National Agricultural Input Voucher Scheme Impact on Productivity and Food Security of Smallholder Farmers in Tanzania

Abstract

This paper examines the National Agriculture Input Voucher Scheme (NAIVS) which was introduced in Tanzania in 2008/2009 to overcome the limitations of the previous subsidy programs, access impact on productivity and food security. Cross section data were collected from a random sample of 300 farmers in a survey using a semi structured questionnaire. Empirical results show that farmers with access to input subsidy vouchers had higher agricultural productivity. Social economic variables such as age, education, land size, borrowing possibility and access to extension revealed positive contribution to aggregate agricultural productivity. Considering food security, farmers with access to voucher were less food insecure. Also access to village was found to decreases food insecurity significantly. Contrarily, unpredictable weather increased food insecurity. These findings imply positive contribution of voucher program in poverty reduction. However, sustainable agricultural productivity and food security requires improved social services, better crop management and mitigation of unpredictable weather.