Resource constraints and partial adoption of conservation agriculture by hand-hoe farmers in Mozambique

Conservation agriculture is a set of practices widely promoted to increase agricultural productivity while conserving soil through reduced tillage, mulching and crop rotation. Adoption levels are low across southern Africa and farmers often use only some components on small portions of their land. This study uses in-depth interviews and partial budget analysis to explore adoption of conservation agriculture in Mozambique's Angonia highlands. Farmers described many benefits but there was little sign of adoption beyond plots where non-governmental organizations promoting conservation agriculture had provided inputs. Most farmers were adamant that conservation agriculture could perform better than conventional agriculture only if they applied fertilizer or compost. With current costs and prices, conservation agriculture is unprofitable except on small plots for farmers with low opportunity cost of household labour. These findings suggest that conservation agriculture can improve maize yields but capital and labour constraints limit adoption to small plots in the absence of free or subsidized inputs. Given the current ranges of prices for grain and inputs these manual forms of conservation agriculture will not be adopted on a large scale in Angonia. Nevertheless, small conservation agriculture plots can provide farmers with high yields where constraints are lowest.     

The role of systems thinking in cover crop adoption: Implications for conservation communication

To address critical water quality problems, significant public and private sector resources in the U.S. have been directed to promoting and supporting the adoption of conservation practices. Cover crops, in particular, have been a focus of outreach and policy efforts due to their multiple benefits for crop production, carbon sequestration, soil health, and water quality. We hypothesize that Indiana’s state and local agencies have emphasized a systems approach to conservation planning and farm management, which has been successful in reaching a subset of farmers and has established Indiana as a national leader in cover crop adoption. We contend that the systems approach to conservation adoption is not a salient message to farmers who have yet to implement conservation, thus adoption (particularly cover crops) may be stagnant. Early work on systems thinking (ST) in conservation is dominated by qualitative research. Here, we make a first attempt to quantify the relationship between ST and cover crop adoption through producer surveys administered in three Indiana watersheds – St Marys, Big Pine, and Upper White. We found that farmers who adopted cover crops were more likely to be systems thinkers than farmers who had not adopted cover crops. These results have significant implications for conservation planners and educators across the U.S. and internationally who are working to implement additional conservation acreage – a whole farm systems approach to conservation messaging may not be an effective method for farmers who have yet to implement conservation.     

Conservation practice complementarity and timing of on-farm adoption

The adoption of conservation practices is a dynamic process. Factors that vary over time can affect farmers’ decision to adopt and adoption timing. We used a duration model to evaluate the farmer's adoption time for continuous no-till (CNT), cover crops (CCs), and the variable-rate application of inputs (VRA). We found that producers who had previously adopted soil conservation practices were more likely to adopt additional complementary practices. Farmers using crop rotation adopted CNT and CCs approximately 48% and 62% faster than farmers without a crop rotation, respectively. The CC adoption time was also reduced by 70% for farmers who had adopted CNT. Complementarities between conservation practices may enhance the benefits from adoption and allow farmers to adopt bundles of conservation practices more quickly over time. This can be taken advantage of in conservation programs by promoting or requiring practices first that enhance adoption of other practices. We also found important heterogeneity in the adoption speed associated with farm management characteristics, producers’ attitudes, weather patterns, and crop prices.     

The economics of land fragmentation in the north of Vietnam*

Land fragmentation, where a single farm has a number of parcels of land, is a common feature of agriculture in many countries, especially in developing countries. In Vietnam, land fragmentation is common, especially in the north. For the whole country, there are about 75 million parcels of land, an average of seven to eight plots per farm household. Such fragmentation can be seen to have negative and positive benefits for farm households and the community generally. Comparative statics analysis and analysis of survey data have led to the conclusion that small‐sized farms are likely to be more fragmented, and that fragmentation had a negative impact on crop productivity and increased family labour use and other money expenses. Policies which allow the appropriate opportunity cost of labour to be reflected at the farm level may provide appropriate incentives to trigger farm size change and land consolidation. Policies which tip the benefits in favour of fewer and larger plots, such as strong and effective research and development, an active extension system and strong administrative management, may also lead to land consolidation.     

