Effects of the conservation Set-Aside program on the farm economy in China: The cases of shanxi province and inner Mongolia autonomous region
2007
Oniki, S.(Japan International Research Center for Agricultural Sciences, Tsukuba, Ibaraki) | Kagatsume, M. | Yu, J. | Gensuo, B.
This study explores impacts of the conservation setaside program in China known as 'Grain for Green' on the structure of agricultural production and the productivity of individual farms. Although this program is one of the largest soil conservation programs related to agriculture in developing countries, so far few studies have tried to make an economic evaluation of the impacts of the program, especially an econometric analysis. Surveys for 332 households were conducted in the southern part, the central part and the northern part on the Loess Plateau in Shanxi Province, and the southern part of the Mongolian Plateau in Inner Mongolia Autonomous Region. Soil degradation is severe in these regions, especially in the central region of Shanxi. Estimation of changes in farm incomes after the program shows that many farm households have stabilized their incomes by shifting from grain production to livestock production and by shifting their surplus labor to off-farm employment. While grain production has decreased rapidly since the program implementation, the number of small animals and amount of feed production have increased.
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