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Smallholder demand for maize hybrids and selective seed subsidies in Zambia

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  • Smale, Melinda
  • Birol, Ekin

Abstract

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. These farmers represent a potentially important demand segment for HarvestPlus, which might consider addressing their needs through means other than a subsidy program.

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series HarvestPlus Working Papers with number 9.

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Date of creation: 2013
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Handle: RePEc:fpr:harvwp:9

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Keywords: Zambia; Southern Africa; Africa south of Sahara; Africa; Hybrid maize; smallholder; decisionmaking; subsidies; Seed supply;

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References

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  1. Burke, William J. & Jayne, Thomas S. & Sitko, Nicholas J., 2012. "Can the FISP More Effectively Achieve Food Production and Poverty Reduction Goals?," Food Security Collaborative Policy Briefs 123208, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  2. Joshua Angrist & Alan Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Working Papers 834, Princeton University, Department of Economics, Industrial Relations Section..
  3. Minot, Nicholas & Benson, Todd, 2009. "Fertilizer subsidies in Africa: Are vouchers the answer?," Issue briefs 60, International Food Policy Research Institute (IFPRI).
  4. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-75, March.
  5. Banful, Afua Branoah, 2011. "Old Problems in the New Solutions? Politically Motivated Allocation of Program Benefits and the "New" Fertilizer Subsidies," World Development, Elsevier, vol. 39(7), pages 1166-1176, July.
  6. Jacob Ricker-Gilbert & Thomas S. Jayne & Ephraim Chirwa, 2010. "Subsidies and Crowding Out: A Double-Hurdle Model of Fertilizer Demand in Malawi," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(1), pages 26-42.
  7. Mason, Nicole M. & Ricker-Gilbert, Jacob, 2013. "Disrupting Demand for Commercial Seed: Input Subsidies in Malawi and Zambia," World Development, Elsevier, vol. 45(C), pages 75-91.
  8. Zhiying Xu & William J. Burke & Thomas S. Jayne & Jones Govereh, 2009. "Do input subsidy programs "crowd in" or "crowd out" commercial market development? Modeling fertilizer demand in a two-channel marketing system," Agricultural Economics, International Association of Agricultural Economists, vol. 40(1), pages 79-94, 01.
  9. Houssou, Nazaire & Zeller, Manfred, 2011. "To target or not to target? The costs, benefits, and impacts of indicator-based targeting," Food Policy, Elsevier, vol. 36(5), pages 627-637.
  10. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May.
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Cited by:
  1. Smale, Melinda & Mason, Nicole M., 2013. "Hybrid Seed, Income, and Inequality among Smallholder Maize Farmers in Zambia," Food Security Collaborative Working Papers 146929, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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