AGRICULTURAL PRODUCERS' WILLINGNESS TO PAY FOR REAL-TIME MESOSCALE WEATHER INFORMATION

Real-Time Weather Information 363

The survey included questions for demographic and socioeconomic information, which
also elicited perceptions regarding the usefulness of different types of weather information
for farm and ranch decision making. In addition, the survey included two questions asking
for the maximum amount the respondent would be willing to pay to receive information
from Mesonet. The survey was carefully designed to remove any incentive for the respon-
dents to underrepresent their true willingness to pay. The cover letter stressed that Mesonet
funds were limited and that the survey results would be used to determine what programs
or services would be developed for agricultural and nonagricultural users. The survey also
stressed that Mesonet would be offered to agricultural subscribers only if a sufficient number
indicated a willingness to pay a fee to access the Mesonet data.

The willingness-to-pay questions were preceded by a detailed description of the Mesonet
system and the kind of information it would make available (appendix). Then, the first
willingness-to-pay question asked respondents the maximum amount they would be willing
to pay for access to the raw weather data. For the second question, value-added weather
information products were described, including: (α) Optimal Irrigation Scheduling Model,
(6) Peanut Leafspot Advisory Index, (c) Alfalfa Weevil Advisory Index, {d) Cotton Planting
and Growth Stage Advisoiy, (e) Chemical Application Advisory, and (/') Fire Danger Rating
System. Then, respondents were asked the maximum amount they would pay for both the
basic data and the value-added weather information products.

Respondents were asked to select from one of seven payment categories. The first
categoιy indicated that the respondent would not pay for access to Mesonet and would not
use the information if it were provided free. The second category indicated that the
respondent would not pay for access to Mesonet and would use the information only if it
were provided free.³ The remainder of the categories covered specific values; respondents
were asked to select that category which included the maximum dollar amount they would
pay. In addition to the categories for zero, the farmers and ranchers had the opportunity to
select categories ranging from $1—S5∕month to $50 or more per month.

Results

Characteristics of the Sample Farmers and Ranchers

The majority of the respondents were full-time farmers/ranchers and were over 45 years old.
Sixty-five percent had gross sales of $50,000 a year or more and 41% had annual sales
equalling or exceeding $100,000. The average annual gross income was approximately
$154,000. The average proportion of gross income needed to service long-term debt (a
measure of producer’s ability to bear risk) was approximately 20%. The majority of the
respondents either owned or had access to a computer. However, less than 7% had ever used
a computer bulletin board service. Thirty-four percent of the respondents subscribed to an
agricultural information service. Based on the published fees for the information services
selected, most of these producers are paying around $30/month for agricultural information.
On average, the respondents also paid $73/year for agricultural magazines.

■’Responses to this category were considered protest bids. That is, they did not reflect zero demand but, rather, an apparent
belief that the information should be available free.

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