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farm input subsidy

Environment and Development Economics (1)

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Coping with negative shocks and the role of the farm input subsidy programme in rural Malawi
Joseph B. Ajefu, Uchenna Efobi, Ibukun Beecroft
Journal:

Environment and Development Economics / Volume 26 / Issue 5-6 / October 2021

Published online by Cambridge University Press:

14 July 2020, pp. 561-581
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This study uses household panel data from Malawi's 2010/11 and 2012/13 Integrated Household Panel Survey to investigate the mitigating role of its Farm Input Subsidy Programme (FISP) against the deleterious impacts of negative rainfall shock on households’ welfare in rural Malawi. The study finds that the FISP has a cushioning role on the negative impact of rainfall shocks. The use of a farm input subsidy scheme enables rural households to substantially increase their food consumption and overall food security, despite the increasing threat of climate change. The results of this study highlight the importance of agricultural policy, such as the FISP, in rural households’ mitigation of weather risk.