Economic impact of shelterbelts on groundnut (Arachis hypogaea L.) production in therilands: A decomposition analysis

V. N. Veeramani; L. J. Maynard; C. Murugappan

ABSTRACT:

The study's objective was to assess impact of shelterbelts on input productivity, economic input use efficiency, and net input savings on southern Indian commercial farms threatened by sand dunes. Groundnut production functions were estimated from farm survey data in areas with and without shelterbelts. After accounting for land removed from production, groundnut yields increased by 15 percent (12 percent attributed to shelterbelts, three percent attributed to input use changes) in areas with mature shelterbelts. Mature shelterbelts induced estimated annual input savings of 1,074 rupees/ha (435 rupees/acre). High establishment costs and delayed benefits discourage private shelterbelt investments, suggesting a role for public investment.

Footnotes

Venkat N. Veeramani is a graduate research assistant in the Department of Agricultural Economics at the University of Kentucky in Lexington, Kentucky. Leigh J. Maynard is an assistant professor in the Department of Agricultural Economics at the University of Kentucky in Lexington, Kentucky. Chandrasekaran Murugappan is an associate professor in the Department of Agricultural Economics at the Tamil Nadu Agricultural University in Tamil Nadu, India.
Copyright 2003 by the Soil and Water Conservation Society

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