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In the mountainous regions of Southeast Asia, smallholder farmers are both victims of and actors in the degradation of natural resources, as a result of their agricultural activities. Addressing sustainable development thus requires a good understanding of the agriculture-poverty-environment nexus – defined as the set of complex linkages between agriculture, poverty and the environment – and of the economic incentives that drive the natural resource use of smallholder farmers in vulnerable areas. The objective of this chapter is to improve our understanding of the extent and nature of these linkages across different settings in Southeast Asia – namely northern Vietnam and northern Thailand, and to derive policy recommendations that can contribute towards the enhancement of sustainable development in these regions. The chapter draws on empirical research conducted in northern Vietnam and northern Thailand between 2007 and 2011.

Markets for high-value agricultural commodities are growing and can contribute to reducing rural poverty. However, the poor may be unable to participate in such markets, and adverse environmental impacts may counterbalance short-term benefits. Hence, policies are needed that help reducing poverty while protecting the environment. We address this challenge using the case of commercial maize production for animal feed purposes in a marginal upland area of Vietnam. We identify determinants of farmers’ degree of participation in maize production using regression analysis and assess farmers’ awareness of soil erosion and their conservation practices. The poorest are particularly specialized in maize but depend on disadvantageous input supply and marketing arrangements to offset infrastructural and institutional deficiencies. High awareness of soil erosion is contrasted by lacking conservation practices due to high opportunity costs. Policies should foster the integration of livestock in the maize-based farming system and promote soil conservation technologies that produce feed.

Smallholder farmers’ land allocation decisions in marginal areas of developing countries typically involve a substantial element of risk, especially when they concern input intensive cash crops. Hence, apart from farmers’ resource endowment, their individual level of risk aversion is a potentially important determinant of such decisions. However, in microeconometric models a measure of individuals’ risk preferences is usually lacking. We address this shortcoming by testing the explanatory power of a wide range of risk preference measures based on hypothetical and non-hypothetical elicitation methods in a model explaining land allocation to commercial hybrid maize production in a fragile upland area of Vietnam. Based on data collected in a random sample of 300 households, we find that the poorest farmers are particularly specialized in commercial maize production, but they are highly dependent on relatively disadvantageous input supply and marketing arrangements offered by maize traders, making this specialization particularly risky. Our study confirms the relevance of decision-makers’ risk preferences in addition to their asset endowment in the land allocation decision. The inclusion of risk preference measures as explanatory variables is found to not cause any significant endogeneity bias. However, only risk preference measures that are based on hypothetical maize related scenarios have explanatory power. We conclude that (1) risk preferences are to a certain extent decision domain specific and (2) hypothetical scenarios that are closely related to farmers’ real-life decisions may produce more reliable results than unfamiliar, non-agricultural scenarios or lottery-based methods, which may be difficult to grasp for respondents with limited formal education.

