Changes to Agricultural Production and Livelihoods in Xieng Ngeun District, Luang Prabang Province, Lao PDR.

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1 INTERNATIONAL SYMPOSIUM TOWARDS SUSTAINABLE LIVELIHOODS AND ECOSYSTEMS IN MOUNTAINOUS REGIONS 7-9 March 2006, Chiang Mai, Thailand Changes to Agricultural Production and Livelihoods in Xieng Ngeun District, Luang Prabang Province, Lao PDR. K. Alexander*, J. Millar, N Lipscombe, D.H.R Spennemann School of Environmental and Information Sciences Charles Sturt University, Albury, NSW 2640, Australia Tel. +61 (2) ; Fax +61 (2) ; kalexander@csu.edu.au 1 Introduction The Lao People s Democratic Republic (Lao PDR) is a developing country in transition from command governance to a market economy, and from subsistence livelihoods to a cash economy. Central government policies have influenced rural household strategies by focusing on the reduction of shifting cultivation of upland rice, which has had a profound effect on food security, productivity, land degradation, and biodiversity. The transformation of rural livelihood systems envisaged by the Government's Strategic Vision for the Agricultural Sector (GOL, 1999) appears to lack the necessary support from the government and international development organisations to sustain, protect, and develop livelihoods. Most rural households use multi-livelihood strategies, engaging in a diversity of subsistence and income-earning activities (Bouahom et al., 2004, Raintree, 2004, Rasul and Thapa, 2003, UNDP, 2001, GOL, 1999, Scoones, 1998, Roder, 1997, Sanderwell et al., 1997). Fluctuating environmental and economic conditions necessitates the integration of agriculture, horticulture, hunting and gathering, animal husbandry, and forestry to sustain households (UNDP, 2001). Rural households pursue a hierarchy of strategies to achieve their food security objectives. Rice sufficiency has been maintained by growing either paddy or upland rice, or purchased by collecting Non Timber Forest Products (NTFPs), growing cash crops, raising small livestock, producing cottage industry products, engaging in trade, or selling family labour. Indebtedness and dietary staple substitution are then the final strategies (Raintree, 2004). Declining productivity of swidden-based upland farming systems, termed the swidden degradation" syndrome by Raintree (2004) is due to the scarcity of NTFPs, and the failure of alternative income sources to transform the rural economy (UNDP, 2001). Farmers have responded to government policies to stabilise shifting cultivation by investing labour and time into the production of upland crops and livestock. When farmers are confronted by changing land use (tenure, planning, demarcation or allocation) and when populations are purposely concentrated in a targeted area, agricultural intensification is expected to occur (Boserup, 1965). Further, Scoones (1998) has developed a framework that describes several livelihood strategy options, agricultural intensification or extensification, diversification and/or migration, by which people achieve (or fail to achieve) ongoing sustainable livelihoods. UNDP, (2001) reports there to be many technical options for the development of agricultural and forestry-related improvements and additional employment for rural livelihood systems. For technologies to be supported and cash crop alternatives to be adopted several key problems need to be solved. Improved access to markets, greater extension support, and access to affordable credit are necessary to promote technologies and changes to farming systems (Raintree 2004).

