Fertilizer Subsidy Policy Research Articles

Implementation of the Subsidized Fertilizer Program for Subak in West Selemadeg District, Tabanan Regency, Bali Province

The government facilitates various agricultural facilities and infrastructure as an effort to increase food productivity, one of which is by implementing a fertilizer subsidy policy. The realization of subsidized fertilizer redemption in West Selemadeg District in 2023 is still not effective. The aim of the research is to analyze the implementation of the subsidized fertilizer program in West Selemadeg District, Tabanan Regency, Bali Province by analyzing farmers' perceptions of subsidized fertilizer policies, and analyzing the effectiveness of subsidized fertilizer distribution.. The sample in this study consisted of 68 farmers. The data analysis used is Likert Scale analysis. The results of the research showed that farmers' perceptions of the subsidized fertilizer policy in West Selemadeg District were in the good category and the effectiveness of subsidized fertilizer distribution in West Selemadeg District was in the fair category.

Implementation of fertilizer subsidy policy to fertilizer cost saving based on Indonesian minister of agriculture regulations

Abstract The research aims to describe savings in variable fertilizer costs based on the Ministry of Agriculture. The research area was determined purposively, namely Tanjung Morawa and Hamparan Perak District, Deli Serdang Regency, North Sumatra Province. The population for the study is farmer groups based on the largest number of farmer groups in the research village, while the research sample is farmer groups. The number of respondents in Paluh Kurau and Wonososari Villages were 68 and 48 farmers respectively. Analysis method by calculating variable costs for subsidized fertilizer and non-subsidized fertilizer. The findings indicate that the highest price ratio in Minister of Agriculture Regulation Number 49 of 2020, for NPK in Paluh Kurau Village, while the lowest is for SP-36 fertilizer in Minister of Agriculture Regulation Number 41 of 2021 in Wonosari Village. The highest cost savings are Minister of Agriculture Regulation Number 49 of 2020 for NPK fertilizer in Paluh Kurau Village, while the lowest cost savings are Minister of Agriculture Regulation Number 41 of 2021 for ZA fertilizer. The largest average cost savings for five types of subsidized fertilizer in Minister of Agriculture Regulation No, 49 of 2020. Without the fertilizer policy, variable costs increase, and rice production declines.

DAYA SAING PRODUKSI BAWANG MERAH VARIETAS LOKAL RUBARU PASCA KEBIJAKAN SUBSIDI PUPUK 2022

The government has issued a new policy regarding subsidized fertilizer regulated in Minister of Agriculture Regulation Number 10 of 2022. This causes the production costs borne by Rubaru Shallot farmers to be higher because the government subsidizes only two types of fertilizer. This condition can cause the competitiveness of shallots to decrease. This research aims to analyze the impact of changes in the fertilizer subsidy policy in 2022 on the Rubaru Local Variety Red Onion farming and its competitive and comparative advantages. The research location was determined purposively in Mandala Village. The total research sample was 42 people taken using the purposive sampling method. The data type used is primary data, which includes input prices, output prices, and profits in the form of market and social prices. Data analysis uses the Policy Analysis Matrix (PAM) model. The results of the analysis and discussion show that in general, the impact of the 2022 fertilizer subsidy change policy will still benefit farmers because even though the intervention reduces the profits obtained. Other results show that after these policy changes, the Rubaru Variety Shallot Farming in Mandala Village still has competitive and comparative competitiveness.

Assessing the Impact of Reduced Subsidized Fertilizer Usage on Agricultural Productivity in Aceh Province, Indonesia

The agricultural sector is pivotal in Indonesia's economy, significantly contributing to the community's agricultural output. Fertilizer demand in this sector is a critical factor influencing agricultural issues, particularly concerning government policies on subsidized fertilizer distribution. This study aims to analyze the impact of restricting subsidized fertilizer usage on agricultural production in Aceh Province, focusing on how these restrictive policies affect farmers' economic aspects, productivity, and welfare. The research employs a quantitative analysis method utilizing secondary data from scientific publications, journals, books, financial reports from relevant institutions, and other measurable sources. The study uses panel data, combining time series and cross-sectional data, and applies a panel data regression model. The econometric model employs path analysis, with data processing conducted using EViews. Results indicate that limiting Urea fertilizer subsidies does not significantly affect agricultural production. Similarly, the restriction of NPP and Super Phosphate 36 (SP-36) fertilizer subsidies does not significantly impact overall agricultural production. The analysis concludes that Urea fertilizer subsidies have consistently supported agricultural production, although their significance decreases post-subsidy restrictions. NPP fertilizer subsidies, which previously had a significantly negative impact on agricultural production, lost their significance after the restrictions. SP-36 fertilizer subsidies do not show a significant impact in either period. These findings underscore the importance of adjusting fertilizer subsidy policies to optimize agricultural production in Aceh.

