Commercializing Innovations From Agricultural Research In Northern Ghana And Farmers’ Willingness To Pay

ABSTRACT

The study used contingent valuation to solicit monetary values from researchers and farmers on how much they were willing to sell and buy the following innovations from research respectively: improved seed, soil fertility management techniques, crop protection techniques, safe-use of agro-chemicals as well as farm management and record keeping. Also, a probit model was employed to identify the determinants of researchers’ willingness to sell innovations from research. Furthermore a multivariate (MV) probit model was estimated to explain key determinants of farmers’ willingness to pay for such innovations (technologies). Multi-stage sampling methods were used to obtain 360 farmers and 51 research scientists for the study. Though majority of farmers were willing to pay for agricultural innovations, the amounts they were prepared to pay were far less than what the researchers wanted them to pay. The probability of a researcher accepting payment for innovations from research was high for the following categories of researchers: younger researchers; researchers who were members of professional bodies; and researchers with a high number of publications. The following categories of farmers also had a higher probability of paying for research output: younger farmers; farmers with high level of formal education; native farmers; farmers who had contact with extension staff; and farmers with high income from their previous farming and non-farming activities. The average WTA and WTP were GH₵50.00 and GH₵6.00 respectively. Considering the wide disparity between researchers’ WTA payment for innovations and farmers’ WTP, commercialization of research is possible but cannot be run on full cost recovery. Government should therefore set up a statutory fund dedicated to agricultural research as a way of subsidizing agricultural innovations.