This value is lower than one as farmers increase their input use due to the reduced fertiliser prices and as larger fertiliser quantities incur increasing production costs for this input. In this case, a dollar of input subsidies would result in a cost reduction for farm inputs of only 0.42 dollars (Figure 22). This is partly caused by the fact that relative to the fertiliser price, a given subsidy value is smaller under imperfect competition as the price includes the producers’ mark-up and is hence higher than under perfect competition.