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Assessment of Farmers' Fertiliser Application Behaviour and Their Willingness To Pay For The Fertiliser: A Study in Coconut Triangle of Sri Lanka
Assessment of Farmers' Fertiliser Application Behaviour and Their Willingness To Pay For The Fertiliser: A Study in Coconut Triangle of Sri Lanka
ABSTRACT
Identification of the factors that determine growers’ fertiliser application, ranking them and
assessing the growers’ willingness to pay (WTP) for a 50 kg of fertiliser bag are the objectives of
this study. The data were collected from 322 coconut growers and the results showed that the most
significant factors were price of the fertiliser, technical knowledge, labor scarcity and having no
interest. The growers’ WTP for a 50 kg fertiliser bag was Sri Lankan Rupees (Rs.) 1,672.08.
Therefore, apart from the price of the fertiliser, policymakers should pay their attention to farmers’
technical knowledge, the issue of labor scarcity and different agricultural extension approaches.
behaviour; intention; perceived behavioural control; Sri Lanka; subjective norm; Theory of
1. Introduction
Since last two decades, the coconut growers in Sri Lanka have been facing many problems, which
has ultimately resulted in declining the production and profits from their estates. Further, the low
productivity is the basic character of the small-scale resource poor rural farmers in Sri Lanka. The
accelerated soil degradation is majorly due to the non-sustainable farming practices and it is the
major contributory factor for the low yield. Sri Lankan small-scale coconut growers do not have
the proper habit of applying fertiliser, but proper application of fertiliser is a very important
diagnostic survey in eleven coconut cultivation regions in Sri Lanka. According to the findings
of the survey, the growers’ awareness of the fertiliser mixtures was very poor. Further, only 14%
and 13% of growers were aware of adult palm mixture (APM) and young palm mixture (YPM)
respectively. Therefore, the diagnostic survey was clearly indicated that the knowledge of
fertiliser mixtures was in a very unsatisfactory level and it was one of the most important aspects
of coconut cultivation that had not disseminated properly among coconut growers (Peiris et al.,
2006). It was also found that 31% of growers never applied fertiliser for coconut at all. Therefore,
it is very clear that most of the growers do not apply fertiliser to their coconut fields even though
the fertiliser application is one of the quickest possible ways to increase the yield.
Several research has been carried out to study growers’ technology adoption process, but
generalization of those findings is still a challenge for the researchers due to some reasons for
example, contrasts in farmers’ characteristics, their background and the referring technology.
Feder et al. (1985) attempted to create a list of growers’ adoption factors using the data from
several past studies. According to them, availability of labor, access to credit, market access, risk
management ability, land ownership, size of the farm and education were some of the factors which
The adoption factors identified by Feder et al. in 1985 were proved by the several recently
conducted studies. In addition, they have added some new factors to the list according to the study
sample and referring technology. There are variations in the way each factor influences the
adoption decisions while some factors are still debatable. Thus, it is possible that each individual
will vary according to their socioeconomic conditions, beliefs and attitudes. The fertiliser price is
one of the main factors that determine growers’ fertiliser application. However, individual growers
have shown unique fertiliser application behaviour. As a result, there are several other factors that
could be influenced the fertiliser application other than fertiliser price. The studies conducted by
Aromolaran and Olayemi (2000) and Solano et al. (2003) reported that despite the major role of
economic motivation, farmers in general have multiple objectives (economic and non-economic)
in decision-making. Multiple objectives may also indicate the farmers’ different approaches in
dealing with their situations (Aromolaran and Olayemi, 2000). Therefore, the objectives of this
research are, recognizing the factors that determine growers’ fertiliser application, ranking of the
identified factors and predicting the growers’ willingness to pay for a 50 kg bag of APM fertiliser.