Income growth and urbanization in developing countries have enlarged markets for highvalue agricultural commodities. However, there are concerns that lacking access to physical, financial, and human capital, as well as infrastructure and institutions limit the ability of the poor to participate in and benefit from such commercial agricultural activities. There may further be a trade-off between wealth enhancing effects of intensive commercial agriculture and adverse long-term effects on farmers’ livelihoods due to natural resource degradation. This study provides empirical evidence on these crucial issues and derives related policy recommendations using the example of Vietnam. Here, economic growth has boosted the demand for animal products and, consequently, commercial maize production for animal feed purposes especially in erosion-prone upland areas. Using data from mountainous Yen Chau district in north-western Vietnam, the main objective of this paper is to investigate the degree of farmers’ engagement in commercial maize production and the determinants of their land allocation decision, whereby a special focus is laid on the poorest farm households. We find that maize covers most of the sloping uplands and generates the lion’s share of farmers’ cash income. The poorest farmers are particularly specialized in commercial maize production, but they are highly dependent on relatively disadvantageous input supply and marketing arrangements offered by maize traders. Although farmers in all wealth groups are well aware of soil erosion, effective soil conservation measures are rarely practiced. Due to the trade-off between short-term wealth enhancing effects of maize production and lacking sustainability we propose a two-pronged policy approach that comprises (1) measures aimed at enhancing the short-term profitability of maize production for the poorest farmers while reducing the associated market related risks and (2) measures aimed at enhancing both the economic and ecological sustainability of land use in the long run through the promotion of economically attractive soil conservation options that may gradually evolve into a more diversified land use system.Einkommenswachstum und zunehmende Verstädterung in Entwicklungsländern haben zu einer Ausweitung von Märkten für hochwertige Agrarprodukte geführt. Es gibt jedoch Bedenken, dass die Armen in ihrer Möglichkeit an derartigen kommerziellen landwirtschaftlichen Aktivitäten teilzunehmen und von ihnen zu profitieren durch mangelnden Zugang zu physischem, finanziellen und Humankapital, sowie Infrastruktur und Institutionen beschränkt sind. Zudem mögen die wohlfahrtssteigernden Effekte intensiver kommerzieller Landwirtschaft mit durch Degradierung natürlicher Ressourcen hervorgerufenen negativen Langzeitwirkungen auf die Existenzgrundlage von Kleinbauern konfligieren. Die vorliegende Studie liefert empirische Erkenntnisse zu diesen wichtigen Fragen am Beispiel von Vietnam und leitet entsprechende Politikempfehlungen ab. In Vietnam beflügelt Wirtschaftswachstum die Nachfrage nach Tierprodukten und damit den 2 kommerziellen Maisanbau zu Futterzwecken vor allem in erosionsanfälligen Bergregionen. Das Hauptziel dieses Aufsatzes ist es anhand von Daten aus dem bergigen Distrikt Yen Chau in Nordwestvietnam zu untersuchen, in welchem Umfang die dortigen Bauern kommerziellen Maisanbau betreiben und welche Faktoren sie bei ihrer Landallokationsentscheidung beeinflussen, wobei spezielles Augenmerk auf die ärmsten bäuerlichen Haushalte gelegt wird. Unsere Ergebnisse zeigen, dass Mais auf einem Großteil der Hanglagen angebaut wird und den Löwenanteil der bäuerlichen Bareinkommen generiert. Die ärmsten Bauern sind in besonderem Maße auf den kommerziellen Maisanbau spezialisiert, sie hängen jedoch stark von relativ nachteiligen Vereinbarungen mit Maishändlern für die Bereitstellung von Inputs und der Vermarktung ab. Obwohl Bauern aller Einkommensschichten sich der auftretenden Bodenerosion sehr wohl bewusst sind, werden effektive Bodenschutzmaßnahmen kaum praktiziert. Aufgrund des Zielkonfliktes zwischen dem kurzfristigen, wohlfahrtssteigernden Effekt der Maisproduktion und ihrer mangelnden Nachhaltigkeit plädieren wir für einen zweigleisigen Politikansatz. Dieser umfasst (1) Maßnahmen, die die kurzfristige Rentabilität des Maisanbaus für die ärmsten Bauern erhöhen, während gleichzeitig Marktrisiken vermindert werden, und (2) Maßnahmen, die die ökonomische und ökologische Nachhaltigkeit der Landnutzung langfristig durch die Förderung wirtschaftlich attraktiver Bodenschutzoptionen erhöhen, die sich schrittweise zu einem diversifizierteren Landnutzungssystem weiterentwickeln könnten.

