Promoting sustainable upland farming: what does economics tell us?
-
Upload
mark-sullivan -
Category
Documents
-
view
230 -
download
3
Transcript of Promoting sustainable upland farming: what does economics tell us?
![Page 1: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/1.jpg)
Promoting sustainable upland farming:what does economics tell us?
![Page 2: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/2.jpg)
Motivation
Upland agriculture– low input (labor is often the limiting resource)– low income (few assets, limited opportunities)– diversification strategies widespread
Upland environments– fragile landscapes– environmental resources remain vulnerable– off-site effects are often a concern
Policy concerns– twin goals of development & protection– limited responses to some policies?
![Page 3: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/3.jpg)
Upland decisions
Activity choice
what crops to grow?what to do with household labor?
Area expansion
clear forest?shorten fallows?
Technology adoption
what farming methods?chemical input intensities?soil conservation methods?
![Page 4: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/4.jpg)
Approach – review four studies
Activities– Policy response (Manupali watershed)– Tree-planting (Southern Palawan)
Forest clearing– Response to job opportunities (Palawan)
Technology adoption– Soil conservation (Davao del Sur)
![Page 5: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/5.jpg)
Annual Crop Production
PerennialProduction
Off-farmEmployment
Upland Activities
Economics predicts…
upland households will equate returns across activities
![Page 6: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/6.jpg)
Table 1 – Cropping patterns in Lantapan
Average slope (%)
Corn(area share)
Coffee(area share)
Vegetable(area share)
Zone 135% 0.06 0.08 0.86
Zone 2 25% 0.16 0.11 0.73
Zone 3 10% 0.47 0.10 0.42
Zone 4 5% 0.59 0.06 0.35
![Page 7: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/7.jpg)
Table 2 – Income shares in Lantapan
Incomequartile
Crops LivestockOff-farm
workNon-Farm
work
Top 0.33 0.03 0.09 0.54
2nd 0.26 0.02 0.24 0.48
3rd 0.25 0.06 0.32 0.37
Bottom 0.31 0.17 0.26 0.27
![Page 8: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/8.jpg)
Shifting effort – simulation model approach
Constructed based on data from Manupali watershed in 1998
4 agroecological zones 4 representative households per zone Optimizing decisions in response to changes in
economic variables Measurement of aggregate environmental
indicators (sediment, chemical loads)
![Page 9: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/9.jpg)
Table 3 – Simulation results
HH income(% ch)
Gov’t budget
(P/ha/yr)
Sediment(% ch)
Nitrogen(% ch)
P’cide(% ch)
Veg Ban -15% 0 -37% -69% -100%
SC subsidy 0% -391 -46% -50% -52%
20% veg tax-12% 529 -15% -27% -39%
SC + veg tax -15% 318 -49% -56% -62%
![Page 10: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/10.jpg)
Tree (mango) adoption
Southern Palawan (1994)100+ upland rice and corn farmersRetrospective examination of tree planting
over the period 1981-94Average farm size 2.9 ha
![Page 11: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/11.jpg)
Table 4 – Mango planting regressions
Number of trees
Farm size +
Age of household head -
Current mango price +
Current corn price -
Current rice price -
Forecast mango price change +
Forecast corn price change +
Forecast rice price change -
Corn price risk +
Rice price risk +
![Page 12: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/12.jpg)
Policy insight:
Relative prices matter– Farmers are responsive to changes in relative prices– Tree planting responded to price incentives– Risk considerations are a factor
![Page 13: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/13.jpg)
Upland forest clearing regressions
Southern Palawan, 1994-2000 Upland and lowland households Data covers a period in which lowland farms
became irrigated 100 upland rice farmers Land use, labor allocation, and forest clearing
decisions Impact of lowland irrigation on upland decisions
![Page 14: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/14.jpg)
Table 5 – upland deforestation regressions
labor supply Clearing Fertilizer
Lowland irrigation + - +
HH workers + +
Farm size + - +
Age of hh head - -
Educ of hh head - - +
Pala’wan + -
Carabao +
Tenure security +
Farm income - + +
shadow wage - -
Shadow val. fert. +
![Page 15: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/15.jpg)
Policy insight:
Off-farm opportunities matter– Farmers are responsive to changes in opportunities– Land clearing was reduced when employment expanded
![Page 16: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/16.jpg)
Soil conservation
Southern Mindanao (1995) 115 upland corn farmers Contour hedgerows for soil conservation
![Page 17: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/17.jpg)
Table 6 – Soil conservation adoption
Per capita farm size +
Labor availability per hectare +
Tenure security +
Education of household head +
Non-ag, non-wage income -
Wage income +
Ratio of cost of adoption to annual production -
![Page 18: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/18.jpg)
Policy insight:
Household capacity matters– Labor, land and tenure were key variables influencing
soil conservation adoption
![Page 19: Promoting sustainable upland farming: what does economics tell us?](https://reader036.fdocuments.net/reader036/viewer/2022070210/56649f145503460f94c291e0/html5/thumbnails/19.jpg)
Three areas for policy optimism
Efforts to promote perennial crops through can lead to tree planting by smallholders.
Potential solutions to upland “problems” may be found in the lowlands. The labor market can “pull” labor away from forests.
Subsidies for labor-intensive technologies are not likely to be effective where labor and land are limiting resources, but extension efforts will continue to be important.