An agricultural policy review of Egypt: First steps towards a new strategy


Book Description

The latest population census in Egypt shows that there are more people now living along the narrow strip of land by the Nile than ever before, 95 million (CAPMAS 2017). The country’s rapidly growing population, its limited water resources, and its dependence on food imports all reinforce the importance of an integral agricultural policy. With the recent series of economic reforms that saw the flotation of the Egyptian pound, the imposition of a value-added tax, and decreases in energy subsidies, Egypt has a unique opportunity to focus on sector-level policies, including those within agriculture. This paper reviews agricultural and other related policies and their impact on the overall economic performance of the agricultural sector in Egypt. This stocktaking of policies is to serve as the basis for developing a more comprehensive agricultural strategy and policy framework that aligns sectoral policy objectives with policy measures in an effective and consistent manner. The paper is intended to serve as a reference for policymakers, researchers, and institutions. It highlights agriculture’s place in the Egyptian economy and examines water and irrigation policy and the provision and distribution of agricultural inputs, research, and extension, and reviews the price and procurement policies for key crops. Other public policies and their impact on agriculture are also evaluated via a look at the food subsidy system, land rent and tenure, land reclamation, and trade policies. The concluding section of the paper presents a summary of key messages and proposed questions for further research.




Climate-resilience policies and investments for Egypt’s agriculture sector: Sustaining productivity and food security


Book Description

The importance of a resilient agriculture sector in providing food security, livelihoods, and household income was highlighted in many countries by the recent pandemic, as was the capacity of the sector to cushion the negative impacts of the subsequent economic slowdown. This has been the case in Egypt, where agriculture has been resilient to the health crisis in comparison with the service and industry sectors (Breisinger et al. 2020). However, the sector’s resiliency is gradually being corroded by climate change, with lasting, harmful effects for agriculture and food systems.




Africa Agriculture Trade Monitor 2024


Book Description

The 2024 AATM investigates critical issues related to African agricultural trade. As in previous editions of the report, we have developed a database that corrects discrepancies in trade flow values, as reported by importing and exporting countries, as the basis for analyzing Africa’s international, domestic, and regional economic community (REC) trade. Given the pressing need to address climate change and curb greenhouse gas emissions, this year’s AATM takes an in-depth look at the relationship between climate change, water use, and emissions and African agricultural trade.




The State of Food and Agriculture 2020


Book Description

Intensifying water constraints threaten food security and nutrition. Thus, urgent action is needed to make water use in agriculture more sustainable and equitable. Irrigated agriculture remains by far the largest user of freshwater, but scarcity of freshwater is a growing problem owing to increasing demand and competition for freshwater resources. At the same time, rainfed agriculture is facing increasing precipitation variability driven by climate change. These trends will exacerbate disputes among water users and inequality in access to water, especially for small-scale farmers, the rural poor and other vulnerable populations. The State of Food and Agriculture 2020 presents new estimates on the pervasiveness of water scarcity in irrigated agriculture and of water shortages in rainfed agriculture, as well as on the number of people affected. It finds major differences across countries, and also substantial spatial variation within countries. This evidence informs a discussion of how countries may determine appropriate policies and interventions, depending on the nature and magnitude of the problem, but also on other factors such as the type of agricultural production system and countries’ level of development and their political structures. Based on this, the publication provides guidance on how countries can prioritize policies and interventions to overcome water constraints in agriculture, while ensuring efficient, sustainable and equitable access to water.




Country gender assessment of the agriculture and rural sector – Egypt


Book Description

This country gender assessment responds to the requirements of the FAO Policy on Gender Equality 2020–2030. By providing information and analysis on the gender dimensions of the agriculture and rural sector, it aims to support the formulation and implementation of gender-responsive policies, strategies, and projects at country level, in line with national development priorities and FAO’s mandate.




Food subsidies and cash transfers in Egypt: Evaluating general equilibrium benefits and trade-offs


Book Description

Most Egyptians receive food subsidies, which are the cornerstone of the country’s social protection system. The government recently attempted to reduce subsidies, with limited success, and introduced a cash transfer program targeting the poor. We use a dynamic general equilibrium model of the Egyptian economy to evaluate the growth and distributional impacts of subsidy reforms and cash transfers. We find that the welfare of poor households would be enhanced by a smaller, but better targeted food subsidy program, and that, if the cost savings from reforms are channeled into investment, faster economic growth would eventually outweigh any short-term welfare losses. However, most of the gains from subsidy reforms accrue to nonpoor households. Combining subsidy reforms with cash transfers leads to the largest welfare gains for the poor, while leaving the welfare of nonpoor households largely intact. The latter is crucial to maintaining support for ongoing subsidy reform efforts.




