Willingness to Pay for Improved Irrigation

Abstract

Irrigation farming is essential for all-season farming in the areas that usually depend on seasonal rainfall, like Southwest Nigeria. This study assesses farmers' willingness to pay (WTP) for sprinkler irrigation systems in Oyo and Osun States and the socioeconomic determinants of such investment decisions. Using a multi-stage sampling method, data were collected from 476 farmers through structured questionnaires using the Contingent Valuation Method (CVM) and analyzed using descriptive analysis and logit regression. Results show that 75.42% of farmers are willing to pay for sprinkler systems with an average WTP of ₦246,159.7 per acre per season. Key positive influences on WTP include age, access to credit, and cultivation of water-intensive crops like fruit and vegetables, while secondary occupations, farming experience, and cereal production negatively impact WTP. The fit is very good, as evidenced by a pseudo-R² of 0.92. The study recommends increasing the availability of appropriate credit through the Bank of Agriculture and commercial banks and flexible payment options. Also, educational programs highlighting the benefits of irrigation could encourage traditional farmers to adopt modern practices. The results show that these interventions need financial and knowledge inputs to improve sustainable agriculture and food security in Nigeria.