FAC Working Paper 27. Factors Influencing Access to Agricultural Input Subsidy Coupons in Malawi

Abstract

Since the 2005/06 agricultural season, the government of Malawi has been implementing a targeted agricultural input subsidy programme through the provision of fertilizers and maize seeds to smallholder farmers at subsidized prices. This paper analyses the factors that influence access to agricultural input subsidies in Malawi. The results show that vulnerable households such as the poor and elderly-headed are less likely to receive fertilizer coupons and receive less of the subsidized fertilizers. Households with larger parcels of land and those who sell part of their produce (commercialized) are more likely to receive coupons and also tend to acquire more fertilizers. Use of open meetings in the allocation of coupons tends to favour the poor and the poor receive more fertilizer compared with other alternative ways of allocating coupons. We also find a positive relation between participation in other social safety nets and access to subsidized fertilizer coupons, suggesting that households with multiple access to different types of social protection programmes are not excluded from the input subsidy programme by virtue of benefiting from other social protection programmes