IDEAS home Printed from https://ideas.repec.org/a/bla/jageco/v72y2021i1p180-201.html
   My bibliography  Save this article

Information Barriers to Adoption of Agricultural Technologies: Willingness to Pay for Certified Seed of an Open Pollinated Maize Variety in Northern Uganda

Author

Listed:
  • Astrid Mastenbroek
  • Irma Sirutyte
  • Robert Sparrow

Abstract

We examine smallholder farmers’ willingness to pay for agricultural technology and whether information is a constraint to adoption of certified maize seed in Northern Uganda. The uptake of improved maize varieties by smallholder farmers in Uganda remains persistently low, despite the higher yield potential compared to traditional varieties. A recently growing body of literature identifies information constraints as a potential barrier to adoption of agricultural technologies. We used incentive compatible Becker‐DeGroot‐Marschak auctions to elicit willingness to pay for quality assured improved maize seed by 1,009 smallholder farmers, and conducted a randomised evaluation to test the effect of an information intervention on farmers’ knowledge of seed certification. Our results show that the randomised information treatment enhanced farmers’ knowledge of certified seed. However, using the information treatment as an instrumental variable for knowledge, we find no evidence of a causal effect of knowledge on willingness to pay, suggesting that even though farmers are information constrained, this constraint does not affect adoption of certified seed directly. Nevertheless, only 14% of sampled farmers were willing to pay the market price, which corresponds closely with actual observed demand for certified seed in the previous season. This suggests that there are other barriers to adoption than information and awareness.

Suggested Citation

  • Astrid Mastenbroek & Irma Sirutyte & Robert Sparrow, 2021. "Information Barriers to Adoption of Agricultural Technologies: Willingness to Pay for Certified Seed of an Open Pollinated Maize Variety in Northern Uganda," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(1), pages 180-201, February.
  • Handle: RePEc:bla:jageco:v:72:y:2021:i:1:p:180-201
    DOI: 10.1111/1477-9552.12395
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1477-9552.12395
    Download Restriction: no

