Measuring Farmer's Willingness to Pay for Frost Protection When There Is Alternate Bearing: a Case Study of Pistachio in Rafsanjan

In this study, pistachio producer's willingness to pay for frost protection when there is alternate bearing was investigated. Using survey method, data of 2005 to 2007 were collected from a sample of 204 farmers in Rafsanjan city, Kerman province. Descriptive statistics were used for data analyzing and clustering primary information. Regression estimation was applied to measuring the effects of different factors on coefficient of variation of yield. Also, utility functions were used for calculating willingness to pay. Results indicated that frost increases pistachio yield variability and production risk but, because of alternate bearing, it has no effect on mean yield in long run. Results also showed that because of alternate bearing and no increase in pistachio long run yield, there is not enough willingness to pay for frost protection. In these situations, applying insurance plan that reduces income fluctuations as a result of frost and alternate bearing is suggested.