NOTES AGRICULTURE & RURAL DEVELOPMENT Productivity and Climate Benefits of 68002 ISSUE 60 MARCH 2012 Improved Land Management Technologies Ensuring food security under changing climate food, fiber and fuel. The net increase in agricultural conditions is one of the major challenges of our era. land during the 1980s and 1990s was more than 100 Agriculture must not only become increasingly pro- million hectares across the tropics. About 55 percent ductive, but must also adapt to climate change while of this new agricultural land came at the expense reducing greenhouse gas emissions. Carbon seques- of intact forests, while another 28 percent came tration, the process by which atmospheric carbon from the conversion of degraded forests (Gibbs et dioxide is taken up by plants through photosynthesis al. 2010). The triple imperatives of increasing pro- and stored as carbon in biomass and soils can be in- ductivity, enhancing resilience to climate change, strumental in supporting these goals. First, increased and reducing emissions call for alternative practices soil carbon raises agricultural productivity, which is which are collectively referred to as climate-smart essential for reducing rural poverty. Second, it limits agriculture (CSA). greenhouse gas concentrations in the atmosphere. Historically, agricultural soils have lost more than 50 Third, it mitigates the impacts of climate change billion tons of carbon. A proportion of this carbon on agricultural ecosystems. This note describes the can however be recaptured through sustainable land potential benefits of selected land management tech- management (SLM) practices. While there is a grow- nologies that purposefully sequester carbon. ing global consensus on the need to rapidly scale-up CSA, doing so successfully will rely on an improved BACKGROUND knowledge base on what kinds of investment in land Agriculture is the economic foundation of many management technologies most effectively increase developing countries, employing up to two-thirds of the storage of organic soil carbon. A World Bank the workforce and contributing between 10 and 30 study titled Carbon Sequestration in Agricultural Soils percent of gross domestic product (GDP). For the documents important lessons learned in the area poorest people, GDP growth originating in agricul- which are summarized in this note. ture is about three times more effective in raising incomes than GDP growth originating from other sec- FARMS CAN BECOME MORE tors (World Bank, 2010). Yet agricultural growth rates PROFITABLE THROUGH SUSTAINABLE have declined significantly over the last decade and LAND MANAGEMENT food insecurity remains pervasive. Food production SLM technologies can benefit farmers by increasing must increase by 70 percent by 2050 to meet the yields and reducing production costs. These technolo- demands of a world with 9 billion people and chang- gies include integrated nutrient and water manage- ing diets. In some African countries it must increase ment, mulching and residue management, no-tillage, by more than 100 percent. Agriculture is highly vulnerable to climate change. Its direct relationship with the environment has always been one of agriculture’s distinguishing characteris- tics, and more than any other major economic sector, it will need to adapt to the changing climate. Under optimistic lower-end projections of temperature rise, climate change may reduce crop yields by between 10 and 20 percent. Increased incidence of droughts and floods may lead to a sharp increase in prices of some of the major grain crops by the 2050s. While agriculture is exceptionally susceptible to climate change, it is also a major contributing cause, accounting for about 14 percent of global greenhouse gas emissions. This proportion rises to about 30 percent when considering land-use change, includ- ing deforestation driven by agricultural expansion for Maize growing under Faidherbia albida trees. Photo: World Agroforestry Centre. CLIMATE-SMART AGRICULTURE, SUSTAINABLE LAND MANAGEMENT, AND CONSERVATION AGRICULTURE Climate-smart agriculture seeks to increase productivity in an environmentally and socially sustainable way, strengthening farmers’ resilience to climate change, and reducing agriculture’s contribution to climate change by reducing greenhouse gas emissions and sequestering carbon on farmland. It includes a variety of proven techniques such as mulching, integrated nutri- ent management, intercropping, conservation agriculture, crop rotations, integrated crop-livestock management, agroforestry, improved grazing, and improved water management. It also includes a number of innovative practices such as better weather forecasting, early warning systems, and risk management. A key element of CSA is sustainable land management (SLM), which is defined as a knowledge-based procedure that helps integrate land, water, biodiversity, and environmental management to meet rising food and fiber demands while sustaining ecosystem services and livelihoods. It entails the implementation of land use systems and management practices that en- able humans to maximize the economic and social benefits from land while maintaining or enhancing the ecosystem services that accrue from land resources. Among the most important practices associated with SLM is conservation agriculture, which aims to achieve sustainable and profitable agriculture and subsequently aims at improved livelihoods of farmers through the application of the three principles: minimal soil disturbance, permanent soil cover, and crop rotations. crop rotation, cover crops, and agroforestry. The integrated land cant periods of time. This reduces the amount of land available use systems combine trees and shrubs with crops, and in many for cultivation in the short run, but can lead to overall increases settings with both crops and livestock. Profits increase for a in productivity and stability in the long run. The time-averaged, variety of reasons that vary by system and by crop. Profit gains above-ground biomass of crop residues and other technologies achieved in no-tillage systems for instance primarily result from in the lower left quadrant of figure 1 is relatively small compared the reduction in labor required for seedbed preparation