Econometric analysis of supply responsiveness in traditional agriculture : millet, sorghum and rice farmers in Mali

Government of Mali (GOM) grain policies since independence (1960) are reviewed, and several econometric supply response models are specified and tested empirically using annual data from 1960-79. Results are used to analyze the effects of current GOM grain pricing policies. Major findings are that millet and sorghum production and sales are positively responsive to GOM pricing; that rice production and sales are positively related to official producers" prices; and that GOM subsidizing of grain imports adversely affects producers. Since the data indicate the possibility of increasing crop production by raising farm-level prices, it is recommended that the GOM set official prices in advance of planting, improve the grain storage and agricultural input systems, eliminate import subsidies, and possibly allow wage increases for urban consumers. Research on consumer demand and price elasticities and on cash crop competition with food crops is called for. Seven supporting data tables and a 3-page bibliography (1954-81) are appended.