Wherever there are subsidized farm inputs, farmers welcome them because most find that they are not able to purchase enough of the inputs for their needs at full market price.
But the high cost of subsidy schemes for governments cause many problems.
Malawi, Zimbabwe, Zambia and Tanzania are just a few examples of countries where farmers often complain that the the subsidized inputs are made available too late in the crop planting season for optimal yields.
"We have been forced to use substandard seeds instead of quality ones,
since the vouchers delay to reach us. We can't afford to buy other seeds
in the market," Bakari Somboja, said a farmer from Mabwelebwele village
in Kilosa, Tanzania, according to a report in the East African Business Week.
Somboja said farmers in his area need inputs such as seeds and
fertilizer in January, but the subsidy vouchers arrive between February
and March. Sometimes they are given 'temporary' vouchers to present, which the agro-dealers reject.
Another frequent complaint is that there are far from enough vouchers distributed for the needs of poor farmers.
African Agriculture
October 07, 2012
Farmers in Tanzania disadvantaged by late distribution of subsidized inputs
Categories fertilizer, inputs, subsidies, Tanzania
October 02, 2012
Issues of concern about Malawi's farming inputs subsidy programme
Malawi’s late president, Bingu Mutharika, reportedly treated his country’s much praised farming inputs subsidy scheme “as a personalised presidential programme, kept that way by the numerous awards that were conferred on the president in recognition of the FISP's achievements.”
So writes Blessings Chinsinga, associate professor at the University of Malawi. He further explains, “It was not possible for technocrats to address concerns by development partners, however constructive, because of Mutharika's heavy and direct involvement in the programme.”
Although he was said to be very unpopular when he died a few months ago, Mutharika is widely credited for spearheading Malawi’s current maize self-sufficiency through the Farm Input Subsidy Programme. He instituted it in the face of opposition by ‘international development experts’ and the country's donors, on whom Malawi is said to depend for up to 40% of its budget. Although the donors later came on board on seeing its successful results, perhaps it is not surprising that Mutharika was subsequently sceptical about the advice/concerns raised by the foreign ‘experts’ that are always part of any aid package.
The previous opposition of the donors and their ‘experts,’ as well as Mutharika’s arrogance on the success of his programme meant that he was not much interested in listening to what they had to say. The unofficial aid rule book says that the recipient must take the advice packaged together with the money by the donor, but perhaps Mutharika’s ‘I told you so’ success gave him more leverage in this situation than would be the case in most cases.
However, Mutharika’s thumbing his nose at the donors’ concerns about certain aspects of the FISP did not mean that they were without validity.
Among them, Chinsinga says, were “…the lack of transparency in the cost of the FISP, especially in relation to overheads, and excessive interference in the award of FISP contracts. They worried that the FISP had become more or less a means for settling political debts, since preference in the award of the contracts was given to those with very close ties to the government, whether their bids were competitive or not.”
Chinsinga points out that despite the fact that the FISP is clearly not sustainable as currently structured and (donor) funded, “subsidies have become more or less an integral part of the social contract between the government and citizens. A government that discontinues the FISP risks voter backlash. In other words, maize subsidies are at the core of Malawi's politics. “
Chinsinga’s article is thoughtfully written and a very good read. It is important because of how almost all the issues he touches on in regards to subsidies and food security apply to most African countries.
African Agriculture
Categories fertilizer, inputs, maize, Malawi, subsidies
September 24, 2012
Malawi farm inputs subsidy under strain over currency devaluation, dependence on donors
Malawi has had a much-lauded farm inputs (fertilizer, seed, chemicals) subsidy scheme for its farmers for some years now. It has been extremely successful in raising the yields of several crops. Most significantly including making the country (agriculturally, economically, politically), once famine-plagued Malawi has for several years in a row now enjoy surpluses of its staple crop, maize.
But from the beginning, there were always concerns about how long the subsidy could be sustained. It took a big chunk from Malawi's annual budget and was increasingly dependent on international donors. Then there has been the perennial debate about how subsidies distort the development of free, strong markets and how they may create a culture of expectation which could be damaging to the creation of a competitive farming sector.
In the understandable euphoria of Malawi's 'bumper harvests,' all these worries were pushed aside. But recent events have forced renewed focus on the long-term viability of the farm inputs subsidy.
