Zinnbauer, Maximilian and Mockshell, Jonathan and Zeller, Manfred (2018): Effects if Fertilizer Subsidies in Zambia: A Literature Review.
Preview |
PDF
MPRA_paper_84125.pdf Download (217kB) | Preview |
Abstract
Fertilizer subsidies are again part of the policy agenda in Sub-Saharan Africa since the 1990s. Governments spend large shares of their agricultural budgets and their means to fight poverty on such programmes, but economists formulated doubts whether these investments will pay off. This paper reviews the existing literature on effects of fertilizer subsidies in Zambia, presents an analytical framework on input subsidies and compares the empirical evidence to the goals of the fertilizer subsidy. Major findings are that the subsidy programme has failed to substantially reduce poverty and to improve food security via decreased maize prices. Farm incomes have increased moderately, but the overall costs exceed the benefits by far. Reasons for this are identified as poor targeting, diversion and leakage. The paper concludes with a review of policy recommendations, mainly focused on improved targeting and diversification away from pure fertilizer subsidies.
Item Type: | MPRA Paper |
---|---|
Original Title: | Effects if Fertilizer Subsidies in Zambia: A Literature Review |
Language: | English |
Keywords: | fertilisier subsidies, input subsidies, Zambia, food security |
Subjects: | Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q0 - General > Q01 - Sustainable Development Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q13 - Agricultural Markets and Marketing ; Cooperatives ; Agribusiness |
Item ID: | 84125 |
Depositing User: | Maximilian Zinnbauer |
Date Deposited: | 26 Jan 2018 09:55 |
Last Modified: | 26 Sep 2019 16:50 |
References: | Burke, W. J., T. S. Jayne and N. J. Sitko (2012a). Can the FISP more effectively achieve food production and poverty reduction goals? Policy Synthesis. Lusaka, Zambia: Food Security Research Project (FSRP). URL: http://purl.umn.edu/123208 (visited on 14/05/2016). Burke, W., T. S. Jayne and R. Black (2012b). Getting more ’Bang for the Buck’: Diversifying Subsidies Beyond Fertilizer and Policy Beyond Subsidy. Policy Synthesis. Lusaka, Zambia: Food Security Research Project (FSRP). (Visited on 21/05/2016). Crawford, E., V. Kelly, T. S. Jayne and J. Howard (2003). ‘Input use and market development in Sub-Saharan Africa: An overview’. Food Policy 28.4, pp. 277–292. ISSN: 03069192. DOI: 10.1016/j.foodpol.2003.08.003. FAOSTAT (n. d.). Database. Food and Agriculture Organization (FAO). URL: http://faostat3.fao.org/home/E (visited on 21/06/2016). Foster, J., J. Greer and E. Thorbecke (1984). ‘A class of decomposable poverty measures’. Econometrica 52, pp. 761–766. Gerson, K. and H. Feng (2013). ‘A Review of Different Subsidies and How They Work in Theory’. Asian Agricultural Research 5. Jayne, T. S. (2008). ‘Forces of Change Affecting African Food Markets: Implications for Public Policy’. The Transformation of Agri-Food Systems: Globalization, Supply Chains, and Smallholder Farmers. Ed. by E. B. McCullough, P. Pingali and K. G. Stamoulis. Rome: Food and Agriculture Organization (FAO), pp. 109–139. Jayne, T. S., N. Mason, W. Burke, A. Shipekesa, A. Chapoto and C. Kabaghe (2011). Mountains of maize, persistent poverty. Policy Synthesis. Lusaka, Zambia: Food Security Research Project (FSRP). URL: https://ideas.repec.org/p/ags/midcpb/118476.html (visited on 15/06/2016). Jayne, T. S., D. Mather, N. Mason and J. Ricker-Gilbert (2013). ‘How do fertilizer subsidy programs affect total fertilizer use in sub-Saharan Africa? Crowding out, diversion, and benefit/cost assessments’. Agricultural Economics (United Kingdom) 44.6, pp. 687–703. ISSN: 01695150. DOI: 10.1111/agec.12082. Kelly, V., E. Crawford and J. Ricker-Gilbert (2011). The New Generation of African Fertilizer Subsidies: Panacea or Pandora’s Box? Policy Synthesis 87. USAID, Michigan State University. URL: http://ideas.repec.org/p/ags/midips/107460.html (visited on 15/05/2016). Levine, K. and N. M. Mason (2014). Do input