TEN Southern African Development Community (Sadc) countries have paid out more than $1bn in agricultural subsidies in the last 16 years but these have failed to ease rural poverty, and the overuse of hybrid maize seed and fertiliser has resulted in a deterioration of soil quality in the region, a study released on Monday has found.
The African Centre for Biodiversity said a new research report on Farm Input Subsidy Programmes (Fisps) found that 10 African governments have spent close on 30% of their agricultural budgets on large-scale Fisps since 2000.
The programmes, which provide 30%–100% subsidies on the price of fertiliser and seed (normally hybrid maize), aim to reduce food insecurity and reduce rural poverty.
"Of the 15 countries that comprise Sadc, Botswana and Lesotho offer universal input subsidy schemes, and Malawi, Mauritius, Mozambique, Namibia, Swaziland, Tanzania, Zambia and Zimbabwe provide targeted, large-scale programmes. The remaining countries, including SA, practice ad hoc subsidisation," the report said.
It said the Fisps have not achieved their intended goals. In Malawi, for example, there is a net transfer away from rural households using Green Revolution inputs because the additional cost is not always recouped from the sale of the harvest.
In Botswana, the introduction of the Fisp has actually increased the number of subsistence farmers. The focus on hybrid maize seed tends to increase maize cultivation in order for farmers to access the subsidy, often by expanding cultivation onto marginal or fallow land.
This tends to reduce opportunities for farmers to practice sustainable soil fertility management techniques in favour of blanket applications of nitrogen-based fertilisers. These are not appropriate to many of Africa’s agro-ecological zones, and have negative implications for soil health.
"The Fisps also tend to be used to gain political favour. This is true in Malawi, Tanzania and Zambia, and evidence suggests that significant amounts of inputs are diverted or leaked onto secondary markets by politicians or wealthy elites. An estimated 60% of all inputs are lost in this way in Tanzania.
"In short, Fisps do not help build the resilient, sustainable farming and food systems that are necessary in a world facing diverse ecological, economic and social challenges," the report said.
"It is clear that a transition to agro-ecology is required as a matter of urgency, to bring about the sustainable food systems of the future, formed through the collective, inclusive and democratic co-generation of the knowledge held by farmers, consumers and African governments, who are meant to serve the interests of their (farming) populations."
Head of agricultural economics at Free State University Prof Johan Willemse agreed that giving farmers subsidised seed packages that they did not have to repay was problematic as there was no long term commitment to protecting the quality of the land. Another negative aspect was that subsidies did not assist in creating agricultural markets. "It is making matters worse and is not sustainable," he said.
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