Smallholders role in green economy: challenges and opportunities

Smallholders'RolesinGreenEconomy:ChallengesandOpportuni;es

SonyaDewi,AndreeEkadinata,MohammadSofiyuddin,FeriJohanaandMeinevanNoordwijkMaking Green Economy Work: Exploring Potential Mitigation Actions in Indonesia, Indonesia Pavilion, Paris, December 1, 2015

GreenEconomyland-based

Land-usedecisionmakings

Land-usepolicies

Land-useplanning

Landmngmnt Land

govrnc

Landeconomics

Ecosyst.Services

MulF-actors

•  Developed by Johann Heinrich von Thunen in the early 1800’s (19th century)

•  Based on the layout of Rostock, Germany

INDONESIACONTEXT

ICRAF Unpublished data


Spatial continuum

UF

LOF

AF

Estate

Cropland

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Urban Peri-urban Rural Forestmargin

1990

UF LOF AF Timber_Plt Estate Shrub Cropland Grass Bareland SeZlement

UF

LOFAF

0

10

20

30

40

50

60

70

80

90


Millions

1990


UF

LOF

AF

Estate

Cropland

SeZlement

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


2010


UFLOFAF

Estate

0

10

20

30

40

50

60

70

80

90


Millions

2010


•  Asdistancefromcitycenterincreases,costoflandgoesdown

•  Decisiontogrowcertaincropsincertainplacesisbasedonprofit

•  Profit=MarketPrice–ProducFonCosts

•  ProducFoncostsincludecostoflabor,equipment,andtransportaFon

Land rent and land use decision making

Hypothesesoflandusedecisionmaking•  Thefurtherfromcitycenters,thelessintensivelymanagedlandsare,i.e.,returnstolandislessimportant,sincelandrentislower

•  Thefurtherfromcitycenters,asthepopulaFondensityislower,thescarcerlaboris,i.e.,returnstolaborismoreimportant

BUT…

Threeotherfactors•  Land-basedeconomicactorsthatmighthindersocial

equiFes–  Largescalecompanies:concessionsoverlargeconFguousareas

closetoforests.Managementneedshighcapitalstostartwith–  Intermediateinvestors:investorsfromnearbyobentouse

smallholderstograblands–  Smallholders:localandmigrantfarmers

•  UrgentsocietalneedsforEcosystemservicesclosetocitycenterswherepopulaFonisconcentrated,e.g.,watershedbufferingcapaciFes

•  FluctuaFonsinyieldsandprices,thereforeprofitabilitycreatesuncertaintyandmightleadtovulnerabilityofsmallholders

LAND-USEOPTIONS

Spa;alvariability:ReturnstoLandandReturnstoLabor?

SmallholderAgroforestrySystemsinIndonesia

Woodlots on karst landscape

Intercropped teak hedgerows

Timber alley farming Fruit-based multistrata

(Homegarden) SabasFan&Roshetko,2015

RubberAgroforests(RAF)

Rubbermonoculture

Complex RAF

Simple RAF From: Tata, Joshi, van Noordwijk, 2009

Biodiversity: Similarity between RAF and forest

Similarity Index Species Genus Family

Jaccard 0.44 0.68 0.84

Morishita-Horn 0.19 0.34 0.84

Source: Rasnovi (2006)

[RAF is almost similar to forest at family level, but not at species level]

From: Tata, Joshi, van Noordwijk, 2009

Rarityofspecies-theIUCNRedList(Tataetal.,2008)

IUCN status Forest RAF Uses Critically Endangered (ER) 6 species 3 species Timber

Endangered (EN) 6 species 1 species Timber

Vulnerable (VU) 5 species 2 species Timber, resin, food

Lower Risk (LR) 14 species 13 species Timber, food, latex, resin, dye, oil seed,

[Farmers maintain species diversity in RAF, as long as they provide valuable products for livelihoods and cultural purposes]


Category Speciesno.iden;fiedinForest

Speciesno.iden;fiedinRAF

Source

Mammaldiversity

10species(4inforestonly)

37species;9endangeredspecies

Calestreme,2004(unpublished)

Batdiversity 4species(3speciesinforestonly)

10species Prasetyo,2007;Joshi,etal.,2008(unpublished)

