Smallholder Farmers Willingness to Pay for Privatized Agricultural Extension Services in Tigray National Regional State, Ethiopia.

Abstract

The current public funded Agricultural extension services in Ethiopia in general and in Tigray particular is not responsive to the needs of farmers. Thus, changing of policy environment brings for the emergence of privatization and inclusion of different actors. This study was designed to assess farmers’ willingness to pay for extension services and analyze determinant factors of willingness to pay for agricultural extension services. Multistage sampling technique was used in selecting the study districts and 240 sample households. Data were collected using interview schedule, focus group discussion and key informant interview. Results of the descriptive analysis showed that 57.5 % of the respondents were willing to pay for the privatization of the agricultural extension services. The results of logit model analysis revealed that frequency of extension contact, farm size and income were found to influence farmer’s willingness to pay for agricultural extension services statistically significant and positively while age, family size, and credit access found to influence negatively. This reform also brings sustainability of financial resources through collaboration of multitude actors. The privatization of agricultural extension services invites to graduates of Agricultural sciences to launch consultancy firms and this initiates to professional entrepreneurship. Moreover, government should launch feasible reform so as to enhance commercialization by making fee-based service rather than delivering freely.