Assessing Socio-Economic Impacts of Agricultural Subsidies: A Case Study from Bhutan

As an agrarian nation, Bhutan’s agricultural policies prioritize agricultural subsidies to boost agricultural production, rural incomes, improve food security, and reduce income poverty, especially among the rural poor. However, the effectiveness and efficiency of such policy interventions remains unknown. Based on semi-structured interviews with heads of households from six blocks representing two districts, expert consultation with agricultural policymakers and extension agents, we attempted to evaluate the socio-economic impacts of agricultural subsidy programs including co-payments. The study found that while over 90% of the households received at least one form of subsidy, except for agricultural machineries and piglets, the non-poor population has greater access to the subsidies compared to the poor. For instance, only 35% of the poor received seed and sapling subsidies compared to 52% seeds and 39% sapling subsidies received by the non-poor population. Furthermore, none of the poor received Jersey cow or biogas subsidies due to their inability to co-pay. Additionally, the agriculture machinery subsidy was found to be counterproductive to the lower income groups (<US$153.85) and beneficial to the higher income groups. However, 14.5% of the households who received a poultry subsidy experienced 3 times more income (at a mean income change of 634.31 US$) compared to those who did not, indicating that this subsidy has larger potential to improve income for the poor. To efficiently achieve the objectives of increasing rural income and reducing poverty, we recommend agricultural subsidy programs and projects be provided as a package to poor small holders, where inputs are given based on existing capacity, availability of technical support, and market accessibility.

The Influence of an Agricultural Subsidy Extension Program on Smallholder Maize Farmers in Tanzania

Smallholder farming in Tanzania is a household activity implemented at the subsistence level. The government of Tanzania launched the subsidy program to promote food secure households and shift subsistence farming to business farming. Food insecurity was associated by low rates of fertilizer application and poor seed quality among smallholder farmers due to fertilizer and seed costs which led to an increase in food prices. This study aimed at assessing the impact of the agricultural subsidy program for smallholder maize farmers. Four research objectives focused on agricultural productivity, food security, usage of improved inputs, and farmers’ perceptions of how the program functioned. An ex post facto research design was used with a sample of 120 smallholder farmers. The investigation involved 60 farmers who received subsidies and 60 who did not. The study used an interviewer administered questionnaire. Farmers who received subsidies significantly increased maize production. Comparison of average output before and after subsides shows an increase in number of bags (100 kg) per acre from an average of 5.35 bags to 10.10 bags. Farmers who did not receive subsides produced about the same amount of maize at time one and time two. There was general satisfaction with the functioning of the program, however certain areas need to be improved including that program objectives are followed, ensuring farmers can manage market price of inputs, and enhancing extension services for farmers to produce more surplus

The Influence of an Agricultural Subsidy Extension Program on Smallholder Maize Farmers in Tanzania

Smallholder farming in Tanzania is a household activity implemented at the subsistence level. The government of Tanzania launched the subsidy program to promote food secure households and shift subsistence farming to business farming. Food insecurity was associated by low rates of fertilizer application and poor seed quality among smallholder farmers due to fertilizer and seed costs which led to an increase in food prices. This study aimed at assessing the impact of the agricultural subsidy program for smallholder maize farmers. Four research objectives focused on agricultural productivity, food security, usage of improved inputs, and farmers’ perceptions of how the program functioned. An ex post facto research design was used with a sample of 120 smallholder farmers. The investigation involved 60 farmers who received subsidies and 60 who did not. The study used an interviewer administered questionnaire. Farmers who received subsidies significantly increased maize production. Comparison of average output before and after subsides shows an increase in number of bags (100 kg) per acre from an average of 5.35 bags to 10.10 bags. Farmers who did not receive subsides produced about the same amount of maize at time one and time two. There was general satisfaction with the functioning of the program, however certain areas need to be improved including that program objectives are followed, ensuring farmers can manage market price of inputs, and enhancing extension services for farmers to produce more surplus

Are different income sources fungible? The effects of agricultural subsidy and disaster relief on household consumption in China

This paper uses panel data from a sample of farm households in the northeastern China to examine the non-fungibility of different income sources. The results show the private transfer income has a high and significant impact on household consumption while agricultural subsidy and disaster relief have insignificant impacts. Empirical findings prove that the Behavioral Life Cycle Hypothesis is more practical than the Life Cycle Hypothesis. Moreover, they provide important macro policy implications as for how to stimulate farm consumption and expand domestic demand and encourage economic growth.

Status prawny spółki cywilnej jako beneficjenta pomocy dla rolników (zagadnienia wybrane)

The paper discusses the issues relating to classifying a private partnership as a separate entity – an agricultural producer. Such a classification affects the existing arrangements both in civil-law theory and practice. It goes beyond the traditional division of legal entities into natural and legal persons and confers upon a private partnership the features of an individualized and specific organizational unit. It also excludes a partner (or partners) of a private partnership from the group of entities eligible to apply for and to be granted an agricultural subsidy, which consequently results in questing statutory rules of cooperation within a private partnership. The paper aims at assessing the laid down criteria and indicating solutions relating to various opinions on legal nature of a private partnership. Additionally, the article points out the regulations which decide about the active capacity of a given entity. The Author concludes that a private partnership is nothing other than a form of cooperation among entrepreneurs-partners. If there is no entity but only the obligation to cooperate, it makes it difficult to give such an obligation a status of an agricultural producer. The legal construct of this relationship includes a clear regulation specifying who and how acquires the rights – the entitled partners and for the benefit of partners. Granting legal personality to a private partnership is against the intention of the legislator.