Any procedure used to evaluate why growers behave the manner they perform would be
encountered various number of inter-related factors for example, the advisory/information services
accessible to growers, the policy structure facing, and the feelings, goals, and motives of the
growers etc. (Beedell and Rehman, 2000). Therefore, it is important to investigate how growers’
different choice stimuli direct to a specific decision or behaviour to understand growers’ actual
behaviour in fertiliser application. Ajzen’s (2002) Theory of Planned Behaviour (TPB) has given
a valuable framework to study associations between growers’ decision variables and behaviour.
The theory explains individual behaviour in decision-making and attitude, subjective norm (SN)
and perceived behavioural control (PBC) are the main elements of the theory. Furthermore, TPB
illustrates the relationship between the intention and the main three elements.
The intention to accomplish a behaviour could be explained as the likelihood that a person
will involve in a specific behaviour. As per the TPB, intentions are extensively precise in
foreseeing a behaviour. Further, it is prejudiced by attitudes, SN, and PBC toward the behaviour,
which will be controlled by relevant salient beliefs. Therefore, the theory foresees that if the
individual’s intention is more powerful, then the likelihood to accomplish the behaviour by an
pessimistic feeling. The related behavioural beliefs and the outcome evaluation are the assessment
of the behavioural belief. The expectancy-value method can be used to estimate the attitude
The SN is the social pressure creates by the others on an individual to perform a particular
action. SN is estimated by normative beliefs and its motivation to comply, and the expectancy-
PBC is explained as how individual’s opinion about performing the action. and it is
estimated from the control belief and the power of the related control belief. Measuring of PBC
Most of the attitude research utilize the expectancy-value method to measure the TPB variables. It
assumes that attitude towards a behaviour depends on belief about the behaviour and its good or
bad evaluation. There are three fundamental constituents for expectancy-value method; belief of
the behaviour (b), value evaluated by the individual for the behaviour (v) and attitude (a). It could
n
be expressed as followers; (a = bivi) (Viklund, 2002).
i 1
Based on the concept equation 1 could be formulated,
B I AT + SN + PBC (1)
s t u
B I = 1
i 1
bbioei + 2
j 1
nbjmcj + 3
k 1
cbkpk (2)
2. Research Methodology
The beliefs towards the expected behaviour are very important to develop attitude, SN and PBC
in an individual. Furthermore, the salient beliefs play a significant role in foreseeing intention,
thereby behaviour. Those that first come to mind if ask a question from an individual for example,
“What do you think would be the advantages for you to perform a certain behaviour?”, are called
Salient beliefs. A survey has to be conducted to identify the salient beliefs in a given population
A survey was conducted to identify the salient beliefs in Kurunegala, Puttalum and
Gampaha districts of Sri Lanka by randomly selecting 15, 10 and 10 growers respectively. Further,
the researchers have utilized their experience of working with Sri Lankan farmers over the last 16
years to select the final set of salient beliefs from the salient beliefs identified by the study.
2.2 Development of the questionnaire
Questions were comprised of the beliefs that identified by the preliminary survey. The
questionnaire was pre tested to ensure both the validity and the reliability. The questions were
The empirical study was carried out in the Kurunegala, Gampaha and Puttalam districts of Sri
Lanka. The data collection was done from the growers who were selected using simple random
sampling technique. The sampling frame was provided by the Coconut Development Officers in
According to the literature, Kline (1994) argued that if the data is clear, a sample of 100
respondents would be quite sufficient for a survey. However, according to both Cochran’s formula
(1977) for sample size determination and Bartlett et al.’s, (2001) findings, the sample size was
increased by the researchers considering the large population that has to be covered. Therefore,
the data were collected from 175, 150 and 100 growers randomly from Kurunegala, Puttalm and
Gampaha districts respectively to represent the coconut cultivation extent, and the predicted total
The data collection was done using field surveys with a structured questionnaire. Five CDO ranges
were randomly selected from each and every district; Kurunegala (Narammala, Kurunegala,
Walpita and Gampaha) and Puttlam (Karuwalagaswewa, Pallama, Naththandiya, Anamaduwa and
Kalpitiya) to collect the data from coconut growers. The effective response rate was 86.8%, 82.6%
and 90% with 152, 124 and 90 duly completed questionnaires returned respectively. Finally, the
total sample size was 366 and the data analysis was done mainly from regression analysis using
The growers’ willingness to pay for 50 Kg of APM fertiliser bag was estimated by the Contingent
Valuation Method (CVM). It has employed over the past years for the economic estimations of
natural resources. Further, it was also used as a tool for elicit public aspiration to finance the several
suggested programmes (Blaine et al., 2003). According to the Klirie and Wixhelms (1994), CVM
used to measure peoples’ willingness to pay tax to fund environmental programmes. Moreover,
CVM was utilized to assess growers’ readiness to pay for extension services (Ajayi, 2006).