2 This research examined the extent to which upland farmers are modifying their farming systems and the impact these changes have on their livelihoods and upland environments. Qualitative and quantitative methods were used to explore the farmers perspective on agricultural change. Many factors influenced farming decisions, and the market economy has increasingly played a role in determining agricultural production. Changes are occurring in the foothills, and whilst traditions remain important, most farmers are interested in trying innovative ways to secure livelihoods in the emerging market economy. 2 Research Methodology Thirty one villages were purposively selected to provide a representative sample of the 79 villages in Xieng Ngeun district, Luang Prabang Province. Structured interviews with 202 farmers were used to gain information on the details of farming systems, future farming aspirations, and upland productivity. Semi-structured interviews of government officials, and foreign consultants were also analysed for comments on current agricultural production and farming systems. The research design used a purposive sample of villages and an integrated, mixed methodological approach. Formal interviews and conversations were transcribed and analysed using Nvivo software for qualitative data to categorize the content, distilling for meaning and themes (Neuman, 2000). Descriptive and inferential statistics were used to analyse quantitative data via social science statistical software (SPSS and S Plus). Both quantitative data and qualitative reflections were merged as part of the process that provided triangulation of the findings. Observations and field notes complemented the interviews by providing rich description, insights, and for the triangulation of findings. 3 Findings Official district figures indicated the amount of land (hectares) used for the production of upland rice for Xieng-Ngeun district decreased from 3,394 ha in 2004 to 2,415 ha in 2005, a reduction of 979 ha or 29% ( B. Khounsy, personal communication, 2005). The total land used for the production of paddy rice for Xieng-Ngeun district increased from 585 ha in 2004 to ha in 2005 (3%) and produced 3. 5 ton rice per ha for single crop rain fed paddy. Irrigated paddy land (2 crops/year) decreased from 252 ha in 2004 to 250 ha in 2005 and produced rice 4.5 ton per hectare (B. Khounsy, personal communication, 2005). Farmers, however, reported the average yield of upland rice to be 1.5 ton/ha whilst the average yield of paddy rice was 2.2 tons/ha. Seventy percent of farmers claimed they were growing less rice than in the past. Twelve percent of farmers had stopped growing upland rice altogether. The majority of farmers (90%) predicted future decreases in upland rice production, although only 2% of farmers felt that they would stop production altogether. An important issue in most villages was rice sufficiency, determined by the number of months that farmers experienced rice shortages. In the villages within the study area, only 10% claimed they had sufficient rice each year with 71% of villages claiming insufficient rice for 2-4 months prior to harvest each year. Three percent of villages were without sufficient rice for 9 months of the year. Rice sufficiency was not significantly related to the size of the village population, the altitudinal location, or the time taken to get to the market. When the headmen were asked whether their villages had produced sufficient rice over the last 5 years, 74% indicated that their village did not produce sufficient rice. However, when farmers were asked about their rice production 59% indicated that they produced sufficient rice for their own consumption. This indicated that headmen were concerned for the welfare of their communities and farmers were struggling to provide rice for their families. Production issues were cited as problematic, as one farmer encapsulates; 2

3 In the last 5 years upland rice was good and produces good results. This was because old forest was cut for cultivation which contained lots of fertilizer. And at that time the rains came in the right season. Today rice doesn t produce good result, drought and no rain in raining season, soil is rocky. This is reiterated by a headman, Before 1988 upland rice is good yield, after 1990 have land allocation, 3 ha/household, then they do second upland rice, low yield ton/ha, not enough with rice. Weed and erosion, when do upland rice, use more labour. Many production issues were raised including, forest destruction, the high cost in labour and time for diminishing returns, focus on the production of a single crop, reliance on weather conditions, problems with soil fertility from short fallow (2-3 years), erosion, and the loss of biodiversity. Weed proliferation and problems with pests and disease all exacerbated labour inputs and lowered productivity. The conservation of forest and protection of the watershed were of main concern in every village. Restrictions to land use and changes in land ownership have confronted traditional land management systems and farmers struggle to maintain productivity with continuing land degradation. Socioeconomic concerns emphasized economic poverty, access to infrastructure and facilities and food scarcity. Farmers reflected on many issues such as, lack of infrastructure, housing, education, land production, illness, family requirements, labour and ethnic and social issues. Farmers were asked to predict and indicate the change in the importance of the components of their farming system activities over the next 5 years. The relative importance of each activity was determined for household use, local sale in the village, or for sale at market or to trader. The farming system was described by constructing the following categories: (i) upland rice, (ii) paddy rice, (iii) upland cash crops (maize, Jobs Tears, sesame, soybean), (iv) vegetables (tomatoes, asparagus, chilli, pineapple), (v) trees ( fruit trees, oranges, teak, rubber), (vi) livestock ( buffalo, cattle, pigs, goats, horses, poultry, fish), (vii) NTFPs ( bamboo, mulberry paper, rattan), (viii) off-farm income (labour, enterprise, trading), (ix) handicrafts (weaving, bamboo products, clothes, wood carving, silversmith), and (x) other activities (making alcohol, rocks from river, tourism). Comparison of the relative importance of future farming activities using Kruskal-Wallis rank sum test indicated there to be a significant difference in opinions of the importance for the above activities; chi-square χ2 = , df = 9, 2 tailed, p < The resultant score of importance (1-10) was derived from the median of the summation of 4 variables, developed to indicate the relative importance of activities for subsistence use and/or for sale. The number of observations totaled 804, with median values of crops (5) and livestock (5) indicating a greater weighting for importance as future activities. Median values for upland rice (1), vegetables (1), trees (1), NTFPs (1), and handicrafts (1), were slightly greater than those for paddy rice (0), off-farm income (0), and other activities (0). Farmers indicated that crops and livestock were equally important to their future productivity, and would be sold to traders more so than at market. Technical advice from extension staff was pivotal to the uptake of new activities and often farmers cited adoption failure from lack of information and demonstration by technical staff. Farmers were more inclined to change agricultural production if district staff provided high quality, successful varieties of seeds and technologies for trial. Farmers expected extension staff to understand market systems and disseminate market advice. Government staff regularly visited villages, and assisted in decision making with farmers, reported on the market, and provided 70% of all information for farmers on new varieties of crops and livestock. Market information was required by farmers for them to embrace the market economy and risk trialling new crops, diversify production, or engage in intensive farming practices. Revolving funds and access to credit provided incentives for farmers to try new activities. Farmers identified their immediate problems, many of which are depicted by the causal diagram developed by Raintree (2004) as the swidden degradation syndrome. When farmers had 3

