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Improving the Effectiveness of Malawi’s FISP

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  • Ricker-Gilbert, Jacob
  • Lunduka, Rodney
  • Shively, Gerald
  • Jayne, Thom

Abstract

Benefit and cost estimates of the Farm Input Subsidy Program (FISP) indicate that the program often does not generate high enough returns to cover its costs. This has led to an ongoing debate regarding the effectiveness and sustainability of fertilizer subsidies in sub-Saharan Africa (SSA). In this brief we evaluate effectiveness of the FISP in Malawi under the following four criteria: 1) benefits vs. costs at the household level; 2) impact on the private input sector; 3) impacts on funding for other agricultural development programs; and 4) Macro-level and foreign exchange impacts.

Suggested Citation

  • Ricker-Gilbert, Jacob & Lunduka, Rodney & Shively, Gerald & Jayne, Thom, 2014. "Improving the Effectiveness of Malawi’s FISP," Food Security Collaborative Policy Briefs 234944, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midcpb:234944
    DOI: 10.22004/ag.econ.234944
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    References listed on IDEAS

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    1. Fitzpatrick, Natalie Bess, 2012. "Repercussions of Fertilizer Subsidy Programs on Private Sector Input Retailers: Evidence from Malawi and Proposal for Further Research," Graduate Research Master's Degree Plan B Papers 141117, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Harrigan, Jane, 2008. "Food insecurity, poverty and the Malawian Starter Pack: Fresh start or false start?," Food Policy, Elsevier, vol. 33(3), pages 237-249, June.
    3. Minde, I., 2008. "Promoting fertilizer use in Africa: current issues and empirical evidence from Malawi, Zambia and Kenya," IWMI Working Papers H042064, International Water Management Institute.
    4. Minde, Isaac J. & Jayne, Thomas S. & Crawford, Eric W. & Ariga, Joshua & Jones, Govereh, 2008. "Promoting Fertilizer Use in Africa: Current Issues and Empirical Evidence from Malawi, Zambia, and Kenya," Food Security International Development Policy Syntheses 54509, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Chirwa, Ephraim & Dorward, Andrew, 2013. "Agricultural Input Subsidies: The Recent Malawi Experience," OUP Catalogue, Oxford University Press, number 9780199683529.
    6. Ricker-Gilbert, Jacob & Jayne, Thomas S., 2011. "What are the Enduring Effects of Fertilizer Subsidy Programs on Recipient Farm Households? Evidence from Malawi," Staff Paper Series 109593, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. Ricker-Gilbert, Jacob & Jayne, Thomas S., 2012. "Do Fertilizer Subsidies Boost Staple Crop Production and Reduce Poverty Across the Distribution of Smallholders in Africa? Quantile Regression Results from Malawi," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126742, International Association of Agricultural Economists.
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