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This piece originally appeared on the A4NH blog.

This post originally appeared on the IFPRI.org blog and the GSSP blog. 

It is no secret that fertilizer subsidies are back in vogue across Africa south of the Sahara as the preferred tool for governments trying to boost incomes of poor smallholder farmers by increasing farm production and agricultural productivity. The financial burden of fertilizer subsidies is also widely recognized, exacerbated by the expense of improving the accuracy of targeting, as discussed in Jayne et al, 2018.

One in a series of guest blog posts from leading voices in global development on achieving long-term sustainability and growth while ending hunger, poverty, and malnutrition. This originally appeared on IFPRI.org.

This post originally appeared on VoxDev . By Tanguy Bernard, Alan de Janvry, Samba Mbaye, and Elisabeth Sadoulet.

Agriculture market reforms that allow quality recognition enable farmers to capture higher prices and lead to adoption of better technology

The fertilizer industry is characterized by high levels of concentration along the supply chain. According to the International Fertilizer Development Center, nine countries control more than 50 percent of nitrogen (ammonia, urea) and phosphate (DAP/MAP) production capacity, while only five countries control 79 percent of potash (MOP) production capacity. Developing regions such as Africa south of the Sahara are also highly dependent on imported fertilizer. In addition, the level of fertilizer use in Africa south of the Sahara remains far below other developing regions (around 10kg.