Investment in soil conservation in northern Ethiopia: the role of land tenure security and public programs

A double hurdle statistical analysis of 250 farms in the Tigray region of Ethiopia reveals different causal factors for soil conservation adoption versus intensity of use. Farmers' reasons for adopting soil conservation measures vary sharply between stone terraces and soil bunds. Long‐term investments in stone terraces were associated with secure land tenure, labour availability, proximity to the farmstead and learning opportunities via the existence of local food‐for‐work (FFW) projects. By contrast, short‐term investments in soil bunds were strongly linked to insecure land tenure and the absence of local food‐for‐work projects. Public conservation campaigns on private plots reduced adoption of both stone terraces and soil bunds. Whereas capacity factors largely influenced the adoption decision, expected returns carried more influence for the intensity of stone terrace adoption (measured as metres of terrace per hectare). More stone terracing was built where fertile but erodible silty soils in higher rainfall areas offered valuable yield benefits. Intensity of terracing was also greater in remote villages where limited off‐farm employment opportunities reduced construction costs. These results highlight the importance of the right kind of public interventions. Direct public involvement in constructing soil conservation structures on private lands appears to undermine incentives for private conservation investments. When done on public lands, however, public conservation activities may encourage private soil conservation by example. Secure land tenure rights clearly reinforce private incentives to make long‐term investments in soil conservation.     

Policy instruments for sustainable land management: the case of highland smallholders in Ethiopia

Degradation of land continues to pose a threat to future food production potential in many developing economies. Various approaches, mainly based on command‐and‐control policies, have been tried (with limited success) in the past to encourage adoption of erosion‐control practices by farm households. High transactions costs and negative distributional impacts on the welfare of the poor limit the usefulness of standards and taxes for soil and water conservation. One innovative approach is the use of interlinked contracts which create positive incentives for land conservation. This study analyses the social efficiency of such policies for erosion‐control in the Ethiopian highlands using a non‐separable farm household model. Incentive contracts linked with conservation seem to be promising approaches for sustainable resource use in poor rural economies. This may suggest that conservation programs should give greater consideration to better fine‐tuning and mix of policies that help achieve both economic and environmental objectives.     

Soil,water and crop management alternatives in rainfed agriculture in the Sahel: an economic analysis

Most agriculture in the Sahel Region is carried out under rainfed conditions where low and uncertain soil moisture levels limit productivity. Improved soil, water and crop management practices are required to reverse the steady decline in per capita food production and sustain output over the long term. Several technological innovations and related farm management practices are evaluated in a case study of a typical farm in Mali. Through use of a soil-water balance model and a whole-farm economic model an optimal mix of these measures is identified. Compared to a base case where no modern inputs are utilized, the combination of animal traction (oxen team), low levels of NPK fertilizer, tied-ridges, traditional long-season food grain crops and early planting was most effective: food grain output was 35% higher than with the traditional base case; soil erosion was reduced by 72%; and even with residual future soil erosion damage capitalized into current income, net farm income was larger by a factor of almost 45.     

Does carbon farming provide a cost‐effective option to mitigate GHG emissions? Evidence from China

In this study, we apply a whole farm bioeconomic analysis to explore the changes in land use, farm practices and on‐farm greenhouse gas (GHG) emission under varying levels of agricultural greenhouse gas abatement incentives in the form of a carbon tax for a semi‐arid crop‐livestock farming system in China's Loess Plateau. Our results show that the optimised agricultural enterprises move towards being cropping‐dominated reducing on‐farm emission since livestock perform is the major source of emission. Farmers employ less oats‐based and rapeseed‐based rotations but more dry pea‐based rotations in the optimal enterprise mix. A substantial reduction in on‐farm greenhouse gas emission can be achieved at low cost with a small increase in carbon incentives. Our estimates indicate that crop‐livestock farmers in China's Loess Plateau may reduce their on‐farm GHG emission between 16.6 and 33 per cent with marginal abatement costs <￥100/t CO₂e and ￥150/t CO₂e in 2015 Chinese Yuan. The analysis implies that reducing greenhouse gas emission in China's semi‐arid crop‐livestock agriculture is potentially a low‐cost option.     

Resource degradation and adoption of land conservation technologies in the Ethiopian Highlands: A case study in Andit Tid,North Shewa

This paper reports results from a study of resource degradation and conservation behavior of peasant households in a degraded part of the Ethiopian highlands. Peasant households' choice of conservation technologies is modeled as a two-stage process: recognition of the erosion problem, and adoption and level of use of control practices. An ordinal logit model is used to explain parcel-level perception of the threat of the erosion problem and the extent of use of conservation practices. Results show the importance of perception of the threat of soil erosion, household, land and farm characteristics; perception of technology-specific attributes, and land quality differentials in shaping conservation decisions of peasants. Furthermore, where poverty is widespread and appropriate support policies are lacking, results indicate that population pressure per se is unable to encourage sustainable land use. The challenge of breaking the poverty-environment trap and initiating sustainable intensification thus require policy incentives and technologies that confer short-term benefits to the poor while conserving the resource base.     

