Willingness to Pay for Improved Planting Materials: An Application of Experimental Auction in Sri Lanka

Project Description

The low adoption rates of improved agricultural technologies, particularly quality mango planting materials, among small-holder farmers. This low adoption is exacerbated by insufficient awareness and a lack of understanding regarding the relationship between household characteristics and farmers’ willingness to pay (WTP) for such advancements.

Therefore, the major objectives of this study are to determine the average WTP of smallholder farmers for quality mango planting materials; to assess the impact of prior awareness about the specific mango cultivar on farmers’ WTP and to examine the relationship between household and home garden characteristics and farmers’ decision to participate in adopting the technology, as well as their WTP. In this study, the experimental auction method is used with randomly selected households, living in the Thirappane DS division, Anuradhapura District, Sri Lanka.

Key Findings

Information about new planting technologies was provided, significantly influencing consumers' willingness to pay (WTP).

Consumers who were aware of the benefits associated with improved quality grades were more likely to invest in them.

Participants with access to information about the new technology demonstrated a greater WTP compared to those without prior knowledge.

Farmers engaging in commercial mango cultivation showed a positive association with WTP. This suggested that adopting improved planting materials could potentially lead to increased income for producers, especially those targeting commercial cultivation.

Policy Implications

  1. Policymakers and stakeholders were urged to focus on targeted awareness-building initiatives to educate farmers about the benefits of improved planting materials. This could involve disseminating information through various channels such as workshops, extension services, and digital platforms.
  2. Quality assurance standards were needed to ensure the consistency and reliability of planting materials available in the market.

Publication

Athapaththu, A.M.P.A. (2020). Willingness to Pay for Improved Planting Materials of Mango by Smallholder Farmers in Dry Zone, Sri Lanka. Research Project Report submitted as the partial fulfilment of the BSc degree in Agricultural Technology and Management, Faculty of Agriculture, University of Peradeniya, Sri Lanka

Athapaththu, P. & Weerahewa, J. (2024). Willingness to Pay for Improved Planting Materials: An Application of Experimental Auction in Sri Lanka. 32nd International Conference of Agricultural Economics (IAAE 2024). New Delhi, India.