Abstract
The present study, conducted in Upper Tana, Kenya, has the objective of assessing viability and profitability of structural and non-structural soil and water conservation measures among smallholder farmers. Financial cost benefit analysis (FCBA) framework was used to analyse primary data collected from 433 smallholder farmers in Upper Tana. Similarly, a review of methodological experiences and challenges in assessing benefits accruing from conservation measures to future generations was also conducted. Structural and non-structural conservation measures studied were financially attractive with bench terraces and Napier grass strips attaining higher net present values than other structural and non-structural measures studied respectively. The gross margins of the conservation measures were also positive in the year of study. Labour and materials were the major inputs required for establishing and maintaining conservation measures. However, farmers needed a conducive institutional framework and land use policies, technical advice and support, favourable input-output market and credit to invest on conservation measures on a sustainable basis. Analysis at 15, 30, 60 and 90 year time horizons and at different discount rates (10%, 12% and 14%) using FCBA indicated that the higher the discount rate, the less were the streams of benefits. Similarly, a longer period of analysis at a constant discount rate resulted in marginal benefits bringing into question the application of conventional FCBA to intergenerational equity assessments and whether it is appropriate to conduct analyses at 60 and 90 year time horizons using FCBA. Reviews of methodologies for assessing conservation benefits to future generations indicated divided opinions on use of discount rates and methodologies.
Highlights
One of the critical resources for livelihoods for this generation and the generations to come is land
This study has shown that depending on prevailing market prices and opportunity cost attributed to labour, other inputs and crop type planted on conserved land, the conservation measures can either take a short or a longer period before positive financial returns are attained from the base year of investment
High value fodder crops planted to stabilise soil and water conservation (SWC) structures and those planted in conserved land, reduces the time period taken for the conservation structures to pay-off to one-two calendar years depending on the conservation measure
Summary
One of the critical resources for livelihoods for this generation and the generations to come is land. Humans have exploited land resources in an unsustainable way and land degradation has become a global problem (Eswaran et al, 2001). Human induced land degradation is the reduction or loss of the biological or economic productivity of the land attributed to a combination of processes such as soil erosion and deterioration of the physical, chemical and biological properties of the soil and loss of vegetation (Evans and Geerken, 2004). Land degradation threatens the livelihoods of the present generation, and of the one. Land degradation includes the loss of productivity of the soils-top layer (mineral and organic materials) of the earth that serves as a natural medium for the growth of plants
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