The Economics Behind an Ecological Crisis: Livelihood Effects of Oil Palm Expansion in Sumatra,Indonesia

While the negative ecological effects of the rapid expansion of oil palm in Southeast Asia are far-reaching and relatively widely studied, the socioeconomic consequences have received much less attention in the literature. We examine whether local farmers in Indonesia benefit from cultivating oil palm. We also look at the impact dynamics and possible spillover effects on other farmers. Our analysis builds on panel data collected from 680 farm households in Jambi Province, Sumatra. We show that oil palm cultivation has significant positive effects on farmers’ livelihoods. The economic gains allow farm households to increase their consumption. Oil palm has lower labor requirements than alternative crops. Hence, oil palm farmers can cultivate larger areas and also reallocate saved labor time to non-farm economic activities, which contributes to additional secondary gains. Policies aimed at regulating further oil palm area expansion will have to account for the economic benefits of this crop for the local population.     

Rattan,rubber, or oil palm: cultural and financial considerations for farmers in kalimantan

Forest-based farmers are faced with rapidly changing economic opportunities due to many factors. In response, farmers are changing their main economic activities and land uses. This study compares the financial costs and benefits of the principal land use options in two sub-districts of East Kalimantan Province, Indonesia. Financial benefits of oil palm plantation, traditional rattan gardens, intensive rubber plantation, and traditional rubber plantation are compared on a land unit basis. Oil palm is by far the most profitable, followed by rattan gardens. Rubber production, at current prices, is not profitable. Benefit-cost ratios and returns to labor, which better reflect the farmer perspective, reveal that rattan is more attractive, with oil palm in a strong second place. Non-financial considerations also help to explain the resilience of the rattan garden system. The conclusions summarize the findings and offer options to counter the strong negative impact of recent events on the rattan farmers.     

Controlled burning in peat lands owned by small farmers: a case study in land preparation

The 1997/1998 forest fires in Indonesia resulted in the destruction of at least 10 million ha of forests and non-forestlands and the release of more than 2.6 G tons of carbon. These fires made Indonesia one of the largest contributors of greenhouse gases in the world. It is now recognized that about 80 – 90% of the fires came from agricultural and industrial plantation estates using fire for land preparation activities. Estate oil palm development accounted for the majority of the fires, particularly in Riau. At least 176 companies accredited with the Indonesian Forestry and Estate Crops Department caused the fires in 1997/1998. More than 50 companies in 1999 and 100 companies in 2001 were identified to be still using fire in land preparation activities. To make matters worse, the use of fire in land clearing is also prevalent among many small-holder farmers as a traditional means of land preparation. Since 2000, some companies using fire for land preparation have been taken to court and been punished. Meanwhile, shifting cultivators still have the possibility of using fire as long as the impact is not so bad. In order to understand the behavior and characteristics of fire in land preparation by small-holder farmers, several peat fire experiments were conducted. The experiments showed that high flame temperature and intensity result from high fuel loads. Such information is important in order to evaluate land preparation practices with the use of fire, to determine restoration methods, and to recommend appropriate policy reforms for small-holder farmers.     

Carbon emissions from South‐East Asian peatlands will increase despite emission‐reduction schemes

