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

Abstract

Tanzania Government introduced National Agriculture Input Voucher Scheme (NAIVS) in 2008/2009 to overcome the limitations of the previous subsidy programs. This would increase productivity and food security contributing to poverty reduction. This paper examines the voucher 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. Two stages least square (2SLS) regression was used to estimate the impact of voucher access on  agricultural productivity and binary logistic model for food insecurity. Empirical results shows that farmers with access to input subsidy vouchers had higher agricultural productivity significant at P=0.00. 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 significant at P=0.00. Also access to village was found to decreases food insecurity significanly. Contrarily, unpredictable weather increased food insecurity significant at P=0.01. These findings implies 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.

Key words Aggregate agricultural productivity, input voucher access, smallholder farmers.