Returns of sustainable land management interventions: Evidence from Southern Ethiopia

Abstract

Ethiopia has been implementing sustainable land management (SLM) measures throughout the country to reverse land degradation. Despite the implementation of various SLM measures in Ethiopia, very little is known about whether these measures are effective from adopting farmers’ perspectives. This study examines the costs, benefits, and returns of SLM practices implemented in the Barcha-Adado watershed in Southern Ethiopia. Data for the analysis were obtained primarily from a survey of 231 barley-growing farmers. Using a cost-benefit analytical framework, the returns of SLM practices were evaluated using the net present value (NPV) and benefit-cost ratio (BCR) over the period 2019 to 2046. The major SLM measures implemented by farmers are soil bunds, fanyajuu bunds, and fanyajuu bunds stabilized with grass strips. The average establishment cost of SLM measures was $171 per hectare. On a per-hectare basis, farmers who implemented SLM practices experienced a 28% higher crop yield and an NPV of $1,491.6 compared to non-adopting farmers. The BCR of SLM practices is 5.16, implying that the present value of the benefits is more than five times higher than the present value of the costs of investment in SLM measures. Returns are the highest for fanyajuu bunds and the least for fanyajuu bunds stabilized with grass strips. Study findings suggest that SLM interventions significantly enhance crop productivity and generate considerable financial returns for adopting farmers. The findings would serve as evidence for the local decision-makers and may provide incentives to scale up the benefits of SLM practices to degraded farmlands in the country.