Effects of soil and water conservation investment on household income in the Volcanoes National Park of Rwanda
an instrumental variable quantile approach
Abstract
Soil and water conservation (SWC) technologies contribute to sustainable agriculture and rural poverty reduction. Yet, the relationship between farm household income and SWC investment is not well-understood in Rwanda. This study aims to assess the effects of investing in SWC on household income and improve the knowledge of how various classes of smallholders can benefit from such an investment at a farm level. The study used survey data from 422 farming households in northern Rwanda’s Burera, Gakenke and Musanze districts. Descriptive analysis was employed to determine levels of use of SWC and SF measures. Quantile
estimation classified three classes of farming households: the poor, middle-income earners and the rich. Instrumental variable quantile regression was adopted to assess heterogeneous effects of financing SWC investment. The results revealed that the extent of using SWC and SF measures is generally low. Agriculture income and off-farm (casual) wages had the largest income shares among the poor and middle-income earners. Financing investment in SWC increases income significantly for middle-income earners, i.e. five times more than the poor, but it was ineffective for the wealthy. Socio-economic factors and commercial crops had a significant effect on income across the classes. Institutional factors demonstrated no significant impact on the poor and middle-income earners. The findings suggest that incorporating pro-poor interventions in SWC investment would increase the productivity and commercialisation of cash and staple crops. These results inform a need to promote linkages between SWC investment and income diversification strategies to increase asset-building for the poor and close income gaps among the three farming classes. This finding suggests the need to introduce saving and lending innovations in SWC that link farm activities to nonfarm opportunities.
Keywords
soil and water conservation investment; farming household; income effects; instrumental variable quantile; Volcanoes National Park
References
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Jami, J. 2018. The dilemma of classification of income levels in social research. The NEHU Journal. 16(1): 19–30. ISSN. 0972 - 8406
Kamara, A., Conteh, A., Rhodes, E. R., Cooke, R. A. 2019. The relevance of smallholder farming to African agricultural growth and development. African Journal of Food, Agriculture, Nutrition and Development, 19(1): 14043-14065. DOI: 10.18697/ajfand.84.BLFB1010
Kidanemariam, G.G. 2015. The impact of agricultural extension on households’ welfare in Ethiopia. International Journal of Social Economics, 42(8): 733-748, https://doi.org/10.1108/IJSE-05-2014-0088
Koenker, R., Bassett, J.G. 1978. Regression quantiles. Econometrica: journal of the Econometric Society, 33-50. https://doi.org/10.2307/1913643
Kwak, D. W. 2004. Instrumental variable quantile regression method for endogenous treatment effect. The Stata Journal, 1–30.
Larochelle, C., Alwang, J., Norton, G.W., Katungi, E., Labarta, R. A. 2015. Impacts of improved bean varieties on poverty and food security in Uganda and Rwanda. Selected Paper Prepared for Presentation at the Agricultural & Applied Economics Association. AAEA Annual Meeting, July 27-29, 2014., 314. Minneapolis, USA.
Lee, S. (2007). Endogeneity in quantile regression models: A control function approach. Journal of Econometrics, 141(2), 1131-1158. https://doi.org/10.1016/j.jeconom.2007.01.014
Louhichi, K., Temursho, U., Colen, L. and Gomez Y Paloma, S. 2019. Upscaling the productivity performance of the agricultural commercialization cluster initiative in Ethiopia, ISBN 978-92-76-12941-7. doi:10.2760/57450, JRC117562
Manlosa, A. O., Hanspach, J., Schultner, J., Dorresteijn, I., Fischer, J. 2019. Livelihood strategies, capital assets, and food security in rural Southwest Ethiopia. Food security, 11(1), 167-181. https://doi.org/https://doi.org/10.1007/s12571-018-00883-x
Martin, S.M., Lorenzen K.A.I. 2016. Livelihood diversification in Rural Laos. World Development, 83: 231–43. https://doi.org/10.1016/j.worlddev.2016.01.018
Melketo, T.A, Geta, E., Sieber, Stefan. 2020. Understanding livelihood diversification patterns among smallholder farm households in Southern Ethiopia. Sustainable Agriculture Research 9(1): 26–41. URL: https://doi.org/10.5539/sar.v9n1p26.
