Scholarly Journal of Agricultural Science Vol. 6(1), pp. 18-24 January, 2016
Available online at http:// www.scholarly-journals.com/SJAS
ISSN 2276-7118 © 2016 Scholarly-Journals
Subsidies inputs policy implication in Rwanda
Mulinga, N.1*, Niyonsaba, L.2 and Urujeni S.3
1,2,3Department of Rural Development and Agricultural Economics, school of Agriculture Rural Development And Agricultural Economics, College of Agriculture Animals Sciences and Veterinary Medicine, University of Rwanda (UR), P.O. Box 210, Musanze , Rwanda.
The main objective of the study was to examine the impact on inputs subsidies on the livelihood of smallholder famers in Rwanda. Improving agricultural productivity has received considerable policy intervention in these past years. The question remains to know the extent to which the policy contributes to the variation being upwards or downwards of the crop productivity. This study examines the variation of agricultural productivity to document the extent to which agricultural productivity has shifted due to input subsidies and its impact on the livelihood of smallholder farmers. Primary data were collected among 60 small holders’ farmers in Kirehe district Eastern Province in Rwanda. To assess how the policy has contributed to the shifting of agricultural productivity and on their livelihood change 30 smallholder farmers received the inputs subsides and another group of 30 smallholder farmers considered as control group who did not take subsidized agricultural inputs for many different reasons was conducted in order to compare their agriculture productivity and livelihood. The collected data was analyzed using SPSS and findings showed that greater agricultural productivity grown in Kirehe District was observed mostly in the period 2009 after policy and this period coincides with specifically the introduction of the voucher system in that district. To validate these findings some tests were estimated to establish the marginal effects of this policy interventions on agricultural productivity. Findings show that the voucher system has significant marginal effects on change in crop yield at 5% level of significance, the F calculated (32.46) is greater than the critical F value ( =2.74), which shown us how those factors of production fertilizers, improved, and land size jointly have the contribution on the improvement of agricultural productivity. At harvest farmers sell the part of their production to pay back vouchers that they took before the agricultural season. Low production due to external factors which are uncontrollable may delay or fail to pay the voucher. Further studies policy innovations and interventions should focus on how farmers can maintain the same momentum themselves beyond policy interventions in Rwanda.
Key words: Policy, inputs subsidies..
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