Cash or Fertiliser – Which Incentive Do Farmers Prefer to Adopt Agroforestry in Malawi and Mozambique?
Stefan Meyer1, Edward Kato2, Ephraim Nkonya2, Vincent H. Smith3
1IFPRI, Environment and Production Technology Division, Malawi
Despite the benefits for smallholder farmers, adoption rates of sustainable land management practices in Africa South of the Sahara are still low. One of the main barriers for farmers to change from traditional to sustainable practices is the time lag between adaptation and receipt of the benefits. To compensate the initial effort of the farmers and to address the large cost that the severely degraded soils have for the mostly agrarian economies in Africa South of the Sahara, governments should incentivize farmers to adopt sustainable practices. This paper analyses farmer´s perception for different types of incentives for an adoption of agroforestry. In choice experiments, rural participants were asked to state their preferences for a cash transfer or a fertiliser subsidy. The experiments were conducted in two neighbouring districts of Malawi and Mozambique.
Keywords: Agroforestry, conditional subsidy, discrete choice experiment, Malawi, Mozambique
Contact Address: Stefan Meyer, IFPRI, Environment and Production Technology Division, Lilongwe, Malawi, e-mail: s.meyercgiar.org