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Impact Of Agricultural Market Reforms On Smallholder Farmers In ...

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Place more serious efforts to improve maize yields. The SPS and APIP are donor funded short<br />

term programs that do not provide a long-term solution to the low agricultural productivity and declining<br />

soil fertility in Malawi. A more serious and long-term effort is needed to improve maize yields by<br />

encouraging farmers to adopt hybrid maize seeds and use fertilizer. This includes national awareness<br />

campaigns about the benefits of using hybrid maize; allowing more private companies to compete in seed<br />

marketing; standardizing the seed production and marketing processes vis-à-vis testing, multiplication,<br />

and quality control to prevent fraud in hybrid seed marketing; and providing the necessary infrastructure<br />

and adequate policy environment to reduce the financial risk of hybrid maize adoption.<br />

Continue the agricultural diversification strategy. The diversification into more droughttolerant<br />

crops such as cassava and other tuber crops was a successful strategy that needs to be continued.<br />

Diversification into legume crops such as beans and pulses should also be encouraged as legumes need<br />

less fertilizer and can fix nitrogen in the soil thereby improving soil fertility. Diversification into<br />

horticultural and other crops for exports needs to be explored further as world demand for tobacco<br />

continues to decline.<br />

<strong>In</strong>vest in rural roads, transportation and communication infrastructure. The government<br />

should place a priority on improving rural roads, transportation services and telecommunications.<br />

Transport and information infrastructure are crucial for the commercialization of agriculture and are<br />

needed if small farmers are to move from subsistence farming to more market-oriented agriculture.<br />

Continue the reform efforts and avoid policy reversal. The government and donors in Malawi<br />

should continue on the liberalization path they have adopted, but they should place more emphasis now<br />

on the institutional and structural bottlenecks that are preventing the agricultural sector from reaping the<br />

full benefits of the reforms. Reverting back to fertilizer subsidies is not a long-term solution to low<br />

agricultural productivity. Furthermore, reversing policies creates a climate of uncertainty and reduces<br />

farmers’ faith in the commitment of the government to the reforms. If the government loses credibility,<br />

than it will meet more resistance from the population to continue on the reform path.<br />

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