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Agriculture Subsidy
This study examines the impact of agricultural subsidies on the productivity of smallholder farmers in three Liberian counties: Bong, Lofa, and Nimba. The research addresses a key gap in the existing literature, which lacks a quantitative assessment of the direct causal effects of subsidy programs on productivity metrics in Liberia. Using a cross-sectional survey design, the study collected both primary quantitative and qualitative data from a sample size of 300 smallholder farmers using a mixed method analysis. The analytical framework included a Generalized Linear Models (GLMs) and thematic coding of interview and focus group discussion (FGD) transcripts. Various tests were conducted including Omnibus/ANOVA test to observe the validity of the model, and the results proved statistically significant.
The findings provided evidence that agricultural subsidies have a significant and positive effect on smallholder farmer productivity. The results indicate a strong positive link between a farmer's access to grants and their ability to adopt modern farming methods, with subsidies increasing productivity by 95.6% for every positive step taken toward these new practices. However, the study also confirms a significant negative relationship, showing that for every increase in challenges farmers face in obtaining a grant, the positive impact of the subsidy on their productivity decreases by 52.9%. This highlights how administrative and logistical obstacles, such as complex application processes and delayed delivery of inputs, undermine the program's effectiveness.
The findings concludes that agricultural subsidies are a powerful tool for improving productivity and food security in Liberia, but their full potential is not being realized due to significant implementation challenges. Based on these findings, the study recommends simplifying application processes, improving communication, ensuring timely delivery of inputs, and strengthening extension services to make these programs more effective, sustainable, and equitable for the country's smallholder farmers.