Consumption risk, farm characteristics, and soil conservation adoption among low-income farmers in the Philippines
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This paper investigates patterns of soil conservation adoption among low-income farmers in the Philippines. A model is presented that
focuses attention on the role of assets and consumption risk in influencing soil conservation adoption decisions. Results from a reduced-form
probit model of adoption are reported. These econometric findings indicate that patterns of soil conservation adoption reflect relative risk
considerations in addition to farm and household characteristics. Farm size, tenure security, labor availability, and land quality all exhibit a
positive association with soil conservation adoption. In contrast, controlling on these and other household characteristics, the probability of
adoption falls as consumption risk rises. These results underscore a need for greater sensitivity among policymakers to the role of
consumption risk in influencing soil conservation decisions in low-income settings.