Fertilizer Subsidy Research Articles

Effect of fertiliser subsidy on fertiliser usage in rice farming in Indonesia

Effect of fertiliser subsidy on fertiliser usage in rice farming in Indonesia

Factors influencing smallholder maize farmers' fertilizer use under the fertilizer subsidy programme in the northern region of Ghana

Factors influencing smallholder maize farmers' fertilizer use under the fertilizer subsidy programme in the northern region of Ghana

IMPLEMENTATION OF FERTILIZER SUBSIDIES: IMPACT ON AGRICULTURE AND FOOD SECURITY IN INDONESIA (A CRITICAL REVIEW)

Fertilizer subsidies are an essential economic policy affecting Indonesia's agricultural sector and food security. This article critically reviews the implementation of fertilizer subsidies and its impact on agricultural economic growth. We analyze changes in policies and approaches implemented in recent years and their impact on resource allocation efficiency and agricultural productivity. By considering the interactions between government policies, agricultural markets, and economic dynamics, this Research identifies factors that influence the success and failure of fertilizer subsidy programs from an economic perspective. The results provide in-depth insight into the impact of fertilizer subsidy policies on economic growth in the agricultural sector and food security in Indonesia and provide a basis for improving more efficient and sustainable policies.

Determinants of Supply Response of Coconut Cultivation in Sri Lanka

Coconut (Cocos nucifera L) is a major plantation crop grown in Sri Lanka. The output has been mainly used for local consumption of fresh nuts, coconut-based industries within the country, and coconut exports. The instability of coconut supply seriously affects local as well as export market potentials. Identification of various factors and the extent to which those affected the current coconut supply have not been examined in the recent empirical work. This study examines the supply response of coconut in Sri Lanka, using Nerlovian Partial Adjustment model. The study used time series data of total coconut production, output price, rainfall, fertilizer amount, land extent, technology, and the presence of fertilizer subsidy for a period of 30 years (1985-2015) for the analysis. Among the different types of functional forms tested, the log-linear model was selected as the best fit model (R2=0.894). The model was tested for autocorrelation and heteroscedasticity using the Durbin-Watson statistic and the Breusch-pagan test, respectively. The results revealed that the variables, i.e.two years lagged price, one year lagged rainfall, and two years lagged fertilizer amount affect the coconut production significantly (p<0.05). The short-run and long-run price elasticities were estimated for two years lagged output price.The output price is the most influential factor in short run with the elasticity of 0.33 (two year lagged price variables were considered) while rainfall is the most important determinant of coconut production in Sri Lanka. The study concludes that coconut production in the country tends to change as a response to the changes in coconut price both in the short-run and long-run. Further, rainfall and amount of fertilizer applied are the two main factors that determine the coconut supply in Sri Lanka.

Enhancing the livelihoods of small-scale paddy farmers in sri lanka through computational approaches for inclusive and equitable agriculture

Paddy cultivation, also known as rice cultivation, contributes significantly to Sri Lanka's food security and economic prosperity. Nevertheless, a number of challenges exist in the practice, such as insufficient furrow irrigation techniques, inefficient fertilizer subsidy distribution, a lack of yield prediction models, and limited access to research findings. In order to address these concerns, this research proposes an integrated system with four components. An application for furrow irrigation planning is included in the first component, utilizing support vector machine algorithms and random forest algorithms to optimize irrigation paths. Second, a priority-based fertilizer subsidy system is introduced, employing Gradient Boosting to allocate subsidies efficiently based on farmers' needs. The third component focuses on improving the dissemination of research findings by employing text summaries in order to make the findings more accessible to small-scale farmers. In the fourth component, a yield prediction model is implemented using a Random Forest algorithm that takes into account climatic and soil variables in order to forecast expected yields. The integrated system aims to enhance the efficiency, productivity, and profitability of paddy farming in Sri Lanka, providing practical solutions to challenges faced by farmers. By adopting these innovations, farmers can make informed decisions and optimize their agricultural practices, leading to sustainable rice production and economic growth.

