivation and used as pasture to some extent. The selected river floodplains are highly productive and magnitudes of extension service providers are working in this area. The major crops of the study areas are different green vegetables followed by rice, jute, chilli, potato, eggplant, banana, mango, jackfruits, jujube, guava and litchi. As a result, the extension service is very important for the farmers of these areas. Another reason of the purposive selection of the study areas was close proximity and familiarity of the study site to the researchers. A list of 250 crop farmers from Jatholida village and 200 from Bhobokhali village was prepared with the help of the village mosque committee as they know the best about the occupation of the residents due to frequent interaction with them. These villages comprised crop farmers, fish farmers, livestock farmers, mixed farmers, day labourers and non-farm residents where crop farming is a dominant enterprise. However, 20% of them were selected randomly from the population of 450, as the sample of the study considering fund and time limitations of the researchers. Thus, the sample size was 90. In addition, six focus group discussions (FGDs) with crop farmers and 20 key informant interviews with academics, public and private extension staff and input dealers were executed to have deeper understanding about the research problem. Data were collected from the respondents by structured interview, in a face-to-face setting, in the year 2013, during winter and summer, the major crop seasons of Bangladesh. Summer is dominated with rice, summer vegetables and fruits. On the other hand winter is dominated with varieties of vegetables, some pulses, oil seeds and flowers. So, an equal proportion of the respondents were interviewed in both seasons to cover all types of crop farmers.

The independent variables of the study were ten socio-demographic characteristics of the respondent those are supposed to influence WTP for extension services. The variables were selected consulting relevant previous studies. The variables were age, gender, education, agricultural income, total income, proportion of the crop sold, farm size, farming experience, media contact, and innovativeness. Innovativeness is the degree to which an individual or other unit of adoption is relatively early in adopting new ideas than other members of a social system. On the other hand, adopter categories are the classification of the individual based on innovativeness (Rogers 1995). Appropriate scales were developed to assess age, gender, education, agricultural income, total income, proportion of the crop sold, farm size and farming experience. Media contact behaviour of the farmer was measured through a four point scale: frequently (3), now and then (2), seldom (1), not at all (0), against the use of seven important extension sources like block agriculture office at village, sub-district agriculture office at Upazila, NGOs, ideal farmers, neighbours and peers, input dealers and others. Innovativeness of the farmers was measured based on five adopter categories of E. M. Rogers with their corresponding scores. Farmers were asked to indicate their adoption behaviour as follows: innovators (5): invent ideas and search for new agricultural technology to the centre of diffusion; early adopter (4): adopt new technology at first when it comes to community; early majority (3): adopt the innovation before majority of the community people; late majority (2): adopt innovation after majority of the community people have adopted it; laggard (1): always confuse new technology and rely on traditional technology.

The dependent variables of this study were farmers’ WTP for the agricultural extension services and the amount farmers are willing to pay. WTP for advisory services can be determined by two ways: (a) direct /CVM and (b) indirect/demand and supply estimation (Ulimwengu and Sanyal 2011). CVM can be of different types. For example, open-ended, referendum, payment card and bidding (Anonymous 2012). However, in this study open-ended CVM was used in a face-to-face situation. First of all, the study sought willingness of the farmers through asking a binary choice ‘yes’ for willing and ‘no’ for not willing. However, the maximum WTP was assessed following open-ended question shortly thereafter in order to get a hypothetical quantitative response. CVM is usually used to estimate economic values of all kinds of environmental services. However, CVM has also been used in measuring farmers’ WTP for the extension services by many authors (Gautam 2000; Sulaiman and Sadamate 2000; Ajayi 2006 and Budak, Budak, and Kacira 2010).

In CVM, people are directly asked how much they would be willing to pay for specific extension service. People’s response would be hypothetical. Therefore, the method naming entails contingent [www.ecosystem valuation.org/contingent_valuation. htm]. WTP assumed the value 1 for willingness of the farmers to pay and 0 for otherwise. Descriptive statistics were employed to analyse the demographic characteristics of the farmers while binary logistic regression model was used following Foti et al. (2007) and Anim (2008), to assess the factors that determine the willingness of the farmers to pay for the extension services. The logistic model was based on the supposition that the likelihood of willingness to pay, Pi depends on a vector of known variables (Xi) and a vector (β, coefficient) of unknown variable. 

  Journal of Agricultural Education and Extension Vol. 22, No. 1, 43–60, February 2016
  
Funding Source:
1.   Budget:  
  

At present, many global studies are advocating fee-based services to prolong the provision of agricultural advisory services and to enhance pluralism in extension service for the farmers. The prerequisite of provisioning paid advisory services to the farmers is to know their WTP, together with the factors those shape WTP. The study assessed that more than 80% of crop farmers are willing to pay maximum 50 BDT on an average for each advisory visit, with the condition of ensuring economic benefit, and will discontinue otherwise. Professionals (key informants) thought that only 10% of farmers, those are innovative may be willing to pay while AWTP will not be more than 20 BDT. Education, income from agriculture, and farming experience has been revealed as the important determinants of farmers’ WTP for extension services. AWTP by the farmers is favourably shaped by education, total income and proportion of crops sold annually. Advisory service on crop protection has been recognised as the most wanted service, in supposed fee-based extension approach. Key informants opinions can be summed up in ways that paid extension delivery in Bangladesh should be gradual and complementary, with other extension services to ensure pluralism and to increase the coverage of extension services up to farmers’ door.

  Journal
  


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