Carbon emissions from drained peatlands converted to agriculture in South‐East Asia (i.e., Peninsular Malaysia, Sumatra and Borneo) are globally significant and increasing. Here, we map the growth of South‐East Asian peatland agriculture and estimate CO₂ emissions due to peat drainage in relation to official land‐use plans with a focus on the reducing emissions from deforestation and degradation (REDD+)‐related Indonesian moratorium on granting new concession licences for industrial agriculture and logging. We find that, prior to 2010, 35% of South‐East Asian peatlands had been converted to agriculture, principally by smallholder farmers (15% of original peat extent) and industrial oil palm plantations (14%). These conversions resulted in 1.46–6.43 GtCO₂ of emissions between 1990 and 2010. This legacy of historical clearances on deep‐peat areas will contribute 51% (4.43–11.45 GtCO₂) of projected future peatland CO₂ emissions over the period 2010–2130. In Indonesia, which hosts most of the region's peatland and where concession maps are publicly available, 70% of peatland conversion to agriculture occurred outside of known concessions for industrial plantation development, with smallholders accounting for 60% and industrial oil palm accounting for 34%. Of the remaining Indonesian peat swamp forest (PSF), 45% is not protected, and its conversion would amount to CO₂ emissions equivalent to 0.7%–2.3% (5.14–14.93 Gt) of global fossil fuel and cement emissions released between 1990 and 2010. Of the peatland extent included in the moratorium, 48% was no longer forested, and of the PSF included, 40%–48% is likely to be affected by drainage impacts from agricultural areas and will emit CO₂ over time. We suggest that recent legislation and policy in Indonesia could provide a means of meaningful emission reductions if focused on revised land‐use planning, PSF conservation both inside and outside agricultural concessions, and the development of agricultural practices based on rehabilitating peatland hydrological function.     

The Last Swiddens of Sarawak, Malaysia

Swidden cultivation was observed to be under pressure but still persisting in many areas in Sarawak, Malaysia around 2000–2003. Since then rapid development of smallholder oil palm and rubber, continuing urbanization and rural to urban migration appear to have considerably reduced the area under swidden cultivation. With the aim of understanding the extent and impacts of this development, 55 households in three communities that were interviewed in 2002–2003 were re-interviewed in 2011. In an area with rapid oil palm development, the households engaged in smallholder oil palm production have experienced considerable improvements in income and wealth whereas the other households have experienced more limited wealth increases or even a decline in income. Many households have decreased or abandoned cultivation of upland rice, which used to be the core of the swidden cultivation system, and the upland soils in the area are now dominated by oil palm. In another area, where no oil palm development has taken place because of a hydroelectric dam, upland rice fields under swidden cultivation have also decreased and new high yielding rubber is now being planted because of the favorable rubber prices. Moreover, tourism has in this area gained further economic importance and overtaken agriculture as the main economic activity of households. The demise of swidden has not yet occurred in Sarawak, but a continued decline has been observed. However, there is a possibility that the new smallholder oil palm and rubber may provide an opportunity for a new type of ‘productive fallow’ that will allow continued cultivation of upland rice on a small scale.     

Reconciling Oil Palm Expansion and Climate Change Mitigation in Kalimantan,Indonesia

Our society faces the pressing challenge of increasing agricultural production while minimizing negative consequences on ecosystems and the global climate. Indonesia, which has pledged to reduce greenhouse gas (GHG) emissions from deforestation while doubling production of several major agricultural commodities, exemplifies this challenge. Here we focus on palm oil, the world’s most abundant vegetable oil and a commodity that has contributed significantly to Indonesia’s economy. Most oil palm expansion in the country has occurred at the expense of forests, resulting in significant GHG emissions. We examine the extent to which land management policies can resolve the apparently conflicting goals of oil palm expansion and GHG mitigation in Kalimantan, a major oil palm growing region of Indonesia. Using a logistic regression model to predict the locations of new oil palm between 2010 and 2020 we evaluate the impacts of six alternative policy scenarios on future emissions. We estimate net emissions of 128.4–211.4 MtCO₂ yr^-1 under business as usual expansion of oil palm plantations. The impact of diverting new plantations to low carbon stock land depends on the design of the policy. We estimate that emissions can be reduced by 9-10% by extending the current moratorium on new concessions in primary forests and peat lands, 35% by limiting expansion on all peat and forestlands, 46% by limiting expansion to areas with moderate carbon stocks, and 55–60% by limiting expansion to areas with low carbon stocks. Our results suggest that these policies would reduce oil palm profits only moderately but would vary greatly in terms of cost-effectiveness of emissions reductions. We conclude that a carefully designed and implemented oil palm expansion plan can contribute significantly towards Indonesia’s national emissions mitigation goal, while allowing oil palm area to double.     

