Transitions towards sustainable livelihoods through local innovations in

upland-lowland integration

Transitions towards sustainable livelihoods through local innovations in

upland-lowland integration

Budsara Limnirankul, Chorpaka MuangsukPhrek Gypmantasiri

Multiple Cropping Centre, Chiang Mai University

Presentation in International symposium “Interdependencies between upland and lowland agriculture and resource management “1-4 April 2008, Stuttgart, Germany

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Introduction

Upland-lowland farmers are farmers who resided in lowland areas but made full use of both lowland and upland environments.

Farming livelihoods are integrated to capitalize on resource flows between upland and lowland ecosystems.

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Upland is initially used for dryland rice(upland rice) production to supplement household rice requirement. Subsequent land use changes are driven by market access and demand.Lowland is important asset for providing household rice sufficiency. Rice surplus is sold for cash. Rice is produced with minimum input.

Farmers use lowland to produce rice for food, and upland for cash cropping.

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Farming households have transformed from subsistence to commercial farming systems, driven by market forces, creating wealth as outcomes.

A few farmers have become entrepreneurs, engaging in trading of farm produce.

THAILAND

;

Phayao Province

Ban Huak

Hill evergreen forestMixed deciduous forest

TeakTropical pine forest

Dry evergreen forestDeciduous dipterocarp forest

Transplanted paddy field

Low land village

Corn

Reservoir

Source: http://www.mcc.cmu.ac.th/website/dinlanna/firstpage.asp (2004)

Transition: village development has gone through several phases since infrastructure build-up by the Royal Thai Army (RTA)

1980s

Partnership between local community with the RTAfor national security reason

1990s

rice intensification

2000s

Government policy: poverty reduction fund, SML fund, rubber promotion scheme on land reform areas.

local initiative: village fundCRS,cross border trading

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Objectives

Understanding land use dynamics of upland and lowland ecosystems

Determining local innovations and processes that drive the transitions– Social organization– Technological intervention– Production-marketing integration

Framework

lowland

upland

dynamicsecosystems

OutcomeSustainable

livelihoodsendogenous development

land use dynamics of upland and lowland ecosystems

Hillslopes: Agricultural Land Reform Office (ALRO) has collaborated with Royal Forestry Department (RFD) to arrange land use right to farmers. Only tree crops are recommended. At present, ALRO recommends rubber cultivation

Community forest land: local community has negotiated with RFD to use forest lands for extraction of non-timber forest products. Conservation forests including forest reserve and national park are forbidden to farm.

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Access to land and land use dynamics

Undulating uplands with gentle slops: maize-based farming systems: maize-maize, maize-peanut; upland rice, ginger, Job’s tears.

Lowland rice and cash cropping ; maize peanut

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Proportion of households with access to land

Range of farm size on lowland and uplandLowland: 3-30 rai (0.48-4.80 ha)Upland: 10-100 rai (1.6-16 ha)

Types of land title

Land security provides incentive for farmers to invest in agriculture intensification

Farmers receive ownership document: “Nor-Sor 3”, or

“Chanode”. This can be used as collateral for bank loan.

With permanent land ownership, farmers have incentive to invest on land, both lowlands and uplands.

Sources of credits

Source: DOAE 2005

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Financial capital as incentivefor collective action

Established: 1992Membership: 112 households

(hh)Initial contribution: Baht100/shareMonthly saving: Baht100/hhMaximun loan: Baht10,000 Interest rate: 1.5% per monthPayment period: 6 monthsDividend from interest:• Compensation for committee 20%• Contribution to temple: 5%• Contribution to child center: 2%• Forest fire control: 5%• Village development 5%• Dividend for members: 5%Total fund available: Baht3,500,000

Village bank One million baht fund (OMBF)

Borrower must put money in saving fund Baht100/month.

The fund will keep 10% of loan money as saving for the borrower

Interest rate: 2% per year

Saving fund

One Million baht fund

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SML fund is direct disbursement from the Central Government to villages for assisting community initiatives in income generating activities. Amount of funds varies according to population size.

Ban Huak receives Baht280,000 under SML support fund.

SML only provides loan to socially disadvantaged individuals without interest. But the SML committee requires contribution of Baht20/10,000 loan money from borrower.

The maximum loan is Baht10,000.

SML

Interest rate: 6% per year

Management of OMBF shows good performance and receives award from government Baht100,000 of price money, and receives additional fund of Baht1,000,000.

Dividend from interest:• Compensation for committee: 20%• Supporting fund: 30%• Dividend for members: 5%• Return as revolving fund: 45%

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Special contributions from BAAC and DOAE

The village leader has negotiated with the Bank for Agriculture and Agricultural Cooperatives (BAAC) and successfully secured loan fund to support Group Production Initiatives (GPI).

Two newly established groups are cattle and swing production groups, each with 10 members. Each farmer is provided equally with Baht 50,000 loan.

The DOAE through community rice seed production project has allocated repayment fund of Baht 280,000 as farmer revolving fund. At present total fund available is Baht850,000.

