Agricultural household effects of fertilizer price changes for smallholder farmers in central Malawi
Adam M. Komarek,
Sophie Drogué (),
Hatem Belhouchette and
Agricultural Systems, 2017, vol. 154, issue C, 168-178
This simulation study explored the agricultural household effects of changes in the price of inorganic nitrogen fertilizer for farmers in central Malawi. We selected the Dedza district to conduct this study, which is a district reliant on maize production for household livelihoods. This study used data from a household survey to develop and calibrate an agricultural household model for a representative household. The survey focused on socio-economic and agronomic factors. This included plot-level agronomic details for crop inputs and yields. Using our dynamic model, we found a negative association between fertilizer prices and fertilizer use, maize area, and income. Removing fertilizer prices led to an increased use of nitrogen fertilizer at the household scale from 16.8kg to 49.6kg and this helped increase household income by 52%. We calculated an average own-price elasticity of fertilizer demand of −0.92. Although higher fertilizer prices increased legume acreage, which had potential environmental benefits, household income fell. Our benefit-cost ratio calculations suggest that government actions that deliver changes in fertilizer prices are relatively cost effective. Our study highlights the reliance of households on maize production and consumption for their livelihood, and the effects that changes in fertilizer prices can have upon them.
Keywords: Benefit-cost ratio; Bioeconomic model; Cropping systems; Economics; Land use (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Agricultural household effects of fertilizer price changes for smallholder farmers in central Malawi (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:agisys:v:154:y:2017:i:c:p:168-178
Access Statistics for this article
Agricultural Systems is currently edited by J.W. Hansen, P.K. Thornton and P.B.M. Berentsen
More articles in Agricultural Systems from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().