Too much of a good thing? Evidence that fertilizer subsidies lead to overapplication in Egypt


Book Description

As part of a national policy to ensure a certain level of food self-sufficiency in strategic crops, the government of Egypt subsidizes nitrogen fertilizer directly by distributing quotas of subsidized fertilizers to farmers and indirectly by subsidizing natural gas used by local fertilizer factories. The implication of this subsidy on farmers’ fertilizer demand and productivity remains unknown. Using a detailed agricultural survey collected from smallholder farmers in Upper Egypt, we show that nitrogen fertilizer application rates are substantially in excess of crop-specific agronomic recommendations. We exploit eligibility criteria and other sources of variation to show that farm plots with easier access to the subsidy tend to use more subsidized nitrogen fertilizer and less phosphate fertilizer. Easier access to the subsidy increases use of total nitrogen fertilizer per unit of land, mainly because of the increase in subsidized nitrogen fertilizer. In particular, the fertilizer subsidy program in Egypt is associated with significant overapplication of nitrogen fertilizer. Such overapplication of fertilizer is expected to adversely affect soil, water, and environmental health. Our findings have important policy implications for Egypt and other African countries known for input subsidy programs. As Egypt is currently moving on from the successful implementation of a comprehensive macroeconomic reform program towards sector-level reforms, our results suggest that eliminating fertilizer subsidies is a good place to start.







Food policies and their implications on overweight and obesity trends in selected countries in the Near East and North Africa region


Book Description

Regional and global trends in body weight show that the Near East and North Africa (NENA) region countries, especially the Gulf Cooperation Council (GCC) member countries, have the highest average body mass index and highest rates of overweight and obesity in the world. There exist several explanations that expound the high rates of overweight and obesity in most NENA countries, including the nutrition transition, urbanization, changes in lifestyle, and consequent reduction of physical activities. This study examines the implication of food policies, mainly trade and government food subsidies, on evolving nutritional transitions and associated body weight outcomes. We examine the evolution of trade (food) policies, food systems, and body weight outcomes across selected countries in the NENA region – Egypt, Jordan, and Iraq. In particular, we investigate the implications of important trade (food) policies in shaping diets and food systems as well as their implications on public health outcomes, mainly the rising levels of overweight and obesity in the NENA region. We provide a simple conceptual framework through which trade policies (tariff rates) and domestic government food policies (subsidies) may affect food systems and nutritional outcomes. An important and innovative feature of this study is that it compiles several macro- and micro-level datasets that allow both macro and micro-level analyses of the evolution of trade (food) policies and associated obesity trends. This approach helps to at least partly overcome the data scarcity that complicates rigorous policy research in the NENA region. Overweight and obesity rates have almost doubled between 1975 and 2016, with varying rates and trends across regions. For instance, whereas body weight in the NENA region was comparable with that found in high-income countries in the early years, after the 1990s regional overweight and obesity rates became much higher than those in high-income countries. Specifically, while most high-income countries are experiencing a relative slowing of increases in overweight rates, the trend for the NENA region continues to increase at higher rates. The evolution of overweight rates for the GCC countries are even more concerning. These trends are likely to contribute to the already high burden of non-communicable diseases in the NENA region.




Land scarcity impedes sustainable input intensification in smallholder irrigated agriculture: Evidence from Egypt


Book Description

Increasing population pressure and population density in many African countries are inducing land scarcity and land constraints. These increasing land constraints are expected to trigger various responses and adaptation strategies, including agricultural intensification induced by land scarcity, as postulated by the Boserup hypothesis. However, most empirical evaluations of the Boserup hypothesis come from rainfed agriculture and mostly from Sub-Saharan Africa (SSA), where application of improved agricultural inputs remains historically low. Agricultural intensification practices as well as the relevance of the Boserup hypothesis in irrigated agriculture and in contexts where application of improved inputs is high remains unexplored. Furthermore, while much of the debate on the topic in Africa has focused on how to boost agricultural intensification, there is scant evidence on whether evolving agricultural intensification practices in some parts of Africa are sustainable, yield-enhancing, and optimal. In this paper we investigate the implication of land scarcity on agricultural intensification and the relevance of the Boserup hypothesis in the context of Egypt, where agriculture is dominated by irrigation and input application rates are much higher than SSA. We also examine whether evolving agricultural intensification practices induced by land scarcity are agronomically appropriate and yield-enhancing. We find that land scarcity induces higher application of agricultural inputs, mainly nitrogen fertilizers, sometimes beyond the level that is agronomically recommended. More importantly, land scarcity increases overapplication of nitrogen fertilizer relative to crop-specific agronomic recommendations. This implies that land constraints remain as important challenges for sustainable agricultural intensification. Finally, we find suggestive evidence that such overapplication of nitrogen fertilizers is not yield-enhancing, but, rather, yield-reducing. We also document that land scarcity impedes mechanization of agriculture. Our findings have important implications to inform appropriate farm management and sustainable intensification practices. Furthermore, our results can inform long-term policy responses to land scarcity.