IDEAS home Printed from https://ideas.repec.org/p/fpr/ifprid/1622.html
   My bibliography  Save this paper

Improving the targeting of fertilizer subsidy programs in Africa south of the Sahara: Perspectives from the Ghanaian experience

Author

Listed:
  • Houssou, Nazaire
  • Asante-Addo, Collins
  • Andam, Kwaw S.

Abstract

This paper assesses whether fertilizer subsidy programs can be better targeted to resource-poor farmers using the case of Ghana and proxy means test approaches. Past fertilizer subsidy programs in the country have not been particularly targeted to the poor, even as targeting poor and smallholder farmers has become key in the program implementation guidelines. As a result, many poor farmers have not benefited from past programs. Our results show that targeting approaches based on proxy means tests that use the correlates of poverty to select beneficiary farmers can potentially improve the poverty outreach and costeffectiveness of Ghana’s fertilizer subsidy programs. Therefore, we propose that the proxy means test approach should be considered for implementing Ghana’s fertilizer subsidy programs, first in a pilot project involving a few communities, and later, if found successful, in a full-scale program.

Suggested Citation

  • Houssou, Nazaire & Asante-Addo, Collins & Andam, Kwaw S., 2017. "Improving the targeting of fertilizer subsidy programs in Africa south of the Sahara: Perspectives from the Ghanaian experience," IFPRI discussion papers 1622, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1622
    as

