Determinants of Preferences of the Respondents for the Payment for Environmental Services among the Rural Farming Households in Oyo State Nigeria

This study attempted to uncover the factors that influence preferences of the poor farming households for the attributes of Payment for environmental services (PES) in the Oyo State farm settlement Nigeria. Educational attainment, age of the respondents, previous knowledge of PES, land tenure, provision of micro credit, number of dependents, marital status and main occupation of the respondents. Dependent variable is preference for PES attributes.A multi-stage sampling technique was employed for this study.This study used exclusively Primary data.Which were collected through the use of a well-structured questionnaires and interview schedule for the literate and non-literate farmers respectivelyTotal sample of 395 out of 547respondents (i.e.72%) were drawn cumulatively. The regression results showed that previous knowledge of PES and provision of microcredit are significant at 5% each, while land ownership right is significant at 10% in the educational poverty group. In the consumption poverty group, previous knowledge of PES is significant at 5%, while land ownership right is positively significant at 1%, respectively. Housing/living standard poverty group; previous knowledge of PES and land ownership rights are significant at 5% each. From the findings of this study, it implies that if micro credit facilities are provided to these poor farming households, they will be willing to conserve the environmental resources (i.e. agricultural land). It therefore suggests that a well thought institutional arrangement with PES in view could be put up to enhance natural resource conservation and by extension reduction of poverty.