Influence of Fertilizer Subsidy Policy on Land Allocation for Rice Production in Western Kenya

Abstract

It is recognized that one of the factors that hinders realization of the goals set out in the Kenya’s Agricultural Policy, is the high cost of farm inputs that limits smallholder rice farmers’ capacity to expand area under rice cultivation. This study, therefore,  examines how Kenya’s fertilizer subsidy policy influences land allocation for rice cultivation among smallholder farmers in Kisumu and Busia Counties, Western Kenya. A cross-sectional research design was employed targeting a sample of 480 smallholder farmers, who were randomly selected in the study area. Primary data was collected using structured questionnaires. After adjusting for labor inputs and irrigation status, land distribution patterns were analyzed under various fertilizer use categories, namely; subsidized, unsubsidized, both subsidized and unsubsidized and none. The statistical techniques (descriptive analysis and non-parametric tests (Kruskal-Wallis, Mann-Whitney U)) revealed that land use was dominated by rice (62%) as opposed to maize (37%).  Farmers who used only one category of fertilizer, allocated 1.70-1.31 acres of land, while farmers who used both subsidized and unsubsidized fertilizer categories dedicated a much larger amount of land of 1.91 acres to rice cultivation. Irrigated ecosystems had significantly larger rice acreage (2.25 acres) than rain-fed ecosystems (1.64 acres) which were significantly different (P>=0.005). The results indicated that land allocated to rice production was influenced by access to both fertilizer categories ( a combination of subsidized and unsubsidized).   The study however, found that subsidized fertilizer did not significantly influence land allocation to rice cultivation.