Does adoption of soil and water conservation practice enhance productivity and reduce risk exposure? Empirical evidence from semi-arid tropics (SAT), India

Abstract

This paper assessed the impact of soil and water conservation practices on farm productivity and risk exposure using data from 1204 plots in the semiarid tropics of India. A probit model was used to assess the determinants of adoption of soil bunds. We employed a moment-based approach for estimating crop revenue, its variability and downside risk exposure, i.e., crop failure. Furthermore, we also used a doubly robust method for assessing the impact of soil bunds on crop revenue, its variability and downside risk. Matching and propensity-based methods were also used to check robustness. The results show that training, access to credit and extension services are key determinants of adoption of soil bunds. Furthermore, the results also suggest that soil bunds not only improve the crop revenue but also reduce its variability. Most interestingly, we show that soil bunds also reduce the chances of downside risk, i.e., crop failure. Therefore, in view of increasing climate change and variability in the semiarid tropics, it can be suggested that soil bunds could be an important adaptation strategy for improving productivity and reducing risk exposure. This paper supports the investment in soil and water conservation technologies for sustaining the livelihood of resource-poor farmers of ecologically fragile regions such as the semiarid tropics.