Cropland Allocation Effects of Agricultural Input Subsidies in Malawi

Abstract

We measure the impacts of Malawi's Farm Input Subsidy Program on the cropland allocation decisions of farmers in Kasungu and Machinga districts in central and southern Malawi. Using a two-step regression strategy to control for endogenous selection into the program, we find positive correlations between participation in the program and the amount of land planted with maize and tobacco. Furthermore, results suggest that participating households simplified crop production by allocating less land to other crops (e.g., groundnuts, soybeans, and dry beans). Our findings have implications for policies aimed at promoting both food self-sufficiency and crop diversification in low income settings. © 2011 Elsevier Ltd.