Farmers’ willingness to pay for agriculture-related advisory services in Punjab, Pakistan
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Farmers’ willingness to pay for agriculture related advisory services in Punjab, Pakistan Shoukat Ali, Munir Ahmad and Tanvir Ali Department of Agri. Extension, University of Agriculture, Faisalabad, Pakistan Abstract Introduction Conclusion References Funding Source: Higher Education Commission, Islamabad, P Methodology In Pakistan, advisory services about credit, soil analysis, marketing, post harvest and crop insurance are generally non-existent. Public and private sectors are not responding to the said advisory needs of the farmers. Public sector generally focus on agronomic and plant protection advisory services while private sector provides services regarding use of agricultural inputs (pesticides, fertilizers etc.) which they sell to the farming community. Majority of the farmers are less educated. They do not know how to avail credit, marketing, crop insurance and other related opportunities available for them. No extension or advisory agency is there to guide them. Fee-based extension service is one of the suggested remedies which can motivate to the agri. extension agencies to fill the vacuum in this regard. But, primary question to implement fee-based extension system is, whether farmers are willing to pay for advisory services or not? The present study addressed this question. Farmers were asked about their willingness to pay for advisory services. Results revealed that farmers rated the marketing services, credit services and crop insurance services with mean values 2.92, 2.94 and 2.96 with standard deviation of 0.96, 0.97and 0.96, respectively which depicts that farmers were willing to pay for these services. Farmers were also willing to pay for soil analysis services as they rated it with mean value 2.82 with standard deviation 1.02. Farmers’ were not willing to pay for post-harvest advisory services. The perception of extension field staff Table: Mean values of willingness to pay for agriculture related advisory services in various zone of Punjab •In Rice Zone, farmers were willing to pay for soil analysis, marketing, credit and crop insurance advisory services. But farmers were not willing at all to pay for post harvest advisory services •In Cotton Zone, farmers rated their willingness slightly above 3 which depicts the willingness of farmers to pay for advisory services regarding soil analysis, marketing, credit and crop insurance. But farmers were strongly unwilling to pay for post harvest advisory services. • In Central Mixed Zone, farmers rated slightly above 2 which depicts the unwillingness of the farmers to pay for soil analysis, marketing, credit and crop insurance services. But farmers were strongly unwilling to pay for post harvest services. •It can be concluded that private extension system has opportunities for fee based extension services regarding soil analysis, marketing, credit and crop insurance services in cotton and rice zone of the Punjab province. The present study was conducted in the Punjab province by using cross-sectional research design. The Punjab Province consist of five cropping zones, namely cotton zone, barani zone, central mixed zone, semi irrigated zone and rice zone (Younis et al. 1990). 0 0.5 1 1.5 2 2.5 3 3.5 4 Post harvest tech. Soil analysis M arketing Credit Crop insurance Cotton Zone Rice Zone Central M ixed Zone Advisory Services regarding Strongly unwillin g unwillin g Willing Strongly willing Central Tendency i. Cotton Zone f % F % f % f % X SD Post harvest tech. 129 94.9 3 2.2 3 2.2 1 0.7 1.09 0.41 Soil analysis 28 20.6 4 2.9 59 43.4 45 33.1 2.89 1.09 Marketing services 13 9.6 4 2.9 69 50.7 50 36.8 3.15 0.87 Credit services 13 9.6 3 2.2 65 47.8 55 40.4 3.19 0.88 Crop insurance 9 6.6 3 2.2 67 49.3 57 41.9 3.26 0.80 ii. Rice Zone Post harvest tech. 136 100. 0 1.00 0.00 Soil analysis 6 4.4 7 5.1 73 53.7 50 36.8 3.23 0.74 Marketing services 2 1.5 4 2.9 76 55.9 54 39.7 3.34 0.61 Credit services 2 1.5 4 2.9 76 55.9 54 39.7 3.34 0.61 Crop insurance 2 1.5 4 2.9 74 54.4 56 41.2 3.35 0.61 iii. Central Mixed Zone Post harvest tech. 114 83.8 5 3.7 16 11.8 1 0.7 1.29 0.70 Soil analysis 44 32.4 10 7.4 74 54.4 8 5.9 2.34 1.00 Marketing services 48 35.3 10 7.4 70 51.5 8 5.9 2.28 1.02 Credit services 47 34.6 12 8.8 69 50.7 8 5.9 2.28 1.01 Crop insurance 49 36.0 11 8.1 68 50.0 8 5.9 2.26 1.02 Overall () Post harvest tech. 379 92.9 8 2 19 4.7 2 0.5 1.13 0.48 Soil analysis 78 19.1 21 5.1 206 50.5 103 25.2 2.82 1.02 Marketing services 63 15.4 18 4.4 215 52.7 112 27.5 2.92 0.96 fertilizers etc.) which