Policy responses

Support to producers with the aim of enhancing production.

• Following a SARS outbreak in China in 2003, the Government adopted a series of policy measures to increase the country’s food production capacity. These included: lowering agriculture tax rate, abolishing special agricultural taxes, subsidizing purchase of quality seeds and agricultural machinery.

Consumers’ income support

• Following HIV outbreak in Africa in the 1990s and early 2000s, some African states used income generation support to enhance economic empowerment and implemented food security and nutrition measures for vulnerable households.

Links and references

http://www.fao.org/3/ad508e/ad508e0a.htm

http://www.fao.org/3/y8331e/y8331e05.htm

https://www.sciencedirect.com/science/article/pii/S1573521408800048

https://www.researchgate.net/publication/5021677_HIVAIDS_and_the_Agricultural_Sector_Implications_for_Policy_in_Eastern_and_Southern_Africa

Pros Short Run: Providing the right amount of support to producers after a natural disaster could be helpful in regaining full agricultural production and lessening the impacts on the poor and vulnerable.

Cons Medium to Long Run: • Because of their potential trade-distorting effect, subsidies should stop once the damage has been healed. • Disruption of the functioning of regional agricultural markets. • Direct payments to farmers to support incomes, de-coupled from production decisions, could be a more cost-efficient approach.

Minimum conditions Significant resources and institutional implementation capacities are required for input and production subsidies to be sustainable and effective. The viability of this approach depends on access to financial services by the poor and rural.