Editorial - Decision rules, government rules, and the costs of vegetation protection in New South Wales

Governments regularly spend public funds to purchase environmental amenities. They might purchase land to add to the public estate, pay to fence stock out of endangered native forest, or offer stewardship payments as incentives to conservation. Governments also regularly introduce policies to achieve environmental goals, even though these policies impose costs on firms, households or farms. The basic decision rule, to maximise environmental benefits from a given budget, in all these cases is received wisdom within the economics profession. In the case of purchase of land to add to the public estate:Maximise environmental benefits by purchasing land in descending order of the ratio of benefit to cost until the budget is exhausted.More generally, funds should be allocated to individual activities within a programme in order of the decreasing ratio of benefits to costs until the budget is exhausted. This rule can be applied when benefits can be measured in any monetary or non-monetary quantitative index. In the case of conservation of vegetation, it can be applied relatively simply in the field when vegetation types and land values can be mapped jointly through GIS techniques.This simple decision rule is not always followed by government agencies that manage environmental programmes. Consider the protection of native vegetation, which is defined to include native forest, native woodland and native grassland. To meet international obligations to protect this kind of environment, most countries must involve private landholders in conservation because there are insufficient government reserves to meet the international commitments. Indeed, most countries have already introduced many policies to encourage private landholders to protect native vegetation on their forests and farms.The New South Wales state government, in Australia, has introduced the Native Vegetation Conservation Act (1998) to ensure that private landholders protect vegetation. The Act constrains farmers to retain all the native forest, native woodland, and native grassland, on their land irrespective of the costs to them. Farmers can then apply for consent to clear and crop this land, but consent is rarely granted in full and often not at all. The Act is consistent with a decision rule of “maximise-benefits-only” - protect all vegetation irrespective of the costs to those who have to conserve it.Constraints of this kind will inevitably lead to a loss of income and land value when they restrict the farm enterprises, and so will impose opportunity costs on the farmer. There is already ample published evidence on the sizes of these costs - from publications of the relevant state agency itself, consultants' reports, farmer submissions and independent research. For example, in a large region in the northwest of New South Wales, where land could be cropped very productively:- some farmers bear only small losses (a quarter lose less than five per cent of their potential income),- some farmers bear very large losses (another quarter lose more than half of their potential income),- the overall losses of income per farm are high (an average loss of almost 30 per cent of potential income across the region), and- the losses are highest for those who have already conserved most woodland.Consider now the problem of reducing these costs by applying the benefit-cost rule as opposed to the maximise-benefits-only rule that has led to this position. There are three economic decision rules that might be used to rank projects or activities.The benefit-cost rule: Impose the constraint on the farm with the highest ratio of environmental benefit per dollar of opportunity cost first, then on the farm with the next highest ratio, etc., until the environmental goal is met. And so maximise the ratio of benefits to opportunity costs.The benefit-only rule: Impose the constraint on the farm with the highest environmental benefits first, then on the farm with the next highest benefits, etc., until the environmental goal is met. And so maximise benefits.The cost-only rule: Impose the constraint on the farm with the lowest opportunity costs first, then the next lowest cost, etc, until the environmental goal is met. And so minimise opportunity costs.But do these rules normally lead to different outcomes? If the “budget” or willingness to impose opportunity costs were large enough, all three would lead to the same outcome because constraints would be imposed on all suitable land. Otherwise the outcomes differ - that is the different rules lead to different levels of environmental benefit from the imposition of a given level of opportunity cost (or from the expenditure of a given budget).Both the benefit-only and cost-only rules lead to inefficiencies (see Babcock et al (1997) and Wu et al (2000) for a discussion of the associated statistical issues). Benefit-only targeting leads to the retirement of highly-productive land from agricultural uses - which is a major reason why opportunity costs are often high when native vegetation is conserved under the Act in New South Wales. The cost-only rule can lead to the reservation or purchase of land with few environmental benefits, even though expenditure or opportunity cost is minimised.A comparison of the benefit-cost rule and the benefit-only rule in the northwest of New South Wales illustrates the problem. The region is potentially highly-productive crop land but large areas of it are presently covered by native forest and woodland which cannot now be cleared. Much of this vegetation is under various degrees of threat even though it is not rare or endangered. The farm is the unit of assessment under the Act, so is used in the example. Benefits are measured as the percentages of species that are saved on each farm when its vegetation is protected rather than cleared to crops. The total benefit is the aggregate of percentage species saved across the farms - again following the present administration of the Act. The opportunity costs are measured as the losses in land value because land cannot now be cleared due to the Act.The comparison of the two rules indicates substantial savings with the benefit-cost rule. For example, 90 per cent of the total benefits can be obtained by imposing 93 per cent of the total opportunity costs with the benefit-only rule, and by imposing only 54 per cent of the total opportunity costs with the benefit-cost rule. The benefit-cost rule saves 39 per cent of the total costs at this level of benefits. Again, 80 cent of the total benefits can be obtained by imposing 86 per cent of the total opportunity costs with the benefit-only rule, but by imposing only 46 per cent of the total opportunity costs with the benefit-cost rule. The benefit-cost rule saves 40 per cent of costs at this level of benefits.While such results can only be indicative of the magnitudes, they do serve to highlight the inefficiencies of decision rules used by government agencies. In New South Wales, the Native Vegetation Conservation Act imposes high opportunity costs on farmers, partly because it is implemented through a high-cost decision rule. Now that suitable GIS technology, vegetation maps, and spatial land value data, are becoming available, these costs can be lowered with a more rational decision rule to guide choices in the field.The environmental goal is not at issue, but the cost of achieving it is. We can identify who bears the opportunity costs of environmental conservation, and often value the magnitude of these costs. Now we can also reduce the levels of these costs with the use of the benefit-cost decision rule.Jack SindenAgricultural and Resource EconomicsUniversity of New EnglandArmidale, New South WalesReferencesBabcock Bruce A, Lackshminarayan PG, Wu JunJie and Silberman D (1997) “Targeting Tools for the Purchase of Environmental Amenities”, Land Economics, 73, 325-339.Wu JunJie, Adams Richard M., Zilberman David, and Bruce Babcock (2000) “Targeting Resource Conservation Expenditures”, Choices, Second Quarter, 2000, 3-8.     

