Input subsidies and demand for improved maize: Relative prices and household heterogeneity matter!
AbstractThis study uses simple non-separable farm household models calibrated to household, market, farming and policy context conditions in Central and Southern Malawi. The models are used to simulate how household characteristics, design and access to input subsidies affect the demand for improved maize seeds; how increasing land scarcity affects the cropping system and demand for improved maize; and how access to improved maize seeds affects household welfare with varying access to input subsidies. The model simulations demonstrate that a) there is a high risk that access to subsidized improved maize seeds can crowd out commercial demand for improved maize seeds but the effect is very sensitive to household characteristics, market characteristics and relative prices; b) increasing land scarcity increases the demand for improved maize seeds and improved maize facilitates intensification among others through intercropping of maize with legumes such as beans and pigeon peas; c) the welfare effects depend on households’ ability to utilize the potential of the improved varieties by combining them with complementary inputs.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for Land Tenure Studies, Norwegian University of Life Sciences in its series CLTS Working Papers with number 6/13.
Length: 38 pages
Date of creation: 03 Jun 2013
Date of revision:
Contact details of provider:
Postal: Centre for Land Tenure Studies, Norwegian University of Life Sciences, P.O. Box 5003, NO-1432 Aas, Norway
Web page: http://www.umb.no/clts
Improved maize varieties; input subsidies; impact on seed demand; land scarcity; intensification; cash constraints; household welfare;
Find related papers by JEL classification:
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
This paper has been announced in the following NEP Reports:
- NEP-AFR-2013-06-09 (Africa)
- NEP-AGR-2013-06-09 (Agricultural Economics)
- NEP-ALL-2013-06-09 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mason, Nicole M. & Ricker-Gilbert, Jacob, 2012.
"Disrupting Demand for Commercial Seed: Input Subsidies in Malawi and Zambia,"
Food Security Collaborative Working Papers
123554, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- 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.
- de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-417, November.
- Pauw, Kalie & Thurlow, James, 2010.
"Agricultural Growth, Poverty, and Nutrition in Tanzania,"
2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa
95974, African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA).
- Pauw, Karl & Thurlow, James, 2011. "Agricultural growth, poverty, and nutrition in Tanzania," Food Policy, Elsevier, vol. 36(6), pages 795-804.
- Pauw, Karl & Thurlow, James, 2010. "Agricultural growth, poverty, and nutrition in Tanzania:," IFPRI discussion papers 947, International Food Policy Research Institute (IFPRI).
- Alwang, Jeffrey & Siegel, Paul B., 2003. "Measuring the impacts of agricultural research on poverty reduction," Agricultural Economics, Blackwell, vol. 29(1), pages 1-14, July.
- Stein Holden & Rodney Lunduka, 2012. "Do fertilizer subsidies crowd out organic manures? The case of Malawi," Agricultural Economics, International Association of Agricultural Economists, vol. 43(3), pages 303-314, 05.
- Holden, Stein T., 1993. "Peasant household modelling: Farming systems evolution and sustainability in northern Zambia," Agricultural Economics, Blackwell, vol. 9(3), pages 241-267, September.
- Alwang, Jeffrey & Siegel, P. B., 1999. "Labor Shortages on Small Landholdings in Malawi: Implications for Policy Reforms," World Development, Elsevier, vol. 27(8), pages 1461-1475, August.
- 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.
- Zeller, Manfred & Diagne, Aliou & Mataya, Charles, 1998. "Market access by smallholder farmers in Malawi: implications for technology adoption, agricultural productivity and crop income," Agricultural Economics, Blackwell, vol. 19(1-2), pages 219-229, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lars Mørk).
If references are entirely missing, you can add them using this form.