Primatediversity

2species(1speciesinforestonly)

6species Calestreme,2004;Hariyanto,2007a(unpublishedreport)

Birddiversity 67species(33speciesinforestonly)

167species;28speciesprotected10specieslistedintheCITES

Beukemaetal.,2007(AgroforestrySystem)

DungBeetlediversity

37species(6speciesinforestonly)

33species Hariyanto,2007b(unpublished)

StudiesonfaunadiversityinRAFinJambi:


Es;ma;onofannualfamilycash-flowofrubberfarmer(Wibawa,1998)

No. Descrip;onTotal

(ThousandofIDR)

Propor;on(%)

A. Income: Rubber 4,819 (69) Otherfarm 1,424 (20) Off-farm 768 (11) SubTotal 7,011 (100) B. Expenses: ConsumpFon(mainlyfood) 4,344 (68) EducaFon 46 (1.0) Others(cloth,social,etc.) 2,028 (31) Subtotal 6,418 (100) C. Investment 512D. Saving 171

Stabilizingormaximizing?

-150%

-100%

-50%

0%

50%

100%

150%

1 4 7 10

13

16

19

22

25

28

31

34

37

40

43

46

49

52

55

58

61

64

67

70

73

76

79

82

85

88

91

94

97

100

Differences between annual profit with fluctuating price and yield and with constant price and yield

Monoculture rubber Rubber agroforest

-  Mean annual profit in Monoculture rubber is higher than that Rubber AF

-  The lowest annual profit of Monoculture Rubber is much lower than that of Rubber agroforest


SMALLHOLDERS’ROLESANDAGROFORESTRY

Agroforestryasawin-win-winsolu;on

•  Spaceforsmallholderstoplayrolesandgetbenefits

•  Ecosystemservices:CCmiFgaFon,watershedprotecFon,biodiversity,soilferFlity,etc

•  StabilizingincomeinfluctuaFngpricesandyieldstoreducevulnerability

BUT:diminishinginextent,non-existentindevelopmentpolicies,notrecognizedasESproviders

Smallholders’rolestowardsGreenEconomy

Peri-urban Rural Forest Margin Forest Margin with LO w/o LO

Strategies

E nabling cond

• Maximizingreturnstolandtomeetdemandsforgoods

• MaximizingreturnstolandtomeetdemandsforES

•  Sustaininghighreturnstoland

•  AvoidingrisksfromuncertainFesinyieldsandprices

•  MaximizingreturnstolaborinspiteoflandcompeFFon

•  RetainingESinpivotalareasthroughrestoraFonandconservaFon

•  Maximizingreturnstolabor

•  ConservingandprotecFon

• BestpracFcesinlandmanagement

• BeZervaluechainforproducts

• OperaFonalPES/RESinpivotalareastokeepthelowintensitylanduseopFonaZracFve

•  Inclusive,integraFveandinformedland-useplanning

•  Agric.Policiestoreducesocialcosts

•  DiversificaFonatplotandhouseholdlevels

•  BeZervaluechain•  CapaciFestoconductbestpracFces

•  Land-useplanningandzoning

•  LandallocaFonpoliciesthatallowsmallholderstohaveaccesstoland

•  Partnershipswithprivatesectors

•  EffecFvegovtrestoraFonprograms

•  BeZercapaciFes

•  Permitissuancethatistransparentandfair

•  Partnershipswithgovtforstewardships

•  CBFM,Villageforests

Agroforestry as a common land use option across continuum

Opportuni;es•  Smallholders’rolesleadstoequity•  LandresourceallocaFonpolicy•  PaymentorRewardsforEcosystemservicesschemesareexisFng

•  RestoraFoninpeatandmineral,aberfireandprevenFon

•  BeZertechnologyarewidelyavailable•  Partnershipswithprivatesectors•  CCmiFgaFonandadaptaFonfunds

Economicgrwoth11%

CommuniFes'wellbeing

18%

LocalWisdoms5%

SustainableEnvironment

17%

SocialEquity7%

CommuniFes'rolesinManagingLand

Resources22%

GoodLandgovernance

20%


Whatcons;tuteGreenEconomy?Aperspec;vefromPapua

Mul;pleSDGsaddressed

THANK YOU

Photo:GerhardSabasFan