Local and landscape drivers of arthropod diversity and decomposition processes in oil palm leaf axils

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Poor Prospects for Avian Biodiversity in Amazonian Oil Palm

Expansion of oil palm plantations across the humid tropics has precipitated massive loss of tropical forest habitats and their associated speciose biotas. Oil palm plantation monocultures have been identified as an emerging threat to Amazonian biodiversity, but there are no quantitative studies exploring the impact of these plantations on the biome’s biota. Understanding these impacts is extremely important given the rapid projected expansion of oil palm cultivation in the basin. Here we investigate the biodiversity value of oil palm plantations in comparison with other dominant regional land-uses in Eastern Amazonia. We carried out bird surveys in oil palm plantations of varying ages, primary and secondary forests, and cattle pastures. We found that oil palm plantations retained impoverished avian communities with a similar species composition to pastures and agrarian land-uses and did not offer habitat for most forest-associated species, including restricted range species and species of conservation concern. On the other hand, the forests that the oil palm companies are legally obliged to protect hosted a relatively species-rich community including several globally-threatened bird species. We consider oil palm to be no less detrimental to regional biodiversity than other agricultural land-uses and that political pressure exerted by large landowners to allow oil palm to count as a substitute for native forest vegetation in private landholdings with forest restoration deficits would have dire consequences for regional biodiversity.     

Diffusing Risk and Building Resilience through Innovation: Reciprocal Exchange Relationships,Livelihood Vulnerability and Food Security amongst Smallholder Farmers in Papua New Guinea

This paper examines how oil palm migrant farmers in Papua New Guinea are responding to shortages of land for food gardening. Despite rapid population growth and planting nearly all of their land to oil palm, virtually all families continue to grow sufficient food for their families. The paper outlines the diverse range of adaptive strategies that households have employed to maintain food security, involving both intensification and innovation in farming systems. While gains from intensification have been significant and built resilience, they have been incremental, whereas innovation has been transformative and led to large gains in resilience. The adoption of more flexible land access arrangements on state leasehold land that ‘revive’ and adapt indigenous systems of land sharing and exchange that operated through kinship networks on customary land are innovative; they have increased the supply of land for food gardening thereby reducing risk for individual households and the broader smallholder community. The paper highlights the value of understanding farmer-driven innovations and the role of indigenous institutions and cultural values in sustaining and enhancing household food security.     

How will oil palm expansion affect biodiversity?

Oil palm is one of the world's most rapidly increasing crops. We assess its contribution to tropical deforestation and review its biodiversity value. Oil palm has replaced large areas of forest in Southeast Asia, but land-cover change statistics alone do not allow an assessment of where it has driven forest clearance and where it has simply followed it. Oil palm plantations support much fewer species than do forests and often also fewer than other tree crops. Further negative impacts include habitat fragmentation and pollution, including greenhouse gas emissions. With rising demand for vegetable oils and biofuels, and strong overlap between areas suitable for oil palm and those of most importance for biodiversity, substantial biodiversity losses will only be averted if future oil palm expansion is managed to avoid deforestation.     