they sell to the farming community. Majority of the farmers are less educated. They do not know how to avail credit, marketing, crop insurance and other related opportunities available for them. No extension or advisory agency is there to guide them. Fee-based extension service is one of the suggested remedies which can motivate to the agri. extension agencies to fill the vacuum in this regard. But, primary question to implement fee-based extension system is, whether farmers are willing to pay for advisory services or not? The present study addressed this question. Farmers were asked about their willingness to pay for advisory services. Results revealed that farmers rated the marketing services, credit services and crop insurance services with mean values 2.92, 2.94 and 2.96 with standard deviation of 0.96, 0.97and 0.96, respectively which depicts that farmers were willing to pay for these services. Farmers were also willing to pay for soil analysis services as they rated it with mean value 2.82 with standard deviation 1.02. Farmers ’ were not willing to pay for post-harvest advisory services. The perception of extension field staff was also included in the study. According to them, farmers would pay for advisory services except post-harvest. There was no significant difference found in the response of extension service providers and recipients. It can be concluded that there are lot of opportunities existed for fee-based advisory services in Punjab. The extension agencies should step forward to establish fee- based advisory system to facilitate the farmers for increasing farm productivity. About 64% population of Pakistan resides in rural areas where agriculture is a primary source of income and livelihood (Govt. of Pakistan, 2011). Agricultural productivity is the major concern of rural and farming communities which is not achievable without need based and effective agricultural extension services. Low agricultural productivity in the country can be attributed to many factors including poor performance of agricultural extension system. Public and private extension systems are responsible for advisory services and proving overlapping services to the farmers. Private sector only provides services about the use of the agricultural inputs they sell to the farming community as extension approach of the private sector is market and profit oriented. On the other hand, performance of public sector is questionable on account of poor and inefficient service delivery to the farmers. In either case, farmers are not able to get total package of advisory services which covers all operations from seed bed preparation to harvesting. Advisory services are integral part of farming operations and its importance in a less educated farming community like in Pakistan can not be underestimated. Buying the agricultural information is as important as other inputs like seed, fertilizers and pesticides etc (Ali et al. 2008). Worldwide, various approached had been experienced for private agri. information delivery. The common character of these approached is that farmers have to pay for extension and advisory services. Therefore, the present study, investigated the farmers’ willingness to pay for advisory services to explore the opportunities for private agri. extension system in the Punjab, Pakistan. Results The farmers were asked about their willingness to pay for the advisory services regarding post-harvest technology, soil analysis, marketing, and credit services on 4 point likert scale. The data regarding this aspect are presented in table For this study, purposively, three zones i.e. cotton, rice and central mixed zone, were selected. A sample size (408 respondents) was determined by using Fitzgibbon table (Fitzgibbon & Lynn, 1987) and respondents were selected by simple random sampling technique. The data were collected through pre-tested and validated interview schedule. The data, thus collected were analyzed by using computer software (i.e. SPSS). Ali, S., Ahmad, M., Ali, T., Din, I and Iqbal, M.Z. 2008. Farmers’ willingness to pay for advisory services by private sector extension: the case of Punjab Pak. J. Agri. Scie., 43(3) 107-111 Fitzggibbon, C. T. and Lynn. L. M. 1987. Table for determining sample size from the given population. How to design a program evaluation. Newbury Park CA: Sage Publications. Government of Pakistan. 2007. Economic survey of Pakistan. Economic Advisors Wing, Finance Division, Islamabad, Pakistan. Younis, M., Ahmad, M. and Ali, Z. 1990. Agricultural economics research study. Agricultural economics section, Ayub Agricultural Research Institute, Faisalabad, Pakistan.
