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Abstract
One of the most persistent objections to non-emergency food aid is that it inhibits local agricultural production in the recipient country. In particular, by causing local market prices to be depressed, food aid is alleged to reduce the incentive to local farmers to produce. This article examines how these price disincentive effects might occur, whether food aid always gives rise to such effects, and whether the effects are always negative. What emerges is that there is no clear-cut case for or against food aid on these grounds, and that the onus is placed on project planners to devise ways by which potential disincentive effects can be minimized.
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