Consumption risk, farm characteristics, and soil conservation adoption among low-income farmers in the Philippines
This paper investigates patterns of soil conservation adoption among low-income farmers in the Philippines. A model is presented that focuses attention on the role of assets and consumption risk in influencing soil conservation adoption decisions. Results from a reduced-form probit model of adoption are reported. These econometric findings indicate that patterns of soil conservation adoption reflect relative risk considerations in addition to farm and household characteristics. Farm size, tenure security, labor availability, and land quality all exhibit a positive association with soil conservation adoption. In contrast, controlling on these and other household characteristics, the probability of adoption falls as consumption risk rises. These results underscore a need for greater sensitivity among policymakers to the role of consumption risk in influencing soil conservation decisions in low-income settings.
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