    File URL: https://libkey.io/10.1111/1477-9552.12395?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hugo De Groote & Simon Chege Kimenju & Ulrich B. Morawetz, 2011. "Estimating consumer willingness to pay for food quality with experimental auctions: the case of yellow versus fortified maize meal in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 42(1), pages 1-16, January.
    2. Esther Duflo & Michael Kremer & Jonathan Robinson, 2011. "Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya," American Economic Review, American Economic Association, vol. 101(6), pages 2350-2390, October.
    3. Esther Duflo & Michael Kremer & Jonathan Robinson, 2008. "How High Are Rates of Return to Fertilizer? Evidence from Field Experiments in Kenya," American Economic Review, American Economic Association, vol. 98(2), pages 482-488, May.
    4. Yao Pan & Stephen C Smith & Munshi Sulaiman, 2018. "Agricultural Extension and Technology Adoption for Food Security: Evidence from Uganda," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(4), pages 1012-1031.
    5. Adu-Gyamfi Poku & Regina Birner & Saurabh Gupta, 2018. "Why do maize farmers in Ghana have a limited choice of improved seed varieties? An assessment of the governance challenges in seed supply," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(1), pages 27-46, February.
    6. Barriga, Alicia & Fiala, Nathan, 2020. "The supply chain for seed in Uganda: Where does it go wrong?," World Development, Elsevier, vol. 130(C).
    7. Dean Karlan & Robert Osei & Isaac Osei-Akoto & Christopher Udry, 2014. "Agricultural Decisions after Relaxing Credit and Risk Constraints," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(2), pages 597-652.
    8. James Berry & Greg Fischer & Raymond Guiteras, 2020. "Eliciting and Utilizing Willingness to Pay: Evidence from Field Trials in Northern Ghana," Journal of Political Economy, University of Chicago Press, vol. 128(4), pages 1436-1473.
    9. Mywish K. Maredia & Robert Shupp & Edward Opoku & Fulgence Mishili & Byron Reyes & Paul Kusolwa & Francis Kusi & Abdul Kudra, 2019. "Farmer perception and valuation of seed quality: Evidence from bean and cowpea seed auctions in Tanzania and Ghana," Agricultural Economics, International Association of Agricultural Economists, vol. 50(4), pages 495-507, July.
    10. Dalton, Timothy J., 2004. "A household hedonic model of rice traits: economic values from farmers in West Africa," Agricultural Economics, Blackwell, vol. 31(2-3), pages 149-159, December.
    11. Patrick Bajari & C. Lanier Benkard, 2001. "Demand Estimation With Heterogeneous Consumers and Unobserved Product Characteristics: A Hedonic Approach," NBER Technical Working Papers 0272, National Bureau of Economic Research, Inc.
    12. Spielman, David J. & Kennedy, Adam, 2016. "Towards better metrics and policymaking for seed system development: Insights from Asia's seed industry," Agricultural Systems, Elsevier, vol. 147(C), pages 111-122.
    13. Bekele Shiferaw & Tewodros Kebede & Menale Kassie & Monica Fisher, 2015. "Market imperfections, access to information and technology adoption in Uganda: challenges of overcoming multiple constraints," Agricultural Economics, International Association of Agricultural Economists, vol. 46(4), pages 475-488, July.
    14. Ahmed Mushfiq Mobarak & Mark R. Rosenzweig, 2013. "Informal Risk Sharing, Index Insurance, and Risk Taking in Developing Countries," American Economic Review, American Economic Association, vol. 103(3), pages 375-380, May.
    15. Erenstein, Olaf & Kassie, Girma Tesfahun, 2018. "Seeding eastern Africa’s maize revolution in the post-structural adjustment era: a review and comparative analysis of the formal maize seed sector," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(1).
    16. Adewale Oparinde & Abhijit Banerji & Ekin Birol & Paul Ilona, 2016. "Information and consumer willingness to pay for biofortified yellow cassava: evidence from experimental auctions in Nigeria," Agricultural Economics, International Association of Agricultural Economists, vol. 47(2), pages 215-233, March.
    17. Channa, Hira & Chen, Amy Z. & Pina, Patricia & Ricker-Gilbert, Jacob & Stein, Daniel, 2019. "What drives smallholder farmers’ willingness to pay for a new farm technology? Evidence from an experimental auction in Kenya," Food Policy, Elsevier, vol. 85(C), pages 64-71.
    18. Kassie, Girma T. & Abdulai, Awudu & Greene, William H. & Shiferaw, Bekele & Abate, Tsedeke & Tarekegne, Amsal & Sutcliffe, Chloe, 2017. "Modeling Preference and Willingness to Pay for Drought Tolerance (DT) in Maize in Rural Zimbabwe," World Development, Elsevier, vol. 94(C), pages 465-477.
    19. Franklin Simtowe & Paswel Marenya & Emily Amondo & Mosisa Worku & Dil Bahadur Rahut & Olaf Erenstein, 2019. "Heterogeneous seed access and information exposure: implications for the adoption of drought-tolerant maize varieties in Uganda," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-23, December.
    20. Asrat, Sinafikeh & Yesuf, Mahmud & Carlsson, Fredrik & Wale, Edilegnaw, 2010. "Farmers' preferences for crop variety traits: Lessons for on-farm conservation and technology adoption," Ecological Economics, Elsevier, vol. 69(12), pages 2394-2401, October.
