Assessment of Farmers Willingness to Pay for Private Extension Services Among Maize Farmers in Edo and Delta States, Nigeria

Abstract

The trend of privatizing agricultural extension services is growing globally due to the inefficiencies of public extension services. Private extension  systems are favoured for being demand-driven, cost-effective, and providing high-quality services. However, farmers' willingness to pay (WTP) for these services is influenced by various factors including innovation  diffusion, economic constraints, and social paradigms. This study evaluates the WTP for private extension services among maize farmers in Edo and Delta States, Nigeria, as proposed by Organization for the Development of Agriculture in West African Countries (ODAWAC). The research questions focused on the socioeconomic characteristics of the farmers, their WTP for ODAWAC's services, and the percentage of their income they are willing to allocate for these services. A three stage sampling procedure was used to select 159 respondents: 70 maize farmers in Edo State and 89 maize farmers in Delta State. Descriptive statistics were used for data analysis, while inferential statistics was used to test the hypotheses stated. The findings revealed that in Edo State, the majority(38.57%)  of maize farmers had completed secondary education or held a Bachelor's degree (35.71%), whereas in Delta State, a significant percentage (31.57%) had completed secondary education  or held an OND (29.21%). Maize farmers were predominantly male in both states, with a majority in the age range of 40-49yrs in Edo State and 25-34yrs in Delta State. Most farmers had 2-6 years of experience and operated on small farms (1-3 hectares in Edo and 1-2 hectares in Delta). Access to extension services was limited, with few farmers paying for such services. Farmers showed more willingness to pay for ODAWAC's private extension services in Delta State (96.63%) compared to Edo State (52.86%). They were willing to allocate a moderate percentage of their income (2-5.02%) for these services. Age distribution varied, with younger farmers (26-35 years) more engaged in Delta State. Limited access to public extension services highlighted the potential for private providers to meet unmet needs. The findings suggest opportunities for ODAWAC to tailor services to educational levels, experience, and farm sizes, addressing gaps in existing services and enhancing productivity and inclusiveness in the agricultural sector.