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Indicators and Measures of Input Subsidies

Dalam dokumen Masters of Agricultural Extension - ULSpace (Halaman 43-46)

26 Extension Officers embark on farmer visitation where farmers at all stages are assisted according to their need; this is however still within the top down predetermined functions and objectives of government. This kind of approach has had numerous benefits for local farmers especially in rural areas who lack knowledge on new technologies and products that often give an advantage to more established farmers. Without the intervention of Extension Officers knowledge and skills would be focused in the hands of the few privileged farmers thus trapping and prevention upward mobility of farmers (Axinn 1988).On the other hand this kind of extension approach has been criticised for driving a government agenda thus not truly catering for the needs of farmers (Axinn 1988).

The Masibuyele Emasimini programme (2011) states that farmers or beneficiaries will also be supported with technical advice from extension officers. The central role extension has to play is equipping these beneficiaries with skills to effectively exploit the inputs provided to them by government. This study questions if such provision of skills has occurred and to what level; secondly, if everything continues as is with the programme, will it be sustainable?

27 developing countries that its development implies the upliftment of the greater majority (Shively, Ricker and Gilbert 2013).

Impact evaluation has been defined by the World Bank as the assessment of the changes of wellbeing of whatever variable the programme was aimed at e.g. individual or household. The central question impact evaluation seeks to answer is; what would have happened if the programme was not implemented to the people it has been implemented upon?

The aim of impact evaluation is to provide feedback improve the design of policies, provide increased accountability and allow learning (Gertler, Martinez, Premand, Rawlings and Vermeersch 2011).

Malawi is an example of successful subsidy, at least in terms of yield; the subsidisation of inputs led to the major increase in the production of the country ensuring food security and increasing trade;

thus strengthening their economy. The fact that the subsidy was focused on smallholders is an immense achievement, however even with the much acclaimed success the sustainability of firstly, the subsidy programme, secondly, the sustainability of its impact is questionable. What will happen if the subsidy is withdrawn (Shively et al. 2013)? This question is central to any subsidy programme such as the Masibuyele Emasimini programme.

The impact of subsidy programmes is twofold and should be accessed in terms of the short-term impacts which paint a picture of the long-term sustainability (Gertler et al. 2011).

The Masibuyele Emasimini programme is a very ambitious programme that aims at addressing food insecurity, unemployment and low production (Masibuyele Emasimini 2011). To evaluate the impact of a programme, one needs to look at what the programme aimed to achieve and its objectives. These aspects act as the benchmark on which assessment should be based. Furthermore, the difference between pre and post production shows the impact the programme has had. Taking pre implementation as a starting point it is easy to deduce what changes occurred. The change due to implementation of the programme equates to impact of the programme. Impact is always tested in the positive however impact can be positive or negative (Gertler et al. 2011). The impact of the Masibuyele Emasimini programme can be determined from a number of inter-linked aspects which

28 require both quantitative and qualitative forms of analysis to adequately capture the true impact the subsidy.

2.9.1 Improved Yield

Food agriculture input subsidies are aimed at improving the quality and quantity of yield, by subsidising the farmers with fertilizers, seeds and mechanisation. The Masibuyele Emasimini programme also aims to do so. As stated the envisioned outcome of input subsidies is increased yield along with its economic and social spinoffs. The rationale behind subsidising farmers has been discussed in various sections throughout this literature review; however at the core of all envisioned impacts of the subsidies is the issue of yield. An improvement in yield is a prerequisite for the remainder off the advantages to be realised. Input subsidies seek to reduce or in this case, eliminate the cost of production, thus capacitating farmers to do more by eliminating financial constraints. The case of Malawi showed that input subsidies can have tremendous outputs Malawi‟s maize production more than doubled its national yield after the introduction of fertilizer subsidy.

2.9.2 Skills Training and Skills Transfer

The programme policy documents clearly indicate the provision of training and skills by extension support agents as one of its objectives. Secondly it clearly aims at creating self-sustaining independent farmers; the indication of time periods of benefits bears evidence to that (Masibuyele Emasimini 2011). The level of skills and training received influence the quantity and quality of produce; secondly the sustainability of the programmes objective is depended on the capacity of small holders to continue farming at a level equal or greater than when they were benefiting from the subsidy.

2.9.3 Income Generation

A surplus without the ability to sell the produce is unfruitful and leads to wasteful expenditure.

Generating an income is a natural indicator of a farmer moving from subsistence to small holder towards commercialisation. It goes without saying that even if the quantity and quality of the produce could improve substantially; farmers still need to sell at a profit to qualify their farming as a business.

The issue of income generation then touches upon various factors that influence the ability to sell, such as access to markets, contact with markets, marketing and so on.

29 2.9.4 Job Creation

The impact of input subsidies should expand to beyond the individual farmer towards creating employment opportunities for people in that community giving the community access to food. Access is synonymous purchasing power; therefore the creation of jobs is crucial to the social uplifting of community members and achieving sustainable food security.

Dalam dokumen Masters of Agricultural Extension - ULSpace (Halaman 43-46)