IDEAS home Printed from https://ideas.repec.org/a/bla/jageco/v73y2022i3p874-892.html
   My bibliography  Save this article

Exploring adoption effects of subsidies and soil fertility management in Malawi

Author

Listed:
  • Makaiko G. Khonje
  • Christone Nyondo
  • Lemekezani Chilora
  • Julius H. Mangisoni
  • Jacob Ricker‐Gilbert
  • William J. Burke

Abstract

Farm input subsidies and integrated soil fertility management (ISFM) technologies are popular policy interventions in sub‐Saharan Africa, often with the stated goals of increasing crop yields and incomes while reducing hunger and poverty. However, little is known about the combined adoption effects of input subsidies and ISFM technologies on farm productivity and household nutrition in developing countries. Using a decade of nationally representative panel data from Malawi, we analyse joint adoption effects of input subsidies and ISFM technologies on smallholder household welfare. We use multivariate probit, dynamic random effects probit, and multinomial endogenous treatment effects models to account for selection bias and endogeneity originating from both observed and unobserved heterogeneity. We find that participation in a farm input subsidy programme is strongly associated with a 15–29 percentage point increase in the probabilities of adoption of three ISFM technologies: conservation agriculture, soil and water conservation, and organic fertiliser. Furthermore, we find that the joint use of input subsidies and ISFM technologies increased crop income and micronutrient consumption by at least 12%. Our findings suggest that the joint use of input subsidies and ISFM technologies are among potential strategies to address low productivity and nutritional insecurity through improvements in soil health.

