Determinants of subsidized chemical fertilizer application rates among smallholder farmers in Nepal

This study examines the determinants of subsidized chemical fertilizers (SCFs) application rates (kg/ha) among smallholder farmers in Nepal. The analysis used household survey data collected between May and September 2025 from 600 farmers across Lumbini (n = 300) and Gandaki (n = 300) provinces, representing diverse ecological conditions using a multistage stratified random sampling design. Fertilizer-specific econometric models are estimated using ordinary least squares with heteroskedasticity-robust standard error in a mixed log-linear specification. Cultivated land areas have negative and statistically significant effects on fertilizer application rates of urea, diammonium phosphate (DAP) and muriate of potash (MOP). The estimated elasticity indicated that application rates of urea, DAP and MOP declined by 0.207%, 0.243% and 0.319% respectively for every 1% increase in farm size. Livestock holdings had a negative and statistically significant effect on the application rates of all three fertilizers. Agricultural training significantly increased application rates of SCFs. Greater distance to fertilizer retailers reduces application rates in both urea and MOP, while the application rates of SCFs are higher among farmers in Terai than in hilly areas. Strengthening agricultural extension systems, improving fertilizer market accessibility and promoting integrated crop-livestock nutrient management along with agroecology-specific fertilizer use strategies are critical for sustainable fertilizer management in Nepal.