Agricultural household effects of fertilizer price changes for smallholder farmers in central Malawi

Adam M. Komarek, Sophie Drogué, R. Chenoune (), James Hawkins, Siwa Msangi (), Hatem Belhouchette () and Guillermo Flichman ()
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Adam M. Komarek: IFPRI - International Food Policy Research Institute [Washington] - CGIAR - Consultative Group on International Agricultural Research [CGIAR]
R. Chenoune: CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes
James Hawkins: IFPRI - International Food Policy Research Institute [Washington] - CGIAR - Consultative Group on International Agricultural Research [CGIAR]
Hatem Belhouchette: CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes, UMR SYSTEM - Fonctionnement et conduite des systèmes de culture tropicaux et méditerranéens - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier
Guillermo Flichman: IFPRI - International Food Policy Research Institute [Washington] - CGIAR - Consultative Group on International Agricultural Research [CGIAR], CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes

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Abstract: 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 16.8 kg to 49.6 kg 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: MAIZE; AGRICULTURAL HOUSEHOLD; SIMULATION; PRICES; MALAWI; BIOECONOMIC MODEL; LAND USE; CROPPING SYSTEMS; SURVEYS; CROP YIELD; FARM INPUTS; SMALL FARMS; NITROGEN FERTILIZERS; PETITE EXPLOITATION AGRICOLE; SYSTEME DE CULTURE; PRIX; ENGRAIS AZOTE; MODELE BIOECONOMIQUE; UTILISATION DES TERRES; MENAGE AGRICOLE; MOYEN DE PRODUCTION AGRICOLE; RENDEMENT DES CULTURES; MAIS; ENQUETE (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-agr and nep-env
Note: View the original document on HAL open archive server: https://hal.science/hal-01519139v1
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Citations: View citations in EconPapers (15)

Published in Agricultural Systems, 2017, 154, pp.168-178. ⟨10.1016/j.agsy.2017.03.016⟩

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Journal Article: Agricultural household effects of fertilizer price changes for smallholder farmers in central Malawi (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01519139

DOI: 10.1016/j.agsy.2017.03.016

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