Abstract:
Tanzania Government introduced National Agriculture Input Voucher Scheme (NAIVS) in 2008/2009 to
overcome the limitations of the previous subsidy programs. This would increase productivity and food security
contributing to poverty reduction. This paper examines the voucher access impact on productivity and food
security. Cross section data were collected from a random sample of 300 farmers in a survey using a semi
structured questionnaire. Two stages least square (2SLS) regression was used to estimate the impact of voucher
access on agricultural productivity and binary logistic model for food insecurity. Empirical results shows that
farmers with access to input subsidy vouchers had higher agricultural productivity significant at P=0.00. Social
economic variables such as age, education, land size, borrowing possibility and access to extension revealed
positive contribution to aggregate agricultural productivity. Considering food security, farmers with access to
voucher were less food insecure significant at P=0.00. Also access to village was found to decreases food
insecurity significanly. Contrarily, unpredictable weather increased food insecurity significant at P=0.01. These
findings implies positive contribution of voucher program in poverty reduction. However, sustainable
agricultural productivity and food security requires improved social services, better crop management and
mitigation of unpredictable weather.
