Subsidizing agricultural inputs in Senegal: Comparative analysis of three modes of intervention using a farm household model

TL;DR

This study assesses the potential impacts of different input subsidy targeting strategies in Senegal using a farm household model, focusing on crop choices, fertilizer use, income, and government costs.

Contribution

It introduces an ex-ante impact assessment of subsidy targeting modes in Senegal using the calibrated FSSIM-Dev model on a large farm household sample.

Findings

Different subsidy targeting modes affect crop mix and fertilizer use.

Subsidy strategies influence farm income and government expenditure.

The model provides insights for optimizing subsidy policies.

Abstract

This report presents the results of an ex-ante impact assessment of several scenarios related to the farmer targeting of the input subsidy programme currently implemented in Senegal. This study has been achieved with the agricultural household model FSSIM-Dev, calibrated on a sample of 2 278 farm households from the ESPS-2 survey. The impacts on crop mix, fertilizer application, farm income and on the government cost are presented and discussed.