Global fertilizer crisis and willingness to pay for chemical fertilizers: empirical evidence from Nepal

PurposeThe purpose of the study is to estimate the willingness to pay (WTP) for major chemical fertilizers and revisit the fertilizer subsidy policy in Nepal.Design/methodology/approachWe surveyed 619 households from six districts and assessed farmers’ WTP for urea, diammonium phosphate (DAP) and muriate of potash (MOP) during the fertilizer crisis. Our study elicited the WTP for fertilizers when fertilizers were not available on the market. A modified payment card approach was used to elicit farmers’ WTP.FindingsThe study found that farmers who buy fertilizer from agrodealers, buy from gray markets, have bank accounts, are willing to take a risk, have strong or medium economic conditions and incur higher travel costs have a higher WTP for fertilizers. Farmers in sampled areas, on average, are willing to pay 31 percent more for urea, 13 percent more for DAP and 19 percent more for MOP than the government recommended fertilizer price.Research limitations/implicationsThe design of the payment card and the estimation techniques used to fit the valuation function are likely to influence WTP.Originality/valueOverall, literature on households’ WTP for fertilizers in developing countries is scarce. Our study contributes to the knowledge of WTP for fertilizers.

The rational choice of vegetable farmers in the revocation of fertilizer subsidies

This research aims to elucidate farmers’ thoughts about the revocation of fertilizer subsidies, explore the rational actions behind their decision to deal with the fertilizer shortage due to the costly prices and develop actionable plans to support farmers regarding subsidized fertilizer revocation. The results show that farmers understand the policy of fertilizer subsidy revocation as a form of the government’s workload. Since farmers think that the government pays little attention, they hope it will change its fertilizer subsidy policy. Demography-wise, older farmers are still hoping for fertilizer subsidies, while young farmers are more realistic and have shifted to producing organic fertilizer and other alternatives. Notably, farmers respond to the scarcity of subsidised fertilizer through preferencebased actions and existing resources. Based on these two, farmers’ rational choices are classified into five actions: Using non-subsidized fertilizers, using subsidized fertilizers illegally, reducing the use of subsidized fertilizers on other commodities – leaving the rest for vegetables, using organic fertilizers of self-made or store-bought, and choose to not fertilize. The manufacture and use of organic fertilizer from local raw materials have not been implemented.

Identification of optimal organic fertilizer subsidy policies under dual uncertainty via a self-calibrated fuzzy-boundary interval programming method

The effective design of organic fertilizer subsidy policies requires a precise understanding of their socio-economic and environmental impacts under uncertainty. However, previous methods face challenges in accurately simulating policy impacts due to the lack of a calibration process for observations and their inability to handle the dual uncertainty, where intervals and fuzziness coexist within a parameter. To fill such gap, a fuzzy-boundary interval positive mathematical programming (FIPMP) model was proposed. FIPMP improves upon previous positive mathematical programming (PMP) by handling dual uncertainties expressed as fuzzy-boundary intervals in both the objective function and constraints. FIPMP can also calibrate to observed values and address constraint-violation issues. This study further integrated the inventory analysis (IA) method into the FIPMP framework (IA-FIPMP), which enabled the impact analysis of organic fertilizer subsidy policies on TN and TP loads. Applied to a case study in Chengde City, Northern China, IA-FIPMP simulated the effects of various subsidy policies, prioritizing profit maximization and considering water resources and environmental constraints. The recommended optimal subsidy levels ranged from 300 to 600 yuan/ton, depending on the water availability and pollution discharge permits. The recommended subsidy levels could lead to a maximum reduction of 140,000 kg in TN loads and 9000 kg in TP loads, as well as a maximum increase of 3.3 times in the organic fertilizer use area. The study further reveals that quality-based subsidy policies outperform area-based subsidy policies in promoting organic fertilizer utilization and increasing farmer income. Compared to interval PMP and interval credibility-constrained PMP, FIPMP expands the capability of uncertainty treatment by handling dual uncertainties and enhances model robustness by balancing system benefits and violation risks. FIPMP can be used to simulate the impacts of other types of policies.

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.

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.

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.

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.

