Upland poverty reduction through payment for watershed services
2007
Balangue, T.O, Environment and Economic C enter for Studies, Quezon City (Philippines)
Payment for watershed services approach requires hydrological, land use, resource valuation and market research to establish a water supply problem caused by land-use change and increase in water demand due to population increase and industrialization. Willingness to provide watershed services were conducted to know the price of the upland farmers and their willingness to convert portion of their farms into watershed conservation plantations. Also, willingness-to-buy surveys were conducted to access the water-users buying price of water. The highest opportunity cost of farm is the selling price of raw water of the upland farmers, which will be paid by water buyers annually on a sustainable basis. In return, the upland farmers will use the payment to establish, protect and maintain Vetiver-Citrus-Jathropha conservation plantations in 125 hectares of farm owned by 500 farmers as water recharge system during the first 3 years. Subsequent payment equal to net annual farm income of farmers will be paid by water buyers will be used to finance farm productivity improvement through farm inputs optimization. Additional income from the Vetiver-Citrus-Jathropha is expected to start on year 3 from the sales of Vetiver leaves for handicraft and Jatropha seeds. More income will further increase will further increase in year 5 when Citrus starts to bear fruit and additional substantial income from Vetiver oil for perfume will start in year 10. Thus,increasing opportunities of watershed-based farmers to earn more income. Payment for watershed services is not only for upland poverty reduction but also for restoring degraded watersheds, increasing carbon sequestration potential biodiversity. Necessary institutional supports to farmers are organizational development and administration, capacity building, watershed management skills, agriculture and forestry skills, payment collection, product marketing and entrepreneurial capacity development.
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