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Farm Benefits And Natural Resource Projects In Honduras And El Salvador

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Author Info
Cocchi, Horacio
Bravo-Ureta, Boris
Quiroga, Ricardo
Abstract

A model of conservation adoption, diversification and household income, including farm and off-farm sources was formalized, wherein households simultaneously allocate assets to different activities. The mapping of assets to household income through both off and on farm activities can conceptually be considered as a production process, with assets corresponding to factors of production and income as the output. Either adoption of conservation technologies and farm output diversification are influenced by participation in natural resource management programs. Therefore, these technological improvements should foster farm production and productivity and, consequently, should be reflected in a greater household income,. Finally, household income improvement is considered a necessary condition for sustainability of the changes introduced by the projects. Overall, the results indicate that the variables more directly reflecting land allocation, such as area with staples and cash crops, output diversification and conservation practices are associated with the greatest gains in household income. Output diversification significantly decreases income from staple crops and greatly increases cash crop income. These results reaffirm the strategic role of diversification in fighting rural poverty. However, gains stemming from a more diversified income portfolio do not occur without cost, since an extra item added to the farm plan implies a reduction in the production of corn and beans (staples). This trade-off between diversification and subsistence food production suggests that switching to a more market-oriented production pattern may increase household food insecurity.

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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2004 Annual meeting, August 1-4, Denver, CO with number 20328.

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Date of creation: 2004
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Handle: RePEc:ags:aaea04:20328

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Keywords: Consumer/Household Economics;

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    Other versions:
  3. Nerlove, Marc & Vosti, Stephen A. & Basel, Wesley, 1996. "Role of farm-level diversification in the adoption of modern technology in Brazil:," Research reports 104, International Food Policy Research Institute (IFPRI). [Downloadable!]
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    Other versions:
  5. Holden, Stein & Shiferaw, Bekele & Pender, John L., 2001. "Market imperfections and land productivity in the Ethiopian Highlands:," EPTD discussion papers 76, International Food Policy Research Institute (IFPRI). [Downloadable!]
    Other versions:
  6. Soloaga, Isidro, 2000. "The treatment of non-essential inputs in a Cobb-Douglas technology : an application to Mexican rural household-level data," Policy Research Working Paper Series 2499, The World Bank. [Downloadable!]
  7. Neill, Sean P & Lee, David R, 2001. "Explaining the Adoption and Disadoption of Sustainable Agriculture: The Case of Cover Crops in Northern Honduras," Economic Development and Cultural Change, University of Chicago Press, vol. 49(4), pages 793-820, July.
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  16. Thampapillai, Dodo J. & Anderson, Jock R., 1994. "A Review of the Socio-Economic Analysis of Soil Degradation Problems for Developed and Developing Countries," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 62(03), December. [Downloadable!]
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  19. Delgado, Christopher L. & Siamwalla, Ammar, 1997. "Rural economy and farm income diversification in developing countries," MTID discussion papers 20, International Food Policy Research Institute (IFPRI). [Downloadable!]
  20. Arellanes, Peter & Lee, David R., 2003. "The Determinants Of Adoption Of Sustainable Agriculture Technologies: Evidence From The Hillsides Of Honduras," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25826, International Association of Agricultural Economists. [Downloadable!]
  21. Timothy Besley & Robin Burgess, 2003. "Halving Global Poverty," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 3-22, Summer. [Downloadable!] (restricted)
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