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The Value of Agricultural Economics Extension Programming: An Application of Contingent Valuation

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  • Brian Roe
  • Timothy C. Haab
  • Brent Sohngen

Abstract

We used contingent valuation to estimate participant willingness to pay (WTP) for agricultural economics extension programming. The data, collected from evaluation forms used for a series of outlook meetings conducted by faculty from Ohio State University, and subsequent analysis suggest participant private benefits exceeded departmental costs of conducting the program (benefit-cost ratios of 1.07 under conservative assumptions and 1.74 under moderate assumptions). We also explore the revenue generation potential from alternative program pricing and discuss the potential for developing differentiated programs to reach distinct audience segments. Additional research necessary before implementing alternative pricing or program differentiation plans is also discussed.

Suggested Citation

  • Brian Roe & Timothy C. Haab & Brent Sohngen, 2004. "The Value of Agricultural Economics Extension Programming: An Application of Contingent Valuation," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(3), pages 373-390.
    • Handle: RePEc:oup:revage:v:26:y:2004:i:3:p:373-390.
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    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2004.00186.x
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    References listed on IDEAS

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    1. Wallace E. Huffman, 1978. "Assessing Returns to Agricultural Extension," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(5), pages 969-975.
    2. Birkhaeuser, Dean & Evenson, Robert E & Feder, Gershon, 1991. "The Economic Impact of Agricultural Extension: A Review," Economic Development and Cultural Change, University of Chicago Press, vol. 39(3), pages 607-650, April.
    3. James C. Hanson & Richard E. Just, 2001. "The Potential for Transition to Paid Extension: Some Guiding Economic Principles," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 777-784.
    4. Ronald D. Knutson, 1986. "Restructuring Agricultural Economics Extension to Meet Changing Needs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(5), pages 1297-1306.
    5. Timothy C. Haab & Kenneth E. McConnell, 2002. "Valuing Environmental and Natural Resources," Books, Edward Elgar Publishing, number 2427.
    6. Ariel Dinar & Gabriel Keynan, 2001. "Economics of Paid Extension: Lessons from Experience in Nicaragua," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 769-776.
    7. George R. McDowell, 1992. "The New Political Economy of Extension Education for Agriculture and Rural America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1249-1255.
    8. Garth John Holloway & Simeon K. Ehui, 2001. "Demand, Supply and Willingness-to-Pay for Extension Services in an Emerging-Market Setting," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 764-768.
    9. Ariel Dinar, 1989. "Provision of and Request for Agricultural Extension Services," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(2), pages 294-302.
    10. Ariel Dinar, 1996. "Extension Commercialization: How Much to Charge for Extension Services," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 1-12.
    11. George B. Frisvold & Kathleen Fernicola & Mark Langworthy, 2001. "Market Returns, Infrastructure and the Supply and Demand for Extension Services," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 758-763.
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    Cited by:

    1. Doye, Damona, 2006. "The Environment for Scholarship in Agricultural Economics Extension," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 38(2), pages 261-278, August.
    2. Bidisha Mandal & Timothy Lawrence, 2017. "Managing the Commons: How Extension Facilitates Local Participation to Manage Natural Resources," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(3), pages 499-515.
    3. Brenna Ellison & Nicholas D Paulson & Mykel R Taylor & Glynn T Tonsor & Jonathan Coppess & Gary D Schnitkey, 2017. "Evaluation of Educational Offerings Associated with the 2014 Farm Bill," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(4), pages 547-558.
    4. Pedro Cerdán-Infantes & Alessandro Maffioli & Diego Ubfal, 2008. "The Impact of Agricultural Extension Services: The Case of Grape Production in Argentina," OVE Working Papers 0508, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    5. Ferris, John N., 2010. "The USDA/Land Grant Extension Outlook Program -- A History and Assessment," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 101723, Agricultural and Applied Economics Association.

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