Puttlam districts was given in Table 1. The mean age of the participants in Gampaha, Kurunegala
and Puttlam districts were 59.5, 58.2 and 55.2 years respectively. The majority of growers were
male farmers.The coconut growers in Gampaha district have higher educational background than
Kurunegala and Puttlam districts. According to the data on time spent on farming, most of the
farmers in Gampaha and Putlam districts were engaged in farming part time and majority of
growers in Kurunegala were engaged in farming full time. The average farm size of Puttlam (17.4
ac.) was greater than Kurunegala (14.1 ac.) and Gampaha (4.3 ac.) districts.
The reliability analysis was carried out to measure the internal consistency of the measured concept
or constructs to ensure that they were adequate and reliable. Cronbach’s alpha is the measurement
for reliability analysis and the generally accepted lower limit is 0.7. Whereas in the exploratory
research it is reduced to 0.6 (Hair et al., 1998). Therefore, 0.6 Cronbach’s alpha was considered as
the lower limit in this study. The alpha values for the variables in the model were computed, and
all were lined within the acceptable range. The results are given in the Table 2.
3.3 Attitudes towards fertiliser application and relationship with socioeconomic variables
The main factors that influence fertiliser application of growers are vary with their socioeconomic
conditions, beliefs and attitudes. As cited in the literature, growers’ fertiliser application may
involve various decision stimuli. These stimuli will vary according to their beliefs and attitudes.
Therefore, individual growers seem to show unique fertiliser application behaviour. Even though
price has a greater impact on growers’ fertiliser application, several other factors are also affected
growers’ fertiliser application behaviour. Those other influential factors also can motivate growers
application, it is essential to explore how growers’ different decision stimuli vary with the decision
or behaviour. The correlation values between TPB constructs and several socioeconomic
The attitude has positive effect with growers’ farm size, farm income and education while
negative effect on growers’ age. When grower received a good education, more information and
knowledge could be accessed by them. Further, it allows grower to make wise decisions.
Subsequently, if the growers are more socially active, their social networks would be wider and it
directs them for innovations. Hence, more educated growers may tend to develop favorable
attitudes towards fertiliser application. It is also lined with the results of Asfaw and Admassie
(2004). Rogers (1993) also stated that there was a link between education and technology
acceptance. In this manner, education has a positive influence on growers’ fertiliser application
behaviour.
Application of fertiliser is a costly activity in the coconut estates. The growers need to
spend money for both fertiliser buying and application. Furthermore, some risks are also associated
with fertiliser application for example, when extreme weather conditions arise, the fertiliser
applied would not be utilized by the coconut palm effectively and the losing percentage could be
high. Therefore, farmers’ income is a significant factor, which is involved highly for taking
farming decisions. If the farmer has higher income, at that point it enables grower to take even
risky decisions. Accordingly, farmers’ income is a main factor in fertiliser application decisions.