Impact of Fertilizer Price Subsidy on Agricultural Growth in Togo

Fertilizer subsidy policy remains a major plank of inputs policies in Africa. Its objective is to improve agricultural productivity and reduce poverty among farmers. This article examines the impact of fertilizer prices subsidy on agricultural growth in Togo. The Autoregressive distributed lag (ARDL) modelling approach is used to analyse both short and long run impacts of fertilizer subsidy on agricultural growth. Using data from national and international sources over the period 1985 to 2016, the results show that, the impact of fertilizer price subsidy on agricultural growth is limited. The price subsidy did not significantly enhance agricultural growth neither in the short nor in the long run. Moreover, the results highlight the fact that factors, which play a major role in agricultural growth are expenditure, arable land and labour force. To improve the efficiency of fertilizer subsidy, the government should drop price subsidy policy at global level and experience alternative options, which would facilitate fertilizer access to poorer and more marginal farmers.

Effectiveness of Subsidized Fertilizer Distribution from Distributors through Farmers' Kiosks to the Farmers' Level (Case Study in West Lombok District)

This research takes the title “Effectiveness of Subsidized Fertilizer Distribution From Distributors Through Farmers’ Kiosk to Farmer Level (Case Study in West Lombok Regency). The purpose of the study was to determine the effectiveness of the subsidized fertilizer subsidy policy in its distribution from distributors to retail kiosks until it was accepted by farmers who were members of farmer groups. Determination of research areas purvosively in two sub-districts, namely Narmada sub-district and Gunungsari sub-district, West Lombok district. The population in this study are farmers who are members of farmer groups who use subsidized fertilizers in processing their farming business. Determining the sample as many as 120 respondents were determined randomly by random sampling from each selected farmer group in the work area of the subsidized fertilizer retailer kiosk. The research method used to analyze and measure the effectiveness of subsidized fertilizer is descriptive qualitative and quantitative methods. by using four main indicators, namely, right place, right time, right quantity and right price. The results showed that from the four indicators that were observed, it could be said that the distribution of subsidized fertilizer from the distributor to the farmer level. 83.0%, the aspect of suitability with a ratio of 74.45%, the aspect of the suitability of the amount of fertilizer with an average achievement percentage of 55.28% and the ratio ratio with a ratio of 43, 04%. If viewed from the five aspects of fertilizer presentation, the application of subsidized fertilizer seen from these five aspects is 69.24%, based on the fertilizer subsidy policy criteria (Permendagri; 2011) then the delivery of subsidized fertilizer in the research area is in the effective category. With changes in government policy on fertilizer prices which are increasing at any time, farmers are expected to be able to use fertilizers according to the recommendations recommended by the government. In addition, to anticipate the general shortage of fertilizers, the government is currently selling non-subsidized fertilizers to farmers at quite high prices.

Behavior of Private Retailers in a Regulated Input Market: An Empirical Analysis of the Fertilizer Subsidy Policy in Nepal

The private sector in Nepal participates in the regulated import and distribution of three types of subsidized fertilizer. However, almost 55% of the agrovets (family-owned microenterprises) that retail agricultural inputs do not comply. Many farmers rely on the fertilizer purchased through these agrovets, including subsidized ones. There is no private sector importer of the three types of fertilizer covered by the subsidy program, which indicates that the agrovets either acquire these through leakage in the government distribution system or through illegal cross-border trade from India, both of which are considered legal noncompliance. We discern the determinants for this noncompliant behavior of agrovets using logistic regression. The results from logistic regression suggest that the agrovets that are more likely to comply are registered, have membership in business associations, and have a higher number of competitors. Those with diversified business portfolios and covering a greater number of districts are less likely to comply. Key informants, consisting of both public and private sector stakeholders, were solicited for their views on solving this noncompliant behavior. The private sector unanimously asserts the need for deregulation of fertilizer imports and the participation of agrovets in the distribution of the subsidized fertilizer. In contrast, the public sector is skeptical of the ability and trustworthiness of the private sector in the import and distribution of quality fertilizer. We propose a middle ground to mitigate private sector noncompliance and suggest a policy revisit to increase the fertilizer supply and distribution efficiency.

A Study on Farmers’ Use Efficiency of Soil Health Card in Rangareddy District of Telangana State, India

Soil is natural non-renewable resources on human time scale which is the foundation for sustainable agriculture. In view of this, Global soil partnership was conducted by the United Nations Food and Agriculture Organization at its headquarters in Rome, Italy, from 7 to 9 September 2011. With this, Government of India had launched the Soil Health Card Scheme (SHCs) in 2015. The scheme main objective is to distribute SHCs to each farmer in the country with advanced technologies such as GPS-enabled tablets and mass testing, along with better fertilizer subsidy policies. The research study was conducted during 2019-2020 to analyse farmers’ Use efficiency of SHC. Data was collected using a standardised and pre-tested interview schedule. It was revealed that slightly more than the three fifth SHC holders had partially used of overall use efficiency on SHC information (60.83 %), followed by not used (20.00 %) and fully used (19.17 %) of overall use efficiency on SHC information, respectively. All profile characteristics of farmers except mass media exposure had a significant to highly significant association with regard to use efficiency of SHCs. The results also revealed that there is a significant association between attitude and use efficiency (chi-square value 29.66).

