Effectiveness of Farm Inputs Subsidy Program in Low Resource Settings: A Case Study of Malawi

Introduction: Despite agriculture being a key sector in Malawi's economy, productivity of smallholder farmers is still low as a result of access to low quality farm inputs, poverty and frequent climatic shocks. The Farm Input Subsidy Program (FISP) was established to boost access to subsidized fertilizer and improved seed, and to support agricultural productivity and food security. This study aimed to assess the impact of the Malawi Farm Input Subsidy Programme (FISP) on smallholder farming household agriculture, food security and livelihood Methods and Analysis: A mixed-methods approach using both quantitative and qualitative data was employed. Primary data were collected from beneficiary and non-beneficiary households, and secondary on agricultural production, input utilisation, and food security were also collected from the key informants. Descriptive statistical analysis (mean, frequency and percentage) and inferential statistical analysis were used to compare programme outcomes, using quantitative data. Key Informant Interviews and focus group discussions were conducted to gather qualitative data, and these were transcribed, coded and analysed thematically to derive key patterns and insights that supplemented the quantitative findings. Findings: FISP stimulated the adoption of improved seeds and fertilisers by beneficiary household. Overall, over 80% of the beneficiary households reported having adequate food during the year while 60% of non-beneficiary households indicated adequate food during the year. Climatic shocks, late distribution of inputs, input shortages, targeting problems, and implementation costs, however, limited the programme's effectiveness. The programme was more beneficial for larger landholders and farmers in high rainfall regions than for poorer households and farmers in low rainfall regions. Conclusions: The study finds that the use of improved seed, improved fertiliser and generation of improved crops have been enhanced and household food security improved since the use of FISP. However, its impact was limited due to delayed input distribution, input shortages, lack of beneficiary targeting, high implementation costs and climate shocks. Beneficiary selection should be made more transparent by having clear criteria for beneficiaries and by updating the beneficiaries' registers regularly, inputs should be provided before the planting season, extension and other complementary agricultural support services should be strengthened, and monitoring systems should be strengthened by regular field supervision and evaluation of the programme.