The willingness-to-pay technique in evaluating on-farm animal research in Brazil

Abstract

The study of livestock in farming systems research (FSR) presents several challenges. Factors such as the small number of observations, high statistical variability in both experimental and non-experimental factors, and the difficulty in valuing non-market inputs and outputs make it difficult to evaluate on-farm trials. The willingness-to-pay (WTP) technique is proposed to complement other techniques for evaluating on-farm trials, such as linear programming, cost-benefit analysis, and partial budgeting. The farmer's WTP is a broad measure of the farmer's assessment of a technology's value, based on his perception of its effect on the production system, its social acceptability, and his attitudes toward risk. It is a particularly useful technique in the early stages of a trial when the amount of physical data may be insufficient for an assessment of the technology. Experience in Brazil showed the WTP method to be an inexpensive but effective technique for evaluating on-farm livestock trials, while enhancing farmer feedback.