Consumption risk, farm characteristics, and soil conservation adoption among low‐income farmers in the Philippines

Gerald E. Shively

Agricultural Economics, 1997, vol. 17, issue 2-3, 165-177

Abstract: 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 ot assets and consumption risk in conservation adoption decisions. Results Iron, a reduced‐form probit model of adoption are reported. These econometric findings indicate that patterns of soil conservation adoption reflect relative risk considerations in addititon 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.

Date: 1997
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