Mosissa, D., Mohammed, A., Tesfaye, Y. 2019. The effectiveness of soil and water conservation as climate smart agricultural practice and its contribution to smallholder farmers ’ livelihoods . The Case of Bambasi District Benishangul Gumuz Regional State , Northwest of Ethiopia. 1–17. https://doi.org/10.33552/WJASS.2019.02.000542
Mugonola, B., Deckers, J., Poesen, J., Isabirye, M., Mathijs, E. 2013. Adoption of soil and water conservation technologies in the Rwizi catchment of South Western Uganda. International Journal of Agricultural Sustainability. 11(3): 264–281. https://doi.org/10.1080/14735903.2012.744906.
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Musafili, I., Ngabitsinze, J.C., Niyitanga, F., Weatherspoon, D. (2019). Farmers’ usage preferences for Rwanda’s volcanoes national park. J. Agribus. Dev. Emerg. Econ., 9(1), 63–77. https://doi.org/10.1108/JADEE-01-2018-0004
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Njuki, J., Poole,J., Johnson,N., Baltenweck, I., Pali, P., Lokman, Z., Mburu,S. 2011. Gender, livestock and livelihood indicators. International Livestock Research Institute. Nairobi, Kenya.
Nyanga, A. Kessler,A., Tenge,A. 2016. Key socio-economic factors influencing sustainable land management investments in the West Usambara Highlands, Tanzania. Land Use Policy, 51: 260–66. http://dx.doi.org/10.1016/j.landusepol.2015.11.020.
Ochieng, J., Knerr, B., Owuor, G., Ouma, E., Knerr, B., Ouma, E. 2017. Commercialization of food crops and farm productivity : Evidence from smallholders in Central Africa. Agrekon. 55(4): 458-482. https://doi.org/10.1080/03031853.2016.1243062.
Ogutu, S. O., Qaim, M. 2019. Commercialization of the small farm sector and multidimensional poverty. World Development,114: 281–293. https://doi.org/10.1016/j.worlddev.2018.10.012.
Osuji, M. N. 2019. Determinants of Poverty Status of Cassava-based Farmers in Imo State , Nigeria. Advances in Research, 1-8. https://doi.org/10.9734/AIR/2019/v19i630145
Pattnaik, I., Lahiri-dutt, K., Lockie, S., Pritchard, B.2017. The feminization of agriculture or the feminization of agrarian distress ? Tracking the trajectory of women in agriculture in India. Journal of the Asia Pacific Economy. 23(1), 138-155. https://doi.org/10.1080/13547860.2017.1394569.
Pingali, P., Aiyar, A., Abraham, M., Rahman, A. 2019. Linking Farms to Markets: Reducing Transaction Costs and Enhancing Bargaining Power. Transforming Food Systems for a Rising India. Palgrave Studies in Agricultural Economics and Food Policy. ISBN 978-3-030-14409-8 (eBook). https://doi.org/10.1007/978-3-030-14409-8
Schulte, H.D., Mussho, O., Meuwissen, M.P.M. 2018. Considering milk price volatility for investment decisions on the farm level after European milk quota abolition. Journal of Dairy Science. 101, 7531–7539. https://doi.org/10.3168/jds.2017-14305
Sobczuk, H., Olszta, W. 2010. Sand-filled drainage ditches for erosion control : effects on infi ltration efficiency. https://doi.org/10.2136/sssaj2009.0003.
