RETHINKING AGRICULTURAL INPUT SUBSIDY PROGRAMMES IN A CHANGING WORLD Paper prepared for the Trade and Markets Division, Food and Agriculture Organization of the United Nations

Recent years have seen a resurgent interest in large scale input subsidies, and particularly fertilizer subsidies, in agricultural development and food security policies in Africa. Very high global grain prices in the first part of 2008 appeared to make such subsidies even more attractive, but this was complicated by even more dramatic rises in fertilizer prices. Global grain and fertiliser prices have subsequently fallen back, but high grain prices persist in many domestic markets, and future prices are very uncertain.