Agriculture Reference
In-Depth Information
3.5.2 p olicy
Inadequate, and sometimes a lack of, agricultural policies are a major reason for the
absence of smallholder agricultural transformation in SSA. In general, the policy
environment in many SSA countries has undermined or impeded the development of
competitive market systems (including credit markets), adoption of improved tech-
nologies and management practices, infrastructure development, and capacity build-
ing. For this region, the policy environment must be altered to enable smallholder
farmers to invest in their soil, and to promote private sector investment in input and
output markets (Gregory and Bumb 2006; Bumb et al. 2012; IFDC 2013a).
Because of SSA's generally poor soil resource base and unfavorable socioeco-
nomic conditions, policies that support direct investments by governments and donor
agencies in soil amendments (i.e., lime and phosphate rock) that provide long-term
benefits to soil fertility and agricultural productivity are needed. Additional policy
initiatives that should accompany these efforts include addressing credit problems,
tax reforms, and land and water rights; improving rural infrastructure, marketing,
and distribution networks; increasing the effectiveness of extension services to pro-
vide farmers with technical advice to maximize productivity and profitability (i.e.,
updated fertilizer recommendations for maximum economic yield); and an overall
shifting of government emphasis from consumer support to producer support. Each
of these policy initiatives would improve smallholder farmers' access to external
inputs, including affordable fertilizers. Table 3.2 provides a matrix of key policy
constraints in SSA along with suggestions for ameliorating actions.
Fertilizer played a key role in increasing yields in South and East Asia; however, now,
yield increases per unit of fertilizer nutrient input are declining. This slowdown, com-
bined with the degradation of natural resources, soil, and water (partly as a result of the
overuse of subsidized urea N at the expense of other multinutrient fertilizers), has raised
sustainability and food security concerns. A heavy reliance on N alone results in deple-
tion of soil organic matter, deterioration of soil fertility, nutrient mining, and soil acidi-
fication, all of which contribute to the degradation of the soil's physical and chemical
properties (Barak et al. 1997; Bothe et al. 2007; Sutton et al. 2011). Policymakers need
to address this situation by redesigning and harmonizing current regional policies that
led to fertilizer price distortions in favor of urea and unbalanced fertilization practices.
Other important policy initiatives required to ensure that fertilizer use in South
and East Asia is efficient and supportive of soil fertility, natural resource protection,
and food security include development and/or enforcement of fertilizer law legisla-
tion to support accessibility to a diverse mix of quality fertilizers; capacity building
for extension services to provide site- and crop-specific fertilizer recommendations
and improved management practices that promote balanced plant nutrition and guard
against environmental degradation; support for development of robust, accessible
market information systems; and promotion of public-private financial services that
improve access to credit and initiatives supporting access to complementary inputs
(i.e., improved seed, efficient irrigation systems, and quality crop protection products).
In both regions, governments must create an enabling environment for private
sector investment in agribusiness growth by becoming facilitators instead of actors.
Globally, there are numerous examples in which agro-input accessibility and use were
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