FARMERS’ WILLINGNESS TO PAY FOR IMPROVED FORAGE SEED: THE CASE OF SIDAMA ZONE, SOUTHERN NATIONS NATIONALITIES AND PEOPLE REGIONAL STATE, ETHIOPIA

Despite high livestock population and existing favorable environmental conditions, the current livestock output of Ethiopia is little. The availability of feed resources and the nutritional quality of the available feeds are the most important factors that determine the productivity of livestock.. Adopting improved forages is necessary to alleviate the often said problem nutritionally rich feed shortage. The seed of these improved forages should be available to farmers at reasonable price. Since the market for improved forage is not well developed, the WTP of farmers’ need to be known. Therefore, the study was conducted to assess the farmers’ WTP for the improved forages specifically Elephant grass and Guatemala. The main objectives of the study were to assess the seed system for improved forages, to estimate mean WTP for each of the forages, and to identify the determining factors for WTP of farmers. The study used primary data obtained from a survey conducted on 197 randomly selected rural households. Double-bounded Contingent Valuation elicitation format of contingent valuation method was employed. The data were analyzed using descriptive statistics and bivariate probit model. The result of this study shows that the seed system of the study area for the improved forages were not well developed and there were few actors involved in the multiplication and distribution of improved forage seeds. There was no legally registered improved forage seed producing private seed enterprise. The response of households' for scenarios indicated that the mean WTP ranges from 0.41 to 0.15 birr per cutting for Elephant grass and 1.4 to 1.16 birr per Guatemala cutting. The results of the model revealed that credit and extension contact have positive and significant effect on WTP of both forages. Sex of the household head and education level has similar positive effect on elephant grass while off-farm employment of the household head has negative effect. Family size has positive effect on Guatemala while distance to the nearest seed supply institution has negative effect on Guatemala. The study revealed that farm households of the study area are willing to pay money for elephant grass and Guatemala. Furthermore, promoting private improved forage seed producing enterprises to join the business by providing the necessary information regarding the opportunities and treats of the business and the extension system should be well developed by increasing the participation of farmers in the production of improved forage. Policy implications such as expanding and providing adult education targeting rural household heads and raising farm household asset formation opportunities, providing inputs, extension services and credit services at possible proximity and on time were also made to sustain farmers’ WTP in the future.