Tadesse, G., Tadiwos Z.. 2019. Grants vs. Credits for Improving the Livelihoods of Ultra-poor: Evidence from Ethiopia. World Development,113:320–29. https://doi.org/10.1016/j.worlddev.2018.09.009
Teshome, A., de Graaff, J., Kassie, M. 2016. Household-Level Determinants of Soil and Water Conservation Adoption Phases: Evidence from North-Western Ethiopian Highlands. Environmental Management, 57(3):620–636. DOI 10.1007/s00267-015-0635-5
Thiry, G., Alkire, S., Schleicher, J. 2018. Incorporating environmental and natural resources within analyses of multidimensional poverty. OPHI Research in Progress 50, University of Oxford.
Thorn, J. P. R., Friedman, R., Benz, D., Willis, K. J., Petrokofsky, G. 2016. What evidence exists for the effectiveness of on-farm conservation land management strategies for preserving ecosystem services in developing countries? A systematic map. Environmental Evidence, 5(1), 1–29. https://doi.org/10.1186/s13750-016-0064-9.
Verkaart, S., Munyua, B. G., Mausch, K., Michler, J. D. 2017. Welfare impacts of improved chickpea adoption: A pathway for rural development in Ethiopia? Food Policy, 66: 50–61. https://doi.org/10.1016/j.foodpol.2016.11.007
Widomski, M.K., Sobczuk, H., Olszta, W. (2010). Sand‐Filled Drainage Ditches for Erosion Control: Effects on Infiltration Efficiency. Soil Sci. Soc. Am. J., 74(1), 213–220. https://doi.org/10.2136/sssaj2009.0003
Wooldridge, J. M. 2015. Control function methods in applied econometrics. Journal of Human Resources, 50 (2): 420–445. doi: 10.3368/jhr.50.2.420
World Bank. 2019. Rwanda systematic country diagnostic. Kigali, Rwanda
Adgo, E., Teshome, A., Mati, B. 2013. Impacts of long-term soil and water conservation on agricultural productivity : The case of Anjenie watershed , Ethiopia. Agricultural Water Management, 117(1): 55–61. https://doi.org/10.1016/j.agwat.2012.10.026.
Adimassu, Z.; Langan, S.; Barron, J. 2018. Highlights of soil and water conservation investments in four regions of Ethiopia. Colombo, Sri Lanka. IWMI Working Paper 182. doi: 10.5337/2018.214.
Aung, M., N., Moolphate, S., Katonyo C., Khamchai, S. 2016. The social network index and its relation to later- life depression among the elderly aged 80 years in Northern Thailand. Clinical Interventions in Aging, 11: 1067–1074.
Aynalem, M., Mossie, H., Adem, M. (2019). Rural Nonfarm Activity Income Diversification Among Smallholder Farmers in Deber Elias Woreda, Amhara Regional State, Ethiopia. Am. J. Env. Res. Econ., 4(2), 84–91. doi: 10.11648/j.ajere.20190402.15
Baba, R. A., Owiyo, T., Barbier, B., Denton, F., Rutabingwa, F., Kiema, A. 2017. Advancing climate-smart-agriculture in developing drylands : Joint analysis of the adoption of multiple on-farm soil and water conservation technologies in West African Sahel. Land Use Policy, 61(17): 196–207. https://doi.org/10.1016/j.landusepol.2016.10.050
Bigler, C., Amacker, M., Ingabire, C., Birachi, E. 2017. Rwanda’s gendered agricultural transformation: A mixed-method study on the rural labor market, wage gap and care penalty. Women’s Studies International Forum, 64:17-27. ttps://doi.org/10.1016/j.wsif.2017.08.004
Bugenimana, E. D., Patropa, E. M., Karemangingo, C., Bimenyimana, T. 2019. Assessment of technical conformity of bench terraces for soil erosion control in Rwanda. African Journal of Agricultural Research, 14(2):69-77. https://doi.org/10.5897/AJAR2018.13076
Chaudry, A., Wimer, C. 2016. Poverty is not just an indicator: The relationship between income, poverty, and child well-being. Academic Pediatrics, 36(3):S23–S29. https://doi.org/10.1016/j.acap.2015.12.010
