Willingness to Pay for Sustainable Agricultural Extension Services among Smallholder Farmers in Raya Azebo Woreda, Ethiopia

Abstract In Ethiopia, where agriculture continues to be the dominant economic sector, agricultural extension services (AESs) are essential for raising agricultural production and fostering rural development. This study examined farm households’ perceptions and Factors influencing farm households' willingness to pay (WTP) for agricultural extension services in Raya Azebo Woreda, northern Ethiopia. Focus groups, key informant interviews, and household surveys were used in a mixed-methods approach. A binary logistic regression model, narrative analysis, and descriptive statistics were used to evaluate data gathered from 230 farm households chosen from three kebeles. The findings showed that farmers thought extension services were crucial for improving market connections, employment possibilities, value addition, agricultural production, and environmental sustainability. According to the regression analysis, households' willingness to pay for extension services was positively and significantly impacted by age, education level, landholding size, credit availability, and radio access. This implies that farmers with more access to financial and information services, as well as those with higher levels of education and resources, are better able to invest in advisory services and are more aware of the advantages of agricultural extension. Distance from Farmers Training Centers (FTCs), on the other hand, had a substantial negative impact, suggesting that farmers are less motivated to request and pay for extension services when they have limited physical access. The results emphasize the significance of enhancing rural financial services, increasing information sharing, and making extension services more accessible. Additionally, encouraging private agricultural consulting and advisory firms run by agricultural graduates may improve service delivery. Targeted subsidies or lower service fees should be taken into consideration for resource-poor and female-headed households, whose willingness and ability to pay are comparatively lower, in order to provide fair and sustainable access.