Only a small percentage of well-capitalized smallholders are able to sell maize to the Food Reserve Agency (FRA) and take advantage of the maize price support. For example, in the 2007/08 marketing year, only 10% of smallholders sold maize to the FRA and these households had larger landholdings, more farm assets, and higher education levels than smallholders that did not sell maize to the FRA. 2. An increase in the FRA farmgate maize price influences smallholder behavior by increasing the farmgate maize price that smallholders expect to receive at the next harvest.


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