Hyperinflation has significantly devalued the Malawian kwacha, meaning for the same amount of the currency, the country gets much less than before in imported goods like farm inputs. Reduced national purchasing power has reduced how many of Malawi's farmers can have access to subsidized inputs.
Then Malawi's late president Bingu Mutharika had a falling out with Britain and other major donors, causing them to show who is who by slashing their support to the country's budget. This caused Mutharika's government to scale back the reach of the subsidy scheme, while also graphically showing the inherent dangers of a programme so vulnerable to the feelings of foreign governments and institutions.
Activists who are ideologically opposed to the very idea of fertilizers might feel vindicated by the subsidy programme running out of steam in Malawi. But it is also far from obvious that the various agro-ecological alternatives can be a direct replacement for Malawi's (or any country's) present inputs-based farming in the near-enough term to address the intersecting food security, soil fertility, political and other challenges.
There will be no quick or easy answers, but at least the discussion about the need for Malawi to look beyond its government/donor-funded inputs subsidy programme seems to have begun.
African Agriculture
Categories aid, inputs, Malawi, policy issues, subsidies
March 19, 2012
Zambia to subsidize inputs for 'all cash crops?'
The newly elected Zambian government of President Michael Sata plans to broaden the country's current maize inputs subsidy to other crops.
The Zambia Daily Mail attributed the policy intention to a statement to that effect by Vice President Guy Scott.
In March 2011, the agriculture minister of the previous government of President Rupiah Banda said a total of 180,000 tonnes of various subsidized fertilizers were to be distributed for the 2011/12 cropping season (October-May). In 2010 the government distributed 90,000 tonnes of urea(nitrogen) and 60,000 tonnes of compound 'D' fertilizers.
Zambia's Farmer Input Support Programme was introduced in the early 2000s. As in other countries, it has been dogged by controversy. Meant for poor farmers who cannot afford the costs of the fertilizer, hybrid seeds and pesticides, there have been accusations that well-to-do farmers who are well-connected politically have often had preferential access to the subsidized inputs. It has also been alleged that it has served as a tool of political patronage. There have also been complaints from farmers that apart from cloudy criteria to access the inputs, they are also often availed late into the cropping season, reducing their potential benefits.
While popular with farmers, questions are perennially asked about the long-term ability of poor countries to sustain inputs subsidy programmes. Neighboring Malawi has had to cut back its equally popular and successful inputs subsidy programme as a result of the withdrawal of budgetary support by Western countries over a diplomatic spat over governance issues. Given these issues of cost and sustainability, Zambia would be setting somewhat of a precedent in the region if it went ahead and provided subsidized inputs for 'all cash crops,' as The Zambia Daily Mail reports him as saying.
Nevertheless, the inputs subsidy programme, along with good rains, has led to several years of surpluses of Zambia and the sub-region's main staple crop, maize. Erratic rains for the current season are expected to result in significantly lowered harvests this year.
African Agriculture
Categories fertilizer, inputs, subsidies, Zambia
February 12, 2012
‘Alliance for a Green Revolution in Africa is a major assault on seed sovereignty’
Categories fertilizer, GM crops, green revolution, inputs, seeds
November 10, 2011
Zimbabwe distributes free inputs to vulnerable farmers
by Jonga Kandemiiri
The Zimbabwean government says it is printing more than one million vouchers to be distributed to farmers through offices of the Agricultural, Technical and Extension Services to provide access to vulnerable growers to Grain Marketing Board planting inputs.
Agritex Principal Director Joseph Gondo said the vouchers, with special security features, should be available for distribution by his office by the end of the week.
Under the US$45 million agricultural inputs subsidy scheme, each farmer considered to be vulnerable is to receive 10 kilograms of maize seed, one 50-kilogram bag of compound D and one 50 kilogram bag of ammonium nitrate fertilizer.
Agronomist Thomas Nherera said that this is a welcome move as the small farmers being targeted produce most of the country's staple maize.
VOA
Categories fertilizer, inputs, seeds, Zimbabwe
November 03, 2011
Swaziland: No more subsidized agricultural inputs
Swaziland’s economic crisis has forced the government to put on ice the agricultural input scheme that has made the survival of many subsistence farmers and their families less precarious on communal Swazi Nation Land, where 70 percent of the 1.1 million population live.
