Farmers' willingness to pay for less health risks by pesticide use: A case study from the cotton belt of Punjab, Pakistan

The amount of pesticides used in crop production in Pakistan has increased rapidly in the last decades, whereas farmers in many areas of the country show little knowledge of safe and efficient use of pesticides. The level of willingness to pay (WTP) for avoiding health risks by pesticides was studied among 318 randomly selected cotton farmers from two districts of the area of Punjab (i.e., Vehari and Lodhran) in Pakistan, using the contingent valuation method. Most farmers felt that pesticide use is a prerequisite for successful cotton production, whereas at the same time they were well aware of pesticide health risks, which they considered minor. The majority of the farmers (77%) showed varying levels of WTP some fee up to 20% of the current pesticide expenditures for avoiding pesticide health risks, but few were willing to pay a fee over 20%. The mean WTP per farmer was low, reaching 5.8 $US on an annual basis. By contrast, a considerable proportion of the farmers (23%) were not willing to pay any fee for avoiding pesticide health risks. These individuals were mostly poor small-scale farmers with limited or no education. High levels of risk perception about pesticides, past experience of pesticide intoxication, high levels of education, and high income were associated with high farmers' WTP for less health risks by pesticides. Farmers who perceived major health risks by pesticides appeared to be highly willing to pay a premium for safe pesticides. Elderly farmers appeared more likely to pay some premium for safe pesticides as a result of higher farming experience and higher income than young farmers. Well-educated farmers were more likely to pay a high premium for safe pesticides. Large farm size was a significant predictor of positive WTP, which was interpreted as an indicator of farmers' wealth.