THE IMPACT OF PRICE POLICY SUPPORT ON INDONESIAN CASSAVA FARMERS

Cassava is a carbohydrate-producing plant that can replace other crops such as rice and corn which are widely consumed by the community. The price policy of cassava farmers in the last five years has decreased very significantly, so it is necessary to conduct research on the impact of policies issued by the government. Factors in producing cassava also need to be improved, one of which is increasing productivity through fertilizer subsidies so that the output produced is positive from upstream to downstream, especially in the economy of Indonesian cassava farmers. This study aims to see the impact of the price policy of cassava farmers and production supporting factors in the form of fertilizer subsidy policies so that farmers' welfare levels. This study uses data from 2000 to 2019, the simultaneous equation model consists of 20 equations which are estimated using the Two Stage Least Square (2SLS) method.

Artisanal small-scale mining, farm labour attraction and household welfare in Ghana

The discourse on the impact of artisanal small-scale mining (ASM) has often concentrated on land degradation, and surface water pollution. How ASM is increasingly attracting farm labourers (FL) in mining communities is rarely discussed. Drawing insight from selected mining communities, which combines the perspectives and experiences of small-scale miners, farmers, academics, and policymakers, this article uses the endogenous switching regression model to identify the determinants of FL attraction to ASM as well as the drivers of labour welfare. The model estimated the impact of labour supply on consumption expenditure per adult equivalent. The results show that FL decision to shift to ASM sector is constructed around welfare incentives. For instance, FL who joined ASM increased their consumption expenditure per adult equivalent by 66.6 percent. The article established that ASM provides crucial livelihoods to rural households. Meanwhile, if proper incentives such as fertilizer subsidy and agriculture extension intensification are not put in place, the labour attraction by ASM will have detrimental effects on food security. Therefore, proper regulatory frameworks should be enforced by duty-bearers to regulate the activities of ASM as it provides welfare improvements to farmers. Lastly, further studies should investigate the decency of labour supply services to ASM.

Farmer card as an instrument for fertilizer direct subsidy on Lombok Island, Indonesia

Like other direct subsidies using subsidy cards, direct fertilizer subsidies using farmer cards are believed to be a mechanism for providing subsidies that are more appropriate for target farmers. However, before this policy is widely implemented, it is necessary to carry out a trial phase for its implementation. The trial was carried out in Sekarbela District, Mataram City with the consideration of the availability of relatively complete data on subsidy recipient farmers accompanied by a National Identity Number (NIK). The trial results indicated that the farmers receiving the subsidy were generally young (48-50 years old), had more than 20 years of farming experience, and most of them controlled land of less than 0.5 hectares with ownership, lease or cultivation status. However, most of the farmers (88%) have only elementary school education but are active in preparing the Group Needs Definitive Plan (RDKK). The results of the analysis conclude that the probability of using a Farmer’s Card to obtain subsidized fertilizer is smaller for tenant farmers compared to owning or cultivating farmers. In addition, farmers with a higher level of education have a greater probability of using the farmer’s card as a means of obtaining subsidized fertilizer.

Harnessing the power of cow dung: Exploring the environmental, energy, and economic potential of biogas production in Indonesia

In countries that produce cattle, like Indonesia, improper management of cow dung is an issue. Biogas production had previously been regarded as the most advantageous method of digesting cow dung. This study examines the energy, economic, and environmental advantages of biogas produced from cow dung if it were to replace coal-powered electricity and LPG in Indonesia. Additionally, the slurry created as a byproduct is used in place of urea as a fertilizer. Benefit calculations begin at the household level and progress to the village level and eventually the national level. According to the study's findings, installing a biogas plant can cut carbon emissions by up to 6.78 tons of CO2/village/day. Each household has an annual savings capacity of IDR 725,000, and each village has a potential annual regional income of IDR 178,000,000. Almost 44% of the urea fertilizer can be replaced by the slurry and 13.2 million households can be served by the 18,177 GWh of electricity produced annually on a country level. The annual reductionable amount of LPG is 3.84 million tonnes and the annual savings to the state budget for LPG and fertilizer subsidies are IDR 40.3 trillion. By lessening the nation's reliance on fossil fuels, the use of biogas also helps to create energy security. Replacing trucks with other equipment for transporting cow dung, utilizing absorbers to boost methane concentrations, and improving electricity generator efficiency are the best approaches to maximizing the advantages of biogas.

