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The impact of soil conservation and output diversification on farm income in Central American hillside farming

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  • Boris E. Bravo-Ureta
  • Daniel Solís
  • Horacio Cocchi
  • Ricardo E. Quiroga

Abstract

This article analyzes the determinants of farm income among hillside farmers participating in natural resource management projects in El Salvador and Honduras. The farm income function was evaluated using a system of equations in which income is determined simultaneously by the farmer's decision to adopt soil conservation technologies and by the level of diversification (number of agricultural activities) on the farm. The database used comes from surveys administered to 678 beneficiaries of these projects during 2002. The econometric results suggest that all the variables related directly to land use (i.e., output diversification, soil conservation practices and structures, and the adoption of forestry systems) have a positive and statistically significant association with farm income. Also, farmers who own land enjoy higher farm incomes than those who do not. The results indicate that when investing in natural resource management projects, governments and multilateral development agencies should pay close attention to output diversification, land tenure, and human capital formation as effective instruments in increasing farm income. Copyright 2006 International Association of Agricultural Economists.

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Bibliographic Info

Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 35 (2006)
Issue (Month): 3 (November)
Pages: 267-276

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Handle: RePEc:bla:agecon:v:35:y:2006:i:3:p:267-276

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Cited by:
  1. Jara-Rojas, Roberto & Bravo-Ureta, Boris E. & Moreira, Victor H. & Diaz, Jose, 2012. "Natural Resource Conservation and Technical Efficiency from Small-scale Farmers in Central Chile," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126227, International Association of Agricultural Economists.
  2. Boris E. Bravo-Ureta & Horacio Cocchi & Daniel Solís, 2006. "Output Diversification among Small-Scale Hillside Farmers in El Salvador," IDB Publications 25778, Inter-American Development Bank.
  3. Bravo-Ureta, Boris E. & de Almeida, Alexandre & Solis, Daniel & Inestroza, Aaron, 2010. "A Farm Level Analysis of the Economic Impact of the MARENA Program in Honduras," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 55658, Southern Agricultural Economics Association.
  4. Chidmi, Benaissa & Solis, Daniel & Funtanilla, Margil & Cabrera, Victor E., 2010. "Analyzing the Determinants of Technical Efficiency Among Traditional Dairy Farms in Wisconsin: A Quantile Regression Approach," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61320, Agricultural and Applied Economics Association.
  5. Solis, Daniel & Bravo-Ureta, Boris E. & Quiroga, Ricardo E., 2006. "The Effect Of Soil Conservation On Technical Efficiency: Evidence From Central America," 2006 Annual meeting, July 23-26, Long Beach, CA 21345, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. Solis, Daniel & Bravo-Ureta, Boris E. & Quiroga, Ricardo E., 2007. "Soil conservation and technical efficiency among hillside farmers in Central America: a switching regression model," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(4), December.
  7. Erreygers G. & Ferede T., 2009. "The end of subsistence farming: Growth dynamics and investments in human and environmental capital in rural Ethiopia," Working Papers 2009008, University of Antwerp, Faculty of Applied Economics.

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