This study has been conducted in order to generate evidence of the visibility of exit from farm input subsidies in an African context. The study simulates the impact of alternative exit strategies from Malawi’s farm input subsidy program on maize markets. The simulation is conducted using a multiequation partial equilibrium model of the national maize market, which is sequentially linked via a price-linkage equation to local rural maize markets. The model accounts for market imperfections prevailing in the country that arise from government price interventions.

While there is growing evidence of the impact of targeted subsidies on private input demand, as far as we are aware no empirical studies have examined the spillover effects of targeted subsidies for just one input on the use of other complementary inputs with which there is low substitutability. Consequently, this study begins to fill this gap by exploring the effect of increasing access to subsidized fertilizer on farmers’ use of improved seed in Nigeria.

There is little rigorous evidence on the comparative impacts of cash and food transfers on food security and food-related outcomes. We assess the relative impacts of receiving cash versus food transfers using a randomized design. Drawing on data collected in eastern Niger, we find that households randomized to receive a food basket experienced larger, positive impacts on measures of food consumption and diet quality than those receiving the cash transfer.

Swaziland as a developing middle income country has continuously sought to create an enabling environment for the development of the agricultural sector. The country has enacted policies and strategies together with programs to facilitate the attainment of growth targets in the agricultural sector (World Bank, 2011). Consequently, this will lead to the attainment of the Comprehensive Africa Agriculture Development Program (CAADP) targets, Millennium Development Goals (MDGs) and facilitate economic growth.

The contribution of chemical fertilizers towards increased agricultural production is well established. Indian agricultural policy focused on increasing productivity and modern inputs such as improved seeds (HYVs), irrigation, chemical fertilizers, etc. have played an important role in increasing crop production and productivity. Increased fertilizer use will continue to play an important role in increasing agricultural productivity given the diminishing land available for cultivation.

Factsheet

Factsheet

Factsheet

This analysis explores smallholder demand for hybrid maize seed by subsidy receipt. We test the hypothesis that the hybrid maize subsidy in Zambia is selectively biased due in part to its delivery mechanism and the self-selection of farmers who are able or choose to exercise their claim. Our analysis found that farmers with a lower poverty headcount are more likely to receive subsidized seed. In addition, a segment of farmers with a high predicted demand for hybrid seed are not reached by FISP—and they are poorer in terms of land and income than those who obtain the subsidy.

We look at the immediate effects of these shocks faced by households in Uganda on their poverty and well-being. In addition, we look at the economywide impact in the long run when all markets have settled at a new equilibrium. We find that in the short run, poverty has increased substantially. However, in the longer run, we find welfare levels of rural farm households in particular to rise sharply, primarily as a result of increased returns to farm labor and agricultural land coupled with improved market prices for output sold.

Factsheet

Factsheet