Introduction
The concept of sustainable land management(SLM) is not very old as it was introduced in early 1990s in response to land degradation. Since then the term has been brought forward. The need of SLM strategies is widely welcomed within community of scientists but very little is known about the economics of SLM. Bridging this gap is very important as actual and perceived costs and benefits of SLM practices play vital role in their adoption as well as in spreading. In this article we will learn about few facts about economics of SLM by exploring what are the different types of costs and benefits are incurred by the farmers.
A Farmer/Peasant will prolong to adopt land degrading management practices as long as the marginal costs of degradation are smaller than the marginal costs associated with the land conservation practices.
Mathematically, M.C of Degradation < M.C of Conservation Practices.
Smallholder farmers indeed follow logic of economics in decision making. However additional factors like social relations and cultural norms also have important role in farmer's decision making. In some cases tenant's preferences and decisions are much more influenced by social and cultural factors than monetary costs and benefits of establishing and maintaining SLM practices.
Some scholars have identified that perceived profitability of SLM practices as the driver of adoption of conservation measures by farmers. Profitability also depends on crop selection, type of SLM practice, slope, rainfall condition and intensity of SLM practice. However some scholars found from their study that SLM is rarely profitable for farmers in short term.
Exact cost assessment is difficult because farm accounts documentation is always missing. Family labour and other kind of inputs are difficult to value as well as the exact practice application area is not always clear.
Quantitative variables which are used for analysing costs are
- Establishment cost
- Maintenance cost
Establishment cost:- It is the initial investment which is incurred during the adoption of SLM technology.
Maintenance cost:- It is the cost required to keep the established system functioning.
Qualitative variables for analysing costs are
- Perceived short-term ratio of overall benefits to establishments costs
- Perceived long term ratio of overall benefits to establishment costs
- Perceived short-term ratio of overall benefits to maintenance costs
- Perceived long-term ratio of overall benefits to maintenance costs
- Motivation for adopting a practice.
Main Motivations behind implementation of SLM Technology and Practices
- Affliation to movements/projects/groups/networks
- Prestige and social pressure
- Environmental consciousness, morals and health
- Reduced workload
- Production
- Rules and regulations and enforcement
- Increased profitability and improved cost/benefit ratio
- Payments/subsidies.
Profits of Adopting SLM Technologies and Practices
- Improved farm income
- Better livelihood of farmer's family
- Food security
- Diet diversity
Economic reasons are the key drivers for land user's decision to adopt SLM Technologies and Practices.
Reference
Giger, M., Liniger, H., Sauter, C., & Schwilch, G. (2015). Economic Benefits and Costs of Sustainable Land Management Technologies: An Analysis of WOCAT's Global Data. Land Degradation & Development.
