Analysis of Smallholder Farmers’ Perceptions on Climate Change, Preference and Willingness-to-pay for Seasonal Climate Forecasts Information in Savelugu Municipality, Ghana

Abstract

Aim: Agricultural production is directly affected by climate change. This means that access to climate information would help the farmers’ preparedness for farming activities and the decision on the types of crops to grow, when to grow them and the types of farm management activities to adopt. As such, this study analysed farmers’ preference for seasonal climate forecasts and their willingness-to-pay for these information. Place and Duration: The study was conducted in the Savelugu Municipality in the Northern region of Ghana. A single period data was collected for analysis. Methodology: A total of 300 farmers were selected through a two stage sampling procedure and used for the study. From the theory of contingent valuation, a descriptive statistic and Heckman model were used in analysing the data. Results: From the results, the majority of farmers were willing-to-pay for seasonal climate information, especially, climate forecasts on rainfall. The farmers preferred that these seasonal climate forecasts should be disseminated to them through the radio. The farmers exhibit positive willingness-to-pay for seasonal climate forecasts to about 20 Ghana cedis. A number of factors influenced the farmers’ decision and amount they were willing-to-pay and these include gender, age, perception of climate change experience, ownership of radio, off-farm activity and participation in planting for food and jobs (PFFJ) program. Conclusions: The findings of this study highlighted the need for climate information by farmers and how this can be effectively disseminated to them. Generally, government institutions and other private agencies should take up the challenge and opportunity to provide climate information, especially seasonal rainfall forecast, to the farmers at a fee.  This fee must be determined at an optimal or at least a breakeven price considering the farmer’s ability to pay. The study also recommended that climate information dissemination should be integrated into government’s PFFJ program.