Farmers' Willingness to Participate in a Carbon Sequestration Program - A Discrete Choice Experiment.

Farmers can counteract global warming by drawing carbon dioxide from the air into agricultural soils by building up humus. Humus programs were developed to motivate farmers for even more humus formation (= carbon sequestration) through an additional financial incentive. These programs are still at an early stage of development, which is why the number of participating farmers and research work is still low. This study is the first to analyze the willingness of German farmers to participate in hypothetical humus programs. The results of a discrete choice experiment show that a (higher) threshold for the payout of the premium, regional (rather than field-specific) reference values, and the risk of repayment clearly discourage farmers from participating. Program providers must more than double the premium (set at around 240 € per hectare and 0.1% humus increase) to maintain farmers' willingness to participate despite a payout threshold. Regional reference values and an additional premium/repayment system would lead to an increase in the premium of around 20 € per hectare in order to keep the willingness to participate at the same level. The motivation to build up humus, the desire to maximize subsidies, and a higher livestock density have a positive influence on farmers' decision to participate. Farm size and risk attitude have an impact on farmers' preferences for program design. The study is relevant for policymakers and non-governmental organizations concerned with carbon management, as our findings highlight pathways for efficient, targeted designs of humus programs and carbon sequestration policies.

Farmers' willingness to pay for digital and conventional credit: Insight from a discrete choice experiment in Madagascar.

In recent decades, microfinance institutions with financial products designed for low income groups have been established all over the world. However, credit access for farmers in developing countries remains low. Digital financial services are rapidly expanding globally at the moment. They also bear great potential to address the credit needs of farmers in remote rural areas. Beyond mobile money services, digital credit is successively offered and also discussed in literature. Compared to conventional credit which is granted based on a thorough assessment of the loan applicant's financial situation, digital credit is granted based on an automated analysis of the existing data of the loan applicant. Despite the potential of digital credit for serving the credit needs of rural farmers, empirical research on farmers' willingness to pay for digital credit is non-existent. We employ a discrete choice experiment to compare farmers' willingness to pay for digital and conventional credit. We apply loan attributes which reflect typical characteristics of both credit products. Our results indicate a higher willingness to pay for digital credit compared to conventional credit. Furthermore, we find that the proximity to withdraw borrowed money has a higher effect on farmers' willingness to pay for digital credit compared to conventional credit. Furthermore, our results show that instalment repayment condition reduces farmers' willingness to pay for digital credit whilst increasing their willingness to pay for conventional credit. Additionally, we find that longer loan duration has a higher effect on farmers' willingness to pay for digital credit compared to conventional credit whereas higher additional credit cost has a lower effect on farmers' willingness to pay for conventional credit compared to digital credit. Our results highlight the potential of digital credit for agricultural finance in rural areas of Madagascar if a certain level of innovation is applied in designing digital credit products.

Look at that!-The effect pictures have on consumer preferences for in ovo gender determination as an alternative to culling male chicks.

Gender determination in incubated eggs (in ovo) has the potential to substitute the highly discussed practice of culling male layer chicks. The aim of this study was to investigate the effect pictures have on peoples' preferences toward in ovo sexing at different stages of embryonic development and chick culling. For this purpose, an online survey was conducted with a representative sample of 482 respondents in Germany. A within-subject design with 2 choice experiments was used to investigate the influence pictures have on respondents' preferences and willingness to pay. The first-choice experiment contained plain text only; the second contained also pictures of a chick or the incubated eggs at the corresponding stages of development. Findings reveal that in ovo gender determination at each proposed day of incubation (d1, d4, and d9) was preferred to chick culling. In ovo screening on d1 and d4 was significantly preferred to d9. This preference for early gender determination increased significantly as a consequence to the provision of pictures. Results furthermore reveal that a high error rate of gender determination or the lack of a meaningful utilization of incubated eggs can decrease approval for in ovo gender determination to an extent, where no positive willingness to pay remains. Findings of this study are useful for stakeholders in poultry production when considering the implementation of in ovo gender determination as a morally admissible substitute to chick culling.