Economic Analysis of Improved Smallholder Paddy and Maize Production in Northern Viet Nam and Implications for Climate-Smart Agriculture

Adoption of improved agricultural practices is shown to vary based on rainfall variability and long-term average maximum temperature, and although such practices increase productivity and profitability on average, their impacts also vary based on climatic conditions. This paper presents a case study on impacts and implications for adoption of Climate Smart Agriculture (CSA) solutions in the Northern Mountainous Region (NMR) of Viet Nam. We use primary data collected through ad hoc household and community surveys to conduct profitability estimates of comparative technologies using crop financial models based on partial budget analysis and a study of the determinants of adoption and of yields. In particular, we find that the majority of farmers in NMR rely on ‘conventional’ farming despite indications that sustainable land management practices such as Minimum Tillage (MT) applied to upland maize production, and Fertilizer Deep Placement (FDP) and Sustainable Intensification for Paddy (SIP) production are more profitable. Adoption of MT is greater where long-term variation in rainfall during critical growing periods for maize is higher; FDP and SIP adoption is greater in places where the long-term average of maximum temperatures is higher during critical periods for rice growth. Finally, these improved practices have higher labour and input costs compared to conventional practices, which may prevent or slow adoption.