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Eliciting Farmers' Willingness to Pay for Innovative Fertilizer Against Soil Salinity: Comparison of Two Methods in a Field Survey

Author

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  • Tsigkou, Stavroula
  • Klonaris, Stathis
Abstract
Salt stress noxiously shocks agricultural yield all over the world affecting production whether it is for subsistence or economic outcomes. Although agribusinesses are constantly seeking new technologies or inputs with novel attributes, they are not able to properly price these products and usually are based on the cost of production adding the percentage of profit they are seeking on that market. In order to uncover farmers’ preferences for an anti-salinity product as well as, the determinants of farmers’ willingness to pay for it, primary data were collected from 150 farmers in the regions of southwest Greece. Our estimates revealed that farmers would be willing to pay almost 22.91 h/lt for an innovative fertilizer against salinity. The results suggested that farmers’ willingness to pay for the specific anti-salinity product is influenced by a host of factors. Especially the empirical results showed that the size of cultivated land, the level of education, the knowledge scale about salinity, and the package of liquid fertilizer that farmers usually buy have a positive effect on willingness to pay. The implication is that taking these factors into account while large companies are looking for new and profitable products by investing in research and development enables companies’ managers to come up with projects that win acceptance from the farmers.

Suggested Citation

  • Tsigkou, Stavroula & Klonaris, Stathis, 2020. "Eliciting Farmers' Willingness to Pay for Innovative Fertilizer Against Soil Salinity: Comparison of Two Methods in a Field Survey," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 9, December.
    • Handle: RePEc:ags:ijameu:329811
    DOI: 10.22004/ag.econ.329811
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