and to that of agroforestry systems. Because crop residues do not related operations compared to conventional tillage systems. In accumulate biomass easily, mitigation benefits are also limited. Zambia, no-tillage led maize yields to double and cotton yields to increase by 60 percent. While maize, sorghum, millet, cotton Fertilizers counter soil nutrient depletion and increase crop and groundnut yields often increase significantly in agroforestry yields, enabling intensified production that can reduce pressure systems, the relatively high labor intensity required to manage for agriculture to expand into marginal and forested areas. competition between trees and crops tends to offset part of the Applied judiciously, the negative environmental impacts profits gained. Inorganic fertilizers also result in relatively high associated with fertilizer use can be effectively minimized. profits by providing nutrients that are readily absorbed by plants. Inorganic fertilizer tends to be more economical than manures They are however less environmentally-friendly owing to nitrous owing to the labor costs entailed by collecting and processing oxide emissions associated with high application rates of nitro- manures. Manures also have lower nutrient contents, requiring gen fertilizers and to the fossil fuel-based emissions associated the application of large amounts on any given parcel of land, with fertilizer production and transportation. and are associated with high methane emissions. MAXIMIZING SYNERGIES AND PRIVATE BENEFITS AND PUBLIC GOODS MANAGING TRADE-OFFS Soil carbon sequestration can provide farmers with substantial Trade-offs occur when activities that increase carbon storage private benefits through its positive effects on soil fertility and reduce productivity and profitability. Synergies on the other crop yields. Other benefits such as improved water and air hand imply a positive correlation between carbon sequestration quality and biodiversity are public goods, the benefits of which and profitability. Increasing food security with CSA will require accrue to whole communities and societies. In the case of land management technologies that maximize synergies and technologies that contribute to climate change mitigation, the minimize tradeoffs. Two agroforestry systems in particular benefits are global in scope. Government intervention is often achieve important synergies: intercropping and alley farming required to encourage land management practices and the (top right quadrant of figure 1). Intercropping is growing crops adoption of technologies that generate these public goods. A near existing trees, whereas alley farming is growing crops number of technologies such as afforestation, improved fallows, simultaneously in alleys of perennial, preferably leguminous terracing, and cross-slope barriers incur high costs and gener- trees or shrubs. Both are important strategies for increased ate few if any profits in the short term – and sometimes longer. productivity and resilience of the farming system. This leaves farmers with little incentive to invest in these areas, particularly if their rights to the land are insecure. The relatively Land management technologies in the lower right quadrant of high mitigation potential of these technologies warrants the in- figure 1 have high mitigation potential, but are only modestly vestment of public resources. Less profitable technologies with profitable. Afforestation using fast-growing trees to accelerate lower mitigation potential—such as those located in the lower soil rehabilitation and establish barriers against erosion across left quadrant of figure 2—require substantially less if any public sloping areas tends to remove land from production for signifi- support. Public support which focuses on research, investments 2 FIGURE 1: TRADEOFFS BETWEEN PROFITABILITY FIGURE 2: RELATIONSHIP BETWEEN PRIVATE AND CARBON SEQUESTRATION OF SUSTAINABLE BENEFITS AND PUBLIC COSTS LAND MANAGEMENT TECHNOLOGIES 1000 1000 Private benefit (per tonne of carbon dioxide sequestered) Profit per tone of carbon dioxide sequestered (US $) No-tillage No-tillage Inorganic fertilizer Inorganic fertilizer Intercropping Intercropping 100 100 Manure Alley farming Manure Alley farming Cover crops Cover crops Soil amendments Include trees Include trees Crop residues Terracing Afforestation Terracing Afforestation Crop residues Rotation Rotation diversification Tree crop farming Tree crop farming 10 intensification 10 Crop rotation Improved fallow Rainwater harvesting Rainwater Improved harvesting Cross slope barriers fallow Cross slope barriers 1 1 0 2 4 6 8 10 0 3 5 8 10 13 Carbon dioxide sequestered (ton per hectare per year) Public cost ($ per tonne of carbon dioxide sequestered) in improved land management and land tenure rather than on expenditures that are often required to adopt a new technology. input support are generally more effective, benefit more farm- Necessary inputs may not be available in local markets. Farm- ers, and are more sustainable in the long run. ers may lack information about the potential gains of adopting a new technology. Some new technologies are incompatible with While the distinction between private benefits and public traditional practices. Capacity to implement new techniques is goods is a useful reference for targeting the investment of often limited, and many farmers have little if any experience with finite public resources, determining which forms of funding are the kinds of collective action that are needed for the diffusion of the most appropriate for any given technology requires an un- certain technologies. While the factors that determine adoption derstanding of the barriers and constraints that prevent farmers rates vary, a number of them appear to be particularly prominent. from adopting that technology. Table 1 suggests that lack of credit and inputs and land tenure problems are by far the most important factors limiting adoption. OVERCOMING BARRIERS TO ADOPTION Improved availability of inputs appears to be a necessary but not Although improved land management technologies and prac- sufficient condition, and better market prices for crops and other tices can generate substantial public and private benefits, their agricultural produce are crucial. Secure land rights is a precondi- adoption often faces a variety of socioeconomic and institutional tion for CSA because it provides incentives for local communities barriers. These include the significant upfront investments and to manage land more sustainably. TABLE 1: RELATIVE IMPORTANCE OF DIFFERENT FACTORS FOR ADOPTING IMPROVED LAND MANAGEMENT PRACTICES Land management Inputs/ Market Training/ Land Research Infrastructure technology Credits access Education tenure Inorganic fertilizer *** ** ** ** * ** Manure ** ** * ** * ** Conservation agriculture ** ** *** ** ** * Rainwater harvesting ** ** ** *** ** ** Cross-slope barriers ** * ** ** ** * Improved fallows ** * * *** ** * Grazing management *** *** ** *** ** * Key * = Low importance, ** = Moderate importance; *** = High importance. 