Effects of Input Subsidies on Subsistence Crop Acreage Diversity in Botswana

Tebogo Seleka and David Mmopelwa ()
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David Mmopelwa: Botswana Institute for Development Policy Analysis

No 54, Working Papers from Botswana Institute for Development Policy Analysis

Abstract: We investigate the patterns and determinants of subsistence acreage diversity in Botswana for the period 1978/79-2013/14, focusing on the role of input subsidies. Results suggest that acreage diversity declined during 1978/79-1987/88, due to increasing concentration on the dominant crop of sorghum. However, acreage diversity rose during 1987/88-2006/07, owing to falling concentration on sorghum production. Acreage diversity then fell again during 2006/07-2013/14 because of increasing concentration on maize, which had by then become a dominant crop. We found increased rainfall in the current year to yield a decline in acreage diversity in the current year, as farmers increased maize (a riskier crop climate-wise) acreage share, and reduced beans/pulses (a less risky crop) acreage shares. However, increased rainfall in the current year causes risk-averse farmers to reduce sorghum (a drought tolerant crop) acreage share and to increase maize, beans/pulses and groundnuts acreage shares in a subsequent year. The ISPAAD input subsidy program has yielded reduced acreage diversity, due to its negative impact on maize and beans/pulses acreage shares. Such unintended effects imply that ISPAAD has conflicted with the national objective of promoting agricultural diversification.

Keywords: Botswana; Agricultural input subsidies; crop diversification; subsistence economy; climate (search for similar items in EconPapers)
JEL-codes: Q12 Q18 (search for similar items in EconPapers)
Pages: 32
Date: 2018-03
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Citations: View citations in EconPapers (3)

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