Exploring adoption effects of subsidies and soil fertility management in Malawi

Makaiko G. Khonje, Christone Nyondo, Lemekezani Chilora, Julius H. Mangisoni, Jacob Ricker‐Gilbert and William Burke

Journal of Agricultural Economics, 2022, vol. 73, issue 3, 874-892

Abstract: Farm input subsidies and integrated soil fertility management (ISFM) technologies are popular policy interventions in sub‐Saharan Africa, often with the stated goals of increasing crop yields and incomes while reducing hunger and poverty. However, little is known about the combined adoption effects of input subsidies and ISFM technologies on farm productivity and household nutrition in developing countries. Using a decade of nationally representative panel data from Malawi, we analyse joint adoption effects of input subsidies and ISFM technologies on smallholder household welfare. We use multivariate probit, dynamic random effects probit, and multinomial endogenous treatment effects models to account for selection bias and endogeneity originating from both observed and unobserved heterogeneity. We find that participation in a farm input subsidy programme is strongly associated with a 15–29 percentage point increase in the probabilities of adoption of three ISFM technologies: conservation agriculture, soil and water conservation, and organic fertiliser. Furthermore, we find that the joint use of input subsidies and ISFM technologies increased crop income and micronutrient consumption by at least 12%. Our findings suggest that the joint use of input subsidies and ISFM technologies are among potential strategies to address low productivity and nutritional insecurity through improvements in soil health.

Date: 2022
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