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Abstract

This study investigated the impact of government agricultural input subsidies on cotton production and farmers’ welfare in Tanganyika District, Katavi Region, Tanzania. It focused on how subsidized fertilizers, improved seeds, and modern technologies affect productivity and household income among small and medium-scale cotton farmers. Using a quantitative cross-sectional survey of 100 farmers selected through stratified random sampling, data were collected via structured questionnaires and analyzed using Multiple Linear Regression. Results revealed that farm size (p < 0.001), fertilizer use (p = 0.014), adoption of modern technology (p = 0.003), and use of improved seeds (p = 0.017) significantly enhanced cotton output, explaining 79.2% (R² = 0.7921) of the variation in production. Likewise, food security (p = 0.047), farm size (p < 0.001), and fertilizer use (p = 0.017) significantly influenced farmers’ welfare (R² = 0.62). The findings indicate that input subsidies substantially improve productivity and income but are constrained by uneven adoption, limited market access, and inequitable distribution of inputs. The study recommends strengthening extension services to promote efficient input use, decentralizing input delivery to prevent delays and elite capture, and fostering public–private partnerships for local fertilizer and seed production. Simplifying subsidy access through digital platforms could enhance transparency and inclusion of smallholders. Furthermore, sustaining productivity requires complementary measures such as affordable credit schemes, farmer training on soil management, and the establishment of collective marketing cooperatives.

Keywords

Key Terms: Agricultural Subsidies, Farmers' Welfare, Cotton Farming

Article Details

How to Cite
MUSHI, B. (2026). Do Farm Input Subsidies Stimulate Production? Insights from Cotton Farmers in Tanganyika District, Tanzania. The African Journal of Applied Economics (AJAE), 2(1), 1–18. Retrieved from https://ajae.mzumbe.ac.tz/index.php/ajae/article/view/21

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