Effect of fertilizer subsidy on household level cereal production in Ghana

Agricultural input subsidy programs have once again become a major plank of policies in Africa, aimed at productivity improvements and poverty reduction among farmers. In Ghana, a nationwide Fertilizer Subsidy Program (GFSP) was commenced in 2008. However, there has been limited rigorous evaluation of its impact on crop yields to date. Using matching methods, this study estimated the treatment effect of GFSP on a cross-sectional sample of 5,923 cereal households drawn from a population-based survey dataset for 2012/13 and 2016/17. Results showed that cereal yield enhancement attributable to GFSP was 24.5%. Additionally, the effect disaggregated by type of cereal showed that farmers cultivating maize benefited the most. These findings support the ability of GFSP ability to improve productivity.