Agricultural development policies in Honduras : a consumption perspective

Much of the discussion focuses on pricing and marketing policies, which are central to both farm incomes and household ability to satisfy consumption needs. Other policy areas discussed include technology development/transfer and land use. While agriculture has grown faster than the rest of the Honduran economy in recent years, the reverse is true over the longer term (1970-84), and real farm income has actually declined since 1978. Per capita consumption of calories and proteins also seems to have declined during the period 1970-84; analysis of household food expenditures indicates serious nutrition problems in poor urban and rural households. Key policy findings are that: (1) while there are few price distortions in Honduran agriculture, those that exist have unfortunate repercussions on the agricultural economy and household nutrition; (2) the government"s consumer-oriented marketing programs and its guaranteed price program for farmers do not, in general, seem to be achieving their goals; and (3) resource allocation - an area in which land use policy is the key - has stressed exports, especially of beef, to the detriment of domestic nutrient availability and farm employment. A total of 54 tables are appended.