The benefits and limitations of farm equipment supply subsidy: Experiences and lessons from Senegal

Using household level data collected from cereal based farming systems of Senegal, we examined the prospects and challenges of the Senegalese equipment supply subsidy program. Because of the design of the program—being procured and supplied by the government—we argue that the effect of this program...

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Autores principales: Tadesse, Getaw, Goundan, Anatole, Sarr, Saer
Formato: Conference Paper
Lenguaje:Inglés
Publicado: African Association of Agricultural Economists 2019
Materias:
Acceso en línea:https://hdl.handle.net/10568/145864
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author Tadesse, Getaw
Goundan, Anatole
Sarr, Saer
author_browse Goundan, Anatole
Sarr, Saer
Tadesse, Getaw
author_facet Tadesse, Getaw
Goundan, Anatole
Sarr, Saer
author_sort Tadesse, Getaw
collection Repository of Agricultural Research Outputs (CGSpace)
description Using household level data collected from cereal based farming systems of Senegal, we examined the prospects and challenges of the Senegalese equipment supply subsidy program. Because of the design of the program—being procured and supplied by the government—we argue that the effect of this program on adoption of improved farm equipment depends on the supply and price benefits as well as the relative importance of ownership to access farm equipment. To empirically support this argument, we assessed the benefits of the subsidy in creating markets and reducing prices and its effectiveness in motivating farmers to use modern farm equipment. Our analyses indeed revealed that though the number of farmers benefited from the subsidy is small, the program has significantly improved the adoption of farm equipment drawn by animals mainly due to its market creation benefit. This has been further confirmed by the qualitative response of farmers who appreciated the quality of the equipment being supplied by the program. However, the effect of subsidy on machinery use is insignificant as it doesn’t provide support to those farmers who primary depend on rental services. The price advantage created by the subsidy program is not as such significant either. Farm equipment purchased from the program and the open market appear to have closely similar prices.
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spelling CGSpace1458642024-11-13T12:23:14Z The benefits and limitations of farm equipment supply subsidy: Experiences and lessons from Senegal Tadesse, Getaw Goundan, Anatole Sarr, Saer inputs technology transfer technology supply farm equipment markets ownership subsidies farming systems Using household level data collected from cereal based farming systems of Senegal, we examined the prospects and challenges of the Senegalese equipment supply subsidy program. Because of the design of the program—being procured and supplied by the government—we argue that the effect of this program on adoption of improved farm equipment depends on the supply and price benefits as well as the relative importance of ownership to access farm equipment. To empirically support this argument, we assessed the benefits of the subsidy in creating markets and reducing prices and its effectiveness in motivating farmers to use modern farm equipment. Our analyses indeed revealed that though the number of farmers benefited from the subsidy is small, the program has significantly improved the adoption of farm equipment drawn by animals mainly due to its market creation benefit. This has been further confirmed by the qualitative response of farmers who appreciated the quality of the equipment being supplied by the program. However, the effect of subsidy on machinery use is insignificant as it doesn’t provide support to those farmers who primary depend on rental services. The price advantage created by the subsidy program is not as such significant either. Farm equipment purchased from the program and the open market appear to have closely similar prices. 2019-11-25 2024-06-21T09:05:12Z 2024-06-21T09:05:12Z Conference Paper https://hdl.handle.net/10568/145864 en Open Access African Association of Agricultural Economists Tadesse, Getaw; Goundan, Anatole; and Sarr, Saer. 2019. The benefits and limitations of farm equipment supply subsidy: Experiences and lessons from Senegal. Presented at the 6th African Conference of Agricultural Economists, in Sheraton Hotel, Abuja, Nigeria, September 23-26, 2019. https://purl.umn.edu/295843
spellingShingle inputs
technology transfer
technology
supply
farm equipment
markets
ownership
subsidies
farming systems
Tadesse, Getaw
Goundan, Anatole
Sarr, Saer
The benefits and limitations of farm equipment supply subsidy: Experiences and lessons from Senegal
title The benefits and limitations of farm equipment supply subsidy: Experiences and lessons from Senegal
title_full The benefits and limitations of farm equipment supply subsidy: Experiences and lessons from Senegal
title_fullStr The benefits and limitations of farm equipment supply subsidy: Experiences and lessons from Senegal
title_full_unstemmed The benefits and limitations of farm equipment supply subsidy: Experiences and lessons from Senegal
title_short The benefits and limitations of farm equipment supply subsidy: Experiences and lessons from Senegal
title_sort benefits and limitations of farm equipment supply subsidy experiences and lessons from senegal
topic inputs
technology transfer
technology
supply
farm equipment
markets
ownership
subsidies
farming systems
url https://hdl.handle.net/10568/145864
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