Input subsidies, public investments and agricultural productivity in India

The fund allocation in agricultural sector in India is heavily tilted toward input subsidies provision; however, researchers seem to favor investment expenditure instead. The present paper seeks to compare the usefulness of input subsidies as compared to investment with regard to agricultural productivity so that policy makers hit the right tool and avoid less productive state expenditure. We investigated a total of four regression models using autoregressive and distributed lag cointegration in a time series framework covering period from 1983 to 2019. The first model considers all input subsidies in aggregate form, and the rest three models take input subsidies in disaggregate forms, namely fertilizer subsidy, irrigation subsidy and power subsidy, respectively. It is observed from the results that input subsidies still contribute more than what public investment does to agricultural productivity. It is also found that power subsidy is the most effective component of input subsidies followed by fertilizer subsidy. Hence, government expenditure on input subsidies is justified on the ground that it ensures all farmers to have access to affordable agricultural inputs. Targeted subsidies combined with adequate investment in agricultural infrastructure could deliver long-term agricultural development in India.

Penerapan Fungsi Anggaran Dalam Optimalisasi Anggaran Subsidi Pupuk Tahun 2023

Since 2023, several policies related to fertilizer subsidies have changed. Starting from reducing the types of subsidized fertilizers to two, namely Urea and NPK, to changing the fertilizer subsidy budgeting scheme where the allocation of the amount of fertilizer is determined after setting a definitive ceiling based on Farmer Land Spatial Data. This means that performance-based budgeting is not applied to the fertilizer subsidy budget. This then raises the issue of optimization. This issue is important because the nominal subsidy budgeted for in 2023 is the same as in 2022 even though the types of subsidized fertilizers have decreased. There is the potential for idle funds to become a source of fraud. This study examines the application of the budget function to fertilizer subsidies in 2023 using a mathematical model. The type of data is quantitative data and the data source are from government budget document and regulations. Based on the results of this study it is concluded that: 1) The fertilizer subsidy allocation set by the government for 2023 has not optimized the entire subsidy budget. 2) The government can optimize the 2023 fertilizer subsidy budget with several schemes that increase the allocation of subsidized fertilizers. In addition, optimization can be carried out by allocating more of the fertilizer subsidy budget for other types of fertilizer provided that the need for NPK and Urea fertilizers is fulfilled.

Pengaruh Kebijakan Subsidi Pupuk dan Karakteristik Petani Terhadap Tingkat Kesejahteraan Petani Tembakau

Farmer welfare is a condition of a farmer in a prosperous, healthy and peaceful condition without social jealousy in the community. However, this is difficult to materialize for farmers because of a number of factors, namely the ineffective and inefficient fertilizer subsidy policy with farm needs and the different characteristics of farmers in conducting farming.The purpose of this study was to analyze the level of welfare of tobacco farmers in Jombang Regency measured by the large farmer exchange rate (NTP) with several variables including the fertilizer subsidy policy variable, and the farmer characteristics variable.From statistical testing using ordinal logistic regression. The research data was obtained with 123 questionnaires distributed in Sawahan Hamlet Sumbergondang Village, Kabuh District, Jombang Regency.From the partial test, it was explained that the variables which were made into research did not significantly influence the farmer exchange rate (NTP). The results of the coefficient of determination show the results of the coefficient of determination Nagelkerke of 0.900 or 90.0%. It means that the independent variable (fertilizer subsidy policy, and the characteristics of farmers) affects the farmer exchange rate (NTP) of 90.0% while 10.0% is influenced by other factors not included in this research variable.