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Transcript of Farmers’ willingness to pay for agriculture-related advisory services in Punjab, Pakistan
Farmers’ willingness to pay for agriculture related advisory services in Punjab, PakistanShoukat Ali, Munir Ahmad and Tanvir Ali
Department of Agri. Extension, University of Agriculture, Faisalabad, Pakistan
Abstract Introduction
Conclusion
References
Funding Source: Higher Education Commission, Islamabad, Pakistan
Methodology
In Pakistan, advisory services about credit, soil analysis, marketing, post harvest and crop insurance are generally non-existent. Public and private sectors are not responding to the said advisory needs of the farmers. Public sector generally focus on agronomic and plant protection advisory services while private sector provides services regarding use of agricultural inputs (pesticides, fertilizers etc.) which they sell to the farming community. Majority of the farmers are less educated. They do not know how to avail credit, marketing, crop insurance and other related opportunities available for them. No extension or advisory agency is there to guide them. Fee-based extension service is one of the suggested remedies which can motivate to the agri. extension agencies to fill the vacuum in this regard. But, primary question to implement fee-based extension system is, whether farmers are willing to pay for advisory services or not? The present study addressed this question. Farmers were asked about their willingness to pay for advisory services. Results revealed that farmers rated the marketing services, credit services and crop insurance services with mean values 2.92, 2.94 and 2.96 with standard deviation of 0.96, 0.97and 0.96, respectively which depicts that farmers were willing to pay for these services. Farmers were also willing to pay for soil analysis services as they rated it with mean value 2.82 with standard deviation 1.02. Farmers’ were not willing to pay for post-harvest advisory services. The perception of extension field staff was also included in the study. According to them, farmers would pay for advisory services except post-harvest. There was no significant difference found in the response of extension service providers and recipients. It can be concluded that there are lot of opportunities existed for fee-based advisory services in Punjab. The extension agencies should step forward to establish fee-based advisory system to facilitate the farmers for increasing farm productivity.
Table: Mean values of willingness to pay for agriculture related advisory services in various zone of Punjab
•In Rice Zone, farmers were willing to pay for soil analysis, marketing, credit and crop insurance advisory services. But farmers were not willing at all to pay for post harvest advisory services•In Cotton Zone, farmers rated their willingness slightly above 3 which depicts the willingness of farmers to pay for advisory services regarding soil analysis, marketing, credit and crop insurance. But farmers were strongly unwilling to pay for post harvest advisory services.• In Central Mixed Zone, farmers rated slightly above 2 which depicts the unwillingness of the farmers to pay for soil analysis, marketing, credit and crop insurance services. But farmers were strongly unwilling to pay for post harvest services.•It can be concluded that private extension system has opportunities for fee based extension services regarding soil analysis, marketing, credit and crop insurance services in cotton and rice zone of the Punjab province.
The present study was conducted in the Punjab province by using cross-sectional research design. The Punjab Province consist of five cropping zones, namely cotton zone, barani zone, central mixed zone, semi irrigated zone and rice zone (Younis et al. 1990).
0
0.5
1
1.5
2
2.5
3
3.5
4
Post harvest
tech.
Soil analysis
Marketing Credit Crop insurance
Cotton Zone
Rice Zone
Central Mixed Zone
Advisory Services regarding
Strongly unwilling
unwilling Willing Strongly willing
Central Tendency
i. Cotton Zone f % F % f % f % X SD
Post harvest tech. 129 94.9 3 2.2 3 2.2 1 0.7 1.09 0.41
Soil analysis 28 20.6 4 2.9 59 43.4 45 33.1 2.89 1.09
Marketing services 13 9.6 4 2.9 69 50.7 50 36.8 3.15 0.87
Credit services 13 9.6 3 2.2 65 47.8 55 40.4 3.19 0.88
Crop insurance 9 6.6 3 2.2 67 49.3 57 41.9 3.26 0.80
ii. Rice Zone
Post harvest tech. 136 100.0 1.00 0.00
Soil analysis 6 4.4 7 5.1 73 53.7 50 36.8 3.23 0.74
Marketing services 2 1.5 4 2.9 76 55.9 54 39.7 3.34 0.61
Credit services 2 1.5 4 2.9 76 55.9 54 39.7 3.34 0.61
Crop insurance 2 1.5 4 2.9 74 54.4 56 41.2 3.35 0.61
iii. Central Mixed Zone
Post harvest tech. 114 83.8 5 3.7 16 11.8 1 0.7 1.29 0.70
Soil analysis 44 32.4 10 7.4 74 54.4 8 5.9 2.34 1.00
Marketing services 48 35.3 10 7.4 70 51.5 8 5.9 2.28 1.02
Credit services 47 34.6 12 8.8 69 50.7 8 5.9 2.28 1.01
Crop insurance 49 36.0 11 8.1 68 50.0 8 5.9 2.26 1.02
Overall ()
Post harvest tech. 379 92.9 8 2 19 4.7 2 0.5 1.13 0.48
Soil analysis 78 19.1 21 5.1 206 50.5 103 25.2 2.82 1.02
Marketing services 63 15.4 18 4.4 215 52.7 112 27.5 2.92 0.96
Credit services 62 15.2 19 4.7 210 51.5 117 28.7 2.94 0.97
