Crop Farmers' Willingness to Pay for Agricultural Extension Services in Bangladesh: Cases of Selected Villages in Two Important Agro-ecological Zones

Abstract

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 prompt the factors that influence the paid extension service delivery for the crop farmers of Bangladesh.Originality: Although, many studies have been conducted on privatisation 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.