Willingness to pay for agricultural mechanization services by smallholder farmers in Malawi

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dc.creatorTufa, Adane H.
dc.creatorAlene, Arega D.
dc.creatorNgoma, Hambulo
dc.creatorMarenya, Paswel Phiri
dc.creatorManda, Julius
dc.creatorMd Abdul Matin
dc.creatorThierfelder, Christian L.
dc.creatorChikoye, David
dc.date2024-01
dc.date2023-08-23T15:03:40Z
dc.date2023-08-23T15:03:40Z
dc.date.accessioned2026-06-27T15:49:38Z
dc.descriptionOne of the main barriers to adopting smallholder agricultural mechanization in developing countries is the mismatch between the economies of scale of machines and farm size. Private sector-led mechanization services hold a promise to address this challenge, but there is a lack of evidence on demand for smallholder mechanization services. This study estimates the farmers' willingness to pay for mechanization services using the double-bounded contingent valuation method and data from 1512 households. Results show that, on average, farmers are willing to pay 11%, 33%, and 5% more than prevailing market rates for land preparation, maize shelling, and transportation services, respectively. The amounts farmers are willing to pay for the mechanization services vary by sex, age group, size of cultivated land, the value of farmer assets, market access, and agroecology. Men are willing to pay 26%, 25%, and 11% more than women for land preparation, maize shelling, and transportation services. Moreover, 40% of female and 90% of male farmers are willing to pay more than or equal to the prevailing market rate for land preparation services. The high demand for mechanization services among smallholder farmers points to the need for making the machinery available to rural communities through mechanization service providers or machinery hiring centers run by the private sector. The paper concludes by discussing the contextual factors and policy options for promoting smallholder mechanization in Malawi. [EconLit Citations: O33, Q11, Q13, Q16].
dc.formatapplication/pdf
dc.identifierhttps://hdl.handle.net/10568/131636
dc.identifier.urihttp://hdl.handle.net/123456789/114620
dc.languageen
dc.publisherWiley
dc.rightsOpen Access
dc.sourceTufa, A., Alene, A., Ngoma, H., Marenya, P., Manda, J., Matin, M. A., Thierfelder, C., & Chikoye, D. (2023). Willingness to pay for agricultural mechanization services by smallholder farmers in Malawi. Agribusiness, 40(1), 248–276. Portico. https://doi.org/10.1002/agr.21841
dc.subjectmechanization
dc.subjectfield preparation
dc.subjectwheeled tractors
dc.subjectwillingness to pay
dc.subjectfood science
dc.subjectfood security
dc.subjectsmallholders
dc.subjectrural communities
dc.subjectmalawi
dc.subjectland preparation
dc.titleWillingness to pay for agricultural mechanization services by smallholder farmers in Malawi
dc.typeJournal Article

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Instituto Internacional de Agricultura Tropical (IITA)