Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Lipper l constraints to adoption of salm and implications july 2011

489 views

Published on

Presentation for Smallholder Mitigation: Mitigation Options and Incentive Mechanisms - Expert Workshop
7 - 8 July 2011


Published in: Science
  • Be the first to comment

  • Be the first to like this

Lipper l constraints to adoption of salm and implications july 2011

  1. 1. E S A S Economics of sustainable agricultural systems Everything you always wanted to know about: Constraints to adoption of sustainable land management practices L. Lipper N..McCarthy and G. Branca (Agricultural Development Economics Division, FAO) Smallholder Mitigation: Mitigation Options and Incentive Mechanisms Expert Workshop Rome, June 7-8 , 2011
  2. 2. E S A S Economics of sustainable agricultural systems Importance of SLM • Poor soil fertility is a key constraint to agricultural productivity growth and thus food security/poverty reduction • Increasing soil fertility is an important component of many developing country ag. development strategies (particularly Africa in CAADP) • Increasing soil fertility (SOC) has potential adaptation and mitigation benefits (IPCC 4AR – soil carbon largest technical and economic potential source of mitigation) Adaptation benefits through improved WHC, diversification, pest and disease resistance • Years of attempts to promote adoption of SLM have shown there are considerable barriers that have generally not yet been overcome Question- if SLM is so good for farmers as well as the environment – why is the adoption rate so low?
  3. 3. E S A S Economics of sustainable agricultural systems Classic barriers to technology adoption apply in SLM case: Barriers to adoption: • Tenure Security: lack of tenure security and limited property rights (limits on transfer), may hinder adoption of SLM • Limited Access to Information, e.g. very low levels of investment/support for agriculture research and extension • Up-­‐front Hinancing costs can be high, whilst on-­‐farm beneHits not realized until medium-­‐long term – Local credit markets very thin – Local insurance options very limited
  4. 4. E S A S Economics of sustainable agricultural systems Adoption Barriers: Tenure Security & Common-Pool Resources § SLM practices may require collective action, e.g. management of communal resources (forests, grazing resources), and provision of local public investments (soil & water management measures) § Lack of tenure security and limited property rights (limits on transfer), may hinder adoption of SLM § But… § Customary tenure does not equal insecure tenure § Titles/certificates to land does not necessarily lead to increased access to formal credit § Ambiguous, complex rights to land often function as an insurance mechanism… e.g. for weather shocks Photos: FAO Mediabase
  5. 5. E S A S Economics of sustainable agricultural systems Adoption Barriers: Lack of Access to Information § Very low levels of investment/support for agriculture research and extension in many countries • Quiggins & Horowitz 2003 “Information held…becomes more diffuse. Less valuable in the presence of a new source of uncertainty.Thus climate change may be regarded as destroying information.” • Implying even greater barriers as CC effects are felt... Photos: FAO Mediabase
  6. 6. E S A S Economics of sustainable agricultural systems Adoption Barriers: Short run trade-­‐offs even where long run is win-­‐win • Photos: FAO Mediabase B. Investment Barrier to Adoption Baseline net income Current net income Time ==> • Temporary net loss to farmer • New management practices introduced Source: FAO 2007
  7. 7. E S A S Economics of sustainable agricultural systems Examples of establishment and maintenance costs of SLM Establishment costs Average maintenance costs US$/ha US$/ha/year Technology options Practices Case study Grevillea agroforestry system, Kenya 160 90 Shelterbelts, Togo 376 162 Different agroforestry systmes in Sumatra, Indonesia 1,159 80 Intensive agroforestry system (high input, grass 1,285 145 barriers, contour ridging), Colombia Small-scale conservation tillage, Kenya 0 93 Minimum tillage and direct planting, Ghana 220 212 Medium-scale no-till technology for wheat and barley 600 400 farming, Morocco Natural vegetative strips, The Philippines 84 36 Grassed Fanya juu terraces, Kenya 380 30 Konso bench terrace, Ethiopia 2,060 540 Compost production and application , Burkina Faso 12 30 Tassa planting pits, Niger 160 33 Runoff and floodwater farming, Ethiopia 383 814 Various agro-forestry practices Conservation agriculture (CA) Improved agronomic practices Integrated nutrient management Improved pasture management Grassland restoration and conservation, Qinghai province, China (1) 65 12 Rotational grazing, South Africa 105 27 Grazing land improvement, Ethiopia 1,052 126 Improved grazing management Agro-forestry Soil and water conservation Improved pasture and grazing management Sources: Wocat 2007, Liniger et al. 2011, FAO 2009, Cacho et al. 2003 (1) Project estimates
  8. 8. E S A S Economics of sustainable agricultural systems An example of opportunity costs of implementing improved grazing management practices (3 Rivers Project, Qinghai province, China) • project aim: SLM to increase livestock productivity (grassland restoration zoning and stocking rate management) • C Hinance (voluntary market) used to compensate foregone income during the transition period (pilot prj) Baseline net income NPV/HA over 20 years No years to positive cash flow No of years to positive incremental net income compared to baseline net income ($/ha/yr) ($/ha) (number of years) (number of years) Size of herd Small 14.42 118 5 10 Medium 25.21 191 1 4 Large 25.45 215 1 1 Source: Wilkes 2011
  9. 9. E S A S Economics of 80 sustainable agricultural systems But are these costs reflected in MACCs? 60 40 20 0 -­‐20 -­‐40 -­‐60 -­‐80 -­‐100 Reduced deforesta4on from pastureland conversion Wind (high penetra4on) 10 15 20 Abatement poten+al Gt CO2e Breakdown by abatement type • 9 Gt for terrestrial carbon (forestry and agriculture) • 6 Gt for energy efficiency • 4 Gt for low carbon energy supply Ligh4ng: switch CFLs to LEDs, residen4al Source: McKinsey Global GHG Abatement Cost Curve v2.0
  10. 10. E S A S Economics of sustainable agricultural systems Public investment to support adoption may also not be fully costed • Source: Sutter, Bockel and Tinlot 2011: Afolu sectors and climate change in Nigeria FAO
  11. 11. E S A S Economics of sustainable agricultural systems Conclusions We need to understand full costs of SLM adoption better to design effective incentive mechanisms – until now there is probably a signiHicant underestimate of the transition costs that will be required to achieve high adoption levels and signiHicant food security, adaptation and mitigation beneHits. In particular we need to focus on: Information barriers and how they change under climate change Opportunity costs over a transition period and how they vary by income group Public sector investments required to support SLM adoption and incentives
  12. 12. E S A S Economics of sustainable agricultural systems THANK YOU!

×