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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.

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  • Boris E. Bravo‐Ureta & Daniel Solís & Horacio Cocchi & Ricardo E. Quiroga, 2006. "The impact of soil conservation and output diversification on farm income in Central American hillside farming," Agricultural Economics, International Association of Agricultural Economists, vol. 35(3), pages 267-276, November.
    • Handle: RePEc:bla:agecon:v:35:y:2006:i:3:p:267-276
    DOI: 10.1111/j.1574-0862.2006.00161.x
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    Cited by:

    1. Daniel Solís & Boris E. Bravo‐Ureta & Ricardo E. Quiroga, 2009. "Technical Efficiency among Peasant Farmers Participating in Natural Resource Management Programmes in Central America," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 202-219, February.
    2. Abdollahzadeh, Gholamhossein & Azadi, Hossein & Sharifzadeh, Mohammad Sharif & Jahangir, Leila & Janečková, Kristina & Sklenička, Petr & Tan, Rong & Witlox, Frank, 2021. "Landholders’ perception of conversion of steep lands to orchard schemes: Land use policy implications in North Iran," Land Use Policy, Elsevier, vol. 102(C).
    3. Meyer, Maximilian & Hulke, Carolin & Kamwi, Jonathan & Kolem, Hannah & Börner, Jan, 2021. "Spatially heterogeneous effects of collective action on environmental dependence in the Kavango-Zambezi Transfrontier Conservation Area," 2021 Conference, August 17-31, 2021, Virtual 315018, International Association of Agricultural Economists.
    4. Meyer, Maximilian & Hulke, Carolin & Kamwi, Jonathan & Kolem, Hannah & Börner, Jan, 2022. "Spatially heterogeneous effects of collective action on environmental dependence in Namibia’s Zambezi region," World Development, Elsevier, vol. 159(C).
    5. 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), pages 1-20.
    6. Haluk Gedikoglu & Sansel Tandogan & Joseph Parcell, 2023. "Neighbor effects on adoption of conservation practices: cases of grass filter systems and injecting manure," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(3), pages 723-756, June.
    7. Amrita Chatterjee & Arpita Ghose, 2015. "A Dynamic Economic Model of Soil Conservation Involving Genetically Modified Crop," Working Papers id:6623, eSocialSciences.
    8. 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.
    9. Jara-Rojas, Roberto & Bravo-Ureta, Boris E. & Díaz, José, 2012. "Adoption of water conservation practices: A socioeconomic analysis of small-scale farmers in Central Chile," Agricultural Systems, Elsevier, vol. 110(C), pages 54-62.
    10. Mirzabaev, Alisher & Strokov, Anton & Krasilnikov, Pavel, 2023. "The impact of land degradation on agricultural profits and implications for poverty reduction in Central Asia," Land Use Policy, Elsevier, vol. 126(C).
    11. 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).
    12. Boris Bravo & Horacio Cocchi & Daniel Solís, 2006. "Output Diversification Among Small-Scale Hillside Farmers In El Salvador," OVE Working Papers 1706, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    13. Amrita Chatterjee & Arpita Ghose, 2015. "A Dynamic Economic Model of Soil Conservation Involving Genetically Modified Crop," Working Papers 2015-096, Madras School of Economics,Chennai,India.
    14. Seyi Olalekan Olawuyi, 2018. "Farmers' Preference for Soil and Water Conservation Practices in Nigeria: Analytic Hierarchic Process Approach," Journal of Economics and Behavioral Studies, AMH International, vol. 10(4), pages 68-80.
    15. Kumar, Suresh & Singh, Dharm Raj & Mondal, Biswajit & Palanisamy, Venkatesh & Kumar, Anil, 2021. "Does Adoption of Soil Bund Increase Sorghum Productivity? Some Empirical Evidence from Drought Prone Areas of Karnataka, India," 2021 Conference, August 17-31, 2021, Virtual 315343, International Association of Agricultural Economists.
    16. Awudu Abdulai & Wallace Huffman, 2014. "The Adoption and Impact of Soil and Water Conservation Technology: An Endogenous Switching Regression Application," Land Economics, University of Wisconsin Press, vol. 90(1), pages 26-43.
    17. Boris Bravo & Horacio Cocchi & Daniel Solís, 2006. "Adoption of Soil Conservation Technologies in El Salvador: A cross-Section and Over-Time Analysis," OVE Working Papers 1806, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    18. Boris E. Bravo-Ureta, 2014. "Stochastic frontiers, productivity effects and development projects," Economics and Business Letters, Oviedo University Press, vol. 3(1), pages 51-58.
    19. ERREYGERS, Guido & FEREDE, Tadele, 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 Business and Economics.
    20. Amrita Chatterjee & Arpita Ghose, 2016. "A dynamic economic model of soil conservation and drought tolerance involving genetically modified crops," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 18(1), pages 40-66, October.
    21. 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.
    22. Frederick Quaye, 2016. "Effects of Multiple Risks on Farm Income and Willingness to Pay for Agricultural Insurance: A Case Study of the Greater Accra Region in Ghana," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(6), pages 1-1, June.
    23. Mirzabaev, A. & Strokov, A. & Krasilnikov, P., 2018. "The impact of land degradation on agricultural profits and poverty in Central Asia," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277449, International Association of Agricultural Economists.
    24. 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.
    25. Chavez, M.D. & Berentsen, P.B.M. & Oude Lansink, A.G.J.M., 2014. "Analyzing diversification possibilities on specialized tobacco farms in Argentina using a bio-economic farm model," Agricultural Systems, Elsevier, vol. 128(C), pages 35-43.

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