SBR- Content.pmd - INBO

8 - Agriculture• Deforestation, caused by the clearing of land for shifting and sedentary cultivation, along withlogging and other human activities, is leading to deteriorating watershed quality with increasederosion and sediment runoff. These problems are particularly marked in the upland areas ofcritical watersheds.• Activities that increase agricultural production can also cause damage to the environment.Irrigation developments can increase salinity and cause other forms of water quality deterioration,as well as creating obvious pressures on water quantity. There are reports of water shortages inthe Korat Plateau and salinity problems in the Mekong Delta. There are also concerns aboutpesticides and fertilisers causing contamination of ground and surface water.• Environmental deterioration in turn can potentially affect agriculture by limiting crop yieldswhen soil quality worsens, increasing the severity of floods and droughts, and increasing problemswith pests and disease.• All four governments place a high priority on agricultural development, generally promotingintensification of production through irrigation and technology improvements and diversificationinto products with higher returns than rice, while endeavouring to strengthen the supportingpolicy, legislation, and institutional environments.• Institutional problems remain, including weaknesses in extension services, inadequate landtenure systems and market failures and inefficiencies, particularly in terms of markets for credit,market information and physical market infrastructure.• The combination of rural poverty, economic reform and expansion, and national developmentinitiatives is placing increasing pressure on the agriculture sector and hence upon land andwater resources. If not managed properly, agricultural expansion could cause environmentalchanges that undermine the sustainability of the sector, as well as other sectors that dependupon the land and water of the Mekong Basin177