Cattle production group(BAAC)

Swine production group(BAAC)

Rice production group(DOAE)

Fund: Baht 500,000

Fund: Baht 500,000

Fund: Baht 280,000

Members: 10

Members: 10

Members: 25

Interest rate: 3%/month

Interest rate: 3%/month

Interest rate: 1.5%per month

Local innovations and processes

Farming Systems

29%

3%

4%54%

2%

4% 2%RD 6KDMLUpland riceMaizePeanutLonganMangoLichiGarlicshallot

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Agro-biodiversity

Use different commercial maize hybrids to fit own field conditionsSelect large-seeded peanut (confectionary type) which has more than double the price of small seeded peanut (oil type) for planting (30-35 Baht/kg as compared to 11-14 Baht/kg)Establish community rice seed production to achieve self reliance in quality rice seed.

Revive home-garden systems to provide household consumption of vegetables and herbs

Cultivate rubber on hillslopes and replace non-productive fruit trees with rubber

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The rice systemThe lowland rice system consists of grain production and community seed production. Farmers employ two rice varieties: RD6 and RD6-2 for grain and seed production. farmers use for local production and market.

RD6 RD6-2Yield lower higher

Quality higher lower

Disease resistance

susceptible tolerant

Seed source

Foundation Seed from Phan RRS

community

Market Main Alternative,village

Price higher lower

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The upland rice systemUpland rice is traditionally cultivated for home consumption.

With increasing demand of maize and peanut, Ban Huak farmers have replaced upland rice with cash crops.

Farmers use local rice variety, select, maintain, and distribute seed within community.

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Farming innovations in cash cropping

Farmers seek and try several cash crops to generate farm income either through their own initiatives and private corporate intervention.

At present, hybrid maize is the main cash crop; aggressive promotion of private seed companies, and easy access to market and favorable price. Rubber, a newly introduced industrial crop, is expected to replaced other perennial fruit crops, such as longan and litchi.

Crop Reasons for withdrawal

Sugarcane No market access despite high yield potential

Coffee No market access despite high yield potential

Red okra Farmers do not accept staking as production technique

Japanese cucumber

Heavy pest incidence despite price guarantee from contracting company

Purple eggplant

Heavy pest incidence despite price guarantee from contracting company

Sweet corn No market access despite high yield potential

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The maize systems

Commercial maize hybrids have adapted well in both upland and lowland. The system requires high inputs: seed, chemical fertilizers, herbicides are common technology package.

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Cropping systems A M J J A S O N D J F M A M

Irrigated lowland

Rice-Maize Rice Maize

Rice-Peanuts Rice Peanut

Rainfed upland

Maize-Maize Maize Maize

Peanuts-Maize Peanut Maize

cropping pattern

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Rubber: a new industrial cropDuring the last five years, rubber has been intensively promoted by the MOAC nation-wide.

About 70,000 seedlings had been delivered and planted by Ban Huak farmers during the last two years.

The first harvest is expected to be in 2010. Many farmers will follow suit if productivity is high. Farmers also follow good agronomic practice recommended by the office.

Farmers have increasingly replaced fruit trees with rubber. Large scale adoption is expected if the tree could produce high yield of latex.

A few farmers become traders, buying and selling maize, peanut to large assemblers in the neighboring districts.

– Small traders can make a net profit of • Maize Baht0.25/kg or Baht 2,000 per truckload (8t)• Peanut Baht0.50/kg or Baht 1,000 per truckload (2t)

One truckload could be delivered per day (considering loading from farm and unloading at the silo)

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Local entrepreneurs

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Local initiative in collective investment in agricultural trading with Lao PDR

– Initiated and organized by village headman– Inviting community members to invest, each share

values at Baht 50,000– Integrating local knowledge of crop production, social

organization, and coordination for commodity supply chain management.

– Delivering agricultural inputs to production sites– Providing technical advice and supervision in

technology transfer to farmer counterparts

Conclusions

Upland

lowland

key mechanismsPhysical asset:irrigation, road, electricitySocial asset: group organizationFinancial asset:village banks and funds ect.Human asset :strong leadership

Outcomecreating year-round farming systemsgenerating

employment for landless farmersoffering trading

opportunity for local traderscooperative

investment in cross border agriculture trading

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The community has gone beyond production but moved forward to agri-business venture with Lao counterparts.The group realized that partnership between local groups and the Lao PDR farmers in contract farming and agricultural trade is a key success factor for long term relationship.There are concerns that interventions from capital-rich and influential private companies in cross border trades will reduce competitiveness of the local groups.

How would cross border trade affect land use changes in upland-lowland interface?Who will benefit from cross-border trade?

Challenges issues!!!

• Interdependence of upland and lowland and its implication for sustainable livelihoods.

• Institutional frameworks for technology and innovation for upland-lowland integration through development of interdisciplinary and participatory research methodologies.

• There are opportunities for integration of local actors and local knowledge, through social mechanisms, into shaping of supply chains of local agricultural commodities.