Redistribution of social benefits from advances in extension and research in the Tanzanian maize industry
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This study determined consumer and producer welfare gains from advances in extension and research in the maize industry
of Tanzania to determine how a national taxing schedule should be determined. It was found that, for an off-farm marketable
surplus of 40%, consumers and producers gain equally, while for an off-farm marketable surplus of 60%, consumers realize
75% of the welfare benefits. This suggests that consumers and producers should share equally in a revenue generating tax for
funding maize research and extension programs. However, for large producers with a marketable surplus of 60% or more, their
tax should decrease proportionally to the amount sold. Alternatively, if taxed equally, large-scale producers should receive
some form of compensation through direct government payments. ©1999 Elsevier Science B.V. All rights reserved.