Fertilizer or cash? What is the best subsidy and for whom is it?

Why farmers prefer fertilizer over cash? Who are the farmers going for fertilizer, who the ones going for cash?

The study used different sets of choices as possible options to be picked by the farmers. Set A, for example, offered the possibility to choose either 50 dollars or 100kg fertilizer.

The study interviewed 808 households and led to results showing that, in most cases, one's preference would always anyway go for a subsidy, no matter in what form.

Fertilizers or cash?


And still, the farmer would rather opt for cash depending on the expenses he has. Namely, school fees for children, health insurance, rent.

Implication for policy-makers:

One of the proposed conclusions on the solutions that may improve the support given to farmers focused on the distribution of fertilizer as a subsidy instead of mere money. In the long-term, this could in fact increase the benefits resulting from its usage.


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