“There is no seed subsidizing now. We used to do it, and we are talking about reviving the programme,” said Xoxile Nxumalo of the agriculture ministry. Under the Swazi Agricultural Development Programme, seeds were sold at a discount or provided free of charge to subsistence farmers working on communal land.
Nxumalo said discussions were taking place to provide discount tractor hire. Poor farmers could previously use the government’s tractor fleet at reduced rates but fuel shortages have put a stop to the service. In 2010 a government tractor could be hired for about R130 (US$17.30) an hour, compared to about R200 (US$26.60) per hour for a privately owned tractor.
This is the first growing season where the inputs have been withdrawn. Planting starts when the rains begin, usually between October and November. The mountainous highveld usually has ample rains, and enough rain falls in the warmer middle veld for most of the crop production. In the drought-prone low middle veld and eastern lowveld rainfall is often problematic and food assistance has regularly been required in the past two decades, particularly in the eastern Lubombo region.
A recent long-range prediction by the Swaziland Meteorological Department forecast rains arriving late in 2011, but ending at their usual time in March/April, so reducing the cropping season.
“Seven out of ten Swazis survive as peasant farmers on government-owned land, and while subsistence farming worked when the population was small, a growth in population has meant this old way of doing things is not sustainable. Swaziland has become dependant on food aid, despite the nation’s ability to feed herself,” Amos Ndwandwe, an agriculture field officer in the central Manzini region, told IRIN.
“It is not that Swaziland lacks good land. We have lots of good land, but the land management system is a feudal arrangement that was not made for modern times. If the small landholder farmers could pool their land and get financing for irrigation and modern equipment, Swaziland’s food security would be ensured in one season,” he said.
Thembumenzi Dube, a statistician at the agriculture ministry, told IRIN: “The area planted in 2010/11 was 70,344 hectares, which showed an increase of about 20 percent compared to the previous season. The increase in area planted could be attributed to a number of factors, including the onset of the rainfall season countrywide, with fair distribution.
“The seasonal [rainfall] forecast had also indicated normal to above normal rainfall in the October to December period... The Ministry of Agriculture’s efforts to encourage farmers to make use of available resources such as tractors could have also played a role,” he said.
The maize harvest for the 2010/2011 season was 84,696 metric tons, against a national requirement of the staple grain of 113,000 tons, in a season when small-scale farmers had access to subsidised seed distribution and tractor hire.
The 2011 planting season has coincided with a dry spell and most small-scale farmers are dependent on rain to water their crops. Security of tenure is tenuous on Swazi Nation Land, and the majority have few or no financial resources to improve the land or install irrigation systems.
King Mswati directly appoints Swaziland’s about 300 chiefs, who can arbitrarily evict any of their subjects from communal land. Analysts say this ensures that the ban on political activities reaches all domains of Swazi society, as anyone seen to be involved in political activity can have their land confiscated without recourse.
“I live on the banks of a river [the Nkomati]. My maize crops could easily thrive if I had a simple pump and piping. What I harvest would pay for the loan, but I have no collateral because there is nothing to offer the bank. We Swazis live under chiefs - this land belongs to the king,” Sipho Magagula, a farmer in the eastern Lubombo region.
“The last harvest [earlier in 2011] was better than last year but some people are still on food assistance, especially in the Lubombo region,” Nxumalo said.
More than 100,000 Swazis receive some form of food assistance from governmental programmes and international donor schemes.
Other social services such as educational grants and pensions have either become erratic or have been suspended as the country ruled by sub-Sahara’s last absolute monarch, Mswati III, struggles to deal with the decline of receipts from the Southern African Customs Union, and profligate spending by the government and the royal household.
An agricultural specialist, who declined to be named said, “There are 200,000 OVC [orphans and vulnerable children] in Swaziland, and if you add the growing number of people on Swazi Nation Land with inadequate crop yields, we are looking at least a third of the population needing food assistance.”
IRIN
Categories inputs, land management, subsidies, Swaziland
October 17, 2011
Malawi inputs subsidy scaled back
August 08, 2011
Allegations of wrongful enrichment in Malawi fertilizer subsidy scheme
by Lusubilo Sichali
Despite the 2010/11 Farm Input Subsidy Programme (FISP) review faulting the manner in which tenders of the supply and delivery of fertilizer were offered by government, the 2011/12 procurement process is almost a repeat of the previous scenario.