Income growth and urbanization in developing countries have enlarged markets for highvalue agricultural commodities. However, there are concerns that lacking access to physical, financial, and human capital, as well as infrastructure and institutions limit the ability of the poor to participate in and benefit from such commercial agricultural activities. There may further be a trade-off between wealth enhancing effects of intensive commercial agriculture and adverse long-term effects on farmers’ livelihoods due to natural resource degradation. This study provides empirical evidence on these crucial issues and derives related policy recommendations using the example of Vietnam. Here, economic growth has boosted the demand for animal products and, consequently, commercial maize production for animal feed purposes especially in erosion-prone upland areas. Using data from mountainous Yen Chau district in north-western Vietnam, the main objective of this paper is to investigate the degree of farmers’ engagement in commercial maize production and the determinants of their land allocation decision, whereby a special focus is laid on the poorest farm households. We find that maize covers most of the sloping uplands and generates the lion’s share of farmers’ cash income. The poorest farmers are particularly specialized in commercial maize production, but they are highly dependent on relatively disadvantageous input supply and marketing arrangements offered by maize traders. Although farmers in all wealth groups are well aware of soil erosion, effective soil conservation measures are rarely practiced. Due to the trade-off between short-term wealth enhancing effects of maize production and lacking sustainability we propose a two-pronged policy approach that comprises (1) measures aimed at enhancing the short-term profitability of maize production for the poorest farmers while reducing the associated market related risks and (2) measures aimed at enhancing both the economic and ecological sustainability of land use in the long run through the promotion of economically attractive soil conservation options that may gradually evolve into a more diversified land use system.Einkommenswachstum und zunehmende Verstädterung in Entwicklungsländern haben zu einer Ausweitung von Märkten für hochwertige Agrarprodukte geführt. Es gibt jedoch Bedenken, dass die Armen in ihrer Möglichkeit an derartigen kommerziellen landwirtschaftlichen Aktivitäten teilzunehmen und von ihnen zu profitieren durch mangelnden Zugang zu physischem, finanziellen und Humankapital, sowie Infrastruktur und Institutionen beschränkt sind. Zudem mögen die wohlfahrtssteigernden Effekte intensiver kommerzieller Landwirtschaft mit durch Degradierung natürlicher Ressourcen hervorgerufenen negativen Langzeitwirkungen auf die Existenzgrundlage von Kleinbauern konfligieren. Die vorliegende Studie liefert empirische Erkenntnisse zu diesen wichtigen Fragen am Beispiel von Vietnam und leitet entsprechende Politikempfehlungen ab. In Vietnam beflügelt Wirtschaftswachstum die Nachfrage nach Tierprodukten und damit den 2 kommerziellen Maisanbau zu Futterzwecken vor allem in erosionsanfälligen Bergregionen. Das Hauptziel dieses Aufsatzes ist es anhand von Daten aus dem bergigen Distrikt Yen Chau in Nordwestvietnam zu untersuchen, in welchem Umfang die dortigen Bauern kommerziellen Maisanbau betreiben und welche Faktoren sie bei ihrer Landallokationsentscheidung beeinflussen, wobei spezielles Augenmerk auf die ärmsten bäuerlichen Haushalte gelegt wird. Unsere Ergebnisse zeigen, dass Mais auf einem Großteil der Hanglagen angebaut wird und den Löwenanteil der bäuerlichen Bareinkommen generiert. Die ärmsten Bauern sind in besonderem Maße auf den kommerziellen Maisanbau spezialisiert, sie hängen jedoch stark von relativ nachteiligen Vereinbarungen mit Maishändlern für die Bereitstellung von Inputs und der Vermarktung ab. Obwohl Bauern aller Einkommensschichten sich der auftretenden Bodenerosion sehr wohl bewusst sind, werden effektive Bodenschutzmaßnahmen kaum praktiziert. Aufgrund des Zielkonfliktes zwischen dem kurzfristigen, wohlfahrtssteigernden Effekt der Maisproduktion und ihrer mangelnden Nachhaltigkeit plädieren wir für einen zweigleisigen Politikansatz. Dieser umfasst (1) Maßnahmen, die die kurzfristige Rentabilität des Maisanbaus für die ärmsten Bauern erhöhen, während gleichzeitig Marktrisiken vermindert werden, und (2) Maßnahmen, die die ökonomische und ökologische Nachhaltigkeit der Landnutzung langfristig durch die Förderung wirtschaftlich attraktiver Bodenschutzoptionen erhöhen, die sich schrittweise zu einem diversifizierteren Landnutzungssystem weiterentwickeln könnten.

