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Analysis of public expenditure in support of the food and agriculture sector in Ghana, 2006-2012








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    Booklet
    Analysis of public expenditure in support of food and agriculture in Kenya, 2006-2012 2014
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    Kenya has not met the 10 percent target of the total government spending as agreed upon at the African Union meeting in Maputo in 2003. The level of expenditures falls below the target 10% of total government spending. This means that a low share of the country’s budget was devoted to food and agriculture over the 2006-2012 period under review. This corresponds to a decrease of the agriculture value added growth as well as the Gross Domestic Product (GDP), which plunged twice in 2008 and 2011. T he composition of public expenditures in support of food and agriculture has been unequally balanced, with 60 percent allocated to agriculture-specific expenditures as opposed to 40 percent for agriculture-supportive spending (rural education, health and infrastructure). Within agriculture-specific expenditures, general sector support has been predominant over direct payments to agents, at 80 percent. The main categories supported were extension services at 25 percent, research at 16 percent, in put subsidies at 14 percent and infrastructure and veterinary services at 10 percent. The level of payment to producers was high in 2009/2010 compared to all the other periods but it dropped to 3.9 percent in 2010/2011 period. On the other hand, payment to consumers is only reflected in the school feeding programmes which accounts for approximately 99 percent of the payments.
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    Can budget support to the cotton sector be used more efficiently? An assessment of the policy support measures in Mali and Burkina Faso. 2015
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    In Burkina Faso and Mali, cotton is the most important cash crop, given its high contribution to the GDP and to the export sector revenue. Export of cotton lint accounted for 60 and 15 percent of the value of national exports, respectively, in 2014. To maintain the level of cotton production, the two Governments support the sector. Indeed, the analysis based on the Monitoring and Analysing Food and Agricultural Policies (MAFAP) methodology show that producers received incentives of 21 and 12 p ercent in Burkina Faso and Mali, respectively, between 2005 and 2012 (Nominal Rate of Protection-NRP). The analysis provides insights on the level of domestic price protection that compensates price distortions resulting from on one hand, exogenous causes namely the international price distortions and the exchange rate misalignment and on the other hand, endogenous inefficiencies such as the high transport or processing costs. Two adjusted NRP are computed, one using an adjusted benchmark price for cotton that is netted out of policy interventions at the international level (Anderson, 2006) and one using an alternate, non-misaligned exchange rate (BCEAO, 2013). The value chain inefficiencies are then discussed, using the Market Development Gap indicator which reveals that higher producer price could be obtained if inefficiencies were corrected through sound investment policies. Finally, a budgetary allocation analysis is proposed, along with the computation of Nominal Rates of Assist ance that reveal the full extent of policy support to the cotton value chain. Price intervention, with other cotton-related budgetary transfers, represented 9 percent of food and agricultural expenditure in Burkina Faso between 2006 and 2012 and 31 percent in Mali.
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    Booklet
    Returns to investments in fertilizers production in Kenya
    An analysis in support of the new “Agriculture Sector Growth and Transformation Strategy”
    2019
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    This report, jointly produced by the Joint Research Centre (JRC) and the FAO’s Monitoring and Analysing Food and Agricultural Policies (MAFAP) programme, analyses alternative strategic interventions on the agricultural sector in Kenya to inform the drafting of the new Agriculture Sector Growth and Transformation Strategy (ASGTS) and a new National Agricultural Investment Plan (NAIP) of the country. The study reviews trends and composition of food and agricultural public expenditures for the 2006-2016 period based on the MAFAP methodology, and analyses, through a general equilibrium model framework, impacts of agricultural policies on economic and sectorial performances of the country, and on its food security situation. The results highlight that the share of public resources allocated to the sector has been declining over time. Moreover, the agriculture budget is dominated by extension services, inputs subsidies and agricultural research. Although invetments in extension should remain in place, as the potential positive effects on the Kenyan agriculture look significant, some rebalancing of the spending in favour of roads and marketing, together with a diversification of targeted commodities, could help maximize spending impacts. The CGE assessment confirms that while investing in fertilizer production is likely to have a positive effect on agricultural output and farmer livelihoods, such expenditures need to go hand in hand with improvements in the status of rural infrastructures and the quality of extension services. The adoption of an import tariff for fertilisers would have negative effects, through an expected increase in farmer production costs. Agricultural transformation can only be achieved by adopting coherent and well-balanced intervention packages.

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