7/28/2019 PMRC Agriculture Subsidies

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The Farmer Input Support Programme (FISP) and Food Reserve Agency

(FRA) subsidies explained

Recommendations

Email:info@pmrczambia.net

Publications:www.pmrczambia.org

PMRC - AGRICULTURE SUBSIDIES

Policy Program Re-engineering Monitoring and Evaluation

What does it means for Zambia?

Annual savings of USD 358 million couldpotentially be redirected to projects that

support infrastructure development, poverty

reduction, increase food security, diversifica-

tion of crops and service delivery in rural

areas.

Increased food security; by construction ofgrain silos which will reduce grain loses.

Agricultural diversification programmes;rice, fisheries, soya, millet, sorghum and

cassava for increased nutrition.

Infrastructure; building bridges and feederroads to improve farmers access to market.

Reduced poverty levels; by introducingprograms targeted to benefit the poor.

Improved service delivery; in rural areassuch as hospitals and schools.

Decentralisation Policy: Ensure that thedecentralization policy captures data on

poverty impacting Key Performance

Indictors (KPIs).

Gather data to build evidence for ongoingpolicy reforms to support impact on

poverty and policy / programme reviews.

Consider other poverty reduction programsthat are tailored to benefit the poor and also

diversify crop production.

Agricultural subsidies are benefits paid by the

government to groups or individuals to manage the

cost and supply of a commodity. There has been a

steady increase in budgetary allocation to agricultural

subsidy programmes. The Farmers Input Support

Program (FISP) and The Food Reserve Agency

(FRA) combined spending in 2009, accounted for

85% of total agricultural budget, but only benefited

approximately 20% of farmers.

There are health implications to programmes that support mono-cropping; in

2010, 47% of the Zambian population suffered from stunted growth.

Stunting is due to an imbalanced diet. Crop diversification to other protein

and nutrient rich crops could possibly alleviate stunting.

In 2011, FISP and FRA had budget overruns of 79.10% and 1,933%

respectively.

Despite the continued

increase to agricultural subsidy

programs, extreme poverty

levels of small and medium

scale farmers remained

relatively stagnant.

Unlocking Zambias Potential

PMRC infographic, May, 2013

70%

60%

50%

40%

30%

20%

10%

0%

Extreme Poverty by Farmer, 2006 - 2010

Small-Scale Farmer

2006

Medium-Scale Farmer

60% 60% 45% 48%

2010

Wheat Fisheries

Soya

Policy

Agriculture Budget Release

(Including supplementary funding)

FRA

andFISPRelea

se

85%85%

Others15%

KwachaReb

ased

ExtremePoverty

3,500 m

3,000 m

2,500 m2,000 m

1,500 m

1,000 m

500 m

0

2011 FISP and FRA Budget Allocation vs. Release

Budget Allocation

FISP 2011

FRA 2011

Budget Release Budget Overrun

Kr 485 m Kr 1,354 m Kr 869 m

Kr 150 m Kr 3,200 m Kr 3,050 m

LOANS

SCHOOL