Assessing the potential of SRI management principles and the FFS approach in Northeast Thailand for sustainable rice intensification in the context of climate change

The paper describes the facilitated learning process of farmers, its results and implications in addressing the low productivity of Jasmine rice in northeast Thailand using the SRI-FFS approach in a collaborative action research. Other involved included rice traders, millers, researchers, government and non-governmental organizations. Working through an inclusive process of dialogue, observation, diagnosis, experimentation and exposure to different types of innovative agronomic crop management (IACM) practices resulting from the SRI–FFS approach, participants made a thorough analysis of the current management practices and evaluated various IACM practices for their productivity and profitability. The results confirmed the potential of IACM in enhancing crop and water productivity along with soil fertility with relatively low input-use (seed, water and fertilizers) and higher net farm-income compared to existing crop management practices. However, factors such as (i) the age of the farmers and (ii) off-farm employment opportunity are key drivers that affect the crop management decision-making process. Therefore, exploration of value-added production alternatives and favourable policies is required to sustain IACM that can benefit farmers, consumers and the environment. The participation of policy-makers at the action research continuum is essential for effective follow up, scaling up and sustainability of such environmentally sound practices.     

Adoption of climate‐smart practices and its impact on farm performance and risk exposure among smallholder farmers in Ghana

Increased climate variability during the last four decades has made the agricultural environment in many developing countries more uncertain, resulting in increasing exposure to risk when producing crops. In this study, we use recent farm‐level data from Ghana to examine the drivers of individual and joint adoption of crop choice and soil and water conservation practices, and how adoption of these practices impacts on farm performance (crop revenue) and exposure to risks (skewness of crop yield). We employ a multinomial endogenous switching regression model to account for selectivity bias due to both observable and unobservable factors. The empirical results reveal that farmers’ adoption of crop choice and soil and water conservation leads to higher crop revenues and reduced riskiness in crop production, with the largest impact on crop revenues coming from joint adoption. The findings also show that education of the household head, access to extension and weather information influence the likelihood of adopting these practices. Thus, enhancing extension services and access to climate information and irrigation can reduce gaps in adoption of soil and water conservation and crop choice, considered as climate‐smart practices that will eventually improve crop revenues and reduce farmers’ exposure to climate‐related production risks.     

