Income effects associated with specific levels of erosion reduction for a
representative farm in the Bao watershed area in the Dominican Republic are
examined in a linear programming framework. Estimation of costs expected in
response to specific levels of erosion reduction and the income effects of changes in
agricultural policies on the farmer's ability to conserve soil are examined.
Results indicate that income losses will be substantial when complying with soil
loss standards without introducing soil conservation practices. Net income reduction
of 36% can be expected with a reduction in soil loss by 50%. With the introduction
of soil conservation practices, substantial reductions in erosion can be obtained with
only a minor reduction in net income. For example, with grass strips, 50% reduction
in soil loss can be expected with only a 7% reduction in income.
Analysis of the effects of changes in agricultural policies indicates that restricting
access to credit and changes in tenure from secure land holdings to lack of land titles
does not affect the incentive to conserve soil in the short run. Furthermore, analysis
of effects of changes in agricultural pricing policies indicates that the promotions of
coffee, sweet potatoes, and beans represent the least-costly means of meeting the
twin goals of erosion reduction and income maintenance.
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