Farmers' preferences and willingness to pay for improved irrigation water supply program: a discrete choice experiment

This study examines smallholder farmers' preferences and willingness to pay for an improved irrigation water supply program in northwest Ethiopia. We employed a discrete choice experiment with five attributes and three levels. Data were collected from randomly selected sample households of both irrigation users and non-users. A total of 379 respondents participated, and a mixed logit model was used to analyze the household-level survey data. The result indicates that to deviate from the business-as-usual scenario, smallholder farmers are willing to pay between 3,228 and 8,327 Ethiopian Birr per hectare of irrigated land. Furthermore, the results showed a strong public preference for access to produce cash crops, followed by irrigation water availability in the dry season, and adequate access to improved farm inputs. The results also provide useful information for policymakers and suggested possibilities for generating finance from farmers to cover the operation and maintenance costs of irrigation schemes. Also, this study result reveals that irrigation development and expansion must be integrated into a comprehensive support package that combines irrigation water with access to improved farm inputs and access to produce cash crops on farmers' farm plots.