Smallholder farmers’ willingness to pay for access to agricultural market information in Tanzania

Abstract

ABSTRACT Introducing user access charges to smallholder farmers accessing agricultural market information is considered as a strategy of financing operations of agricultural market information services. This research studied smallholders' willingness to pay for access charges as a strategy of sustaining information provision operations. Using questionnaires, data were collected from smallholders, randomly selected from three regions in Tanzania. Econometric models were used for data analysis. The Probit model indicated that factors that determine mobile phone use by smallholders included age, mobile phone use knowledge, reasons for growing crops, channels to available markets, and changes in farming practices. The Ordered Probit model indicated that road condition to markets, changing farming practices, and awareness on agricultural market information usefulness determined smallholders' willingness to pay for access charges. The Censored Tobit model indicated that the premium smallholders are willing to pay depends on their mobile phone use knowledge, farming techniques practiced, changes in farming practices, bargaining ability, and awareness on agricultural market information usefulness. To boost production, smallholders need to develop capabilities in different farming practices. For best information provisions, private sector can provide platform and resources needed for platform management while the government can ensure conducive environment for agricultural marketing and of information dissemination.