Chauvet, G. 2015. Coupling methods for multistage sampling. The Annals of Statistics, 43(6): 2484–2506. DOI: 10.1214/15-AOS1348
Chernozhukov, V., Hansen, C. 2008. Instrumental variable quantile regression: A robust inference approach. Journal of Econometrics, 142(1): 379-398. https://doi.org/10.1016/j.jeconom.2007.06.005
Fiener, P., Auerswald, P. 2017. Grassed Waterways. Universität Augsburg, Germany. Geospatial Techniques for Agricultural and Natural Resources Conservation. doi:10.2134/agronmonogr59.2013.0021
Froidevaux, J. S., Broyles, M., Jones, G. 2019. Moth responses to sympathetic hedgerow management in temperate farmland. Agriculture, ecosystems & environment, 270, 55-64. https://doi.org/10.1016/j.agee.2018.10.008
Gebremedhin, B., & Swinton, S. M. (2003). Investment in soil conservation in northern Ethiopia: the role of land tenure security and public programs. Agricultural economics, 29(1), 69-84. https://doi.org/10.1016/S0169-5150(03)00022-7
Ghimire, S.R, Johnston, J.M. 2019. Sustainability assessment of agricultural rainwater harvesting: Evaluation of alternative crop types and irrigation practices. PloS one, 14(5), e0216452. https://doi.org/10.1371/journal.pone.0216452
Giorgia, C., Zoli, C., Sonedda, D. 2013. Evaluating the distributional effects of fiscal. Review of Income and Wealth. 59(2): 305–325. DOI: 10.1111/j.1475-4991.2012.00502.x
Helena,P., Gardebroek, C., Ruben, R. 2015. From participation to adoption: comparing the effectiveness of soil conservation programs in the Peruvian Andes. Land Economics, 86(4), 645–667. https://doi.org/10.3368/le.86.4.645
Huang, X., Lu, Q., Wang, L. 2019. Does aging and o ff -farm employment hinder farmers ’ adoption behavior of soil and water conservation technology in the Loess Plateau ? International Journal of Climate Change Strategies and Management. 12(1), 92-107. https://doi.org/10.1108/IJCCSM-04-2019-0021
Ingabire,C., Mshenga,M.P., Langat,K., Bigler,C., Musoni,A1., Butare,L., Birachi,E. 2017. Towards commercial agriculture in Rwanda: Understanding the determinants of market participation among smallholder bean farmers. African Journal of Food Agriculture and Nutrition Development. 17(4): 12492-12508. DOI: 10.18697/ajfand.80.16825
Jami, J. 2018. The dilemma of classification of income levels in social research. The NEHU Journal. 16(1): 19–30. ISSN. 0972 - 8406
Kamara, A., Conteh, A., Rhodes, E. R., Cooke, R. A. 2019. The relevance of smallholder farming to African agricultural growth and development. African Journal of Food, Agriculture, Nutrition and Development, 19(1): 14043-14065. DOI: 10.18697/ajfand.84.BLFB1010
Kidanemariam, G.G. 2015. The impact of agricultural extension on households’ welfare in Ethiopia. International Journal of Social Economics, 42(8): 733-748, https://doi.org/10.1108/IJSE-05-2014-0088
Koenker, R., Bassett, J.G. 1978. Regression quantiles. Econometrica: journal of the Econometric Society, 33-50. https://doi.org/10.2307/1913643
Kwak, D. W. 2004. Instrumental variable quantile regression method for endogenous treatment effect. The Stata Journal, 1–30.
Larochelle, C., Alwang, J., Norton, G.W., Katungi, E., Labarta, R. A. 2015. Impacts of improved bean varieties on poverty and food security in Uganda and Rwanda. Selected Paper Prepared for Presentation at the Agricultural & Applied Economics Association. AAEA Annual Meeting, July 27-29, 2014., 314. Minneapolis, USA.
