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Agricultural Subsidies & Input voucher Program

Regional Dialogue31st Aug to 4th September 2009

Maputo

David B Kamchacha PhD policy@fanrpan.org

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Slow Agriculture Growth

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The Malawi Input Voucher ProgrammeYEAR INPUT PACKAGE TARGETTED

FARMERS

2005/2006 120,000 MT maize fert20,000 MT tobacco fert

2 x 50 kg bag 2 x 50 kg bag

1.2 million 0.2 million

2006/2007 150,000 MT maize fert20,000 MT tobacco fert4,000 MT maize seed

2 x 50 kg bag 2 x 50 kg bag 1 x 2 kg pack

1.5 million 0.2 million

2007/2008 150,000 MT maize fert20,000 MT tobacco fert4,000 MT maize seed1,000 MT legume seed400 MT cotton seed400 MT pesticides

2 x 50 kg bag 2 x 50 kg bag 1 x 2 kg pack

1 x 2 kg pack

1.5 million 0.2 million 1.5 million

0.2 million

2008/2009 150,000 MT maize fert20,000 MT tobacco fert4,000 MT maize seed1,000 MT legume seed400 MT cotton seed400 MT pesticides

2 x 50 kg bag 2 x 50 kg bag 1 x 2 kg pack

1 x 2 kg pack

1.5 million 0.2 million 1.5 million

0.2 million

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Results

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Agriculture Growth

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Farmer Case studies

Beneficiary

No of people in HH

2007/08 Production Kg

2008/09 Production Kg

Increase In production Kg

Raphael Chirwa 4 500 1500 1000

Grace Nkhata 5 0 300 300

Weston Kawani 5 1700 1850 150

Elliot Fika 8 0 750 750

Martin Chiputula 5 100 250 150

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Farmer's Yields Difference with same Amount of Inputs

0%10%20%30%40%50%60%70%

1 2 3

Mts

FA

RM

ER

S

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Impact of Inputs Support on Livelihoods

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Zambia Fertilizer Support Programme (FSP)

• Fertiliser Support since 2002

• Yield increased from 1.1mt to 2.4t/ha (year 2002-8)

• Area cultivated: – Fertilizer user- 795, 000 ha – None users 1, 131, 000 ha (2008/09).

• National yield average 1.3mt/ha

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Percent of Fertilizer Users and Non-Users BY the Source of Fertilizer

8.1

15.9

71.6

8

13.2

73.6

10.2

17.2

71.6

8.7

15.4

75.2

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2002/03 2003/04 2006/07 2007/08

SEASONS

NO Fert

Other (PAM & Free)

Commercial

FSP

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Yields mt/ha

Table 1: Maize Yield Rates by Source of Fertilizer and Province Maize Yield (Mt/Ha)

2003/04 2007/08 FSP COMM No fert FSP COMM No fert

Central 2.00 2.07 1.40 2.50 2.14 1.50 Copperbelt 1.90 2.03 1.60 2.70 2.18 1.30 Eastern 2.30 1.89 1.50 2.00 1.71 1.20 Luapula 2.30 2.47 1.90 2.20 2.06 1.60 Lusaka 1.50 1.48 1.10 2.10 2.25 1.20 Northern 2.20 2.28 1.50 3.00 2.42 1.50 Nwestern 1.50 1.66 1.20 2.00 1.90 1.20 Southern 2.30 2.06 1.40 2.20 1.92 1.30 Western 1.50 1.60 0.80 1.40 1.39 0.90 TOTAL 2.10 1.99 1.4 2.40 2.03 1.30

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Impact of Inputs Support on Livelihood

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FSP COMMERCIAL NON-FERT USER

2,886

1,968

1,040

6,077 6,209

1,808

PR

OD

UC

TIV

E A

SS

ET

VA

LU

E (00

0 Z

MK

)

FERTILIZER SOURCE

2002/03 2006/07

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Mozambique Inputs Trade Fairs

Year No. of ITFs

No. of Beneficiaries

Provinces covered

2003 76 37,770 Tete, Manica, Sofala, Inhambane, Gaza, Maputo

2004 28 13,900 Tete, Manica, Sofala, Cabo Delgado

2005 55 44,200 Manica, Sofala, Maputo

Total 159 95,870

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Yield Mt/ha Season Crop Number of

Farmers Assisted Fertilizer

Users

Yield (mt/ha)

Non fertilizer Users

Yield (Mt/ha)

2001/02 Maize 2.653 3.0 1.0

2002/03 Maize 1.571 3.6 0.8

2003/04 Maize 2.660 2.9 0.7

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Continued

• Surpluses allowed them to enter crop markets and trade with non-beneficiaries

• Able to rent tractors to cultivate bigger areas

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Overall Outcome• Vouchers can integrate commercial and non-

commercial input distribution systems• Timely access to inputs is key• Yield Increase per hectare• Increased Income• A market-smart form of subsidy• Increase In trade • Increased fertilizer application from 17% in 2005 to

30% of the rural household in 2006

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Challenges

• Accurate targeting of beneficiaries

• Monitoring

• Compromise on inputs quality

• Late decisions leading to late delivery

• Political interference

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Common issues

• Need for more investment in research and extension

• Agro dealer network development• Promotion of new technologies• Investment in grain storage to reduce Post

harvest loses• Improve targeting (FVI)• Monitoring framework that facilitate farmer

graduation

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FINALLYRight investments done in the right way under the right circumstances can produce the desired results

-Southern Africa is not doomed to remain in food deficit

- Policy makers can make a difference

- Hunger and dependence on food aid can be reduced

Yes we can