Minimizing the biodiversity impact of Neotropical oil palm development

Oil palm agriculture is rapidly expanding in the Neotropics, at the expense of a range of natural and seminatural habitats. A key question is how this expansion should be managed to reduce negative impacts on biodiversity. Focusing on the Llanos of Colombia, a mixed grassland–forest system identified as a priority zone for future oil palm development, we survey communities of ants, dung beetles, birds and herpetofauna occurring in oil palm plantations and the other principal form of agriculture in the region – improved cattle pasture – together with those of surrounding natural forests. We show that oil palm plantations have similar or higher species richness across all four taxonomic groups than improved pasture. For dung beetles, species richness in oil palm was equal to that of forest, whereas the other three taxa had highest species richness in forests. Hierarchical modelling of species occupancy probabilities indicated that oil palm plantations supported a higher proportion of species characteristic of forests than did cattle pastures. Across the bird community, occupancy probabilities within oil palm were positively influenced by increasing forest cover in a surrounding 250 m radius, whereas surrounding forest cover did not strongly influence the occurrence of other taxonomic groups in oil palm. Overall, our results suggest that the conversion of existing improved pastures to oil palm has limited negative impacts on biodiversity. As such, existing cattle pastures of the Colombian Llanos could offer a key opportunity to meet governmental targets for oil palm development without incurring significant biodiversity costs. Our results also highlight the value of preserving remnant forests within these agricultural landscapes, protecting high biodiversity and exporting avian ‘spill‐over’ effects into oil palm plantations.     

Neotropical moth assemblages degrade due to oil palm expansion

Oil palm is one of the most rapidly expanding crops throughout the tropics, yet little is known about its impacts on Neotropical invertebrate biodiversity. Responses of insect assemblages to land conversion may substantially vary among taxa. We assessed geometrid and arctiine moth assemblages in a Costa Rican human dominated landscape, where oil palm plantations are now the second most common land cover. Moths were sampled during 6 months with automatic traps in the interior and margin of old-growth forests, young secondary forests and oil palm plantations in a 30 km² area. Our results show that richness and diversity of both taxa were severely reduced in oil palm compared to all other habitats. Geometrid abundance was highest in forest interiors and lowest in oil palm, while arctiine numbers did not differ between habitats. Dominance was highest in oil palm plantations, where one arctiine species and one geometrid species accounted for over 40% of total abundance in each of their respective taxa. Species composition was distinct in oil palm and forest interior sites, and depicted a gradient of habitat disturbance in ordination space that was strongly related to vegetation diversity and structure. This study demonstrates that oil palm plantations are not a suitable habitat for these moth taxa. Whilst some arctiine species seem adapted to disturbed habitats, geometrids were more dependent on old-growth forests, showing higher bioindicator potential. In the face of accelerated oil palm expansion, conservation strategies should focus on protecting old-growth forest remnants, as well as increasing species diversity and structural complexity of degraded habitats.     

Cotton expansion and biodiversity loss in African savannahs, opportunities and challenges for conservation agriculture: a review paper based on two case studies

We review agricultural impacts on biodiversity and the potential of conservation agriculture in developing productive and environment-friendly cropping systems. We then analyse experiences from two African landscapes of global importance for conservation: the Mid Zambezi Valley in Southern Africa and the periphery of the “W-Arly-Penjari” complex in West Africa. In both areas, expansion of cotton farming, considered as one of the most polluting forms of agriculture in the world, drives major land use change and loss of biodiversity. In both areas, various forms of conservation agriculture have been developed and tested. We highlight the potential benefit of conservation agriculture in controlling negative environmental effects traditionally associated with agriculture and reducing the need for land conversion through increased biophysical resource use efficiency, turning agriculture from a threat to an opportunity for conservation. Finally, we raise a number of issues that constitute challenges for the widespread adoption of these technologies by resource-poor farmers, and formulate recommendations for the development, evaluation and diffusion of conservation agriculture technologies for smallholders in semi-arid Africa.     

Smallholder Livelihoods,Wealth and Deforestation in the Eastern Amazon

In this paper, I examine patterns of wealth accumulation and their influence on deforestation among smallholders at Uruará and Redenção, in the state of Pará in the Brazilian Eastern Amazon. I argue that the development of the smallholder economy has not been a linear process, and the diversity of smallholder farming systems and their patterns of wealth accumulation have varied implications for the rate and magnitude of deforestation. However, whilst there are differential impacts of farming practices on deforestation—cattle ranching has a greater impact than cash cropping or subsistence agriculture—the stronger correlate of deforestation is the wealth of the farmers. Wealthier farmers not only tend to deforest more in absolute terms, but also show a slightly greater propensity to deforest whatever their production system. Though cattle production is a key driver of wealth accumulation and thus deforestation, a significant number of smallholders adopt diversified production systems. The main factors explaining the relationship between the farming systems and deforestation were years of residence on the lot, distance of the lot to main market and the amount of day labor hired—and not variables describing household structure.     