Climate risk studies have largely neglected household coping and adaptation strategies. In this paper we analyze drought impacts, drought risk management, and resulting drought resilience in Awash River Basin of Ethiopia based on socio-economic data collected from 43 randomly selected Peasant Associations. We find that severe drought periods have led to a significant depression of crop yields and to widespread death of livestock in the past. Drought periods have drastically increased the proportion of food insecure households and lengthened the duration of food insecurity in the area. Since, with climate change, drought periods are predicted to become more frequent in this region in the future, the problem of food insecurity is likely to become even more severe. Ex-ante adaptation strategies are widely practised in Awash River Basin and include the storage of crop residues as fodder for livestock, the rearing of drought tolerant livestock, mixed cropping, the use of short duration crop varieties, and the adoption of soil and water conservation practices. Ex-post coping strategies utilized to manage the consequences of drought include the sale of assets and the reliance on consumption loans and support offered by informal networks. Therefore, suitable policies are urgently needed to strengthen farmers’ capacity to adapt to and cope with drought. Training farmers in the production and conservation of livestock fodder as well as in soil and water conservation practices appear to be key policy options relevant in the area. Moreover, improving farmers’ access to climate related information, especially drought forecasts, could improve the timely adoption of effective adaptation measures.

In Vietnam, a quasi-private property regime has been established in 1993, with the issuance exchangeable and mortgageable land use right certificates. Using primary qualitative and quantitative data, this paper investigates the role of the titling policy in fostering the use of soil conservation practices by upland farmers in the northern mountains region. There, population growth and growing market demands have induced farmers to intensify agricultural production onto steep slopes. While poverty has been reduced, environmental 16 problems such as soil erosion, landslides, and declining soil fertility have become severe over the past years. Our findings suggest that soil conservation technologies although relatively well known are perceived as being economically unattractive. Focusing on agroforestry, we estimate household and plot level econometric models to empirically assess the determinants of adoption. We find that the possession of a formal land title influences adoption, but that the threat of land re-allocations in villages creates uncertainty and discourages this type of investment. We conclude that more efforts are needed from decision-makers to promote and support the adoption of conservation practices and also to clarify objectives of the land policy in order to secure land tenure and initiate a more sustainable development in fragile areas.

Landslides are a severe problem during the rainy season in many mountainous regions in Asia where forests have been cut down so that mountain slopes are destabilized. In this study we analyze the extent and causes of landslides in a mountainous area in Northern Vietnam as viewed from the perspective of the population concerned. We also scrutinize the ideas of these people regarding suitable landslide protection measures and their willingness to contribute to the practical implementation of these measures. It is shown that the majority of people living in this area feels highly concerned about the frequent landslide events and that they support the idea of government programs to mitigate the danger of future landslides. We measure the utility they expect from such a landslide protection program, i. e. the social value of such a program, in terms of their willingness to contribute personally to its implementation. Since household budgets are tight in these rural areas where subsistence farming still prevails we also analyze the possibilities to measure these expected utility gains in terms of people's willingness to support the proposed landslide protection program through working time instead of money. The prospect of employing such an alternative means of contribution is, however, seen rather critical.

In Vietnam, a quasi private property regime has been established in 1993 with the issuance of exchangeable and mortgageable long term land use right certificates. Using primary qualitative and quantitative data collected in a mountainous district of Northern Vietnam, this paper investigates the role of the land policy in the adoption of soil conservation technologies by farmers. This issue is of crucial importance in the region where population growth and growing market demands have induced farmers to intensify agricultural production. While poverty has been reduced, environmental problems such as soil erosion, landslides, and declining soil fertility have become more severe over the past years. Among the abundant literature on the impact of property rights and formal land titles in developing countries, only a few studies have focused on the adoption of soil conservation technologies: an important element in sustainable development strategies of fragile agro-ecological areas confronted with increasing population densities. Our findings suggest that soil conservation technologies are perceived as being economically unattractive; therefore, most upland farmers continue to practice the prevailing erosion-prone cultivation system. Focusing on agroforestry as one major soil conservation option, we estimate household and plot level econometric models to empirically assess the determinants of adoption. We find that the possession of a formal land title influences adoption, but that the threat of land re-allocations in villages discourages adoption by creating uncertainty and tenure insecurity. We conclude that more efforts are needed from decision-makers to promote and support the adoption of conservation practices and to clarify objectives of the land policy in order to secure land tenure and foster sustainable development in fragile areas.

