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Self-targeted fertilizer subsidies

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Title Self-targeted fertilizer subsidies
 
Creator Banda, Chimwemwe
Weerdt, Joachim de
Duchoslav, Jan
Jolex, Aubrey
 
Subject agricultural economics
commodity markets
crop yield
farm inputs
farmers
fertilizers
food production
food security
market prices
supply balance
 
Description If Malawi’s fertilizer subsidy program aims to increase food security in the country, it should strive to target the most productive farmers. Subsidy levels can be set to self-target this group of farmers. This would maximize output achieved with subsidized fertilizer and eliminate the need for costly and error-prone top-down targeting. Maximizing the productive capacity of the AIP In a previous policy note, we argued that by setting the farmer contribution to fertilizer subsidized under that Affordable Inputs Programme (AIP) so that farmer demand matches what the program can supply, the government can maximize the total amount of fertilizer available for distribution under the program (Banda et al.,2022). In this note, we argue that a second advantage of this pricing strategy is that it ensures that each subsidized bag of fertilizer has the largest possible yield response, thus maximizing the additional amount of food produced through the program.
 
Date 2022-12-05
2023-01-17T08:13:58Z
2023-01-17T08:13:58Z
 
Type Report
 
Identifier Banda, Chimwemwe; De Weerdt, Joachim; Duchoslav, Jan; and Jolex, Aubrey. 2022. Self-targeted fertilizer subsidies. MaSSP Policy Note 48. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.136464
https://hdl.handle.net/10568/127249
https://www.ifpri.org/publication/self-targeted-fertilizer-subsidies
https://doi.org/10.2499/p15738coll2.136464
 
Language en
 
Relation https://doi.org/10.2499/p15738coll2.136462
MaSSP Policy Note
 
Rights CC-BY-4.0
Open Access
 
Format 4 p.
application/pdf
 
Publisher International Food Policy Research Institute (IFPRI)