The Use of Direct Fertilizer Subsidies in Developing Countries
Author | : FAO/FIAC ad hoc working party on the economics of fertilizer use |
Publisher | : |
Total Pages | : 88 |
Release | : 1978 |
Genre | : |
ISBN | : |
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Author | : FAO/FIAC ad hoc working party on the economics of fertilizer use |
Publisher | : |
Total Pages | : 88 |
Release | : 1978 |
Genre | : |
ISBN | : |
Author | : Dana G. Dalrymple |
Publisher | : |
Total Pages | : 80 |
Release | : 1975 |
Genre | : Agricultural assistance, American |
ISBN | : |
Author | : United States. International Development Agency |
Publisher | : |
Total Pages | : 76 |
Release | : 1975 |
Genre | : |
ISBN | : |
Author | : Gene T. Harris |
Publisher | : |
Total Pages | : 136 |
Release | : 1984 |
Genre | : Agricultural Subsidies |
ISBN | : |
Author | : R. C. Taylor |
Publisher | : |
Total Pages | : 48 |
Release | : 1976 |
Genre | : Agricultural subsidies |
ISBN | : |
Author | : United States. Agency for International Development. Bureau for Program and Policy Coordination |
Publisher | : |
Total Pages | : 74 |
Release | : 1975 |
Genre | : Economic assistance, American |
ISBN | : |
Author | : David Amaglobeli |
Publisher | : International Monetary Fund |
Total Pages | : 37 |
Release | : 2024-08-26 |
Genre | : |
ISBN | : |
The objectives underlying agricultural output subsidies can have conflicting implications for the design of subsidy programs. As they tend to affect meaningful swaths of the electorate, subsidies can also be an attractive political instrument. By artificially lowering production costs or assuring higher output prices, direct support measures can result in resource misallocation in instances where they fail to address market failures, such as imperfect information about the returns to fertilizers. Subsidies can also contribute to fertilizer overuse, harming the environment and the agricultural sector in the long term. Furthermore, agricultural production subsidies are often fiscally costly and unfavorable compared to alternative uses of public funds—both within the agricultural sector and outside it—to achieve the same ends. Various design and implementation challenges amplify the shortcomings of producer subsidy programs.
Author | : Muhammad Ghulam Quibria |
Publisher | : |
Total Pages | : 66 |
Release | : 1987 |
Genre | : Agricultural productivity |
ISBN | : |
Author | : Kurdi, Sikandra |
Publisher | : Intl Food Policy Res Inst |
Total Pages | : 24 |
Release | : 2020-03-12 |
Genre | : Political Science |
ISBN | : |
As part of a national policy to ensure a certain level of food self-sufficiency in strategic crops, the government of Egypt subsidizes nitrogen fertilizer directly by distributing quotas of subsidized fertilizers to farmers and indirectly by subsidizing natural gas used by local fertilizer factories. The implication of this subsidy on farmers’ fertilizer demand and productivity remains unknown. Using a detailed agricultural survey collected from smallholder farmers in Upper Egypt, we show that nitrogen fertilizer application rates are substantially in excess of crop-specific agronomic recommendations. We exploit eligibility criteria and other sources of variation to show that farm plots with easier access to the subsidy tend to use more subsidized nitrogen fertilizer and less phosphate fertilizer. Easier access to the subsidy increases use of total nitrogen fertilizer per unit of land, mainly because of the increase in subsidized nitrogen fertilizer. In particular, the fertilizer subsidy program in Egypt is associated with significant overapplication of nitrogen fertilizer. Such overapplication of fertilizer is expected to adversely affect soil, water, and environmental health. Our findings have important policy implications for Egypt and other African countries known for input subsidy programs. As Egypt is currently moving on from the successful implementation of a comprehensive macroeconomic reform program towards sector-level reforms, our results suggest that eliminating fertilizer subsidies is a good place to start.