Due to recurring shocks and resultingweak economic growth, Malawi has not experienced meaningfulpoverty reduction since 2004. In fact, poverty has been onthe raise in rural areas. As poverty is mainly a ruralphenomenon in Malawi and most of the poor engage in cropproduction, this report briefly explores agriculturalpractice of the poor farmers.Since 2010, consumption ofhouseholds at the bottom of the welfare distribution hasincreased significantly. This has reduced inequality andultra-poverty. Decomposition of poverty changes indicatesthat favorable redistribution has contributed to povertyreduction after 2010, but lack of growth hinders progress inpoverty reduction. Despite seemingly unchanging povertysince 2004, there is enormous seasonality in well-being, andpoverty is much higher during lean season. Analysis ofpoverty and consumption across quarters of a givenagricultural year (from harvest to lean season) shows thatpoverty is relatively low in the harvest season, but itincreases continuously and reaches its peak in the leanseason. This seasonal variation in well-being is pronouncedin drought years.The farm input subsidy program (FISP), oneof the key agriculture policy interventions implemented bythe government of Malawi, has increased applications offertilizer in the country relative to neighboring countriesor the Sub-Saharan Africa average. Even if the FISP hasincreased fertilizer application rate relative toneighboring countries, agriculture technology adoption islower among poor farmers and is on the decline since 2010.As a result, crop yield is lower for poor farmers.
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