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Fertilizer subsidies and how targeting conditions crowding in/out: An assessment of smallholder fertilizer demand in Tanzania

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  • Mather, David
  • Minde, Isaac

Abstract

We use panel data of smallholder farm households from Tanzania to empirically assess a large- scale fertilizer subsidy program in Tanzania with respect to its ability to meet its stated targeting criteria and the effect of subsidy receipt on both smallholder commercial fertilizer demand and total fertilizer use. We find that the majority of subsidy recipients met the targeting criteria in practice in regards to area cultivated to maize and that few of them had used inorganic fertilizer on maize or rice in the previous five years. However, we also find that depending on the year, between 25 to 37% of households receiving a fertilizer voucher did not use it, implying that these households did not gain the experience using fertilizer on maize or rice as envisioned by NAIVS

Suggested Citation

  • Mather, David & Minde, Isaac, 2016. "Fertilizer subsidies and how targeting conditions crowding in/out: An assessment of smallholder fertilizer demand in Tanzania," Food Security Collaborative Working Papers 260442, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midcwp:260442
    DOI: 10.22004/ag.econ.260442
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    1. Fujimoto, Takefumi & Suzuki, Aya, 2021. "Do Fertilizer and Seed Subsidies Strengthen Farmers' Market Participation? the Impact of Tanzania NAIVS on Farmers' Purchase of Agricultural Inputs and Their Maize-Selling Activities," 2021 Conference, August 17-31, 2021, Virtual 315044, International Association of Agricultural Economists.
    2. Mather, David L., 2016. "Page 1 of 16 Lessons learned from private sector -friendly input subsidy programs in Tanzania and Ghana," Food Security Collaborative Working Papers 266419, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Jongwoo Kim & Nicole M. Mason & David Mather & Felicia Wu, 2021. "The effects of the national agricultural input voucher scheme (NAIVS) on sustainable intensification of maize production in Tanzania," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 857-877, September.

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    Agricultural and Food Policy; Food Security and Poverty; International Development;
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