Smallholder Farmers’ Willingness to Pay for Certified Improved Maize Seed in Morogoro

Abstract

Agriculture is critical to Tanzania’s economy, with maize as a staple crop vital for both food security and income in both rural and urban communities. Despite its importance, maize yields lag behind potential due to limited use of productivity enhancing technologies like fertilizers and certified improved seeds. This study estimates willingness to pay and investigates the factors affecting smallholder farmers’ willingness to pay (WTP) for improved maize seeds, offering data driven insights to support policies that promote sustainable farming and food security. Household surveys and field experiments with 208 maize-producing households revealed that high seed costs averaging Tshs 13492 and 13521 in Kilosa and Mvomero respectively deter adoption, with 94% of farmers citing price as a barrier. Using the Becker-DeGroot-Marschak (BDM) method, farmers were willing to pay Tshs 5377 and 4853 for certified and non-certified seeds, respectively; the Take-It-or-Leave-It (TIOLI) method showed higher WTP at a price of Tshs 5000, with 59% for certified and 50% for non-certified seeds. Factors influencing WTP include sex, formal group membership, and slope of the land. The study recommends seed adoption enhancing initiatives including government subsidies, farmer education, and cooperative promotion to improve productivity and smallholder livelihoods.