Why have farming subsidies failed to reduce poverty?

From Zambian Economist, a blog by , comes a new post titled Why have farming subsidies failed to reduce poverty?

The past two years are a tribute to Zambian farmers: they have responded admirably to government efforts to promote maize production. Being the most important staple food in Zambia, maize surpluses contribute to food security and benefit the nation. But the smallest farmers in Zambia— those cultivating less than 2 hectares who account for over 70% of all the smallholder farms in the country —participated only marginally in the maize production expansion of 2010/11. These farmers received relatively little FISP fertiliser and sold very little maize, hence they were unable to benefit from the FRA producer price of 65,000 kwacha per bag. The farmers benefiting the most from the government’s expenditures on supporting maize prices were clearly those selling the most maize.



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