Subsidy as An Economic Instrument for Environmental Protection: A Case of Global fertilizer Use

Fertilizer subsidies may constitute a key economic tool with which to provide food for the growing population. Therefore, this work aimed to (i) assess the effectiveness of subsidized chemical (NPK) fertilizer use in food production by comparing the crop output between developed and developing regions and (ii) examine the benefits of organic fertilizer and the need for its use in developing regions such as Africa. Secondary data from 2000 to 2019 on global subsidized fertilizer use, crop production, income, and other agro-environmental parameters, such as climate and soil, were collected from the international databases of the World Bank, Food and Agriculture Organization (FAO), Forest Resources Assessment (FRA), National Aeronautics and Space Administration (NASA), and World Income Inequalities Database (WID), as well as countries’ national statistics. Data were analyzed using qualitative, quantitative, and geospatial software and techniques, such as SPSS, averages, multivariate analysis, and spatial analytical Geographic Information System (GIS) tools. The results reveal that the total global fertilizer use continuously increased from 79 million tonnes in 2000 to 125 million tonnes in 2019. Subsidized fertilizer use and crop production increased with countries’ economic status. For example, countries or regions with more economic resources tended to have higher fertilizer subsidies. More than 95% of North American and European countries recorded the highest total chemical fertilizer use, ranging from 855,160 to 18,224,035 kgha−1. In terms of organic fertilizer production, the percentage contribution in Africa relative to global production was only 2%, which was about 932,538 million tonnes below the production yield in North America. More organic fertilizer and less inorganic fertilizer should be encouraged instead of the total eradication of chemical fertilizers. This is especially applicable to developing countries, where food production is low due to poor soil and high food demand owing to a harsh environment and rapid population growth.

The Effect of Fertilizer Subsidies on Investment in Soil and Water Conservation and Productivity among Ghanaian Farmers Using Mechanized Irrigation

The fertilizer subsidies reintroduced in various sub-Saharan African countries from 2007 aim to increase agricultural production and assist in the development of fertilizer markets. The present study evaluates the impact of a fertilizer subsidy program among farmers in Ghana who employ highly mechanized irrigation systems. The results indicate that farmers who received fertilizer under the subsidy program used 45% more fertilizer. However, they did not use more weedicide and were likely to reduce investment in soil and water conservation. Thus, the income gains resulting from the subsidy programs were not invested in such non-targeted inputs. Moreover, the program beneficiaries’ reduced investment in soil and water conservation may explain the finding that the subsidy did not improve their productivity. Thus, since fertilizer subsidy programs alone may not improve productivity, it may be necessary to target spending explicitly on complementary inputs such as investing in soil and water conservation.

DIRECT FERTILIZER SUBSIDIES ON PRODUCTION AND HOUSEHOLD INCOME IN INDONESIA

This research aims to analyze the effect of fertilizer subsidies on the production and household income of rice farming in Indonesia using the 2017 crops business cost structure survey data. Utilizing the Ordinary Least Square (OLS) method, this research shows that rice farming households that received fertilizer subsidies have higher production and income than households that did not receive subsidies. Simultaneously, in the Two-Stage Least Square (TSLS) method, the usage of the ownership status of a household residential building as an instrument for the fertilizer subsidy variable is considered inaccurate so that it cannot answer the research objectives.

FAKTOR-FAKTOR YANG MEMPENGARUHI PENDAPATAN USAHA TANI PADI CIHERANG DI DESA TEBING TINGGI KABUPATEN SERDANG BEDAGAI

Up to now, paddy farmers as farm managers have not received the expected results and income from both the farmers themselves and the government. This study aims to determine the factors that influence rice farming income in Tebing Tinggi Village, Deli Serdang Regency. The reason for choosing this location is because this village is the recipient of seed aid from SLPTT where there are 160 farmers using Ciherang seeds. The number of farmers sampled in this study were 40 farmers and the variables tested were labor costs, phonska fertilizer costs, SP fertilizer costs, KCl fertilizer costs, pesticide costs, land area, urea fertilizer costs, ZA fertilizer costs and seed prices. The results showed that feasibility of farm bussiness has R/C ratio was 3,28 its mean the farm business was feasible labor costs, KCl fertilizer costs and urea fertilizer costs had a significant effect on rice farming income, while other variables had no effect. Fertilizer subsidies and seed assistance are government policies that greatly relieve farmers in financing their farming business so that this policy must continue to be carried out and monitored in its implementation in an effort to increase the income of rice farmers.

Assessment of Ghana’s Comparative Advantage in Maize Production and the Role of Fertilizers

Maize is one of the most important cereal crops produced and consumed in West Africa, but yields are far under their potential and the production gap leads to growing import bills. After the structural adjustment program, fertilizer subsidies again became a popular intervention to increase yields in most African countries. Ghana introduced fertilizer subsidies in 2008, with high government expenses. This study assesses the competitiveness of Ghanaian maize production and the significance of socio-economic and management variables in determining high yields in northern Ghana. Household survey data and secondary data were applied in a Policy Analysis Matrix (PAM) to test private and social profitability of the fertilizer subsidy policy. Additionally, a probit model is used to determine the characteristics that contribute to higher yields. The results suggest that production systems with Ghana’s above-average yields of 1.5 Mt/ha are profitable at household level and contribute to its economic growth, whereas production systems below this threshold report negative social profits and depend on government intervention. However, fertilizers did not increase the likelihood of a household to fall in the category of high-output production system, whereas the use of improved seeds and herbicides does. In conclusion, the analysis highlights the importance of additional measures, especially the use of supporting inputs as well as management practices, to increased maize productivity.