Lee, S. (2007). Endogeneity in quantile regression models: A control function approach. Journal of Econometrics, 141(2), 1131-1158. https://doi.org/10.1016/j.jeconom.2007.01.014
Louhichi, K., Temursho, U., Colen, L. and Gomez Y Paloma, S. 2019. Upscaling the productivity performance of the agricultural commercialization cluster initiative in Ethiopia, ISBN 978-92-76-12941-7. doi:10.2760/57450, JRC117562
Manlosa, A. O., Hanspach, J., Schultner, J., Dorresteijn, I., Fischer, J. 2019. Livelihood strategies, capital assets, and food security in rural Southwest Ethiopia. Food security, 11(1), 167-181. https://doi.org/https://doi.org/10.1007/s12571-018-00883-x
Martin, S.M., Lorenzen K.A.I. 2016. Livelihood diversification in Rural Laos. World Development, 83: 231–43. https://doi.org/10.1016/j.worlddev.2016.01.018
Melketo, T.A, Geta, E., Sieber, Stefan. 2020. Understanding livelihood diversification patterns among smallholder farm households in Southern Ethiopia. Sustainable Agriculture Research 9(1): 26–41. URL: https://doi.org/10.5539/sar.v9n1p26.
Mosissa, D., Mohammed, A., Tesfaye, Y. 2019. The effectiveness of soil and water conservation as climate smart agricultural practice and its contribution to smallholder farmers ’ livelihoods . The Case of Bambasi District Benishangul Gumuz Regional State , Northwest of Ethiopia. 1–17. https://doi.org/10.33552/WJASS.2019.02.000542
Mugonola, B., Deckers, J., Poesen, J., Isabirye, M., Mathijs, E. 2013. Adoption of soil and water conservation technologies in the Rwizi catchment of South Western Uganda. International Journal of Agricultural Sustainability. 11(3): 264–281. https://doi.org/10.1080/14735903.2012.744906.
Munanura, I. E., Backman, K. F., Hallo, J. C., Powell, R. B. 2016. Perceptions of tourism revenue sharing impacts on Volcanoes National Park, Rwanda: a sustainable livelihoods framework. Journal of Sustainable Tourism, 24(12): 1709-1726. DOI: 10.1080/09669582.2016.1145228
Musafili, I., Ngabitsinze, J.C., Niyitanga, F., Weatherspoon, D. (2019). Farmers’ usage preferences for Rwanda’s volcanoes national park. J. Agribus. Dev. Emerg. Econ., 9(1), 63–77. https://doi.org/10.1108/JADEE-01-2018-0004
NISR (National Institute of Statistics of Rwanda). (2018). The Fifth Integrated Household Living Conditions Survey, EICV 5 (2016/17). Kigali-Rwanda.
Njuki, J., Poole,J., Johnson,N., Baltenweck, I., Pali, P., Lokman, Z., Mburu,S. 2011. Gender, livestock and livelihood indicators. International Livestock Research Institute. Nairobi, Kenya.
Nyanga, A. Kessler,A., Tenge,A. 2016. Key socio-economic factors influencing sustainable land management investments in the West Usambara Highlands, Tanzania. Land Use Policy, 51: 260–66. http://dx.doi.org/10.1016/j.landusepol.2015.11.020.
Ochieng, J., Knerr, B., Owuor, G., Ouma, E., Knerr, B., Ouma, E. 2017. Commercialization of food crops and farm productivity : Evidence from smallholders in Central Africa. Agrekon. 55(4): 458-482. https://doi.org/10.1080/03031853.2016.1243062.
Ogutu, S. O., Qaim, M. 2019. Commercialization of the small farm sector and multidimensional poverty. World Development,114: 281–293. https://doi.org/10.1016/j.worlddev.2018.10.012.
