Economic Valuation of Soil Fertility Management (SFM): An Assessment of Farmers’ Willingness to Pay for Sustainable Agricultural Productivity in Southwestern Nigeria

Abstract

This study assessed farmers’ willingness to pay (WTP) for soil fertility management as an ecosystem service in Southwestern Nigeria. Primary data were collected through structured questionnaires administered to farming households in selected areas of Oyo and Ekiti States. A multistage and purposive sampling technique was used to select 384 respondents from Ogbomoso, Ibadan/Atiba, Efon-Alaye, and Gboyin Local Government Area. Data were analyzed using Logit, Probit, and Tobit regression models within the contingent valuation method (CVM) framework to estimate farmers’ willingness to pay, assess perceptions, and identify socioeconomic factors influencing WTP. Results showed that 68% of farmers were willing to pay for soil fertility management practices, with mean WTP estimated at ₦3,200 per farming season in Oyo State and ₦2,600 in Ekiti State. Farm income, education, perception of soil fertility importance, extension contact, and farm size significantly increased willingness to pay, while bid amount had a negative and statistically significant effect (p < 0.01). Tobit estimates further revealed that higher-income and better-educated farmers were willing to contribute larger amounts. The study concludes that willingness to pay reflects both farmers’ economic capacity and awareness of soil fertility as an essential ecosystem service for sustainable agricultural productivity. It therefore recommends strengthening extension services, promoting payment for ecosystem services schemes, and implementing targeted policies to encourage farmer participation in soil fertility management programmes in Southwestern Nigeria. These findings underscore the importance of institutional support, environmental awareness, and inclusive rural financing mechanisms for sustainable land management among smallholder farmers.