Abstract
Agricultural input subsidies for improving productivity, farm income, consumer welfare and wider growth in low‐ and lower‐middle‐income countries: a systematic review
Highlights
Access to agricultural inputsWith 12.5 per cent of the world’s population currently undernourished (FAO, 2013) there is an urgent need to improve food security
Agricultural input subsidies are a potential way of incentivising farmers to purchase inputs that they are unable or unwilling to obtain at market rates; for example, because they lack access to credit or find or expect the inputs to be unprofitable at market prices given existing knowledge about their benefits, and so on
Input subsidies could provide a means for achieving higher agricultural productivity, improved food security and, through lower food prices, pro-poor economic growth
Summary
With 12.5 per cent of the world’s population currently undernourished (FAO, 2013) there is an urgent need to improve food security. Wider potential subsidy impacts associated with the introduction of new and innovative agricultural input subsidy programmes are increasingly recognised and investigated, including private market development, soil fertility replenishment, social protection, national and household food security, and growth (Dorward, 2009). These indirect (or dynamic) environmental, income and consumer welfare effects are only expected when there are direct (or static) production effects.
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