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Effects of Input Subsidies on Subsistence Crop Acreage Diversity in Botswana

Author

Listed:
  • Tebogo B. Seleka
  • David Mmopelwa

    (Botswana Institute for Development Policy Analysis)

Abstract

We investigate the patterns and determinants of subsistence acreage diversity in Botswana for the period 1978/79-2013/14, focusing on the role of input subsidies. Results suggest that acreage diversity declined during 1978/79-1987/88, due to increasing concentration on the dominant crop of sorghum. However, acreage diversity rose during 1987/88-2006/07, owing to falling concentration on sorghum production. Acreage diversity then fell again during 2006/07-2013/14 because of increasing concentration on maize, which had by then become a dominant crop. We found increased rainfall in the current year to yield a decline in acreage diversity in the current year, as farmers increased maize (a riskier crop climate-wise) acreage share, and reduced beans/pulses (a less risky crop) acreage shares. However, increased rainfall in the current year causes risk-averse farmers to reduce sorghum (a drought tolerant crop) acreage share and to increase maize, beans/pulses and groundnuts acreage shares in a subsequent year. The ISPAAD input subsidy program has yielded reduced acreage diversity, due to its negative impact on maize and beans/pulses acreage shares. Such unintended effects imply that ISPAAD has conflicted with the national objective of promoting agricultural diversification.

Suggested Citation

  • Tebogo B. Seleka & David Mmopelwa, 2018. "Effects of Input Subsidies on Subsistence Crop Acreage Diversity in Botswana," Working Papers 54, Botswana Institute for Development Policy Analysis.
    • Handle: RePEc:bid:wpaper:54
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    File URL: http://knowledge.bidpa.bw:8080/xmlui/handle/123456789/111
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    Citations

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    Cited by:

    1. Tshepiso Gaetsewe, 2020. "Characteristics of Firms in Botswana's Informal Economy," Working Papers 74, Botswana Institute for Development Policy Analysis.
    2. Tebogo B. Seleka, 2022. "Old wine in a new bottle? Impact of the ISPAAD input subsidy program on the subsistence economy in Botswana," Review of Development Economics, Wiley Blackwell, vol. 26(1), pages 298-322, February.
    3. Tebogo B. Seleka, 2020. "Targetting Effectiveness of Social Transfer Programs in Botswana:Means-tested versus Categorical and Self-selected instruments," Working Papers 72, Botswana Institute for Development Policy Analysis.

    More about this item

    Keywords

    Botswana; Agricultural input subsidies; crop diversification; subsistence economy; climate;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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