Module 2 Microeconomic Impact and Willingness to Pay KFD Nyirenda RP Musopole HCY Gondwe MNS Msowoya

Objectives Look at differential impact of Starter Pack on household food security Study how Starter Pack inputs were used Assess farmers willingness to pay for Starter Packs under a low or zero subsidy

Sample distribution by livestock assets-based index

Maize production trend

Farmers perceptions of SP contribution to maize production

Increased months of staple food

Use of Starter Pack legume

Willingness to do public work for Starter Pack

Farmers valuation of Starter Pack (Malawi Kwacha)

Conclusions Significant increases in maize and legume production in absolute and relative terms In terms of household food self- sufficiency, SP has benefited the poor more than the wealthy Most planted all the maize and applied all the fertiliser, but use of legume varied

Conclusions (continued) Very few households could pay the cost of the pack (MK450) but almost half willing to work for 4 weeks (about MK500) If the government wanted everybody to work for the pack it could set the requirement at 2 weeks - if half, 4 weeks