Feasibility of conservation agriculture in the Amu Darya River Lowlands,Central Asia

Human-driven land degradation threatens economic and environmental sustainability of irrigated agricultural production such as in Central Asia. Many current challenges can be eased by implementing Conservation Agriculture (CA), with however unknown financial consequences under the predominating irrigated conditions. We applied the linear programming to compare costs and benefits of four CA production systems, which are cotton-based rotation systems including (i) cotton-cotton and (ii) cotton-wheat-maize rotations under conventional tillage (CT), as well as (iii) cotton-cover crop-cotton, and (iv) cotton-wheat-maize rotations with mulch cover (crop residue retaining) and both rotations under permanent-bed planting (PB) with minimum tillage. All systems were subjected to six levels of land quality and a series of crop pricing schemes. Data were extracted from empirical research on CA in Uzbekistan, complemented with data on input and output prices from surveys. The findings underpinned the financial advantages of more diversified cropping systems (cotton-wheat-maize) over the crop monoculture (cotton-cotton-based system). Crop cultivation on marginal land was unprofitable under CT. In contrast, crop production under PB could generate profits even on croplands with a lower productivity level considered. It is argued that PB with crop residue retaining and applied in cotton-wheat-maize rotation shows most promise for improving crop yields and income.     

Returns to Farm-Level Soil Conservation on Tropical Steep Slopes: The Case of the Eritrean Highlands

This study conducts an economic analysis of investment in simple soil conservation technologies in the highlands of Eritrea. The data used in the analysis were obtained from a farm survey and supplemented with data from secondary sources. Risk analysis techniques are used to take account of the uncertainties regarding the relationship between soil erosion and crop yield. The financial analysis reveals negative net present values (NPV_s) and internal rates of return (IRR_s) below 12 per cent for various slope categories. On the other hand, the economic analysis returns positive NPV_s and IRR_s of over 20 per cent. The results clearly indicate that investment in soil conservation technology may not be a viable short-term proposition from the farmer's point of view and yet the net social benefits are positive. There is a strong case for government to provide incentives for soil conservation in view of the economic benefits.     

Sustainable agricultural intensification: the role of cardamom agroforestry in the East Usambaras,Tanzania

The East Usambaras in Tanzania are a tropical biodiversity hotspot where current agricultural management practices pose threats to forest conservation and development objectives. Promoting sustainable agricultural intensification (SAI) would improve long-term productivity and reduce pressure on forest reserves. The study objective was to identify household-level characteristics that influence adoption of improved management practices, specifically soil replenishment practices, in order to identify opportunities and constraints to scaling up SAI to landscape level. First, three common farming systems and a fourth agroforestry (AF) model were developed to estimate the relative profitability of incorporating fallow, manure, and non-timber forest product activities. Next, household surveys were conducted and a logistic regression analysis was used to measure the influence of socioeconomic characteristics, physical and financial assets, tenure security, and plot-specific attributes on adoption of soil replenishment practices that were specified in the model. Findings showed that the AF model was financially competitive but raises opportunity costs to labour when compared to common systems. Marital status, household size, remittances, credit access, and tenure security significantly influenced adoption of fallow and applying organic inputs. Significant plot-specific attributes included perceived fertility and distance from the homestead. Policies to scale up SAI should consider these factors and emphasize improving markets for AF species and extension services.     

Lease Pricing for Farm Real Estate

A lease pricing model for farm land is developed that is consistent with traditional leasing principles and allows greater flexibility in determining crop share levels either separately or in combination with a fixed cash payment. The share levels are linked to the farm's soil productivity, the costs of each party's resource contributions, and their respective cost structures. The resulting menu of lease prices can enhance the equitability of leasing contracts, expand the range of contract choices, promote mutual incentives for the leasing parties, and heighten the efficiency of leasing markets through greater standardization of leases.     