Osuji, M. N. 2019. Determinants of Poverty Status of Cassava-based Farmers in Imo State , Nigeria. Advances in Research, 1-8. https://doi.org/10.9734/AIR/2019/v19i630145
Pattnaik, I., Lahiri-dutt, K., Lockie, S., Pritchard, B.2017. The feminization of agriculture or the feminization of agrarian distress ? Tracking the trajectory of women in agriculture in India. Journal of the Asia Pacific Economy. 23(1), 138-155. https://doi.org/10.1080/13547860.2017.1394569.
Pingali, P., Aiyar, A., Abraham, M., Rahman, A. 2019. Linking Farms to Markets: Reducing Transaction Costs and Enhancing Bargaining Power. Transforming Food Systems for a Rising India. Palgrave Studies in Agricultural Economics and Food Policy. ISBN 978-3-030-14409-8 (eBook). https://doi.org/10.1007/978-3-030-14409-8
Schulte, H.D., Mussho, O., Meuwissen, M.P.M. 2018. Considering milk price volatility for investment decisions on the farm level after European milk quota abolition. Journal of Dairy Science. 101, 7531–7539. https://doi.org/10.3168/jds.2017-14305
Sobczuk, H., Olszta, W. 2010. Sand-filled drainage ditches for erosion control : effects on infi ltration efficiency. https://doi.org/10.2136/sssaj2009.0003.
Tadesse, G., Tadiwos Z.. 2019. Grants vs. Credits for Improving the Livelihoods of Ultra-poor: Evidence from Ethiopia. World Development,113:320–29. https://doi.org/10.1016/j.worlddev.2018.09.009
Teshome, A., de Graaff, J., Kassie, M. 2016. Household-Level Determinants of Soil and Water Conservation Adoption Phases: Evidence from North-Western Ethiopian Highlands. Environmental Management, 57(3):620–636. DOI 10.1007/s00267-015-0635-5
Thiry, G., Alkire, S., Schleicher, J. 2018. Incorporating environmental and natural resources within analyses of multidimensional poverty. OPHI Research in Progress 50, University of Oxford.
Thorn, J. P. R., Friedman, R., Benz, D., Willis, K. J., Petrokofsky, G. 2016. What evidence exists for the effectiveness of on-farm conservation land management strategies for preserving ecosystem services in developing countries? A systematic map. Environmental Evidence, 5(1), 1–29. https://doi.org/10.1186/s13750-016-0064-9.
Verkaart, S., Munyua, B. G., Mausch, K., Michler, J. D. 2017. Welfare impacts of improved chickpea adoption: A pathway for rural development in Ethiopia? Food Policy, 66: 50–61. https://doi.org/10.1016/j.foodpol.2016.11.007
Widomski, M.K., Sobczuk, H., Olszta, W. (2010). Sand‐Filled Drainage Ditches for Erosion Control: Effects on Infiltration Efficiency. Soil Sci. Soc. Am. J., 74(1), 213–220. https://doi.org/10.2136/sssaj2009.0003
Wooldridge, J. M. 2015. Control function methods in applied econometrics. Journal of Human Resources, 50 (2): 420–445. doi: 10.3368/jhr.50.2.420
World Bank. 2019. Rwanda systematic country diagnostic. Kigali, Rwanda
Musafili, I., Ingasia, O., & Birachi, E. (2021). Effects of soil and water conservation investment on household income in the Volcanoes National Park of Rwanda. Journal of Agribusiness and Rural Development, 62(4), 383–399. https://doi.org/10.17306/J.JARD.2021.01427
Ildephonse Musafili
musafili@gmail.com
Department of Agricultural Economics and Agribusiness Management, Egerton University, Kenya Rwanda
https://orcid.org/0000-0002-7280-5831
Department of Agricultural Economics and Agribusiness Management, Egerton University, Kenya Rwanda
https://orcid.org/0000-0002-7280-5831
Oscar Ayuya Ingasia
Egerton University, Kenya Kenya
Egerton University, Kenya Kenya
Eliud Abucheli Birachi
International Center for Tropical Agriculture (CIAT), Rwanda Kenya
International Center for Tropical Agriculture (CIAT), Rwanda Kenya
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