subsidies crowd in or crowd out other soil fertility management practices? Evidence from Zambia. Prepared for presentation at Agricultural & Applied Economics Association’s 2014 Annual Meeting, July 27-29. Minneapolis, MN. URL: http://ageconsearch.umn.edu/bitstream/170689/2/Levine%20and%20Mason-%20AAEAFinal.pdf (visited on 15/05/2016). MACO (2008). Fertilizer Support Programme Internal Evaluation. Report. Lusaka, Zambia: Ministry of Agriculture and Conservation. URL: http://www.aec.msu.edu/fs2/zambia/tour/FSP%7B%5C_%7DInternal%7B%5C_%7DEvauation%7B%5C_%7D2008.pdf. Mason, N. M.,W. J. Burke, A. Shipekesa and T. S. Jayne (2011). The 2011 Surplus in Smallholder Maize Production in Zambia: Drivers, Beneficiaries, and Implications for Agricultural and Poverty Reduction Policies. Working Paper 58. Lusaka, Zambia: Food Security Research Project (FSRP). URL: http://www.aec.msu.edu/agecon/fs2/zambia/index.htm (visited on 04/06/2016). Mason, N. M. and T. S. Jayne (2013). ‘Fertiliser subsidies and smallholder commercial fertiliser purchases: Crowding out, leakage and policy implications for Zambia’. Journal of Agricultural Economics 64.3, pp. 558–582. ISSN: 0021857X. DOI: 10.1111/1477-9552.12025. Mason, N. M., T. S. Jayne and R. Mofya-Mukuka (2013a). A Review of Zambia’s Agricultural Input Subsidy Programs: Targeting, Impacts, and the Way Forward. Working Paper 77. Lusaka, Zambia: Indaba Agricultural Policy Research Institute (IAPRI). URL:http://www.aec.msu.edu/fs2/zambia/ index.htm (visited on 16/05/2016). Mason, N. M., T. S. Jayne and R. Mofya-Mukuka (2013b). ‘Zambia’s input subsidy programs’. Agricultural Economics (United Kingdom) 44.6, pp. 613–628. ISSN: 01695150. DOI: 10.1111/agec.12077. Mason, N. M. and M. Smale (2013). ‘Impacts of subsidized hybrid seed on indicators of economic well-being among smallholder maize growers in Zambia’. Agricultural Economics (United Kingdom) 44, pp. 659–670. ISSN: 01695150. DOI: 10.1111/agec.12080. Mason, N. M. and S. Tembo (2015). Do input subsidies reduce poverty among smallholder farm households? Evidence from Zambia. Agriculture in an Interconnected World, 29th May. Milan, Italy. URL: http://ageconsearch. umn . edu / bitstream / 170617 / 2 / Mason % 20 % 7B % 5C % %7D26 %20Tembo%202014%20Do%20input%20subsidies%20reduce%20poverty%20among%20smallholder%20farm%20households%7B%5C_%7D%20Evidence%20from%20Zambia%20v1%20final.pdf (visited on 15/05/2016). Minde, I., T. S. Jayne, E. Crawford, J. Ariga and J. Govereh (2008). Promoting Fertilizer Use in Africa: Current Issues and Empirical Evidence from Malawi, Zambia, and Kenya. Working Paper. Regional Strategic Analysis and Knowledge Support System (ReSAKSS). URL: http://citeseerx.ist.psu.edu/viewdoc/downloaddoi=10.1.1.601.9046%7B%5C&%7Drep=rep1%7B%5C&%7Dtype=pdf (visited on 15/05/2016). Ricker-Gilbert, J. and T. S. Jayne (2011). What are the enduring effects of fertilizersubsidy programs on recipient farm households? Evidence from Malawi. Staff Paper. Michigan State University. URL:http://agris.fao.org/agris-search/search.do?recordID=US2016221193 (visited on 14/06/2016). Ricker-Gilbert, J., N.M. Mason, T. S. Jayne, F. Darko and S. Tembo (2013). What are the Effects of Input Subsidies on Maize Prices ? Evidence from Malawi and Zambia. Working Paper 75. Lusaka, Zambia: Indaba Agricultural Policy Research Institute (IAPRI). URL: http://onlinelibrary.wiley.com/doi/10.1111/agec.12081/pdf (visited on 19/05/2016). Weber, M. (2008). Empirical Information on Smallholder Maize Production and Fertilizer Use in Zambia. Presentation at Fertilizer Support Programme Evaluation Kick-Off Workshop, June 25-26. Protea Safari Lodge. Xu, Z., Z. Guan, T. S. Jayne and R. Black (2009). ‘Factors influencing the profitability of fertilizer use on maize in Zambia’. Agricultural Economics 40, pp. 437– 446. ISSN: 01695150. DOI:10.1111/j.15740862.2009.00384.x. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/84125 |
Available Versions of this Item
- Effects if Fertilizer Subsidies in Zambia: A Literature Review. (deposited 26 Jan 2018 09:55) [Currently Displayed]