Conservation farming on steep lands - USAid

104 HAROLD C. COCHRANE and PAUL C. HUSZAR
prices to the levels of production reported provided a breakdown of farm
income by crop. Figure 4 reveals that terraci~g significantly altered the
source of incomes. It induced farmers to shift from low-valued crops, such
as cassava, to :hose that earn three to five times more per kilogram, particularly
rice, peanuts, and coconuts.
Conclusions and lessons learned
The following conclusions can be drawn from the analysis:
The nominal value of output within the model farm and impact arcas
increased by an average of 374,480 rupiahs per hectare per year. Eleven
percent of this increase may have been due to inflation, so the deflated
value of the increased output was 316,453 rupiahs per hectare per year.
Using a discount rate of 12 percent over 15 years, the present value of the
deflated value of increased production is 2,155,361 rupiahs per hectare. While
costs of the program have not been computed, it seems likely that the przsent
value of production benefits exceeds these costs, without coasidering
the employmer~t and erosion control benefits of the project.
Labor inputs within the model farm and impact areas increased an
average of 1,117 hours per hectare, and labor productivity increased an
average of 45 rupiahs per hour. On the other hand, nonadopters used less
labor per hectare and obtained a higher return per hour of labor used. The
differences in labor use and returns to labor between the adopters and
nonadopters may have been caused by subsidies.
b The actual <strong>farming</strong> input mix of labor and fertilizer went from being
suboptimal before the model farm program to nearly optimal with the
program.
B- Terracing alone contributed arr average of 80,000 rupiahs per hectare
per year to the value of output. Discounting at 12 percent over 15 years
yielded a present value of terracing equal to 544,880 rupiahs per hectare.
Terracing likely costs between 330,000 and 495,000 rupiahs per hectare,
so terracing alone has a net present value of 49,880 to 214,880 rupiahs per
hectare. Erosion control benefits of terracing would increase this value.
Increased returns from the program were largely associated with
changing cropping patterns. Cassava production fell from 42.4 percent to
12.4 percent of the average value per plot, while rice production increased -
from 7.1 percent to 26.8 percent, and peanut production rose from 3.4 percent
to 17.8 percent. Because cassava production is generally thought to
contribute to soil erosion, the reduced production of cassava is expected
to reduce erosion.
Lessons learned from the evaluation process include the following: