People living in the rural highlands of Ethiopia suffer from land degradation, low agricultural productivity and poverty. Finding solutions to these connected problems requires policymakers to understand the potential impacts of different interventions.

Research from the Norwegian University of Life Sciences in collaboration with the International Food Policy Research Institute, USA, uses a bio-economic model of land management and agricultural production to assess the impact of possible policies on farm households in eastern Amhara. In this area, people’s welfare and land quality are both deteriorating. During the last 20 years, most households have shifted from selling surplus grain to buying grain for their own survival. Farmers have little or no opportunity to diversify their income sources and droughts make many people dependent on food aid for survival.

Researchers have developed a bio-economic model that considers the economic, social and ecological factors that influence food security. This model explores the links between households and ecosystems and the effects of these links over time. One benefit of dynamic models like this is that it describes the relationship between human activities and natural resources. Modern computer power allows models that are far more complex than what was possible only a few years ago.

Using data from more than fifteen years, the research describes the potential impacts of different programmes, including increased access to credit for fertiliser, food-for-work, tree planting and off-farm employment opportunities. The model predicts the effect that each of these has on land management, productivity, food security and poverty amongst small farmers in Eastern Amhara. The research shows:

• Increasing fertiliser credit can increase agricultural productivity, food security and income, but could also undermine farmers’ incentives to invest in soil and water conservation. This would probably increase land degradation.
• Increased employment opportunities through programmes such as food-for-work can increase household incomes substantially. However, these also likely to reduce food production and soil conservation unless food-for-work is targeted towards soil conservation.
• Promoting tree planting on degraded land could increase incomes significantly without compromising food production or soil conservation. If combined with conservation incentives, this could result in improved land management as well as increased incomes and food security.

A combination of different policies is likely to be the most successful at increasing food security and reducing land degradation. It is important to design and select these policies carefully to maximise benefits and implement them effectively. The research suggests:

• Policies should focus on developing the non-farm sector. These should be complemented with policies that focus on conserving the natural resource base in the region.
• Food-for-work programmes undermine food production. However, linking these to conservation investments may reduce this negative effect and make food production more sustainable.
• Local participation in conservation must be encouraged to ensure that investments have lasting effects.
• Food-for-work can stimulate tree planting programmes, particularly if markets for tree products can be developed. This may reduce the level of land degradation.

Source(s):
‘Policy Analysis for Sustainable Land Management and Food Security in Ethiopia: a bioeconomic model with market imperfections’ International Food Policy Research Institute, Research Report No. 140, by Stein Holden, Bekele Shiferaw and John Pender, 2005 Full document.

Funded by: International Food Policy Research Institute, International Livestock Research Institute, Norwegian Ministry of Foreign Affairs, Norwegian University of Life Sciencses and the Research Council of Norway.

id21 Research Highlight: 16 March 2006

Further Information:
Stein Holden
Department of Economics and Resource Management
Norwegian University of Life Sciences
Box 5033
Ås
Norway

Tel: +47 6496 5699
Fax: +47 6494 3012
Contact the contributor: stein.holden@umb.no

Norwegian University of Life Sciences, Norway

International Food Policy Research Institute, USA

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'New approaches to land management and security in Africa'

'Agricultural research to reverse highland degradation: thinking beyond boundaries'

'Turning research into policy for dryland development'

'Land laws for the people, by the people: a new approach in Burkina Faso'