The estimation of agricultural policy effects on soil erosion—An application for the bio-economic model MODAM

As agricultural policies affect land use, they have effects on the amount of soil erosion in agricultural regions through changes of the economic conditions of agricultural production. Prices of inputs and outputs, regulations and incentives can change, forcing or encouraging farmers to adopt new crop rotations. This paper shows how a bio-economic model can be used to describe and estimate the effects of policies on agricultural production and the risk of soil erosion at the example of a region in North-Eastern Germany. The model uses both an assessment tool that is based on a fuzzy-logic approach for the estimation of soil erosion risk of cropping practices, and a linear programming model, that simulates farmers’ economic behaviour under the assumption of gross margin maximisation being the main goal of farmers’ actions.The analysed policy options were both a targeted and an untargeted incentive programme for reduced tillage, and a restriction option where high erosive crops are not allowed on high erodible field types. The results show that policy changes can have an impact on soil erosion. Furthermore, soil conservation policies are shown to have different levels of efficiency in terms of reduced soil erosion related to the costs of the policy. In the case of this study, a restriction option was more efficient than the incentive options. The results of such simulations can serve as a decision support for the development of soil conservation policies and help to foresee the effects of general changes of agricultural policies.     

Soil and cropping system research in semi-arid West Africa as related to the potential for conservation agriculture

Semi-arid West Africa faces challenges to increase sorghum and pearl millet production to meet food needs for a growing human population while increasing soil carbon (C), nutrient levels, and water holding capacity that are documented benefits of conservation agriculture. This review focuses on the wealth of research on cropping systems, tillage, crop residue, nutrient, and weed management as related to conservation agriculture. It also identifies needs for multidisciplinary, integrative research to assist the transition from current production systems to conservation agriculture. Crop residue use as livestock feed, or fuel are major constraints to adoption of conservation agriculture, which could be reduced by wood production in agroforestry systems, alternate energy sources, and increased forage supply. Crop residue and grain yields are related, thus improved crop, soil, water, nutrient, and weed management to increase grain yield would also increase the supply of crop residue with potential for ‘left over’ crop residue being available for soil mulching. Incorporating indigenous shrubs and/or cover crops could also increase crop residue supply. Species diversity can be increased through crop rotation, agroforestry, cover crops, and intercrops. Higher grain and stover yields and increased profit potential for resource-poor farmers in West Africa will be required before wide-scale adoption of conservation agriculture will be possible.     

Conservation agriculture practices adopted in southern Brazil

The adoption of conservation agriculture (CA) practices are essential for soil and water conservation. In CA, farmers must adopt no-tillage (NT) with crop rotation to maintain a permanent soil cover. In Brazil, mainly in the South region, for CA to be more efficient, practices such as contour farming and agricultural terraces should also be adopted. Thus, the objective of this study is to determine the extent to which NT has been adopted with crop rotation and others soil and water conservation practices. Data from the Agricultural Census in Paraná State, southern Brazil, were used. For the data analysis, the relationship between the level of adoption of NT and the use of crop rotation, contour farming and agricultural terraces was analyzed. A factor and cluster analysis were performed to distinguish regions in terms of soil and water conservation practices. The results show good overall soil and water conservation practices, although heterogeneity has been observed in the adoption practices between regions. Adoption of NT is high in almost all the studied regions. The conservation practice most widely used with NT is contour farming, whereas the least used is agricultural terraces. Conservation practices for runoff control are being neglected by farmers.     

Auction winning,social dynamics and non-compliance in a payment for ecosystem services scheme in Indonesia

Conservation auctions for payment for ecosystem services (PES) are useful to identify the levels of incentives that will cover the opportunity costs of farmers supplying ecosystem services. Although auctions are increasingly used for allocation in PES schemes, the factors that lead to their successful implementation and eventual environmental outcomes are poorly understood in developing countries. We investigated the socio-economic and institutional contexts that led to smallholders' auction winning and eventual compliance using linear mixed-effects models, and post-auction and post-contract surveys. We employed a case study of a conservation contract preceded by a sealed-bid, multiple round, uniform price auction for watershed services from coffee farmers in Lampung, Indonesia. The auction participants presented low education levels, low asset endowments and small plot sizes. The study obtained evidence that farmers with larger plot areas were more likely to win the contracts, suggesting economies of scale. Most farmers considered the auction a fair self-selection mechanism to allocate contracts where allocation was not influenced by power or social rank. Non-compliance was associated with labor availability constraints, short duration of land ownership and existence of previous conservation applications, suggesting lax of capability to invest in applying conservation agriculture. Final bids were however not good predictors of compliance, among other factors, calling into question the potential of auctions to elicit the actual incentive from the farmers. Ensuring that farmers understand the purposes of auctions for effective contract allocation beyond a mere game and identifying farmers that might encounter difficulties fulfilling the contract could increase the likelihood that such a PES scheme would be successful.