Open AccessFarmers as Consumers of Quality Fertilizers: Willingness to Pay and Empirical Evidences from Bangladesh
Author(s) -
Mahmuda Nasrin,
Siegfried Bauer,
Arman Arman,
Shamima Akhter
Publication year - 2021
Publication title -
south asian journal of social studies and economics
Language(s) - English
Resource type - Journals
ISSN - 2581-821X
DOI - 10.9734/sajsse/2021/v12i130295
Subject(s) - willingness to pay , subsidy , probit model , agriculture , agricultural economics , quality (philosophy) , business , product (mathematics) , ordered probit , agricultural science , probit , farm income , economics , geography , philosophy , geometry , mathematics , environmental science , archaeology , epistemology , market economy , econometrics , microeconomics
The study investigated farmer’s willingness to pay for getting quality fertilizers by employing probit and ordered probit models as the quality of fertilizers were often adulterated in Bangladesh. Primary data collected from 300 farm households were utilized. Results indicated that an average farmer’s willingness to pay was influenced significantly by the farm size group, annual income, off-farm income, product prices and financial constraints. All farmers except marginal farmers were more likely to be willing to pay more than market prices for urea and MoP. The findings suggested for adjusting the farm size group specific subsidy policies. More off-farm employment opportunities could be created in the farming regions to strengthen farmer’s financial capability.