DETERMINANTS OF FARMERS’WILLINGNESS TO PAY FOR SUBSIDISED FARMINPUTS IN MALAWI

Abstract

This study uses the standard Tobit model to calculate both average household and aggregate willingness topay (WTP)forsubsidisedfertilizersin Malawi and it traces the determinantsoffarmers’ WTP for the inputs.The results reveal that smallholder farmers are willing to pay for more inputs in the Farm Input SubsidyProgramme (FISP) withthe mean householdWTPat MK1000beingaboutten50kgfertilizerbags and thetotal WTP at the same price being46891 bags per yearfor4742observedhouseholds. Significantdeterminants of WTP include farm size,food security andradio ownership

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