The size of a farm is also a crucial factor that develop favorable attitudes towards fertiliser
application. Because size of a farm has a strong positive association with farmers’ income. Both
Bergevoet et al. (2004) and Kiptot et al. (2006) mentioned that, the cultivated land extent has a
strong influence on attitude. Most studies (Akinola, 1986; Hossain and Crouch, 1992; Negatu and
Parikh, 1999; Neil and Lee, 2001) showed a positive association between the cultivated land extent
Interestingly, a negative correlation was found between age and attitude. It infers that
younger generation has prominent positive attitudes for fertiliser application. Presumably, younger
generation is more educated than their parents. Furthermore, they do new inventions and
innovations and willing to take risks. Consequently, these characteristics might be involved to the
The SN or social pressure is the other predictor for the development of intention. It was not
correlated with all socioeconomic characteristics except age. Hence, it was a good indicator to
prove the social pressure could have a noteworthy effect on elderly growers. The growers’social
bonds were built up with social maturity, and respect to each other than youngsters. Hence, they
are willing to follow the correct advices given by the extension officer and peergrowers in order
to respect them. The elderly generation of Sri Lanka is used to practice traditional values and
norms than younger generation. Hence, the age has a greater influence on growers’ intention.
The final predictor, PBC has a positive relationship with farm extent and income but has a
negative relationship with age. Meanwhile it was not statistically significant with education. PBC
is the feeling that whether farmer can overcome hindrances. Therefore, if the grower receives
sufficient income, he/she can overcome the obstacles in fertiliser application. Then, the grower
can purchase fertiliser, pay for farm labor and furthermore, he/she can afford the risks. If the
farmland is larger, availability of resources, machinery and other inputs are also high.
Consequently, the quantum of resources available urges grower to overcome the barriers that they
face in fertiliser application. Hence, if the farm size is larger, growers pay more attention to
improve it.
In contrast to elderly growers, younger growers are progressively creative and attempt to
overcome their farming obstructions. More often elderly growers think conventionally and
unwilling to alter their farmlands. They wish to proceed with what they have used to practice for
a long time. Therefore, age has demonstrated a negative correlation with PBC.
3.4 The factors determine growers’ fertiliser application and their contribution to fertiliser
application behaviour
The factors determine growers’ fertiliser application was identified by the salient beliefs of the
growers for fertiliser application. The identified salient beliefs were categorized into three groups
according to the TPB. A regression analysis was done to access the contribution of identified
The regression analysis showed that intention to apply fertiliser significantly depended on
behavioural beliefs; “yield increase”, “coconut palm grows vigorously”, “income increase” and
“gives sustainable yield over the years” (see the Table 4). The other variables were not statistically
significant. Behavioural beliefs develop attitude of the fertiliser application. Therefore, the belief,
“fertiliser application will increase their yields” was the top most belief that leads to develop
favorable attitude for fertiliser application and followed by “coconut palm grows vigorously”,
When normative beliefs are considered, there were two statistically significant beliefs.
They are “Coconut Development Officer” and “fertiliser shopkeeper”. Normative beliefs develop
subjective norm of the fertiliser application. Therefore, it shows that only “Coconut Development
Officer” and “fertiliser shopkeeper” can influence to develop intention on grower to apply
fertiliser. Further, it shows that family members and neighboring growers had a minor role in
providing information in fertiliser application. Especially Sri Lankan rural farm families are
dominated by the male farmers and normally they take farming decisions, and it could be the
reason for the non-significant contribution of family members for the fertiliser application
decisions.
In contrast, some studies stated that family members and neighboring farmers were
important persons in the process of farming decisions. Furthermore, Asfaw and Admassie (2004)
showed the importance of information sharing among farm households in the case of chemical
fertiliser adoption among smallholder farmers in Ethiopia. Studies conducted by Blum (1989),
Ford and Babb (1989) and Sutherland et al. (1996) confirmed the importance of family as the
source of information for seasonal planting as well as decision making related to financing and
innovation.
