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Agricultural Input Subsidies
This book takes forward our understanding of agricultural input subsidies in low income countries.
Agricultural Input Subsidies
Agricultural input subsidies have been adopted on a large scale across different African countries in the last few years. However global experience with input subsidies has been mixed, and there is considerable concern that current input subsidies will turn out to be expensive political programmes with very limited development benefits. There is, however, also considerable enthusiasm for new, "smart" approaches in subsidies' delivery and for their potential to raise the productivity of millions of poor smallholder farmers and lift them out of poverty while promoting wider food security. This book takes forward our understanding of agricultural input subsidies in low income countries. A revie...
The Nigerian Economy
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Subsidies and Crowding Out
This article uses a double-hurdle model with panel data from Malawi to investigate how fertilizer subsidies affect farmer demand for commercial fertilizer. The article controls for potential endogeneity caused by the nonrandom targeting of fertilizer subsidy recipients. Results show that on average 1 additional kilogram of subsidized fertilizer crowds out 0.22 kg of commercial fertilizer, but crowding out ranges from 0.18 among the poorest farmers to 0.30 among relatively nonpoor farmers. This indicates that targeting fertilizer subsidies to the rural poor is likely to maximize the contribution of the subsidy program to total fertilizer use.
