Too poor to afford soaring fertilizer prices: does input substitution enhance Maize productivity in Malawi’s smallholder farming sector?

Policymakers in low-income countries, such as Malawi, are facing a crucial choice on whether to boost investment in the input subsidy program to make fertilizers more affordable and accessible for poor farmers or to promote the use of cheaper, environmentally friendly organic fertilizers. Worth noting, the rising cost of fertilizers has put poor farmers and those who do not benefit from the input subsidy program in danger of food insecurity and malnutrition. Despite this, some farmers have turned to alternative soil fertility management methods, such as organic manure and legume intercropping, in response to the increase in fertilizer prices. Therefore, this study was conducted to examine the impact of substituting organic manure for fertilizers on maize productivity. The study used 2019 nationally representative agricultural household data collected by the National Statistical Office of Malawi in partnership with the World Bank Living Standards Measurement Study – Integrated Surveys on Agriculture (LSMS-ISA) project. The study findings indicated that there is a substitution effect between organic and inorganic fertilizers. Furthermore, the cost of maize production is lower when using organic manure compared to inorganic fertilizers, but average maize productivity is negatively impacted. The study recommends using both organic manure and inorganic fertilizer to maximize maize productivity, which can be achieved by leveraging agricultural extension interventions and effective targeting of the input subsidy programs.