In Vietnam, the demand for meat products has grown dramatically due to rapid economic growth and urbanisation and is expected to further increase in the future. Being the primary source of feed for the country’s livestock and poultry industry, maize has become the second most important crop after rice. While this maize boom has the potential to reduce rural poverty, it promotes the expansion of agricultural cultivation into fragile agro-ecological zones, often leading to deforestation and soil degradation, especially in the uplands. Using empirical evidence from mountainous Yen Chau district in north-western Vietnam, the objective of this paper is to investigate the current economic importance and environmental implications of maize cultivation. Furthermore, particular emphasis is placed on the identification of factors influencing farmers’ decision how much area to allocate to maize in order to derive research and policy recommendations. Maize is the dominant crop in Yen Chau, covering most of the uplands and generating the lion’s share of households’ cash income. Although farmers are well aware of soil erosion on their maize plots, effective soil conservation measures are rarely practiced. Maize is attractive to farmers from all social strata, notably the poor, and through marketing arrangements with traders its cultivation is also not constrained by poor infrastructural conditions. Access to low-interest credit should be enhanced to mitigate farmers’ risk of being caught in a poverty trap when maize revenues plummet due to pests, diseases, price fluctuations, or adverse weather conditions. To address the problem of soil degradation in the maize-dominated uplands, research is needed on soil conservation options that are economically more attractive than those promoted thus far.

Crop production in the tropics is subject to considerable climate variability caused by the El Niño-Southern Oscillation (ENSO) phenomenon. In Southeast Asia, El Niño causes comparatively dry conditions leading to substantial declines of crop yields with severe consequences for the welfare of local farm households. Using a modelling approach that combines regression analysis with linear programming and stochastic simulation, and integrates climatic and hydrologic modelling results, the objective of this paper is to assess the impact of El Niño on agricultural incomes of smallholder farmers in Central Sulawesi, Indonesia, and to identify suitable crop management strategies to mitigate the income depressions. The results contribute to the formulation of enhanced development policies and provide guidance for future research activities. Based on resource endowment and location within the mountainous research area, we identify five farm classes by cluster analysis. Our linear programming model maximizes their cash balance at the end of the period most severely affected by El Niño. Main activities are the cultivation of rice, maize, and cocoa, for which external Cobb-Douglas production functions are estimated that include water supply as an input factor; they generate output according to level of production intensity as well as predicted weather patterns. Stochastic simulation is used to account for variations in crop yields due to factors not captured by the production functions. Iterative model runs produce probability distributions of the model outcomes for each household class, whereby the downside risk of failing to achieve a specified minimum level of income is particularly insightful. The results illustrate that drought-related crop management recommendations must be tailored to farm households according to their location, farming system, and resource endowment.

Crop production in the tropics is subject to considerable climate variability caused by the El Nino-Southern Oscillation (ENSO) phenomenon. In Southeast Asia, El Niño causes comparatively dry conditions leading to substantial declines of crop yields. In concert with global warming, the frequency and severity of the phenomenon are likely to increase during the 21st century. Little is known about the impact of ENSO-related drought on the welfare of farm households in developing countries. This paper seeks to contribute to closing this knowledge gap with a case study from Central Sulawesi, Indonesia. Its objective is to measure household resilience towards drought periods and identify its influencing factors to deduce policy implications. Using consumption-related indicators, we develop an index measuring household drought resilience; we then identify its determinants applying an asset-based livelihood framework encompassing the household-specific level of technical efficiency in agricultural production. Most of the drought-affected farm households are forced to substantially reduce expenditures for basic necessities, whereby the drastic cuts in food expenditures are particularly alarming. Households' drought resilience is strengthened by the possession of liquid assets, access to credit, and a high level of technical efficiency in crop production. The results suggest a number of policy recommendations, namely the improvement of the farmers' access to ENSO forecasts, the provision of formal credit at moderate interest rates to facilitate consumption smoothing, and the intensification of agricultural extension efforts in view of low levels of technical efficiency found in agricultural production.