ANALISIS PENDAPATAN, DAYA SAING DAN DAMPAK KEBIJAKAN USAHA TANI LADA (Piper nigrum. L) DI KABUPATEN WAYKANAN

Abstract,This study aims to analyze income, analyze competitiveness and determine the impact of policies on income and competitiveness of pepper farming in Way Kanan Regency. The research was conducted in Way Kanan District, GunungLabuhan District and Kasui District. The location was chosen purposively with the consideration that the area is a pepper production center in Way Kanan Regency. Sampling of farmers was carried out using the census method with a total of 80 pepper farmers as respondents. The analytical tool used to analyze income, competitiveness and the impact of pepper farming policies in Way Kanan Regency uses the PAM method. The results of the analysis obtained from the research conducted are the highest private/financial income from the exploitation of black pepper in Way Kanan Regency in the 10th year of IDR 32,426,467.70/ha. The largest social/economic income in the 10th year of production is IDR 126,709,367.67/ha. Pepper farming in Way Kanan Regency has a competitive advantage and a comparative advantage with PCR (Private Cost Ratio) and DRCR (Domestic Resource Cost Ratio) values of 0.9392 and 0.4713, respectively, so it is feasible and profitable to cultivate. The fertilizer subsidy policy can increase the income and competitiveness of the pepper commodity in Way Kanan Regency. Keywords: Competitiveness, Income and Pepper.

Penerapan Teknologi Inovasi Pembuatan Pupuk Biosaka di Desa Ellak Laok Kecamatan Lenteng Kabupaten Sumenep

Fertilizer is a material that provides essential elements that can be added to the soil to support plant growth. Fertilizers can be divided into two, namely organic fertilizers and inorganic fertilizers. The use of chemical fertilizers from time to time has increased. Low soil fertility due to chemical compounds can cause excessive soil pollution if used continuously and become a major problem in agricultural cultivation. In addition, other problems experienced by farmers are fertilizer subsidies from the government, while the majority of farmers are dependent on chemical fertilizers. Biosaka is one of the renewable technology systems for modern organic agriculture in the form of bio-technology. The method used in collecting data is through surveys, using a technical approach (community development) through several stages, including: discussion group forums, mentoring to overall training packaged in community empowerment. The series of stages in the training of making biosaka fertilizers, the stages include discussion group forums with the surrounding community, mentoring, training, making biosaka fertilizers. Through the manufacture of biosaka fertilizers have a good impact and can improve the economy. Therefore, there is a need for direct guidance for local farmers so that their dependence on chemical fertilizers can change. Direct guidance can be through actions taken by local agricultural extension workers, the government or student service programs.

United Republic of Tanzania

Spillovers from the war in Ukraine and shortfalls in rainfall stalled Tanzania’s recovery from the COVID-19 pandemic. Despite fuel and fertilizer subsidies, inflation has picked up in recent months, approaching the Bank of Tanzania’s target. External balances deteriorated significantly last year due in large part to spillovers from the war in Ukraine.

Large-Scale Land Acquisition and Household Farm Investment in Northern Ghana

Many studies have investigated the effects of large-scale land acquisition (LSLA) on livelihood, while the effects of LSLA by different actors on investment decisions and levels of investment have largely gone without academic scrutiny. Consequently, information concerning the implications of LSLA by actors on investment is scarce in the literature pertaining to policy. Drawing on information from 664 households selected through a multistage sampling technique, this study examined the relationship between direct and indirect exposure to LSLA by domestic and foreign entities and investment in land-improving techniques. The results show a bi-directional relationship between LSLA and household farm investments. While direct and indirect exposure to LSLA by domestic and foreign entities dissipates some forms of farm investments, the reverse causality is also possible where some household farm investments discourage direct and indirect exposure to LSLA by domestic and foreign entities. The results also revealed that LSLA by domestic and foreign entities dissipates investment in all levels of land- and yield-improving techniques, and even in the presence of a high perception of tenure security. Thus, the provision of legal ownership of land to farmers can provide insurance for investments in all land-improving techniques. Government can also step up the fertilizer subsidy program to enable households to increase investment to avoid further exposure to LSLA.

