Assessing government grants: evidence from greenhouse tomato and pepper farmers in Kosovo

Abstract

Genetic matching with an evolutionary algorithm was applied to evaluate the impact of the Ministry of Agriculture, Forestry and Rural Development (MAFRD) grant programs to support greenhouse vegetable production in Kosovo. The primary contribution of the paper is to assess whether grants have an impact on the farmers’ gross seasonal revenue after matching similar grantees to non-grantees. The findings showed that greenhouse tomato grantees make 2,151.80 euros more per growing season in comparison to the non-grantees (95 % confidence interval -324.71 to 4,628.31 euros). Similarly, greenhouse pepper grantees make 2,866.69 euros more per growing season compared to non-grantees (95 % confidence interval 446.42 to 5,286.96 euros). The study identified farmers’ education and region as important matching variables which may be of interest to policy researchers in Kosovo.

Keywords

• greenhouse economics
• genetic matching
• government farm grants
• Kosovo agriculture