Assessing Societal Benefits and Trade-Offs of Tobacco in the Miombo Woodlands of Malawi

This study assesses the social, economic and environmental impacts and trade-offs of investment in tobacco in two districts in the Miombo woodlands of Malawi. Socioeconomic impacts were analyzed for stakeholder groups differentially affected by large-scale tobacco cultivation: those losing land to estates, those employed on estates, small-scale growers selling to the estates and small-scale wood suppliers. Tobacco growers emerge the biggest beneficiaries from the expansion of tobacco, with real returns among smallholders depending on the extent to which tobacco cultivation constricts or boosts other livelihood activities. Those losing land to tobacco estates are the major losers: efforts to recuperate their livelihoods prove less than adequate to offset the costs of land loss. Smallholder wood suppliers shared more or less the same outcome as employees in securing low returns, often inadequate for more than basic livelihood needs. The literature and fieldwork also document high rates of tobacco-induced deforestation from plantation expansion and unsustainable wood sourcing practices for tobacco drying and curing. Negative ecological externalities are born by local stakeholders and the public alike. We identify opportunities for leveraging more equitable and sustainable outcomes from land-based investments in forested landscapes.     

Poverty and Inequality in the Rural Brazilian Amazon: A Multidimensional Approach

This paper analyses poverty and inequality dynamics among smallholders along the Transamazon Highway. We measure changes in poverty and inequality for original settlers and new owners, contrasting income-based with multidimensional indices of well-being. Our results show an overall reduction in both poverty and inequality among smallholders, although poverty decline was more pronounced among new owners, while inequality reduction was larger among original settlers. This trend suggests that families have an initial improvement in livelihood and well-being which tends to reach a limit later—a sign of structural limitations common to rural areas and maybe a replication of boom and bust trends in local economies among Amazonian municipalities. In addition, our multidimensional estimates of well-being reveal that some economically viable land use strategies of smallholders (e.g., pasture) may have important ecological implications for the regional landscape. These findings highlight the public policy challenges for fostering sustainable development among rural populations.     

Smallholder perceptions and communication gaps shape East African riparian ecosystems

Human livelihood needs and nature conservation often contradict. Yet, healthy ecosystems are crucial for human livelihood quality. The semi-arid regions of East Africa suffer under demographic pressure and soil depletion. Ecosystem degradation becomes particularly visible along rivers in semiarid regions of south-east Kenya, where former pristine riparian forests have been transformed into agricultural fields and settlements with negative effects on ecosystem services. In this study, we aim to understand how local smallholders perceive the challenges for the riparian ecosystems and what factors affect their engagement in environmental conservation. We surveyed about 200 farmers and performed expert interviews with representatives from governmental institutions from the field of land- and resource management along Nzeeu River in south-east Kenya. We assessed the level of education, land use practices, environmental knowledge, attitudes and the willingness to contribute to nature conservation. We tested for spatial bias to understand smallholders’ perceptions on environmental challenges. Our data show that land division due to inheritance is not perceived as a problem by the farmers. However, owners holding?<?1 ha of land property are less willing to spare some of their land for conservation, as opposed to those holding land plots above this size. Despite a high level of general willingness to conserve ecosystems, our data underline that local people hardly actively engage in conservation action. Furthermore, our data indicate a communication gap between local smallholders and regional governmental officers as well as overconfidence in mass media through the radio which can contradict successful adoption of pro-environment behavior. Sustainable land management in our study area is not a matter of education, but depends from the size of land property. There is an urgent need to bridge this communication gap, as a prerequisite to improve sustainable land management.     