Furthermore, Case (1992); Zhang et al. (2002) and Munshi (2004) confirmed the influence
of neighbors and village colleagues in farmers’ decisions related to new technologies. Ford and
Babb (1989) and Sutherland et al., (1996) reported a central role of farmer colleagues as
information sources for decision-making. Generally, growers seek information from neighbors and
other farmers, when there is limited resources and access for the information in the village.
In contrast, Solano et al., (2003) revealed that individual decision making is the most
common decision making system among the farming community. They also stated that in Costa
Rican dairy farmers take decisions without anyone else's input. Hossain and Crouch (1992) assert
that, Bangladesh farmers’ adoption to technologies was not affected by the opinion of local or
group leaders. The linkages between grower and Coconut Development Officer and grower and
farmers might not always rely on their memory for making decisions. They may have their own
According to Errington (1986), farmers may access information from internal sources or
external sources. The importance of each source is mainly depended on the decision to be made,
the decision making phase, the characteristics of the farm/farm family or farmer (Solano et al.,
2003). They also indicated the significance of an extension officer as the source of information for
the Costa Rican dairy farmers. Sulaiman (2002) found a significant role of field extension workers,
government agencies as innovation sources for small-scale farmers in tidal swamp agro-ecosystem
As far as a control belief is concerned, it is an ability to cope with barriers. During the
elicitation study, 14 barriers were identified which impeded application of the fertiliser. The
regression analysis results showed that the respondents’ intention was affected by four factors (see
the Table 6). Affordability (price of the fertiliser) was the highly influenced factor followed by
lack of technical knowledge, labor scarcity and having no interest. The other variables were not
statistically significant, and the findings were supported by the following past studies.
Affordability (price of the fertiliser) has a strong relationship with farmers’ income.
Farmers who earn higher income can afford new technologies (Negatu and Parikh, 1999; Lapar
and Ehui, 2004). Further, Wadsworth (1995) and Moser and Barrett (2003) reported that
Shiferaw and Holden (1998) found that the impact of labor availability on technology
adoption to be direct and positive. Some studies pointed out that, members in the farm family are
a source of supply farm labor to some extent. Savadogo et al. (1998) and Neil and Lee (2001)
stated that there is a strong and positive association between number of farm family members and
the technology adoption. Herath and Takeya (2003) also found a weak link between family size
and the technology adoption among rubber growers in Sri Lanka. Studies of Doss and Morris
(2000) and Gockowski and Ndoumbe (2004) found a significant and positive adoption rate
The farmers who are energetically involved in the public activities and have wider social
network categorized as earlier adopters by Rogers (Rogers, 1993). Further, the studies of Adesina
and Zinnah (1993); Baidu-Forson (1999); Doss and Morris (2000); Herath and Takeya (2003);
Herath and Wijekoon (2013); Hossain and Crouch (1992); Kaliba et al. (1997); and Ransom et al.
(2003) found that the linkage with extension officers have a strong impact on farmers’ technology
adoption.
Table 6 shows the binary logistic regression results which shows the relationship between fertiliser
application behaviour and explanatory variables (Attitude, SN and PBC). The variables were
entered step wise to explore the impact of every variable. The model fit value was -2 log likelihood
and it was a measure of how well the model fits the data, and has a chi-square distribution. The
outcomes indicated that introduction of attitude was decreased the -2 log likelihood deviance by
33.132, (df=1) (p<0.001). Addition of the attitude to the model was statistically significant and it
was contributed for 11.2% of the variance in the model (Nagelkerka R square = 0.112).
The variable SN only decreased the -2 log likelihood by 11.548, (df=1) (p<0.001), and it
was statistically significant. The model with two variables, attitude and SN, together reduced -2
log likelihood by 44.68 (df=2) (p<0.001). Therefore, attitude had more explanatory power than
SN. The attitude and SN on the whole represented 20.87% of the variance in the model
The PBC only reduced -2 log likelihood by 115.892, (df=1) (p<0.001). Studies of Armitage
and Conner (1999) and Notani (1998) have shown a strong effect of PBC on intention and
behaviour. Nevertheless, the author of the TPB has mentioned in his study that the effect of PBC
may vary according to the type of behaviour and the relevant behavioural setting (Ajzen, 1991).