    21. Jalan, Jyotsna & Somanathan, E., 2008. "The importance of being informed: Experimental evidence on demand for environmental quality," Journal of Development Economics, Elsevier, vol. 87(1), pages 14-28, August.
    22. J. Coosje Hoogendoorn & Genevieve Audet-Bélanger & Christian Böber & M. Laura Donnet & Kennedy Bisani Lweya & R. K. Malik & Peter R. Gildemacher, 2018. "Maize seed systems in different agro-ecosystems; what works and what does not work for smallholder farmers," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(4), pages 1089-1103, August.
    23. Ashraf, Nava & Jack, B. Kelsey & Kamenica, Emir, 2013. "Information and subsidies: Complements or substitutes?," Journal of Economic Behavior & Organization, Elsevier, vol. 88(C), pages 133-139.
    24. Horna, J. Daniela & Smale, Melinda & Oppen, Matthias Von, 2007. "Farmer willingness to pay for seed-related information: rice varieties in Nigeria and Benin," Environment and Development Economics, Cambridge University Press, vol. 12(6), pages 799-825, December.
    25. Hugo De Groote & Nilupa S. Gunaratna & Monica Fisher & E. G. Kebebe & Frank Mmbando & Dennis Friesen, 2016. "The effectiveness of extension strategies for increasing the adoption of biofortified crops: the case of quality protein maize in East Africa," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(6), pages 1101-1121, December.
    26. Keith O. Fuglie & Witono Adiyoga & Rini Asmunati & Sukendra Mahalaya & Rachman Suherman, 2006. "Farm demand for quality potato seed in Indonesia," Agricultural Economics, International Association of Agricultural Economists, vol. 35(3), pages 257-266, November.
    27. Baidu-Forson, Jojo & Ntare, Bonny R. & Waliyar, Farid, 1997. "Utilizing conjoint analysis to design modern crop varieties: Empirical example for groundnut in Niger," Agricultural Economics, Blackwell, vol. 16(3), pages 219-226, August.
    28. Jessica Cohen & Pascaline Dupas, 2010. "Free Distribution or Cost-Sharing? Evidence from a Randomized Malaria Prevention Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(1), pages 1-45.
    29. Travis J. Lybbert & Nicholas Magnan & David J. Spielman & Anil K. Bhargava & Kajal Gulati, 2018. "Targeting Technology to Increase Smallholder Profits and Conserve Resources: Experimental Provision of Laser Land-Leveling Services to Indian Farmers," Economic Development and Cultural Change, University of Chicago Press, vol. 66(2), pages 265-306.
    30. Benkard, C. Lanier & Bajari, Patrick, 2001. "Demand Estimation with Heterogeneous Consumers and Unobserved Product Characteristics: A Hedonic Approach," Research Papers 1691, Stanford University, Graduate School of Business.
    31. Patrick Bajari & C. Lanier Benkard, 2001. "Demand Estimation With Heterogeneous Consumers and Unobserved Product Characteristics: A Hedonic Approach," Working Papers 01010, Stanford University, Department of Economics.
    32. Jojo Baidu‐Forson & Bonny R. Ntare & Farid Waliyar, 1997. "Utilizing conjoint analysis to design modern crop varieties: empirical example for groundnut in Niger," Agricultural Economics, International Association of Agricultural Economists, vol. 16(3), pages 219-226, August.
    33. Hugo Groote & Clare Narrod & Simon C. Kimenju & Charles Bett & Rosemarie P. B. Scott & Marites M. Tiongco & Zachary M. Gitonga, 2016. "Measuring rural consumers’ willingness to pay for quality labels using experimental auctions: the case of aflatoxin-free maize in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 33-45, January.
    34. Robert Jensen, 2010. "The (Perceived) Returns to Education and the Demand for Schooling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(2), pages 515-548.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Osiemo, Jamleck & Sibiko, Kenneth Waluse & Ng'ang'a, Stanley Karanja & Notenbaert, An M.O., 2024. "Are dairy farmers willing to pay for improved forage varieties? Experimental evidence from Kenya," Food Policy, Elsevier, vol. 124(C).
    2. Wossen, Tesfamicheal & Spielman, David J. & Alene, Arega D. & Abdoulaye, Tahirou, 2024. "Estimating seed demand in the presence of market frictions: Evidence from an auction experiment in Nigeria," Journal of Development Economics, Elsevier, vol. 167(C).
    3. Mastenbroek, Astrid & Gumucio, Tatiana & Nakanwagi, Josephine, 2024. "Gender, agricultural risk perceptions, and maize seed systems: A case study of drought-tolerant maize varieties in Uganda," Agricultural Systems, Elsevier, vol. 217(C).
    4. Martey, Edward & Etwire, Prince M. & Adombilla, Ramson & Abebrese, Samuel O., 2023. "Information constraint and farmers’ willingness to pay for an irrigation scheduling tool," Agricultural Water Management, Elsevier, vol. 276(C).
    5. Giuseppe Maggio & Marina Mastrorillo & Nicholas J. Sitko, 2022. "Adapting to High Temperatures: Effect of Farm Practices and Their Adoption Duration on Total Value of Crop Production in Uganda," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 385-403, January.
    6. Mywish K Maredia & Brian Bartle, 2023. "Excess demand amid quality misperceptions: the case for low-cost seed quality signalling strategies," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(2), pages 360-394.
    7. Michael Grimm & Nathalie Luck & Franziska Steinhübel, 2023. "Consumers' willingness to pay for organic rice: Insights from a non‐hypothetical experiment in Indonesia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(1), pages 83-103, January.
