The voucher system and the agricultural production in Tanzania, is the model adopted effective

Abstract

This paper presents empirical results on the effects of the National Agricultural Input Voucher system (NAIVS) on crop production in some selected regions in Tanzania. The study used the panel data analysis technique to analyze agricultural data collected in year 2007(before NAIVS) and 2012 (during NAIVS). The study found a statistically significant difference between crop harvest by households with and without access to NAIVS. The average crop yield (production per area) is relatively higher in 2012 than the yield in 2007. On average the area cultivated by the households has increased more than double in 2012. Also, majority poor smallholder farmers do not access the NAIVS The implication from this finding is that the NAIVS is not achieving the intended objective of increasing crop productivity by the poor smallholders. NAIVS would have the desirable results when deliberate efforts to address the institutional and market system shortfall are instituted.