    Download full text from publisher

    File URL: http://cdm15738.contentdm.oclc.org/utils/getfile/collection/p15738coll2/id/131104/filename/131315.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Druilhe, Zoé & Barreiro-Hurlé, Jesús, 2012. "Fertilizer subsidies in sub-Saharan Africa," ESA Working Papers 288997, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    2. David Coady & Margaret Grosh & John Hoddinott, 2004. "Targeting of Transfers in Developing Countries : Review of Lessons and Experience," World Bank Publications - Books, The World Bank Group, number 14902, December.
    3. Sheahan, Megan & Olwande, John & Kirimi, Lilian & Jayne, Thom S., 2014. "Targeting of Subsidized Fertilizer Under Kenya's National Accelerated Agricultural Input Access Program (NAAIAP)," Working Papers 202590, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    4. Resnick, Danielle & Mather, David, 2016. "Agricultural Inputs Policy Under Macroeconomic Uncertainty: Applying The Kaleidoscope Model To Ghana’S Fertilizer Subsidy Programme (2008–2015)," Feed the Future Innovation Lab for Food Security Policy Research Papers 259059, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    5. Bumb, Balu L. & Johnson, Michael E. & Fuentes, Porfirio A., 2011. "Policy options for improving regional fertilizer markets in West Africa:," IFPRI discussion papers 1084, International Food Policy Research Institute (IFPRI).
    6. Houssou, Nazaire & Zeller, Manfred, 2010. "Targeting the Poor and Smallholder Farmers Empirical Evidence from Malawi," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 49(4), pages 1-18.
    7. Vivi Alatas & Abhijit Banerjee & Rema Hanna & Benjamin A. Olken & Julia Tobias, 2012. "Targeting the Poor: Evidence from a Field Experiment in Indonesia," American Economic Review, American Economic Association, vol. 102(4), pages 1206-1240, June.
    8. Banful, Afua Branoah, 2009. "Operational details of the 2008 fertilizer subsidy in Ghana: Preliminary report," GSSP working papers 18, International Food Policy Research Institute (IFPRI).
    9. Pan, Lei & Christiaensen, Luc, 2012. "Who is Vouching for the Input Voucher? Decentralized Targeting and Elite Capture in Tanzania," World Development, Elsevier, vol. 40(8), pages 1619-1633.
    10. Jayne, T. S. & Govereh, J. & Wanzala, M. & Demeke, M., 2003. "Fertilizer market development: a comparative analysis of Ethiopia, Kenya, and Zambia," Food Policy, Elsevier, vol. 28(4), pages 293-316, August.
    11. 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.
    12. Castaneda, Tarsicio & Lindert, Kathy & de la Briere, Benedicte & Fernandez, Luisa & Hubert, Celia & Larranaya, Oswaldo & Orozco, Monica & Viquez, Roxana, 2005. "Designing and implementing household targeting systems : lessons from Latin American and The United States," Social Protection Discussion Papers and Notes 32756, The World Bank.
    13. repec:fpr:gsspwp:10(10 is not listed on IDEAS
    14. Minde, Isaac J. & Jayne, Thomas S. & Crawford, Eric W. & Ariga, Joshua & Jones, Govereh, 2008. "Promoting Fertilizer Use in Africa: Current Issues and Empirical Evidence from Malawi, Zambia, and Kenya," Food Security International Development Policy Syntheses 54509, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    15. Robertson, Laura & Mushati, Phyllis & Skovdal, Morten & Eaton, Jeffrey W. & Makoni, Jeremiah C. & Crea, Tom & Mavise, Gideon & Dumba, Lovemore & Schumacher, Christina & Sherr, Lorraine & Nyamukapa, Co, 2014. "Involving Communities in the Targeting of Cash Transfer Programs for Vulnerable Children: Opportunities and Challenges," World Development, Elsevier, vol. 54(C), pages 325-337.
    16. Nicole M. Mason & Thomas S. Jayne, 2014. "Fertiliser subsidies and smallholder commercial fertiliser purchases: crowding out, leakage, and policy implications for Zambia," Journal of Agricultural Economics, Wiley Blackwell, vol. 65(2), pages 527-528, June.
    17. repec:wbk:wbpubs:13081 is not listed on IDEAS
    18. Marito Garcia & Charity M. T. Moore, 2012. "The Cash Dividend : The Rise of Cash Transfer Programs in Sub-Saharan Africa," World Bank Publications - Books, The World Bank Group, number 2246, December.
    19. Jayne, Thomas S. & Mason, Nicole M. & Burke, William J. & Shipekesa, Arthur M. & Chapoto, Antony & Kabaghe, Chance, 2011. "Mountains of Maize, Persistent Poverty," Food Security Collaborative Policy Briefs 118476, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    20. Edig, Xenia van & Schwarze, Stefan & Zeller, Manfred, 2013. "Poverty Assessment by Proxy-Means Tests: Are Indicator-Based Estimations Robust over Time? A Study from Central Sulawesi, Indonesia," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 52(1), pages 1-23, February.
    21. Resnick, Danielle & Mather, David, 2016. "Agricultural inputs policy under macroeconomic uncertainty: Applying the kaleidoscope model to Ghana’s Fertilizer Subsidy Programme (2008–2015):," IFPRI discussion papers 1551, International Food Policy Research Institute (IFPRI).
    22. Minde, I., 2008. "Promoting fertilizer use in Africa: current issues and empirical evidence from Malawi, Zambia and Kenya," IWMI Working Papers H042064, International Water Management Institute.
    23. Grosh, M.E. & Baker, J.L., 1995. "Proxy Means Tests for Targetting Social Programs. Simulations and Speculation," Papers 118, World Bank - Living Standards Measurement.
    24. Stoeffler, Quentin & Mills, Bradford & del Ninno, Carlo, 2016. "Reaching the Poor: Cash Transfer Program Targeting in Cameroon," World Development, Elsevier, vol. 83(C), pages 244-263.
    25. Michael Morris & Valerie A. Kelly & Ron J. Kopicki & Derek Byerlee, 2007. "Fertilizer Use in African Agriculture : Lessons Learned and Good Practice Guidelines," World Bank Publications - Books, The World Bank Group, number 6650, December.
    26. Talip Kilic & Edward Whitney & Paul Winters, 2015. "Decentralised Beneficiary Targeting in Large-Scale Development Programmes: Insights from the Malawi Farm Input Subsidy Programme," Journal of African Economies, Centre for the Study of African Economies, vol. 24(1), pages 26-56.
    27. Houssou, Nazaire & Kolavalli, Shashidhara & Silver, Jed, 2016. "Agricultural intensification, technology adoption, and institutions in Ghana," GSSP policy notes 10, International Food Policy Research Institute (IFPRI).
    28. Quentin Wodon, 2012. "Improving the Targeting of Social Programs in Ghana," World Bank Publications - Books, The World Bank Group, number 13082, December.
    29. Conning, Jonathan & Kevane, Michael, 2002. "Community-Based Targeting Mechanisms for Social Safety Nets: A Critical Review," World Development, Elsevier, vol. 30(3), pages 375-394, March.
    Full references (including those not matched with items on IDEAS)

