Determinants of households’ willingness to pay for improved teff seed in Yilmana-Dinsa Woreda, Northern Ethiopia

Abstract

The willingness of farmers to pay for improved teff seed has positive effects on utilization of improved teff which increases agricultural production, productivity rural household income. However, the extent to which the willingness of teff producers to pay for improved teff seed was not studied in the study area. Hence, the primary goal of the study was to examine the willingness to pay for improved teff seed in Yilmana-Dinsa woreda, West Gojjam Zone. To collect quantitative and qualitative data, both primary and secondary sources were employed from 121 sampled respondents. The data were examined using expressive and inferential (t-test and chi-square test) statistics and econometric model (bivariate probit). The result showed that 79.3% of sampled farmers were willing to pay the seed and the value of mean willingness to pay from both double bounded dichotomous choice and open-ended questions was 26.89 and 32.67 birr per kilogram, respectively. The results of the bivariate probit model showed that sex, education level, extension contact, on-farm income, and credit have taken have a positive and significant effect, while off-farm income and initial starting bed have a negative and significant effect on the willingness of farmers to pay improved teff seed. Based on the findings government and other stakeholders need to focus on strengthening improved seed access through organized seed systems that comprehend all actors and promising cultivars through a well-established national extension and credit system to fill the current seed system gaps.