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The Farmer Input Support Programme (FISP) and Food Reserve Agency (FRA) subsidies explained
Agricultural subsidies are benets paid by the SP Rele d FI as an government to groups or individuals to manage the cost and supply of a commodity. There has been a 85% steady increase in budgetary allocation to agricultural subsidy programmes. The Farmers Input Support 15% Others Program (FISP) and The Food Reserve Agency (FRA) combined spending in 2009, accounted for 85% of total agricultural budget, but only beneted approximately 20% of farmers. Agriculture Budget Release

What does it means for Zambia? Annual savings of USD 358 million could potentially be redirected to projects that support infrastructure development, poverty reduction, increase food security, diversication of crops and service delivery in rural areas. Increased food security; by construction of grain silos which will reduce grain loses.

(Including supplementary funding)

% 85

2011 FISP and FRA Budget Allocation vs. Release

3,500 m 3,000 m 2,500 m 2,000 m 1,500 m 1,000 m 500 m 0
Budget Allocation FISP 2011 FRA 2011 Kr 485 m Kr 150 m Budget Release Kr 1,354 m Kr 3,200 m Budget Overrun Kr 869 m Kr 3,050 m Wheat Kwacha Rebased

Agricultural diversication programmes; rice, sheries, soya, millet, sorghum and cassava for increased nutrition.
Soya Fisheries

Infrastructure; building bridges and feeder roads to improve farmers access to market.

In 2011, FISP and FRA had budget overruns of 79.10% and 1,933% respectively.

Extreme Poverty by Farmer, 2006 - 2010

70% 60% 50% 40% 30% 20% 10% 0%

60% 60%



Small-Scale Farmer

Medium-Scale Farmer

Despite the continued increase to agricultural subsidy programs, extreme poverty levels of small and medium scale farmers remained relatively stagnant.

Extreme Poverty

Reduced poverty levels; by introducing programs targeted to benet the poor.


Improved service delivery; in rural areas such as hospitals and schools.

There are health implications to programmes that support mono-cropping; in 2010, 47% of the Zambian population suffered from stunted growth. Stunting is due to an imbalanced diet. Crop diversication to other protein and nutrient rich crops could possibly alleviate stunting.



Decentralisation Policy: Ensure that the decentralization policy captures data on poverty impacting Key Performance Indictors (KPIs).

Program Re-engineering
Consider other poverty reduction programs that are tailored to benet the poor and also diversify crop production.

Monitoring and Evaluation

Gather data to build evidence for ongoing policy reforms to support impact on poverty and policy / programme reviews.
Email: info@pmrczambia.net Publications: www.pmrczambia.org

Unlocking Zambias Potential

PMRC infographic, May, 2013