Smallholder farmers willingness to pay for privatized agricultural extension services in Tigray National Regional State, Ethiopia

Abstract

This study assessed farmers’ willingness to pay for privatization of agricultural extension services and examined factors that determine willingness to pay for those services. Multistage sampling procedure was used in selecting 240 households. Data were collected using household survey, focus group discussion and key informant interview tools. Data were analyzed using percentage and logit model. Results showed that 58% of the respondents were willing to pay for the privatization of agricultural extension services. Farm size, age, family size, credit access, frequency of extension contact and income were significantly influenced farmers’ willingness to pay for privatization of agricultural extension services. Privatization of agricultural extension services encourages graduates of agricultural sciences to launch consultancy firms and this engenders professional entrepreneurship. Number of visits, socioeconomic, and institutional factors must be given emphasis for privatizing the agricultural extension service in Ethiopia. Moreover, government should launch privatization parallel to the public agricultural extension services

Keywords: Agricultural extension service, willingness, privatization. Ethiopia