    8. Myat Thida Win & Mywish K. Maredia & Duncan Boughton, 2023. "Farmer demand for certified legume seeds and the viability of farmer seed enterprises: Evidence from Myanmar," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 15(2), pages 555-569, April.
    9. Athapaththu, Poorni & Weerahewa, Jeevika, 2024. "Willingness to Pay for Improved Planting Materials: An Application of Experimental Auction in Sri Lanka," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344265, International Association of Agricultural Economists (IAAE).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wossen, Tesfamicheal & Spielman, David J. & Alene, Arega D. & Abdoulaye, Tahirou, 2024. "Estimating seed demand in the presence of market frictions: Evidence from an auction experiment in Nigeria," Journal of Development Economics, Elsevier, vol. 167(C).
    2. Rutsaert, Pieter & Donovan, Jason & Kimenju, Simon, 2021. "Demand-side challenges to increase sales of new maize hybrids in Kenya," Technology in Society, Elsevier, vol. 66(C).
    3. B Kelsey Jack, "undated". "Market Inefficiencies and the Adoption of Agricultural Technologies in Developing Countries," CID Working Papers 50, Center for International Development at Harvard University.
    4. Meressa, Abrha Megos & Navrud, Stale, 2020. "Not my cup of coffee: Farmers’ preferences for coffee variety traits – Lessons for crop breeding in the age of climate change," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 9(3), December.
    5. Daniel Agness & Travis Baseler & Sylvain Chassang & Pascaline Dupas & Erik Snowberg, 2022. "Valuing the Time of the Self-Employed," Working Papers 2022-2, Princeton University. Economics Department..
    6. Fredrick Bagamba & Proscovia R. Ntakyo & Geoffrey Otim & David J. Spielman & Bjorn Van Campenhout, 2023. "Policy and performance in Uganda's seed sector: Opportunities and challenges," Development Policy Review, Overseas Development Institute, vol. 41(3), May.
    7. Jörg Peters & Jörg Langbein & Gareth Roberts, 2018. "Generalization in the Tropics – Development Policy, Randomized Controlled Trials, and External Validity," The World Bank Research Observer, World Bank, vol. 33(1), pages 34-64.
    8. Osiemo, Jamleck & Sibiko, Kenneth Waluse & Ng'ang'a, Stanley Karanja & Notenbaert, An M.O., 2024. "Are dairy farmers willing to pay for improved forage varieties? Experimental evidence from Kenya," Food Policy, Elsevier, vol. 124(C).
    9. Peters, Jörg & Langbein, Jörg & Roberts, Gareth, 2016. "Policy evaluation, randomized controlled trials, and external validity—A systematic review," Economics Letters, Elsevier, vol. 147(C), pages 51-54.
    10. Paulina Oliva & B. Kelsey Jack & Samuel Bell & Elizabeth Mettetal & Christopher Severen, 2020. "Technology Adoption under Uncertainty: Take-Up and Subsequent Investment in Zambia," The Review of Economics and Statistics, MIT Press, vol. 102(3), pages 617-632, July.
    11. Meredith, Jennifer & Robinson, Jonathan & Walker, Sarah & Wydick, Bruce, 2013. "Keeping the doctor away: Experimental evidence on investment in preventative health products," Journal of Development Economics, Elsevier, vol. 105(C), pages 196-210.
    12. Morgan, Stephen N. & Mason, Nicole M. & Maredia, Mywish K., 2020. "Lead-farmer extension and smallholder valuation of new agricultural technologies in Tanzania," Food Policy, Elsevier, vol. 97(C).
    13. Murphy, David M. A., 2017. "Underground Knowledge: Soil Testing, Farmer Learning, and Input Demand in Kenya," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258372, Agricultural and Applied Economics Association.
    14. Gunther Bensch & Jörg Peters, 2020. "One‐Off Subsidies and Long‐Run Adoption—Experimental Evidence on Improved Cooking Stoves in Senegal," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 72-90, January.
    15. Karthik Muralidharan & Paul Niehaus, 2017. "Experimentation at Scale," Journal of Economic Perspectives, American Economic Association, vol. 31(4), pages 103-124, Fall.
    16. Emerick, Kyle & Chakravorty, Ujjayant & Dar, Manzoor, 2019. "Inefficient water pricing and incentives for conservation," CEPR Discussion Papers 13572, C.E.P.R. Discussion Papers.
    17. Aminou Arouna & Jeffrey D. Michler & Wilfried G. Yergo & Kazuki Saito, 2021. "One Size Fits All? Experimental Evidence on the Digital Delivery of Personalized Extension Advice in Nigeria," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 596-619, March.
    18. Christine Wamuyu Mwangi & Josiah Ateka & Robert Mbeche & Luke Oyugi & Elijah Ateka, 2022. "Comparing farmers’ willingness to pay with costs of clean sweet potato seed multiplication in Kenya," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(5), pages 1279-1293, October.
    19. Fève, Frédérique & Fève, Patrick & Florens, Jean-Pierre, 2002. "Attribute Choices and Structural Econometrics of Price Elasticity of Demand," IDEI Working Papers 155, Institut d'Économie Industrielle (IDEI), Toulouse, revised 2003.
    20. Bensch, Gunther & Grimm, Michael, 2024. "Behavioural constraints in energy technology uptake: Evidence from real-purchase offers in rural Rwanda and Senegal," Ruhr Economic Papers 1081, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jageco:v:72:y:2021:i:1:p:180-201. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.