The Determinants of Adoption of Commercially-priced Inorganic Fertilizer for Use on Maize in Tanzania
June 1, 2017 - Author: David Mather
David Mather. June 2017. The determinants of adoption of commercially-priced inorganic fertilizer for use on maize in Tanzania. GISAIA/Tanzania Working Paper #7
This paper uses panel data of smallholder farm households from Tanzania to empirically assess the determinants of adoption of commercially-priced inorganic fertilizer on maize by smallholder farmers in Tanzania. The results suggest that continuation of the large-scale fertilizer subsidy program NAIVS would only have a very small effect on improving the probability of smallholder use of commercially-priced fertilizer on maize. By contrast, policies to improve expected maize prices and reduce fertilizer costs as well as increasing smallholder access to extension would have the largest effect in achieving this outcome. This implies firstly that maize export bans (and/or temporary prohibition of obtaining an export permit) clearly have a significant negative effect on expected maize prices and thus the probability of fertilizer use on maize. Secondly, policies and investments to reduce the cost of fertilizer faced by farmers can increase the probability of fertilizer use on maize.
Keywords: Africa, fertilizer, smallholder agriculture