Dr. Hope Michelson (University of Illinios-UC) "Restoring Trust: Evidence from the Fertilizer Market in Tanzania.”

Abstract

A lack of reliable information about fertilizer quality depresses farmer
demand, reducing crop yields and negatively impacting livelihoods. We
implemented a randomized controlled trial across 100 market clusters and 148
associated villages in an agricultural region of Tanzania. Fertilizer sellers
and farmers in the treated market clusters received a low-touch information
campaign consisting of posters, pamphlets, and meetings explaining that urea
fertilizer tested in their markets was found to be of good quality, with the
required amount of nitrogen. The information treatment significantly improves
farmer beliefs about fertilizer quality and reduces variance of beliefs across
farmers within treatment villages. Treated farmers buy more fertilizer. Our
design allows us to estimate effects on the supply side as well: retailers in
treated markets report increased sales but stable prices