Factors determining smallholder farmers’ willingness to pay for a metal silo in Zimbabwe

Teresa Chuma, Maxwell Mudhara and Jones Govereh

Agrekon, 2020, vol. 59, issue 2

Abstract: The outbreak of devastating storage pests has rendered smallholder farmers' traditional storage practices ineffective. This study used single bound dichotomous choice contingent valuation to examine factors determining smallholder farmers' willingness to pay (WTP) for a metal silo, a new and improved storage technology in Zimbabwe. Data were collected using structured questionnaires from 249 randomly selected households in Makoni and Shamva Districts. Logit results showed that storage loss, quantity of non-food crops, equipment value, vegetable income, participation in informal activities, and household head's age and marital status significantly influenced WTP for metal silos. The amount of grain lost in storage positively influenced farmers' WTP, suggesting that current storage practices are not effective against storage losses. Income variables, except the value of equipment, showed a positive influence on WTP for a metal silo implying that increasing the household's income eases financial constraints that could impede investments in the silo technology. The study recommends the adoption of metal silos to curb storage losses and improve household food security. Diversification of agriculture and provision of credit are recommended to increase WTP for metal silos. Development agents promoting the technology should target married and young households for sustainability, without marginalising their counterparts.

Keywords: Agribusiness; International Development (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ags:agreko:347977

DOI: 10.22004/ag.econ.347977

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