Input subsidy programs in sub-Saharan Africa: A synthesis of recent evidence

Input subsidy programs have once again become a major plank of agricultural development strategies in Africa. Ten African governments spend roughly US$1 billion annually on input subsidy programs (ISPs), amounting to 28.6% of their public expenditures on agriculture. This article reviews the microle...

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Autores principales: Jayne, Thomas S., Rashid, Shahidur
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2013
Materias:
Acceso en línea:https://hdl.handle.net/10568/152882
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author Jayne, Thomas S.
Rashid, Shahidur
author_browse Jayne, Thomas S.
Rashid, Shahidur
author_facet Jayne, Thomas S.
Rashid, Shahidur
author_sort Jayne, Thomas S.
collection Repository of Agricultural Research Outputs (CGSpace)
description Input subsidy programs have once again become a major plank of agricultural development strategies in Africa. Ten African governments spend roughly US$1 billion annually on input subsidy programs (ISPs), amounting to 28.6% of their public expenditures on agriculture. This article reviews the microlevel evidence on ISPs undertaken since the mid 2000s. We examine the characteristics of subsidy beneficiaries, crop response rates to fertilizer application and their influence on the performance of subsidy programs, the impacts of subsidy programs on national fertilizer use and the development of commercial input distribution systems, and finally the impact of ISPs on food price levels and poverty rates. The weight of the evidence indicates that the costs of the programs generally outweigh their benefits. Findings from other developing areas with a higher proportion of crop area under irrigation and with lower fertilizer prices—factors that should provide higher returns to fertilizer subsidies than in Africa—indicate that at least a partial reallocation of expenditures from fertilizer subsidies to R&D and infrastructure would provide higher returns to agricultural growth and poverty reduction. However, because ISPs enable governments to demonstrate tangible support to constituents, they are likely to remain on the African landscape for the foreseeable future. Hence, the study identifies ways in which benefits can be enhanced through changes in implementation modalities and complementary investments within a holistic agricultural intensification strategy. Among the most important of these are efforts to reduce the crowding out of commercial fertilizer distribution systems and programs to improve soil fertility to enable farmers to use fertilizer more efficiently. The challenges associated with achieving these gains are likely to be formidable.
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spelling CGSpace1528822025-11-12T04:46:25Z Input subsidy programs in sub-Saharan Africa: A synthesis of recent evidence Jayne, Thomas S. Rashid, Shahidur subsidies fertilizers intensification agricultural productivity markets Input subsidy programs have once again become a major plank of agricultural development strategies in Africa. Ten African governments spend roughly US$1 billion annually on input subsidy programs (ISPs), amounting to 28.6% of their public expenditures on agriculture. This article reviews the microlevel evidence on ISPs undertaken since the mid 2000s. We examine the characteristics of subsidy beneficiaries, crop response rates to fertilizer application and their influence on the performance of subsidy programs, the impacts of subsidy programs on national fertilizer use and the development of commercial input distribution systems, and finally the impact of ISPs on food price levels and poverty rates. The weight of the evidence indicates that the costs of the programs generally outweigh their benefits. Findings from other developing areas with a higher proportion of crop area under irrigation and with lower fertilizer prices—factors that should provide higher returns to fertilizer subsidies than in Africa—indicate that at least a partial reallocation of expenditures from fertilizer subsidies to R&D and infrastructure would provide higher returns to agricultural growth and poverty reduction. However, because ISPs enable governments to demonstrate tangible support to constituents, they are likely to remain on the African landscape for the foreseeable future. Hence, the study identifies ways in which benefits can be enhanced through changes in implementation modalities and complementary investments within a holistic agricultural intensification strategy. Among the most important of these are efforts to reduce the crowding out of commercial fertilizer distribution systems and programs to improve soil fertility to enable farmers to use fertilizer more efficiently. The challenges associated with achieving these gains are likely to be formidable. 2013-11 2024-10-01T13:55:18Z 2024-10-01T13:55:18Z Journal Article https://hdl.handle.net/10568/152882 en Limited Access application/pdf Wiley Jayne, Thomas S.; and Rashid, Shahidur. 2013. Input subsidy programs in sub-Saharan Africa: A synthesis of recent evidence. Agricultural Economics 44(6): 547-562. Special Issue on Input Subsidy Programs (ISPs) in Sub-Saharan Africa (SSA). https://doi.org/10.1111/agec.12073
spellingShingle subsidies
fertilizers
intensification
agricultural productivity
markets
Jayne, Thomas S.
Rashid, Shahidur
Input subsidy programs in sub-Saharan Africa: A synthesis of recent evidence
title Input subsidy programs in sub-Saharan Africa: A synthesis of recent evidence
title_full Input subsidy programs in sub-Saharan Africa: A synthesis of recent evidence
title_fullStr Input subsidy programs in sub-Saharan Africa: A synthesis of recent evidence
title_full_unstemmed Input subsidy programs in sub-Saharan Africa: A synthesis of recent evidence
title_short Input subsidy programs in sub-Saharan Africa: A synthesis of recent evidence
title_sort input subsidy programs in sub saharan africa a synthesis of recent evidence
topic subsidies
fertilizers
intensification
agricultural productivity
markets
url https://hdl.handle.net/10568/152882
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AT rashidshahidur inputsubsidyprogramsinsubsaharanafricaasynthesisofrecentevidence