    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. Houssou, Nazaire & Andam, Kwaw S. & Collins, Asante-Addo, 2017. "Can better targeting improve the effectiveness of Ghana's Fertilizer Subsidy Program? Lessons from Ghana and other countries in Africa south of the Sahara," IFPRI discussion papers 1605, International Food Policy Research Institute (IFPRI).
    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. Stoeffler, Quentin & Mills, Bradford & del Ninno, Carlo, 2016. "Reaching the Poor: Cash Transfer Program Targeting in Cameroon," World Development, Elsevier, vol. 83(C), pages 244-263.
    4. Henderson, Heath & Follett, Lendie, 2022. "Targeting social safety net programs on human capabilities," World Development, Elsevier, vol. 151(C).
    5. Schleicher, Michael & Souares, Aurélia & Pacere, Athanase Narangoro & Sauerborn, Rainer & Klonner, Stefan, 2016. "Decentralized versus Statistical Targeting of Anti-Poverty Programs: Evidence from Burkina Faso," Working Papers 0623, University of Heidelberg, Department of Economics.
    6. Lendie Follett & Heath Henderson, 2022. "A hybrid approach to targeting social assistance," Papers 2201.01356, arXiv.org.
    7. Jayne, T.S. & Mason, Nicole M. & Burke, William J. & Ariga, Joshua, 2016. "Agricultural Input Subsidy Programs in Africa: An Assessment of Recent Evidence," Food Security International Development Working Papers 245892, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    8. Han, Huawei & Gao, Qin, 2019. "Community-based welfare targeting and political elite capture: Evidence from rural China," World Development, Elsevier, vol. 115(C), pages 145-159.
    9. Follett, Lendie & Henderson, Heath, 2023. "A hybrid approach to targeting social assistance," Journal of Development Economics, Elsevier, vol. 160(C).
    10. 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.
    11. Schnitzer,Pascale & Stoeffler,Quentin, 2021. "Targeting for Social Safety Nets : Evidence from Nine Programs in the Sahel," Policy Research Working Paper Series 9816, The World Bank.
    12. Xavier Giné & Shreena Patel & Bernardo Ribeiro & Ildrim Valley, 2022. "Efficiency and equity of input subsidies: Experimental evidence from Tanzania†," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(5), pages 1625-1655, October.
    13. Haseeb, Muhammad & Vyborny, Kate, 2022. "Data, discretion and institutional capacity: Evidence from cash transfers in Pakistan," Journal of Public Economics, Elsevier, vol. 206(C).
    14. Nicole M. Mason & Thomas S. Jayne & Nicolas van de Walle, 2017. "The Political Economy of Fertilizer Subsidy Programs in Africa: Evidence from Zambia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(3), pages 705-731.
    15. Brown, Caitlin & Ravallion, Martin & van de Walle, Dominique, 2018. "A poor means test? Econometric targeting in Africa," Journal of Development Economics, Elsevier, vol. 134(C), pages 109-124.
    16. Zinnbauer, Maximilian & Mockshell, Jonathan & Zeller, Manfred, 2018. "Effects if Fertilizer Subsidies in Zambia: A Literature Review," MPRA Paper 84125, University Library of Munich, Germany.
    17. Resnick, Danielle & Mason, Nicole, 2016. "What Drives Input Subsidy Policy Reform? The Case Of Zambia, 2002-2016," Feed the Future Innovation Lab for Food Security Policy Research Papers 246951, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    18. Mason, Nicole M. & Wineman, Ayala & Kirimi, Lilian & Mather, David, 2016. "The Effects of Kenya’s ‘Smarter’ Input Subsidy Program on Smallholder Behavior and Incomes: Do Different Quasi-Experimental Approaches Lead to the Same Conclusions?," Food Security Collaborative Working Papers 232090, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    19. Resnick, Danielle & Haggblade, Steven & Babu, Suresh & Hendriks, Sheryl L. & Mather, David, 2018. "The Kaleidoscope Model of policy change: Applications to food security policy in Zambia," World Development, Elsevier, vol. 109(C), pages 101-120.
    20. 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.

    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:fpr:ifprid:1622. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    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.