Introduction of all three variables to the model together decreased -2 log likelihood by 160.572,
(df=3) (p<0.001) and it was significant. The model represented 70.9% of the variance in fertiliser
application (Nagelkerka R square =0.709). Therefore, three variables; attitude, SN and PBC, had
significant influence on growers’ fertiliser application behaviour. The main responsible variable
for application of fertiliser was the growers’ PBC towards the fertiliser application (72.2%) and
The Contingent Valuation Method (CVM) was utilized to analyze growers’ willingness to pay. In
the survey growers were asked to mark the amount that they are ready to pay for 50 kg of APM
fertiliser bag and different prices were suggested by them ranging from Rs. 1300.00 to Rs. 2500.00
The price which growers are willing to pay for 50 kg of APM fertiliser bag could be
calculated using Lower Bound Mean (LBM). The LBM characterizes a true lower bound estimate
of the price that the growers are willing to pay for 50 kg of APM fertiliser bag. It is a conservative
lower average willingness to pay because it does not capture the interpolations of that lie between
those listed (Ajayi, 2006). LBM is calculated by the formula in equation 3 (adopted from Blaine
et al., 2005).
K
LBM = µ0(P0) + µ(Pi – P1-i) (3)
i 1
2000) +0.0273(2500-2300)
= 1672.08
The LBM or farmers’ willingness to pay for 50 Kg of APMfertiliser bag in the study area was Rs.
Understanding growers’ behaviour and perceptions towards fertiliser application is necessary for
policy makers to formulate effective policies on fertiliser for better yields and productivity at the
Firstly, the highly contributed variable for fertiliser application was PBC, and followed by
There are 14 beliefs that contributed to form PBC variable. The most significant beliefs
that contribute to perform PBC were price of the fertiliser, technical knowledge on fertiliser, labor
scarcity and having no interest. Therefore, apart from the price of fertiliser policy makers should
pay their attention to farmers’ technical knowledge and the issues related to the labor scarcity.
Furthermore, there are considerable amount of growers that do not have interest to apply fertiliser.
Therefore, other strategies have to be identified to get their attention on this issue.
When considering the attitude formation for fertiliser application, there are four beliefs that
influence grower to apply fertiliser significantly such as, “the application of fertiliser will increase
the yield”, “income”, “vigorous growth of the coconut palm” and “it gives sustainable yield over
the years”.
Coconut development officer and fertiliser shop keeper can influence coconut grower to
apply fertiliser. Therefore, agricultural extension system has to be strengthen with different
participatory agricultural extension approaches. Furthermore, it is noticeable that private sector
too can involve in agricultural extension activities. Fertiliser companies could act as the key
partners in the process of technology transfer to the growers. Therefore, policies could be
formulated to motivate the private sector to expand their agricultural extension activities.
Secondly, there was a positive relationship between attitude towards fertiliser application and
education, farmer income and farm size, but it was negatively related with the growers’ age.
Therefore, agricultural extension approaches should be focused on the above different social
categories.
Thirdly, the study assessed the growers’ willingness to pay for a 50 kg bag of APM
fertiliser by utilizing the Contingent Valuation Method and the calculated price is Rs. 1,672.08
(USD 1= SLR158).
Funding
The authors received financial support for the research from the National Research Council of Sri
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Table 1 Socio-economics characters
Involvement in farming
SN ns ns ns .464**
fertiliser
R2 value 58%
Path variable
R2 value 45.8%
Path variable
R2 value 55.9%
control
Table 8 Willingness to pay for 50 kg of APM (Adult Palm Mixture) fertiliser bag using
CVM