Assessment of agricultural policies affecting smallholder producers, consumers and local value chains

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Client Private foundations (including the world's largest non-profit family foundation)
Dates 2014
Sector(s)Agriculture
Service(s)Policy & Economics
CEPA was tasked by the world’s largest private, family-run philanthropic foundation to quantitatively assess the potential scale and impact of key national-level agricultural policies on smallholder producers, consumers, and the local input and output markets (value chains) they participate in.
We conducted a thorough literature review in order to assemble a ‘long list’ of policy constraints affecting smallholder farmers and pastoralists, across a wide range of countries and crop value chains. We then identified a number of case study policy constraints for detailed qualitative and quantitative analysis. For example, we examined constraints such as: public under-investment in rural roads and the consequences for the maize and small ruminants value chains in Ethiopia; the impact of under-investment in Government-led research and development (R&D) for cowpea seeds in Burkina Faso; and the impact of the minimum support price policy programme for smallholder farmers and pastoralists in the Indian states of Bihar, Orissa and Uttar Pradesh.
For each shortlisted policy constraint, we also articulated the impact pathway between each case study policy and smallholder productivity growth.
Finally, we quantitatively assessed the potential impact of each case study policy on smallholder access to input and output markets, producer and consumer surplus, investment in local value chain businesses, and other relevant productivity and market-related outcomes along local value chains.
Our study helped the Foundation to ensure that its grantees are working with Governments on policy reforms that potentially have a significant impact on smallholder productivity and local value chain development.
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