PRODUCER PERCEPTIONS AND WILLINGNESS TO PAY FOR AGRICULTURAL EXTENSION SERVICES IN ADA EAST DISTRICT OF GHANA

Agricultural extension delivery in most developing countries is confronted with numerous challenges that hamper effective service delivery. The challenges, mainly budgetary in nature, have led to calls for cost-sharing in the delivery of agricultural extension services to farmers. However, there is not sufficient empirical evidence that supports the preparedness of producers to pay for extension services in most developing countries. Also, farmers' readiness to pay for agricultural extension services will depend on their perceptions of the effectiveness of the extension system. Relying on survey data, this study combined contingent valuation method (CVM) with Tobit modeling to estimate smallholders' willingness to pay (WTP) for agricultural extension services (AESs) in Ada East District of Ghana. Majority of the respondents (90.6%) indicated willingness to pay for AESs. Producers expressed willingness to pay GH190 for agricultural extension services for the cropping season. WTP was influenced by farmer's age, farm size, farm income, and marital status. Producers were generally dissatisfied with agricultural extension service delivery. Hence, efforts to promote privatization of extension service must take into account measures to enhance the quality of service delivery and frequency of visits.