Last year, the FISP review observed that some of the bidders who offered higher prices, such as Mulli Brothers of P/Bag 5145, Limbe and Nyiombo Investments of P.O. Box 40654, Lilongwe were nonetheless given a lion’s share of the programme.
According to information gathered by Nyasa Times, the two suppliers have again this time round been asked by government through the Office of the Director of Public Procurement (ODPP) to supply and deliver a total of 12000 metric tonnes (10000 Urea and 2000 NPK) and 10000 metric tonnes (NPK) each at a cost of about K1.5 billion and K1.3 billion, respectively under the 2011/12 fertilizer subsidy programme.
The two suppliers are suspected to have close links with president Bingu wa Mutharika. Another supplier also with close business ties with the Head of State is Export Trading Group who has also been offered a contract to supply 10000 metric tonnes of NPK and is expected to be paid about K1.3 billion.
Another supplier, Farm-Chem, has been offered to supply 9000 metric tonnes, which include both NPK and Urea at about K1.2 billion.
Mapeto Wholesalers’ cut is 5000 metric tonnes, as is Farmers’ World. Other suppliers include Sealand, Transglobe Produce Export and Elvis Freight, among others. Their tonnages range from 1000 to 5000. Elvis Freight belongs to Noel Masangwi, southern regional governor of the governing Democratic Progressive Party (DPP) of president Mutharika.
Under the 2011/12 Fertilizer Subsidy Input Programme, government has planned to acquire a total of 90000 metric tonnes.
The 2010/11 review, conducted between December 2010 and February 2011 by the World Bank, Ministry of Finance, Ministry of Agriculture and Food Security, Office of ODPP and Central Internal Audit Unit, said the award criterion used in the bidding documents was weak and, therefore, did not ensure value for money.
“Awards were not relative to the unit price offered by bidders. Bidders offering relatively higher prices were in many circumstances awarded higher quantities. This was mainly due to the fact that the use of minimum price as a determinant of quantities awarded was not clearly stipulated in the tender document.
“The prices offered by bidders under the tender were also relatively higher compared with prices received for tenders for similar goods during the same period, implying that bidders perceived higher risks associated with FISP procurement,” the review read in part.
The 2010/11 review had recommended that the ministry of agriculture should publish results of the 2011/12 award in local papers and ODPP website and should write to all disqualified bidders giving reasons for disqualification of their bids. It has not done so yet, despite having already informed the winning bidders.
Nyasa Times
Categories fertilizer, inputs, Malawi, subsidies
August 04, 2011
UN-backed investment to help farmers in Togo
A United Nations-European Union initiative to help Togo cope with high food prices and bad weather by providing seeds, fertilizers and other input for 20,000 rural farmers has produced returns that are almost double the cost.
Under the scheme, the European Union (EU) channelled €2.5 million through FAO in 2009 to help more than 20,000 Togolese farmers most affected by floods and sharp increases in food prices in 2007 and 2008 to restart production.
Two years on, FAO estimates at €4.7 million the total value of what they have produced – 9,634 tons of maize, 675 tons of rice, 85 tons of sorghum, 3,522 tons of tomatoes, 350 tons of onions and 85 tons of green chillis.
Rural Togolese were already suffering from malnutrition, exacerbated by demographic pressure and the collapse of cotton cultivation, a major cash crop. In 2006, almost 50 per cent of the population was underfed, according to figures from the UN World Food Programme.
Under the UN-EU initiative 15,000 farmers received seeds and fertilizer to grow staple crops such as maize, rice and sorghum, while 5,500 more received inputs for market gardening.
UN
The effects of high-input, green revolution crop production in Zimbabwe's smallholder sector*
Apart from the training component, the major distinction between Master Farmers (smallholders and small-scale commercial farmers trained to apply high-external-input packages) and Non-Master Farmers is their respective resource endowment. Non-Master Farmers have less draught power, fewer farm implements, less finance to purchase inputs and lower access to information... Of this situation, Martin Whiteside comments:
Categories agrochemicals, commercial farming, fertilizer, green revolution, inputs, productivity, soil fertility, Zimbabwe