Smallholder farmers’ willingness to pay for two-wheel tractor-based mechanization services in Zambia and Zimbabwe

Mechanization is back among top development policy priorities for transforming African smallholder agriculture. Yet previous and ongoing efforts ubiquitously suffer from lack of scientific information on end-user effective demand for different types of mechanical innovations to inform public investment or business development programs. We assess smallholder farmers’ willingness to pay (WTP) for two-wheel tractor (2WT) - based ripping, direct seeding, and transportation using a random sample of 2,800 smallholder households in Zambia and Zimbabwe. Applying the Becker-DeGroot-Marschak Mechanism (BDM) experimental auctions, we find that at least 50% of sample households in Zambia and 20 Zimbabwe were willing to pay more than the prevailing market prices for ripping. In nominal terms, sample households in Zimbabwe were willing to pay more than those in Zambia for the different services. Empirical results suggest that wealth is the strongest driver of WTP for tillage and seeding 2WT services while labor availability and using animal draft power reduce it. These findings imply a need to (i) raise awareness and create demand for 2WT-based services in an inclusive business manner that does not create perverse incentives and (ii) better target mechanization to operations with comparative advantage, using approaches that bundle 2WT-based and other mechanization services with asset-agnostic credit schemes or other interventions meant to overcome asset-mediated barriers.

Publication Details

Journal
AgEcon Search (University of Minnesota, USA)
Published
2025-08-18
DOI
https://doi.org/10.22004/ag.econ.365869
Primary Topic
Agricultural Innovations and Practices
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Smallholder farmers’ willingness to pay for two-wheel tractor-based mechanization services in Zambia and Zimbabwe

AgEcon Search (University of Minnesota, USA)
Agricultural Innovations and Practices
article

Smallholder farmers’ willingness to pay for two-wheel tractor-based mechanization services in Zambia and Zimbabwe

article en

Abstract

Mechanization is back among top development policy priorities for transforming African smallholder agriculture. Yet previous and ongoing efforts ubiquitously suffer from lack of scientific information on end-user effective demand for different types of mechanical innovations to inform public investment or business development programs. We assess smallholder farmers’ willingness to pay (WTP) for two-wheel tractor (2WT) - based ripping, direct seeding, and transportation using a random sample of 2,800 smallholder households in Zambia and Zimbabwe. Applying the Becker-DeGroot-Marschak Mechanism (BDM) experimental auctions, we find that at least 50% of sample households in Zambia and 20 Zimbabwe were willing to pay more than the prevailing market prices for ripping. In nominal terms, sample households in Zimbabwe were willing to pay more than those in Zambia for the different services. Empirical results suggest that wealth is the strongest driver of WTP for tillage and seeding 2WT services while labor availability and using animal draft power reduce it. These findings imply a need to (i) raise awareness and create demand for 2WT-based services in an inclusive business manner that does not create perverse incentives and (ii) better target mechanization to operations with comparative advantage, using approaches that bundle 2WT-based and other mechanization services with asset-agnostic credit schemes or other interventions meant to overcome asset-mediated barriers.

AgEcon Search (University of Minnesota, USA)
Decent work and economic growth
Openalex Percentile: Top 27%
Agricultural Innovations and Practices
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.