Toward Sustainable Impact of Farm Input Subsidies in Malawi: Is Integration with Climate-Smart Agriculture a Practical Solution?

Decades of traditional fertilizer subsidies have yielded modest maize productivity gains for Malawian farmers, mainly due to the twin challenges of soil degradation and intermittent weather patterns. Increasing nitrogen intake through subsidies without addressing these structural constraints has failed to close the country’s yield gap. Although climate-smart agriculture (CSA) technologies offer options for sustainable productivity growth, low and inconsistent adoption among farmers has led to insufficient evidence. Most existing studies that have examined the complementarity between CSA and inorganic fertilizers rely on experimental plot data, with limited evidence from actual farmer-managed fields. We use farm-level data collected in 2022 from 307 smallholder farmers across central and southern Malawi to investigate whether integrating CSA technologies with subsidized inorganic fertilizers enhances maize productivity. We apply the Inverse Probability Weighted Regression Adjustment (IPWRA) model to estimate the effects of CSA adoption and its integration with subsidized fertilizer. Results indicate that CSA adoption increased maize yields by 30%, confirming significant productivity gains from technologies such as mulching, agroforestry, and organic manure. However, integrating these technologies with subsidized fertilizers produced no additional yield advantage, suggesting that farmers often substitute CSA with inorganic inputs rather than combining them effectively. These findings imply that the potential synergies between CSA and subsidy programs remain unrealized under current practices. Policy reforms under Malawi’s current farm input subsidy program (FISP) should therefore emphasize extension and incentive mechanisms that promote complementary—not substitutive—use of CSA technologies and fertilizers at recommended application rates.