Tanzania Public Expenditure Review : National Agricultural Input Voucher Scheme

Tanzania is largely an agriculture-based economy. This sector accounts for over three-quarters of national employment, and approximately 25 percent of gross domestic product (GDP). The national agricultural input voucher scheme (NAIVS) is a market smart input subsidy program designed in response to the sharp rise in global grain and fertilizer prices in 2007 and 2008. The main aim of the program is to raise maize and rice production, and thus preserve Tanzania's household and national food security. During the period from 2008 to 2013, approximately United States (U.S.) 300 million dollars has been invested in providing more than 2.5 million smallholder farmers with a 50 percent subsidy on a one acre package of maize or rice seed, and chemical fertilizer. The input subsidy program helped Tanzanian smallholders harvest more than 2.5 million tons of additional maize and rice grain. The NAIVS program also faced multiple logistical challenges. These challenges are being considered in the government's new big results now initiative. This report summarizes the results of an overview of the program, and the results of two major impact surveys independently conducted in late 2010 and late 2012. Chapter one places the NAIVS in context, reviewing the status of the agricultural economy and the importance of grain production in the country. Chapter two provides an overview of the NAIVS program, including budget, expenditure, and implementation rules. Chapter three briefly summarizes the impact survey results and highlights the financial and economic returns of the program. Chapter four discusses the challenges faced during implementation of the NAIVs, and chapter five reviews the implications for further investment in this sort of input subsidy.

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Bibliographic Details
Main Author: World Bank
Language:English
en_US
Published: Washington, DC 2014-02
Subjects:ADMINISTRATIVE COSTS, AGRICULTURAL DEVELOPMENT, AGRICULTURAL ECONOMY, AGRICULTURAL EXTENSION, AGRICULTURAL HOUSEHOLDS, AGRICULTURAL INPUTS, AGRICULTURAL MARKET, AGRICULTURAL MARKETS, AGRICULTURAL SECTOR, ARABLE LAND, AVERAGE COSTS, AVERAGE YIELDS, BASIC NEEDS, BEANS, BENEFICIARY HOUSEHOLDS, BUDGET CONSTRAINTS, BUYING POWER, CASH CROPS, CASH PAYMENTS, CASSAVA, CENTRAL REGIONS, CEREALS, CHEMICAL FERTILIZERS, CLIMATIC CONDITIONS, CLIMATIC ZONES, COMMERCIAL BANK, COMMERCIAL SEED, COMMUNITY SURVEY, CONSUMPTION LEVELS, COOPERATIVES, CORRUPTION, COST ANALYSIS, COST EFFECTIVENESS, COST-EFFECTIVENESS, COTTON, COTTON PRODUCTION, CREDIT MARKETS, CREDIT PROGRAM, CROP, CROP AREA, CROP PRODUCTION, CROPPING, CULTIVATION, DEBTS, DISTRIBUTION OF BENEFITS, DRIER REGIONS, ECONOMIC COOPERATION, ECONOMIC CRISIS, ECONOMIC GROWTH, ECONOMIC REFORM, EMPOWERMENT, EXCLUSION, EXPENDITURE, EXPENDITURES, EXPORTS, EXTREME POVERTY, FARM, FARM HOUSEHOLDS, FARMER, FARMERS, FARMING, FARMING SYSTEMS, FEMALE-HEADED HOUSEHOLDS, FERTILIZER, FERTILIZER SUBSIDIES, FERTILIZER SUBSIDY, FERTILIZER USE, FINANCIAL SUPPORT, FISH PROCESSING, FOOD CROP, FOOD CROPS, FOOD GRAINS, FOOD POVERTY, FOOD POVERTY LINE, FOOD PRICES, FOOD SECURITY, FRESH SEED, GDP, GENDER, GOVERNMENT FUNDING, GRAIN, GRAIN PRICES, GRAIN PRODUCTION, GRAIN PRODUCTS, GRAIN