Is fertilizer demand elastic to its own price? Assessing the consequences of fertilizer subsidy policy in Bangladesh

Is fertilizer demand elastic to its own price? Assessing the consequences of fertilizer subsidy policy in Bangladesh

A Study on Farmer’s Constraints in Utilizing Soil Health Card and Suggestions to Overcome in Rangareddy District of Telangana State

Agriculture is the backbone of Indian economy and primary source of income of larger part of Indian population. In view of this, Global soil partnership was conducted by the United Nations Food and Agriculture Organization at its headquarters in Rome, Italy, from 7 to 9 September 2011. With this, Government of India had launched the Soil Health Card Scheme in 2015 to distribute soil health cards (SHCs) to each farmer with advanced technologies such as GPS-enabled tablets and mass testing, along with better fertilizer subsidy policies. The present study was conducted in two blocks namely Shabad and Kothur of Rangareddy district of Telangana State during the year 2019-2020 to analyse farmers constraints in utilizing soil health card and suggestions to overcome. Ex-post-facto-research design was used for the study. Data was collected using a standardised and pre-tested interview schedule. Unavailability of bio-fertilizers to follow recommended combinations (Rank I), labours were not capable to understand the balanced fertilizers application use (Rank II), cost of recommended inputs (Rank III) and delay in distribution of soil health cards (Rank IV) were being the major constraints experienced by farmers. Important suggestions offered by the farmers for the effective usage of soil health cards are: Government could organize awareness training programs to farmers about soil health cards (Rank I), to increase the credibility of the soil health card, soil sampling should be done in presence of farmers. (Rank II), the interpretation of the results on soil health cards need to be made simpler with visual charts (Rank III) and making the availability of recommended inputs in market (Rank IV). Need to be viewed seriously by making the availability of bio-fertilizers as per recommended combinations by the agricultural department and appropriate actions to be taken for timely distributing of cards and appropriate time to win the confidence of the farmers.

A Study on Farmers’ Perception on Soil Health Card in Rangareddy District of Telangana State

Agriculture is the backbone of Indian economy and primary source of income of larger part of Indian population. In view of this, Global soil partnership was conducted by the United Nations Food and Agriculture Organization at its headquarters in Rome, Italy, from 7 to 9 September 2011. With this, Government of India had launched the Soil Health Card Scheme in 2015. The scheme main objective is to distribute soil health cards (SHCs) to each farmer in the country with advanced technologies such as GPS-enabled tablets and mass testing, along with better fertilizer subsidy policies. The soil samples were tested in laboratories across the India. Government conducted soil testing and issued soil health cards that carry crop specific recommendations of fertilizers required to enable more judicious use of fertilizers to improve productivity and decline cost of cultivation. The present study was conducted in two blocks namely Shabad and Kothur of Rangareddy district of Telangana State during the year 2019-2020 to analyse farmers’ perception on soil health card. Data was collected using a standardised and pre-tested interview schedule. It was observed that majority of the SHC holders were having moderate perception (71.66%), followed by good (15.00%) and poor perception (13.33%). All profile characteristics of farmers except mass media exposure and innovativeness had significant to highly significant association with regard to perception. The results also revealed that there is a significant association between perception and attitude (chi-square value 44.01) and between attitude and use efficiency (chi-square value 29.66).

Effectiveness of Subsidised Fertilizer Distribution on Corn Farming in South Ogan Komering Ulu District


 
 
 
 The main objective of this study was to analyze the effectiveness of the distribution of subsidized fertilizers in corn farming in the South OKU District. Analyzing the effectiveness of subsidized fertilizer distribution is to use the scoring method and to see the correlation between the effectiveness of subsidized fertilizer distribution and corn production, the Spearman correlation coefficient is a nonparametric statistic. Based on the results of the study, it was found that the average level of effectiveness of the six indicators was 75.25%. From the results of the percentage of the six indicators that are greater than 61% and less than 80%, the fertilizer subsidy policy of the South OKU District is said to be quite effective. The relationship between the effectiveness of the distribution of subsidized fertilizers on corn production in South OKU District. there is no significant relationship with a significance value greater than the value, which is 0.336>0.05. Based on the results of the correlation test of the effectiveness of the distribution of subsidized fertilizers with corn production, the indicators of price effectiveness and type have a unidirectional relationship. While the indicators of the effectiveness of place, time, quality, and quantity have a non-unidirectional relationship.