The Impact of Soil Conservation and Output Diversification on Farm Income in Central American Hillside Farming

Posted: 5 Apr 2011

See all articles by Boris E. Bravo-Ureta

Boris E. Bravo-Ureta

University of Connecticut - Department of Agricultural and Resource Economics

Daniel Solis

University of Miami - Department of Marine Affairs & Policy

Horacio Cocchi

affiliation not provided to SSRN

Ricardo E. Quiroga

Inter-American Development Bank (IADB) - Environment and Natural Resources Management Division

Date Written: 2006

Abstract

This paper 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.

Keywords: Farm income, Soil conservation, Output diversification, Human capital, Central America

JEL Classification: Q12, Q24, Q55

Suggested Citation

Bravo-Ureta, Boris E. and Solis, Daniel and Cocchi, Horacio and Quiroga, Ricardo E., The Impact of Soil Conservation and Output Diversification on Farm Income in Central American Hillside Farming (2006). Agricultural Economics, Vol. 35, No. 3, pp. 267-276, 2006, Available at SSRN: https://ssrn.com/abstract=1802606

Boris E. Bravo-Ureta

University of Connecticut - Department of Agricultural and Resource Economics ( email )

1376 Storrs Road, Unit 4066
Storrs, CT 06269
United States

Daniel Solis (Contact Author)

University of Miami - Department of Marine Affairs & Policy ( email )

United States

Horacio Cocchi

affiliation not provided to SSRN

Ricardo E. Quiroga

Inter-American Development Bank (IADB) - Environment and Natural Resources Management Division ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

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