Since 2002, the government has been implementing a farmer input subsidy known as the Farmer Input Support Programme (FISP) which involves distribution of subsidized fertilizer and seed to smallholder farmers. The aim of this programme was to increase agricultural productivity, rural incomes, food security and help develop the input markets (Wor1d Bank 2010). So far this subsidy programme has contributed to positive results of increased maize production in the country. However, it has had very little impact on agricultural productivity and poverty reduction (Mason et al. 2011).