Pricing farmer contributions under AIP

The market price of fertilizer in Malawi has, in nominal terms, more than tripled compared to two years ago. The price hikes were both unexpected and beyond the control of the government, linked to global events, such as the COVID-19 pandemic and Russia’s invasion of Ukraine. This changed global rea...

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Autores principales: Banda, Chimwemwe, De Weerdt, Joachim, Duchoslav, Jan, Jolex, Aubrey
Formato: Brief
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2022
Materias:
Acceso en línea:https://hdl.handle.net/10568/140915
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author Banda, Chimwemwe
De Weerdt, Joachim
Duchoslav, Jan
Jolex, Aubrey
author_browse Banda, Chimwemwe
De Weerdt, Joachim
Duchoslav, Jan
Jolex, Aubrey
author_facet Banda, Chimwemwe
De Weerdt, Joachim
Duchoslav, Jan
Jolex, Aubrey
author_sort Banda, Chimwemwe
collection Repository of Agricultural Research Outputs (CGSpace)
description The market price of fertilizer in Malawi has, in nominal terms, more than tripled compared to two years ago. The price hikes were both unexpected and beyond the control of the government, linked to global events, such as the COVID-19 pandemic and Russia’s invasion of Ukraine. This changed global reality reinforces the need to rethink the way in which Malawi approaches its agricultural input subsidies. A number of options for reforming the AIP have been outlined in recent policy work, but all have medium to long term implementation horizons. We will not repeat these here and instead refer the interested reader to Chadza and Duchoslav (2022), De Weerdt and Duchoslav (2022), and Nyondo et al. (2022). This policy note discusses a strategy that can be implemented readily and immediately, potentially still this year, to ensure that the budget allocated to fertilizer subsidies has the highest possible effect on food security in the country. It also discusses how the strategy, once adopted, can be used to phase out the AIP, while ensuring allocative efficiency within the program. This can be achieved by, each year, fixing the budget at a lower point and conducting the same optimization exercise.
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spelling CGSpace1409152025-11-06T06:16:32Z Pricing farmer contributions under AIP Banda, Chimwemwe De Weerdt, Joachim Duchoslav, Jan Jolex, Aubrey fertilizers farmer contributions market prices supply balance covid-19 farmers farm inputs food security subsidies commodity markets coronavirus coronavirus disease coronavirinae The market price of fertilizer in Malawi has, in nominal terms, more than tripled compared to two years ago. The price hikes were both unexpected and beyond the control of the government, linked to global events, such as the COVID-19 pandemic and Russia’s invasion of Ukraine. This changed global reality reinforces the need to rethink the way in which Malawi approaches its agricultural input subsidies. A number of options for reforming the AIP have been outlined in recent policy work, but all have medium to long term implementation horizons. We will not repeat these here and instead refer the interested reader to Chadza and Duchoslav (2022), De Weerdt and Duchoslav (2022), and Nyondo et al. (2022). This policy note discusses a strategy that can be implemented readily and immediately, potentially still this year, to ensure that the budget allocated to fertilizer subsidies has the highest possible effect on food security in the country. It also discusses how the strategy, once adopted, can be used to phase out the AIP, while ensuring allocative efficiency within the program. This can be achieved by, each year, fixing the budget at a lower point and conducting the same optimization exercise. 2022-12-05 2024-04-12T13:36:52Z 2024-04-12T13:36:52Z Brief https://hdl.handle.net/10568/140915 en https://doi.org/10.2499/p15738coll2.136464 Open Access application/pdf International Food Policy Research Institute Banda, Chimwemwe; De Weerdt, Joachim; Duchoslav, Jan; and Jolex, Aubrey. 2022. Pricing Farmer Contributions under AIP. MaSSP Policy Note 47. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.136462.
spellingShingle fertilizers
farmer contributions
market prices
supply balance
covid-19
farmers
farm inputs
food security
subsidies
commodity markets
coronavirus
coronavirus disease
coronavirinae
Banda, Chimwemwe
De Weerdt, Joachim
Duchoslav, Jan
Jolex, Aubrey
Pricing farmer contributions under AIP
title Pricing farmer contributions under AIP
title_full Pricing farmer contributions under AIP
title_fullStr Pricing farmer contributions under AIP
title_full_unstemmed Pricing farmer contributions under AIP
title_short Pricing farmer contributions under AIP
title_sort pricing farmer contributions under aip
topic fertilizers
farmer contributions
market prices
supply balance
covid-19
farmers
farm inputs
food security
subsidies
commodity markets
coronavirus
coronavirus disease
coronavirinae
url https://hdl.handle.net/10568/140915
work_keys_str_mv AT bandachimwemwe pricingfarmercontributionsunderaip
AT deweerdtjoachim pricingfarmercontributionsunderaip
AT duchoslavjan pricingfarmercontributionsunderaip
AT jolexaubrey pricingfarmercontributionsunderaip