OLADELE O.I.
Abstract
This paper examined the factors determining farmers’ willingness to pay for extension services in Oyo state, Nigeria.
Specifically the services farmers are willing to pay for were identified and how much farmers are willing to pay
for such services were determined. A multi-stage technique was used in selecting 200 farmers from which primary
data were collected between December 2007 and February 2008 using interview schedule based on a structured
questionnaire that was earlier subjected to face validity and reliability test using split-half technique with a coefficient
of 0.85. The data were analyzed using frequency counts, percentages and Probit regression model. The results
showed that 30 percent of the respondents are willing to pay for extension services and these services include providing
information to women farmers (34 percent), identifying rural problems (38 percent), training VEA
(33 percent), supervising women activities(43 percent), arrange input supply(36 percent), processing loans
(32 percent), organizing group meetings(38 percent), giving advice on agric problems(33 percent), teaching home
management children and nutrition (29 percent), cost of organizing farmers’ seminars, group discussions (26 percent),
and liaison with farm machinery(34 percent). The mean values of amount to be paid for each of the services
shows a minimum of N1 800 for food and drinks for extension agents at every visit to N11, 400 for organizing group
meetings. The Probit regression model showed that farmers age (t = 2.75), gender (t = –2.36), Educational level
(t = 2.79), Farm size (t = 2.02), farming experience (t = –2.51), land tenure (t = 1.82), income (t = 3.38), and proportion
of crops sold (t = –2.13) are significant determinants of farmers willingness to pay for extension services.
The study recommends that these variables are given proper policy consideration in the design and the implementation
of a workable fashion of privatizing extension services for the expected impact of improving extension services
and farmers’ productivity.
Key words:
privatization, extension services, willingness to pay, farmers, probit model, Nigeria