Suggested Citation

  • Makaiko G. Khonje & Christone Nyondo & Lemekezani Chilora & Julius H. Mangisoni & Jacob Ricker‐Gilbert & William J. Burke, 2022. "Exploring adoption effects of subsidies and soil fertility management in Malawi," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(3), pages 874-892, September.
    • Handle: RePEc:bla:jageco:v:73:y:2022:i:3:p:874-892
    DOI: 10.1111/1477-9552.12486
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1477-9552.12486
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1477-9552.12486?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kibrom A. Abay & Leah E. M. Bevis & Christopher B. Barrett, 2021. "Measurement Error Mechanisms Matter: Agricultural Intensification with Farmer Misperceptions and Misreporting," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 498-522, March.
    2. Sinafikeh Asrat Gemessa, 2022. "An alternative approach to measuring the welfare implications of input subsidies: Evidence from Malawi," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 112-138, February.
    3. Chibwana, Christopher & Fisher, Monica & Shively, Gerald, 2012. "Cropland Allocation Effects of Agricultural Input Subsidies in Malawi," World Development, Elsevier, vol. 40(1), pages 124-133.
    4. Julius Manda & Arega D. Alene & Cornelis Gardebroek & Menale Kassie & Gelson Tembo, 2016. "Adoption and Impacts of Sustainable Agricultural Practices on Maize Yields and Incomes: Evidence from Rural Zambia," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 130-153, February.
    5. Muthini, Davis & Nzuma, Jonathan & Qaim, Matin, 2020. "Subsistence production, markets, and dietary diversity in the Kenyan small farm sector," Food Policy, Elsevier, vol. 97(C).
    6. Kyalo Willy, Daniel & Muyanga, Milu & Jayne, Thomas, 2019. "Can economic and environmental benefits associated with agricultural intensification be sustained at high population densities? A farm level empirical analysis," Land Use Policy, Elsevier, vol. 81(C), pages 100-110.
    7. Stefan Koppmair & Menale Kassie & Matin Qaim, 2017. "The influence of farm input subsidies on the adoption of natural resource management technologies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(4), pages 539-556, October.
    8. Katengeza, Samson P. & Holden, Stein T. & Fisher, Monica, 2019. "Use of Integrated Soil Fertility Management Technologies in Malawi: Impact of Dry Spells Exposure," Ecological Economics, Elsevier, vol. 156(C), pages 134-152.
    9. Douglas Gollin & Stephen Parente & Richard Rogerson, 2002. "The Role of Agriculture in Development," American Economic Review, American Economic Association, vol. 92(2), pages 160-164, May.
    10. Chirwa, Ephraim & Dorward, Andrew, 2013. "Agricultural Input Subsidies: The Recent Malawi Experience," OUP Catalogue, Oxford University Press, number 9780199683529.
    11. Salvatore Di Falco & Marcella Veronesi & Mahmud Yesuf, 2011. "Does Adaptation to Climate Change Provide Food Security? A Micro-Perspective from Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 825-842.
    12. Benson, Todd, 2021. "Disentangling food security from subsistence agriculture in Malawi," IFPRI books, International Food Policy Research Institute (IFPRI), number 9780896294059.
    13. Sitko, Nicholas J. & Scognamillo, Antonio & Malevolti, Giulia, 2021. "Does receiving food aid influence the adoption of climate-adaptive agricultural practices? Evidence from Ethiopia and Malawi," Food Policy, Elsevier, vol. 102(C).
    14. Partha Deb & Pravin K. Trivedi, 2006. "Maximum simulated likelihood estimation of a negative binomial regression model with multinomial endogenous treatment," Stata Journal, StataCorp LP, vol. 6(2), pages 246-255, June.
    15. Wondimagegn Tesfaye & Garrick Blalock & Nyasha Tirivayi, 2021. "Climate‐Smart Innovations and Rural Poverty in Ethiopia: Exploring Impacts and Pathways," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(3), pages 878-899, May.
    16. Ricker-Gilbert, Jacob & Jumbe, Charles & Chamberlin, Jordan, 2014. "How does population density influence agricultural intensification and productivity? Evidence from Malawi," Food Policy, Elsevier, vol. 48(C), pages 114-128.
    17. Zezza, Alberto & Carletto, Calogero & Fiedler, John L. & Gennari, Pietro & Jolliffe, Dean, 2017. "Food counts. Measuring food consumption and expenditures in household consumption and expenditure surveys (HCES). Introduction to the special issue," Food Policy, Elsevier, vol. 72(C), pages 1-6.
    18. Denise Hörner & Meike Wollni, 2022. "Does integrated soil fertility management increase returns to land and labor?: Plot‐level evidence from Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 53(3), pages 337-355, May.
    19. Kira M. Villa & Christopher B. Barrett & David R. Just, 2011. "Whose Fast and Whose Feast? Intrahousehold Asymmetries in Dietary Diversity Response Among East African Pastoralists," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(4), pages 1062-1081.
    20. Abman, Ryan & Carney, Conor, 2020. "Agricultural productivity and deforestation: Evidence from input subsidies and ethnic favoritism in Malawi," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).
    21. Nicole M. Mason & Melinda Smale, 2013. "Impacts of subsidized hybrid seed on indicators of economic well-being among smallholder maize growers in Zambia," Agricultural Economics, International Association of Agricultural Economists, vol. 44(6), pages 659-670, November.
    22. 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, May.
    23. Benson, Todd, 2021. "Disentangling food security from subsistence agriculture in Malawi: Synopsis," IFPRI synopses 9780896294073, International Food Policy Research Institute (IFPRI).
    24. United Nations UN, 2015. "Transforming our World: the 2030 Agenda for Sustainable Development," Working Papers id:7559, eSocialSciences.
    25. Makaiko G. Khonje & Julius Manda & Petros Mkandawire & Adane Hirpa Tufa & Arega D. Alene, 2018. "Adoption and welfare impacts of multiple agricultural technologies: evidence from eastern Zambia," Agricultural Economics, International Association of Agricultural Economists, vol. 49(5), pages 599-609, September.
    26. Amadu, Festus O. & McNamara, Paul E. & Miller, Daniel C., 2020. "Yield effects of climate-smart agriculture aid investment in southern Malawi," Food Policy, Elsevier, vol. 92(C).
