Targeting of beneficiaries in chemical fertilizer subsidy programs: State of knowledge and evidence gaps

Low and middle income countries have been facing mounting pressure from lenders and donors to eliminate or reform fertilizer subsidy programs, which can have distortionary market effects and negative environmental externalities. However, there is little systematic work understanding who these progra...

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Autores principales: Trachtman, Carly, Hill, Ruth Vargas
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2025
Materias:
Acceso en línea:https://hdl.handle.net/10568/178957
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author Trachtman, Carly
Hill, Ruth Vargas
author_browse Hill, Ruth Vargas
Trachtman, Carly
author_facet Trachtman, Carly
Hill, Ruth Vargas
author_sort Trachtman, Carly
collection Repository of Agricultural Research Outputs (CGSpace)
description Low and middle income countries have been facing mounting pressure from lenders and donors to eliminate or reform fertilizer subsidy programs, which can have distortionary market effects and negative environmental externalities. However, there is little systematic work understanding who these programs currently benefit both in theory and in practice, and hence who may be affected by policy reform. In this paper, we identify low and middle countries with active fertilizer subsidy programs, and characterize the targeting regime of each program based on both explicit and implicit criteria determining eligibility. Then in a selection of case studies, we explore which individuals are receiving subsidy benefits in practice. We find that while many fertilizer subsidy programs are meant to be universal, there are are additional implicit targeting criteria and/or informal targeting induced by supply shortfalls in many countries. Further, we find evidence that regardless of targeting regime, fertilizer subsidies are generally progressive, though this seems to be driven by the fact that the poor are often concentrated in the agricultural sector.
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spelling CGSpace1789572025-12-18T02:01:56Z Targeting of beneficiaries in chemical fertilizer subsidy programs: State of knowledge and evidence gaps Trachtman, Carly Hill, Ruth Vargas fertilizers inorganic fertilizers subsidies targeting Low and middle income countries have been facing mounting pressure from lenders and donors to eliminate or reform fertilizer subsidy programs, which can have distortionary market effects and negative environmental externalities. However, there is little systematic work understanding who these programs currently benefit both in theory and in practice, and hence who may be affected by policy reform. In this paper, we identify low and middle countries with active fertilizer subsidy programs, and characterize the targeting regime of each program based on both explicit and implicit criteria determining eligibility. Then in a selection of case studies, we explore which individuals are receiving subsidy benefits in practice. We find that while many fertilizer subsidy programs are meant to be universal, there are are additional implicit targeting criteria and/or informal targeting induced by supply shortfalls in many countries. Further, we find evidence that regardless of targeting regime, fertilizer subsidies are generally progressive, though this seems to be driven by the fact that the poor are often concentrated in the agricultural sector. 2025-12-17 2025-12-17T20:30:05Z 2025-12-17T20:30:05Z Working Paper https://hdl.handle.net/10568/178957 en Open Access application/pdf International Food Policy Research Institute Trachtman, Carly; Hill, Ruth. 2025. Targeting of beneficiaries in chemical fertilizer subsidy programs: State of knowledge and evidence gaps. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/178957
spellingShingle fertilizers
inorganic fertilizers
subsidies
targeting
Trachtman, Carly
Hill, Ruth Vargas
Targeting of beneficiaries in chemical fertilizer subsidy programs: State of knowledge and evidence gaps
title Targeting of beneficiaries in chemical fertilizer subsidy programs: State of knowledge and evidence gaps
title_full Targeting of beneficiaries in chemical fertilizer subsidy programs: State of knowledge and evidence gaps
title_fullStr Targeting of beneficiaries in chemical fertilizer subsidy programs: State of knowledge and evidence gaps
title_full_unstemmed Targeting of beneficiaries in chemical fertilizer subsidy programs: State of knowledge and evidence gaps
title_short Targeting of beneficiaries in chemical fertilizer subsidy programs: State of knowledge and evidence gaps
title_sort targeting of beneficiaries in chemical fertilizer subsidy programs state of knowledge and evidence gaps
topic fertilizers
inorganic fertilizers
subsidies
targeting
url https://hdl.handle.net/10568/178957
work_keys_str_mv AT trachtmancarly targetingofbeneficiariesinchemicalfertilizersubsidyprogramsstateofknowledgeandevidencegaps
AT hillruthvargas targetingofbeneficiariesinchemicalfertilizersubsidyprogramsstateofknowledgeandevidencegaps