Fertilizer subsidies in Malawi crowd out commercial fertilizer use, study finds.
The article studied how giving discounted fertilizer to farmers in Malawi affects their purchase of regular fertilizer. They found that for every extra kilogram of discounted fertilizer given, farmers bought 0.22 kg less of regular fertilizer. The impact varied, with poorer farmers being affected less than wealthier ones. This suggests that targeting the discounted fertilizer to poorer farmers could help increase overall fertilizer use.