    27. Raffaele Grotti & Giorgio Cutuli, 2018. "xtpdyn: A community-contributed command for fitting dynamic random-effects probit models with unobserved heterogeneity," Stata Journal, StataCorp LP, vol. 18(4), pages 844-862, December.
    28. 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.
    29. Adolwa, Ivan Solomon & Schwarze, Stefan & Buerkert, Andreas, 2019. "Impacts of integrated soil fertility management on yield and household income: The case of Tamale (Ghana) and Kakamega (Kenya)," Ecological Economics, Elsevier, vol. 161(C), pages 186-192.
    30. Lorenzo Cappellari & Stephen P. Jenkins, 2003. "Multivariate probit regression using simulated maximum likelihood," Stata Journal, StataCorp LP, vol. 3(3), pages 278-294, September.
    31. Yazeed Abdul Mumin & Awudu Abdulai, 2022. "Social networks, adoption of improved variety and household welfare: evidence from Ghana," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(1), pages 1-32.
    32. Jacob Ricker-Gilbert & T. S. Jayne, 2017. "Estimating the Enduring Effects of Fertiliser Subsidies on Commercial Fertiliser Demand and Maize Production: Panel Data Evidence from Malawi," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 70-97, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Khonje, Makaiko G. & Nyondo, Christone & Mangisoni, Julius H. & Ricker-Gilbert, Jacob & Burke, William J. & Chadza, William & Muyanga, Milu, 2022. "Does subsidizing legume seeds improve farm productivity and nutrition in Malawi?," Food Policy, Elsevier, vol. 113(C).
    2. Zhiyuan Zhu & Jiajia Duan & Shilin Li & Zhenzhong Dai & Yongzhong Feng, 2022. "Phenomenon of Non-Grain Production of Cultivated Land Has Become Increasingly Prominent over the Last 20 Years: Evidence from Guanzhong Plain, China," Agriculture, MDPI, vol. 12(10), pages 1-14, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Khonje, Makaiko G. & Nyondo, Christone & Mangisoni, Julius H. & Ricker-Gilbert, Jacob & Burke, William J. & Chadza, William & Muyanga, Milu, 2022. "Does subsidizing legume seeds improve farm productivity and nutrition in Malawi?," Food Policy, Elsevier, vol. 113(C).
    2. Jayne, Thomas S. & Mason, Nicole M. & Burke, William J. & Ariga, Joshua, 2018. "Review: Taking stock of Africa’s second-generation agricultural input subsidy programs," Food Policy, Elsevier, vol. 75(C), pages 1-14.
    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.
    4. Anh, Nguyen Tuan & Gan, Christopher & Anh, Dao Le Trang, 2022. "Multi-market credit rationing: The determinants of and impacts on farm performance in Vietnam," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 159-173.
    5. 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.
    6. Tanko, Mohammed & Amfo, Bismark & Shafiwu, Adinan Bahahudeen, 2023. "Social norms perspective of agriculture technology adoption and welfare in Ghana: Extending multinomial endogenous treatment effect model," Technology in Society, Elsevier, vol. 74(C).
    7. Komarek, Adam M. & Drogue, Sophie & Chenoune, Roza & Hawkins, James & Msangi, Siwa & Belhouchette, Hatem & Flichman, Guillermo, 2017. "Agricultural household effects of fertilizer price changes for smallholder farmers in central Malawi," Agricultural Systems, Elsevier, vol. 154(C), pages 168-178.
    8. Kihara, Job & Manda, Julius & Kimaro, Anthony & Swai, Elirehema & Mutungi, Christopher & Kinyua, Michael & Okori, Patrick & Fischer, Gundula & Kizito, Fred & Bekunda, Mateete, 2022. "Contributions of integrated soil fertility management (ISFM) to various sustainable intensification impact domains in Tanzania," Agricultural Systems, Elsevier, vol. 203(C).
    9. Holden, Stein T., 2018. "The Economics of Fertilizer Subsidies," CLTS Working Papers 9/18, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 16 Oct 2019.
    10. Hörner, Denise & Wollni, Meike, 2021. "Integrated soil fertility management and household welfare in Ethiopia," Food Policy, Elsevier, vol. 100(C).
    11. Asfaw, Solomon & Cattaneo, Andrea & Pallante, Giacomo & Palma, Alessandro, 2017. "Improving the efficiency targeting of Malawi's farm input subsidy programme: Big pain, small gain?," Food Policy, Elsevier, vol. 73(C), pages 104-118.
    12. Koppmair, Stefan & Kassie, Menale & Qaim, Matin, 2017. "The influence of farm input subsidies on the adoption of natural resource management technologies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(4), October.
    13. Morgan, Stephen N. & Mason, Nicole M. & Levine, N. Kendra & Zulu-Mbata, Olipa, 2019. "Dis-incentivizing sustainable intensification? The case of Zambia’s maize-fertilizer subsidy program," World Development, Elsevier, vol. 122(C), pages 54-69.
    14. Marenya, Paswel P. & Gebremariam, Gebrelibanos & Jaleta, Moti & Rahut, Dil B., 2020. "Sustainable intensification among smallholder maize farmers in Ethiopia: Adoption and impacts under rainfall and unobserved heterogeneity," Food Policy, Elsevier, vol. 95(C).
    15. Maggio, Giuseppe & Veljanoska, Stefanija, 2021. "Would you rather stay? Agricultural Subsidies and Household Migration in Malawi," 2021 Annual Meeting, August 1-3, Austin, Texas 314041, Agricultural and Applied Economics Association.
    16. Sylvester Amoako Agyemang & Tomáš Ratinger & Miroslava Bavorová, 2022. "The Impact of Agricultural Input Subsidy on Productivity: The Case of Ghana," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(3), pages 1460-1485, June.
    17. Ricker-Gilbert, Jacob & Jones, Michael, 2015. "Does storage technology affect adoption of improved maize varieties in Africa? Insights from Malawi’s input subsidy program," Food Policy, Elsevier, vol. 50(C), pages 92-105.
    18. Amadu, Festus O. & McNamara, Paul E. & Davis, Kristin E., 2021. "Soil health and grain yield impacts of climate resilient agriculture projects: Evidence from southern Malawi," Agricultural Systems, Elsevier, vol. 193(C).
    19. Martey, Edward & Etwire, Prince Maxwell & Abdoulaye, Tahirou, 2020. "Welfare impacts of climate-smart agriculture in Ghana: Does row planting and drought-tolerant maize varieties matter?," Land Use Policy, Elsevier, vol. 95(C).
    20. Tebogo B. Seleka, 2022. "Old wine in a new bottle? Impact of the ISPAAD input subsidy program on the subsistence economy in Botswana," Review of Development Economics, Wiley Blackwell, vol. 26(1), pages 298-322, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jageco:v:73:y:2022:i:3:p:874-892. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.