What are You and Others You Hear from Willing to Pay for New Farming Technology?

Technology surrounds us and is often defined as: “the application of scientific knowledge for practical purposes, especially in industry” and “machinery and equipment developed from the application of scientific knowledge.” Whether by definition or experience, it’s clear that vegetable production requires a lot of technology. Hybrid varieties and clean lots of true-to-type seed, seed coatings and treatments, the many crop inputs (e.g., fertilizers, protectants), small and large pieces of machinery and equipment … the list is long and growing. Each technology growers rely on has its own characteristics and pros and cons of use. Therefore, it’s important to be clear on what you are willing to pay for a technology and what others (e.g., advisors, educators) say about it. Helping develop and people to use new technology effectively is a big part of my job. In recent years, I have tested and advised people on high tunnel, grafting, microbe-containing crop biostimulant, and other technologies. So, what growers like and dislike about these and other technologies and are willing to pay for them is important to me, too. Growers and others provide key information, sometimes in scientific reports. A report describing peoples’ perspectives on biodegradable mulch (BDM) caught my attention recently. It is useful in two ways. First, it includes important information on BDM, an emerging technology. Second, it can help guide similar evaluations of other technologies and, perhaps, products.

The report was published by a team of investigators led by Kuan-Ju Chen (University of Guam) and including partners at Washington State University, Colorado State University, and Massey University (New Zealand). The report is available at https://doi.org/10.21273/HORTTECH04518-20 or from Dr. Chen or me by request.

The team’s specific objective was to assess peoples’ willingness to pay (WTP) for BDM characteristics. More broadly, they wanted to understand how ‘green’ technologies affect agricultural production when they are introduced into the market. Using input from farmers, educators, advisors, and others, the team assessed the WTP for adopting BDMs and peoples’ rankings of the relative importance of different BDM characteristics. The input indicated that study participants were willing to pay a statistically significant premium for healthy soil and a lower fraction of plastic residue left in the field after harvest. The data also indicated that farmers and others ranked the attributes of BDMs differently. In this case, attributes included cost, soil health, plastic residue, and consumer premium.

People interested in BDM may wish to examine the report closely or contact me, the authors, or BDM experts about it. People considering investments in a technology (new or old) or advising people on one may wish to review the report as an example of how willingness to pay assessments are completed.

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