3 For technologies that generate significant private returns, been slower than many people hoped for. While the negative grant funding or loans may be more suitable to overcom- impacts of agricultural production in terms of land-use change ing adoption barriers. For technologies such as conservation and greenhouse gas emissions were reasonably well covered agriculture that require substantial up-front investment in by the Convention, the real and potential contributions the machinery and other inputs, other schemes such as those sector can and does make in terms of sequestering carbon in involving payment for ecosystem services may be more agricultural biomass and soils was for the most part omitted. effective in overcoming the adoption barrier. Technologies Redressing this omission promises to foster a more balanced such as agroforestry systems, which entail tree planting and perspective in which food security is not necessarily at odds extended waiting periods before the trees mature and gener- with climate change adaptation and mitigation (an unworkable ate economic returns, helping farmers bridge these periods conflict in which longer term environmental concerns are vir- can be decisive - and potentially a highly strategic purpose tually guaranteed to universally lose out politically to the more toward which to channel resources from carbon finance. immediate concern of food supply). A more practical and thor- Public sector costs are also limited by the proportion of over- ough picture makes it possible for agriculture to be rewarded all investment that is assumed by the private sector. Private for its positive environmental impacts, and to be an integral investment for instance is instrumental in establishing tree � part of “the solution� as well as part of “the problem. This is plantations and in developing improved seeds and seedlings. vitally important, because agriculture needs to be fully incor- porated into adaptation and mitigation strategies. As a result, A number of improved land management technologies are the international community has recognized the importance knowledge-intensive, and promoting their adoption is likely of integrating agriculture into the ongoing negotiations on the to require training and extension. Conservation agriculture international climate change regime. At the 17th Conference for instance entails sophisticated combinations of no-tillage, of Parties to the UNFCCC in Durban, South Africa in 2011, residue management, use of cover crops, and other activi- the Parties asked the UNFCCC Subsidiary Body for Scientific ties and practices that many farmers have limited experience and Technological Advice to explore the possibility of a formal with. The knowledge base of local land management practic- work program on agriculture. es can also be improved through careful targeting of capacity development programs. Raise the level of national investment in agriculture. Finite public resources can be selectively targeted by: POLICY IMPLICATIONS a) identifying sustainable land management technologies Because the private benefits that drive land use decisions that generate no short term returns and therefore would often fall short of social costs, carbon sequestration may benefit from services and resources that help adopters to not reach optimal levels from a social point of view unless bridge the interim period between the initial investment mechanisms are in place to encourage farmers. Some public and when returns begin to be realized; and policies that can potentially incentivize carbon sequestration include: b) purposefully tailoring interventions to address the specific needs and concerns of farmers. Strengthen the capacity of governments and agencies to implement climate-smart agriculture. Countries must Introducing policies that provide for an enabling environment be prepared to access new and additional finance, and to for private sector investment can increase overall investment, systematically build the technical and institutional capacity and this private investment can be targeted to some degree of the government ministries that play a necessary role in as well by providing incentives for financial service providers implementing CSA programs. Capacity building is also vitally to tailor lending instruments to meet the needs of agricultural necessary to prepare extension and training services, with clients. Bundling agricultural credit and insurance together, agents who are both well-informed about land management and providing different forms of risk management such as technologies and well-aware of local conditions and the index-based weather insurance or weather derivatives are needs and concerns of farmers. Existing national policies, areas of private investment that can be encouraged through strategies, and investment plans are being examined, and public policy and public-private partnerships. where necessary, will be strengthened to become effective instruments in scaling-up investments for CSA. This ARD Note was written by Dr. Ademola Braimoh, and Place agriculture in a Global Cooperative Agreement. edited by Gunnar Larson of the World Bank’s Agriculture Given the tremendous significance that agriculture has for and Rural Development Department. the global climate, progress in incorporating it into the UN Framework Convention on Climate Change (UNFCCC) has 1818 H Street. NW Washington, DC 20433 www.worldbank.org/ard