山西省阳泉矿区农户可持续生计研究

矿产资源的开发,在支撑社会经济发展的同时,造成了区域资源和生态环境的改变,极大影响农户的生计方式和生活环境。基于高分辨率遥感影像分析了山西省阳泉矿区典型村庄煤矿开采前后的土地利用变化,基于可持续生计框架（Sustainable Livelihoods Framework,SLF）和参与式农村评估法（Participatory Rural Appraisal,PRA）,研究了矿区农户的生计动态及不同类型失地农户的生计可持续能力。结果表明：1）煤矿开采改变了村庄土地利用格局。耕地大面积减少,由占区域面积69.72%降为29.42%;工矿用地大幅度增加,由占区域面积7.51%增为25.01%;农村建设用地、林地、草地和水域均有不同程度的增加。2）农户的资本组合及生计方式随着煤矿开采呈现相应的动态变化,农户逐渐呈现兼业特性;不同类型失地农户的生计资本存在显著性差异。3）生计资本结构的不同造成农户生计可持续发展能力不平等,生计资本累计值越大,农户的生计可持续性越强。矿区农户生计的研究为促进农户生计资本合理配置、缓解矿区企业与农户利益冲突提供了科学依据。     

A review of the ecosystem functions in oil palm plantations,using forests as a reference system

Oil palm plantations have expanded rapidly in recent decades. This large‐scale land‐use change has had great ecological, economic, and social impacts on both the areas converted to oil palm and their surroundings. However, research on the impacts of oil palm cultivation is scattered and patchy, and no clear overview exists. We address this gap through a systematic and comprehensive literature review of all ecosystem functions in oil palm plantations, including several (genetic, medicinal and ornamental resources, information functions) not included in previous systematic reviews. We compare ecosystem functions in oil palm plantations to those in forests, as the conversion of forest to oil palm is prevalent in the tropics. We find that oil palm plantations generally have reduced ecosystem functioning compared to forests: 11 out of 14 ecosystem functions show a net decrease in level of function. Some functions show decreases with potentially irreversible global impacts (e.g. reductions in gas and climate regulation, habitat and nursery functions, genetic resources, medicinal resources, and information functions). The most serious impacts occur when forest is cleared to establish new plantations, and immediately afterwards, especially on peat soils. To variable degrees, specific plantation management measures can prevent or reduce losses of some ecosystem functions (e.g. avoid illegal land clearing via fire, avoid draining of peat, use of integrated pest management, use of cover crops, mulch, and compost) and we highlight synergistic mitigation measures that can improve multiple ecosystem functions simultaneously. The only ecosystem function which increases in oil palm plantations is, unsurprisingly, the production of marketable goods. Our review highlights numerous research gaps. In particular, there are significant gaps with respect to socio‐cultural information functions. Further, there is a need for more empirical data on the importance of spatial and temporal scales, such as differences among plantations in different environments, of different sizes, and of different ages, as our review has identified examples where ecosystem functions vary spatially and temporally. Finally, more research is needed on developing management practices that can offset the losses of ecosystem functions. Our findings should stimulate research to address the identified gaps, and provide a foundation for more systematic research and discussion on ways to minimize the negative impacts and maximize the positive impacts of oil palm cultivation.     

Diversification among coffee smallholders in the highlands of South Sumatra,Indonesia

Over the past decade international organizations and developing countries have been trying to promote agricultural diversification among smallholders under the assumption that smallholders are too dependent upon a narrow range of crops. The International Coffee Organization and the Government of Indonesia have promoted agricultural diversification among coffee farmers to curb production and, thereby, increase prices. In South Sumatra, Indonesia, coffee smallholders diversify on their own initiative and depend upon numerous resource systems. They diversify out of coffee and even agriculture because other investments yield attractive returns and because further diversification within agriculture is often limited by agronomic and financial constraints.The Center for Policy and Implementation Studies (CPIS), Ministry of Finance, in Indonesia funded this research.