Determination of farmers’ willingness to pay for improved maize seed in Morogoro using field experiment for enhancing agricultural productivity

Abstract

This study determined the willingness to pay (WTP) for improved maize seeds among smallholder farmers in Morogoro region using Becker DeGroote Marschak (BDM) and Take It or Leave It (TIOLI) elicitation methods. It also assessed factors affecting willingness to pay for the improved maize seed. The study area includes Kilosa and Mvomero districts in Morogoro region, chosen for their significant maize production and accessibility. A sample size of 208 maize-producing households was selected using purposive and random sampling. The field experiment was done with each household on how they purchase seed in the market. Descriptive statistics was used to explain the household characteristics and to estimate the mean willingness to pay. The Probit and linear regressions were used to assess the factors that influence the willingness to pay for improved maize seeds. By combining incentive-compatible experimental methods with regression analysis, this study provides rare field-based evidence on affordable price thresholds for improved seed adoption among Tanzanian smallholders. Results indicate that the mean WTP for 2kg of improved maize seeds was approximately Tshs 5231 using the BDM method and Tshs 5000 using the TIOLI method. Implying that farmers are ready to purchase the improved maize seed at an average price of 5000Tshs to ensure continuity of using the seeds. The factors influencing WTP included maize yield, plot size, education level, and land terrain. The study concludes that smallholder farmers in the study area are willing to invest in improved maize seeds, particularly when the seeds are reasonably priced and accessible. Key policy recommendations include government subsidies for improved seeds, enhanced agricultural extension services, and promoting farmer cooperatives.