YIELDS, GREEN REVOLUTION, GROSS DOMESTIC PRODUCT, GROWTH IN AGRICULTURE, GROWTH RATE, HOUSEHOLD BUDGET, HOUSEHOLD CONTROLS, HOUSEHOLD HEAD, HOUSEHOLD SIZE, HOUSEHOLDS, HOUSING, HYBRID SEED, INCOME, INCOME GAINS, INPUT PRICES, INTEREST RATE, INVESTMENT PLAN, IRRIGATION, LANDHOLDINGS, LIVESTOCK DEVELOPMENT, LIVESTOCK OFFICER, LIVING STANDARDS, LOAN, MAIZE, MAIZE PRODUCTION, MAIZE YIELDS, MAJORITY OF FARMERS, MARKET EFFICIENCY, MERCHANTS, MICROFINANCE, MONOPOLIES, PADDY, PADDY YIELDS, PER CAPITA INCOME, PLANTING, POORER HOUSEHOLDS, POOREST HOUSEHOLDS, POPULATION GROWTH, POVERTY LEVEL, PRICE CONTROLS, PRODUCE, PRODUCTION COSTS, PRODUCTIVITY, PROFITABILITY, RAINFALL REGIONS, RECEIPT, REDUCTION OF POVERTY, REGIONAL DROUGHT, REGIONAL GOVERNMENT, REGIONAL LEVEL, RETURN ON INVESTMENT, RICE, RICE PRODUCTION, RICE-GROWING REGIONS, RURAL CREDIT, RURAL DEVELOPMENT, RURAL POPULATION, RURAL REGION, RURAL ROADS, SEED, SEED SYSTEM, SEED VARIETIES, SEEDS, SMALLHOLDER, SMALLHOLDER FARMERS, SMALLHOLDER HOUSEHOLDS, SMALLHOLDERS, SOIL TYPES, SORGHUM, SPATIAL DISTRIBUTION, SUBSIDY COST, SUBSIDY COSTS, SUNFLOWER, SUPPLY CHAINS, TEA, VILLAGE, VILLAGE ASSEMBLY, VILLAGE LEVEL, VILLAGES, VOUCHER, VOUCHERS, WEED CONTROL, YIELD INCREMENTS, YIELDS, NAIVS,
Online Access:http://documents.worldbank.org/curated/en/2014/02/19456105/tanzania-strengthening-national-comprehensive-agricultural-public-expenditure-sub-saharan-africa-national-agricultural-input-voucher-scheme-naivs
https://hdl.handle.net/10986/18247
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Summary:Tanzania is largely an agriculture-based economy. This sector accounts for over three-quarters of national employment, and approximately 25 percent of gross domestic product (GDP). The national agricultural input voucher scheme (NAIVS) is a market smart input subsidy program designed in response to the sharp rise in global grain and fertilizer prices in 2007 and 2008. The main aim of the program is to raise maize and rice production, and thus preserve Tanzania's household and national food security. During the period from 2008 to 2013, approximately United States (U.S.) 300 million dollars has been invested in providing more than 2.5 million smallholder farmers with a 50 percent subsidy on a one acre package of maize or rice seed, and chemical fertilizer. The input subsidy program helped Tanzanian smallholders harvest more than 2.5 million tons of additional maize and rice grain. The NAIVS program also faced multiple logistical challenges. These challenges are being considered in the government's new big results now initiative. This report summarizes the results of an overview of the program, and the results of two major impact surveys independently conducted in late 2010 and late 2012. Chapter one places the NAIVS in context, reviewing the status of the agricultural economy and the importance of grain production in the country. Chapter two provides an overview of the NAIVS program, including budget, expenditure, and implementation rules. Chapter three briefly summarizes the impact survey results and highlights the financial and economic returns of the program. Chapter four discusses the challenges faced during implementation of the NAIVs, and chapter five reviews the implications for further investment in this sort of input subsidy.