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The impact of farm input subsidies on maize marketing in Malawi

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  • Sibande, Lonester
  • Bailey, Alastair
  • Davidova, Sophia

Abstract

This paper investigates the effects of subsidised fertilizer on marketing of maize in Malawi. It uses the nationally representative two-wave Integrated Household Panel Survey (IHPS) data of 2010 and 2013. The results suggest that subsidised fertilizer on average increases farmers’ maize market participation as sellers, total quantity of maize sold, and maize commercialisation. In addition, participation in subsidised fertilizer programme is found to increase the probability of farmers to be net sellers and increases net quantity of maize sold. However, the study finds no evidence of effect on net quantity of maize bought and on household maize self-sufficiency. These results suggest that the farm input subsidy programme has contributed toward an increased level of maize market supply engagement for small farmers and in this sense, the policy has the potential to provide the wider external benefits. Furthermore, the results have implication on the sustainability of the subsidy programme, policy formulation and design of programmes for the agricultural sector and small farmers in developing countries.

Suggested Citation

  • Sibande, Lonester & Bailey, Alastair & Davidova, Sophia, 2017. "The impact of farm input subsidies on maize marketing in Malawi," Food Policy, Elsevier, vol. 69(C), pages 190-206.
  • Handle: RePEc:eee:jfpoli:v:69:y:2017:i:c:p:190-206
    DOI: 10.1016/j.foodpol.2017.04.001
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    7. 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.
    8. Xie, Hualin & Wang, Wei & Zhang, Xinmin, 2018. "Evolutionary game and simulation of management strategies of fallow cultivated land: A case study in Hunan province, China," Land Use Policy, Elsevier, vol. 71(C), pages 86-97.
    9. Kwon, Daye & Myers, Robert J. & Mason, Nicole M., 2022. "How do input subsidy programs affect smallholder households’ dietary diversity? Evidence from Zambia," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322493, Agricultural and Applied Economics Association.
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    14. Mwale, Martin Limbikani, 2022. "Unintended consequences of farm input subsidies: women’s contraceptive usage and knock-on effects on children," MPRA Paper 112689, University Library of Munich, Germany.
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    20. Sibande, L., 2018. "Implementation dilemma of agricultural policies: Trade-offs or synergies? Food and nutrition security implications of extension services and farm input subsidies," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277166, International Association of Agricultural Economists.
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    23. Matita, Mirriam & Chiwaula, Levison & Wadonda Chirwa, Ephraim & Mazalale, Jacob & Walls, Helen, 2022. "Subsidizing improved legume seeds for increased household dietary diversity: Evidence from Malawi’s Farm Input Subsidy Programme with implications for addressing malnutrition in all its forms," Food Policy, Elsevier, vol. 113(C).

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    More about this item

    Keywords

    Farm input subsidy; Maize marketing; Malawi;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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