Background
Financial contributions from farmers are increasingly acknowledged as a sustainable mechanism for funding extension services. However, the literature on WTP for digital agricultural extension is limited.
Research objective
This study examines the willingness to pay (WTP) and its determinants among Tanzania farmers for a novel digital extension platform named farmbetter, leveraging primary data.
Methods
The Becker-DeGroot-Marschak (BDM) method was used to elicit the amount farmers are willing to pay. For variable selection and estimation of factors influencing WTP, we applied the Least Absolute Shrinkage and Selection Operator (Lasso) regression algorithm.
Results (or expected results)
Our findings show that smallholder farmers are willing to pay USD 4.27monthly for farmbetter service. Key determinants of WTP include gender, household labour force, group membership, proximity to extension officers, agricultural income, farm-related stress, digital literacy, mobile phone access, and usage of digital tools.
Conclusion
The findings imply that investments in digital competencies, ensuring access to mobile phones, and promoting participation in community-based organizations could significantly improve the demand for digital extension among farmers.