insufficient rice for household consumption, the land use was governed by regulations and when population concentrations placed greater pressure on resources, a downward spiral of land degradation

4 insufficient rice for household consumption, the land use was governed by regulations and when population concentrations placed greater pressure on resources, a downward spiral of land degradation and a loss in biodiversity occurred. Given that villages in Xieng Ngeun district were experiencing land degradation whilst diversifying their farming systems, this suggests that unsustainable livelihood outcomes will result. Figure 1 depicts the process of land degradation and changes to farm productivity in response to political, social, economic, and environmental change. This diagram also suggests the support required to facilitate successful livelihood outcomes. Figure 1: Forces of agricultural change in Xieng Ngeun District 4 Conclusion Farmers are responding to government policies to stabilise shifting cultivation and modifying their farming systems away from a dependency on upland rice cultivation. Many factors are affecting these decisions. Clearly, farmers are investing time and labour into the production of upland crops and livestock. Farmers are unable to change to paddy rice cultivation and they continue upland rice cultivation with diminishing yields, resultant rice insufficiency, and struggle to cope with land degradation. Food insecurity forces farmers to change their livelihood strategies in order to purchase rice, this then impacts of the forest biodiversity, changes production to cash crops and livestock, and can introduce debt or modification of their staple diet. Farmers are interested in using technologies to change to a market-oriented livelihood strategy and require improved access to markets and traders, improved extension support and access to affordable credit. The market economy was influencing agricultural production decisions and farmers indicated they would be using traders in future transactions, more so than at the marketplace. The issue of shifting cultivation production of upland rice is complex, on the one hand seen as destructive by farmers and actively discouraged by the government, but it remains the main agricultural production activity in the uplands with few alternatives for rice production for poor farmers on marginal lands. 4

5 References Boserup, E. 1965, The conditions of agricultural growth; The economics of agrarian change under population pressure. George Allen & Unwin, London. Bouahom, B., Douangsavanh, L. & Rigg, J. 2004, Building sustainable livelihoods in Laos; untangling farm from non-farm, progress from distress Geoforum, Volume 35, Issue 5, September 2004, Pages Government of LAO PDR (GOL). 1999, The Government's Strategic Vision for the Agricultural Sector. MAF (Ministry of Agriculture and Forestry, Lao PDR). Vientiane, Lao PDR. Neuman, L. W. 2000, Social research methods. Qualitative and quantitative approaches. 4th edn. Allyn and Bacon, Sydney. Raintree, J. 2004, Rural livelihoods, biodiversity and market forces, LSUARFP NAFRI, Vientiane. Presented at World Food Day Conference, Vientiane Rasul, G. & Thapa, G. B. 2003, Shifting cultivation in the mountains of South and Southeast Asia: Regional patterns and factors influencing the change. Land Degradation and Development, 14, pp Roder, W. 1997, Slash-and-burn rice systems in transition: Challenges for agricultural development in the hills of northern Laos. Mountain Research and Development, 17(No 1), pp. p1-10. Sanderwell, M., Ohlsson, B. & Sanderwell, R. K. 1997, People's options on forest land use. Working Paper No 2 Lao PDR. A research study of land use dynamics and socio-economic conditions in a historical perspective in Upper Nam Nan Water catchment Area, Nan District, Luang Prabang Province, Lao PDR. SIDA/SAREC, Vientiane. Scoones, I. 1998, Sustainable rural livelihoods a framework for analysis. IDS (Institute of Development Studies) Working paper 7 2 UNDP. 2001, National Human Development Report Lao PDR. United Nations Development Programme. Advancing Human Development. Lao PDR Vientiane 5

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