Crop insurance 60 14.7 18 4.4 209 51.2 121 29.7 2.96 0.96
Overall Mean 2.55 0.88
In Pakistan, advisory services about credit, soil analysis, marketing, post harvest and crop insurance are generally non-existent. Public and private sectors are not responding to the said advisory needs of the farmers. Public sector generally focus on agronomic and plant protection advisory services while private sector provides services regarding use of agricultural inputs (pesticides, fertilizers etc.) which they sell to the farming community. Majority of the farmers are less educated. They do not know how to avail credit, marketing, crop insurance and other related opportunities available for them. No extension or advisory agency is there to guide them. Fee-based extension service is one of the suggested remedies which can motivate to the agri. extension agencies to fill the vacuum in this regard. But, primary question to implement fee-based extension system is, whether farmers are willing to pay for advisory services or not? The present study addressed this question. Farmers were asked about their willingness to pay for advisory services. Results revealed that farmers rated the marketing services, credit services and crop insurance services with mean values
2.92, 2.94 and 2.96 with standard deviation of 0.96, 0.97and 0.96, respectively which depicts that farmers were willing to pay for these services. Farmers were also willing to pay for soil analysis services as they rated it with mean value 2.82 with standard deviation 1.02. Farmers ’ were not willing to pay for post-harvest advisory services. The perception of extension field staff was also included in the study. According to them, farmers would pay for advisory services except post-harvest. There was no significant difference found in the response of extension service providers and recipients. It can be concluded that there are lot of opportunities existed for fee-based advisory services in Punjab. The extension agencies should step forward to establish fee-based advisory system to facilitate the farmers for increasing farm productivity.
About 64% population of Pakistan resides in rural areas where agriculture is a primary source of income and livelihood (Govt. of Pakistan, 2011). Agricultural productivity is the major concern of rural and farming communities which is not achievable without need based and effective agricultural extension services. Low agricultural productivity in the country can be attributed to many factors including poor performance of agricultural extension system. Public and private extension systems are responsible for advisory services and proving overlapping services to the farmers. Private sector only provides services about the use of the agricultural inputs they sell to the farming community as extension approach of the private sector is market and profit oriented. On the other hand, performance of public sector is questionable on account of poor and inefficient service delivery to the farmers. In either case, farmers are not able to get total package of advisory services which covers all operations from seed bed preparation to harvesting. Advisory services are integral part of farming operations and its importance in a less educated farming community like in Pakistan can not be underestimated.Buying the agricultural information is as important as other inputs like seed, fertilizers and pesticides etc (Ali et al. 2008). Worldwide, various approached had been experienced for private agri. information delivery. The common character of these approached is that farmers have to pay for extension and advisory services. Therefore, the present study, investigated the farmers’ willingness to pay for advisory services to explore the opportunities for private agri. extension system in the Punjab, Pakistan.
ResultsThe farmers were asked about their willingness to pay for the advisory services regarding post-harvest technology, soil analysis, marketing, and credit services on 4 point likert scale. The data regarding this aspect are presented in table
For this study, purposively, three zones i.e. cotton, rice and central mixed zone, were selected. A sample size (408 respondents) was determined by using Fitzgibbon table (Fitzgibbon & Lynn, 1987) and respondents were selected by simple random sampling technique. The data were collected through pre-tested and validated interview schedule. The data, thus collected were analyzed by using computer software (i.e. SPSS).
Ali, S., Ahmad, M., Ali, T., Din, I and Iqbal, M.Z. 2008. Farmers’ willingness to pay for advisory services by private sector extension: the case of Punjab Pak. J. Agri. Scie., 43(3) 107-111Fitzggibbon, C. T. and Lynn. L. M. 1987. Table for determining sample size from the given population. How to design a program evaluation. Newbury Park CA: Sage Publications.Government of Pakistan. 2007. Economic survey of Pakistan. Economic Advisors Wing, Finance Division, Islamabad, Pakistan.Younis, M., Ahmad, M. and Ali, Z. 1990. Agricultural economics research study. Agricultural economics section, Ayub Agricultural Research Institute, Faisalabad, Pakistan.