How does participation in Ghana’s fertilizer subsidy program (GFSP) affect the adoption of sustainable intensification practices (SIPs) and gross farm inputs?

ABSTRACT Technology adoption is key to overcoming climate-related risks to smallholder farmers and declining soil fertility in sub-Sahara Africa. This study estimates the effect of participation in Ghana’s Fertilizer Subsidy Program (GFSP) on the adoption intensity of Sustainable Intensification Practices (SIPs) and gross farm inputs, using a nationally representative dataset of 4365 maize-growing households for two survey periods (2012/2013) and (2016/2017). The study finds that participation in the GFSP increases the adoption intensity in both SIPs and gross farm inputs. The study also finds that mutual aid schemes, farmer cooperatives, agricultural loans, household wealth, and connection of a farm household dwelling to the national electricity grid positively and significantly increase adoption intensity of SIPs and gross farm inputs. Improving access to the GFSP among poor farm households, provision of rural electrification, strengthening and resourcing enabling factors (such as mutual aid schemes and farmer cooperatives) at the local level can facilitate Ghana’s drive towards a sustainable agricultural production.

Does private sector involvement improve the distribution efficiency of subsidized fertilizer? A natural experiment from Nepal

AbstractDespite the government spending significant amounts on fertilizer subsidies, Nepal's average fertilizer application rate is lower than in other South Asian countries. The low application is attributed to poor access to fertilizer and an inefficient distribution system. The government of Nepal issued a “Fertilizer Distribution Directive (FDD) 2020” to improve the distribution system. We assessed the impacts of involving the private sector in selling fertilizer to farmers. We examined whether the market transaction cost proxied by farmers’ search cost (communication and travel cost), travel time to visit the stores, and the opportunity cost of time spent in purchasing fertilizer have been reduced by FDD 2020. A difference‐in‐difference approach refined with propensity score matching was used to estimate the fertilizer distribution efficiency using survey data from 619 households across six districts. Private sector involvement was found to reduce travel time to fertilizer retailers by about 10 min and transaction costs to purchase subsidized fertilizer by about 20 Nepalese Rupees (NPR) per season, compared to the conventional approach of sale by farmer cooperatives. Implementation of the directive has removed the bias of cooperatives selling fertilizer only to members, especially medium and large‐scale farmers. The directive and private sector involvement have led to a more equitable and efficient distribution of subsidized fertilizer. However, the government should routinely monitor and regulate the fertilizer mainly targeted to the private fertilizer retailers.

Implementation of Subsidized Fertilizer Policy on Farmer Groups Based on the Regulation of the Minister of Agriculture Number 41 of 2021 in Percut Sei Tuan District, Deli Serdang Regency, North Sumatra Province, Indonesia

Fertilizers have become an essential part of the success of agricultural commodity production. However, the price of subsidized fertilizers in the market cannot be stable if there is no third party between farmers and producers. The research was conducted in Percut Sei Tuan District, Deli Serdang Regency, North Sumatra Province. The research method is quantitative, using simple random sampling. The purpose of the research is to find out the implementation of the fertilizer subsidy policy in farmer groups based on the Minister of Agriculture Regulation No. 41 of 2021. Implementation of subsidized fertilizer purchases based on MOA No. 41 of 2021 in Percut Sei Tuan: Source of subsidized fertilizer purchased from PT. Pupuk Indonesia, Filling RDKK, Participating in RDKK deliberations, Filling e-RDKK is an extension worker, LP2B land status, and There is KP3 supervision has been implemented well with a percentage of 100 percent each, and The implementation of farmer cards is 73.92 percent, The head of the farmer group who does not have a farmer card is 26.08 percent The effectiveness of MOA No. 41 of 2021 is based on 3 accuracies, namely the accuracy of price, type, and amount. They obtained a percentage of 22.10 percent, which means it is less effective.

The impact of green agricultural subsidies on fertilizer reduction and its mechanism: Evidence from pilot policies for organic fertilizer subsidies

The impact of green agricultural subsidies on fertilizer reduction and its mechanism: Evidence from pilot policies for organic fertilizer subsidies