Command agriculture input subsidy programme as a source of funding for smallholder producers in Zimbabwe
Abstract
In sub-Saharan countries, the agricultural sector is regarded as indispensable because of its contribution to both the social and economic growth of countries. As a result, the governments of these countries have invested substantially into the sector through schemes known as input subsidy programmes (ISPs). ISPs are programmes that offer inputs to farmers at subsidised prices on credit through signing of contracts. The ISPs are mainly targeted at smallholder producers who are believed to own the majority of the farming lands. In Zimbabwe, like the other sub-Saharan African countries, the government invested in the Command Agriculture ISP with the aim of improving the lives of the producers, food security and the economy of the country.
However, despite the existence of ISPs, there are also other agricultural financing alternatives that smallholder producers can consider. These include commercial banks, agricultural companies, development finance institutions and micro-financing companies. As a result, producers have a lot to consider before deciding on the most suitable source to use a source of agricultural funding.
The study aimed to explore the use of the Command Agriculture ISP as a source of agricultural funding for smallholder producers in Zimbabwe. This was achieved by reviewing the literature and following the honeycomb of research methodology by Wilson (2014). This allowed the researcher to map out the factors contributing to the effective and efficient operation of the Command Agriculture ISP. These factors are the stakeholders of the program, its strengths and weaknesses and perceptions on its future.
Data were collected by sending out structured questionnaires (quantitative data) to smallholder producers and interviewing (qualitative data) the Commercial Bank of Zimbabwe (CBZ) and Agricultural Research Extension (AGRITEX) officials. The officials carry out most of the administrative work of the Command Agriculture ISP. Quantitative data were analysed using the Statistical Package for the Social Sciences (SPSS), whilst qualitative data were analysed using thematic analysis. The SPSS provided discussions on the frequency distribution of the data, descriptive statistics, exploratory factor analysis and lastly, the analysis of variances. The quantitative findings showed that, although the ISP has its drawbacks, more producers are joining the programme indicating the possible future success if the programme. Like the quantitative findings, the qualitative results disclosed that the ISP has its shortcomings, such as corruption, the economic recession in the country and delayed input distribution. Nevertheless, the qualitative findings also showed that the ISP will continue to operate into the foreseeable future.
The study will contribute to the body of the existing literature and provide insights to the stakeholders of the Command Agriculture ISP on what can be done to successfully run the programme. The
government of Zimbabwe, being the main stakeholder, can invest in ways to strengthen the relationship of the ISP and the producers in order to attract more producers and identify suitable audit systems to reduce corruption.