Recent research authored by four researchers, two of them from EfD Nigeria, sheds light on the underlying causes of deforestation in Nigeria, focusing on smallholder farmers’ preferences for incentives to reduce forest clearing. They found that farmers’ preferences differ greatly, and policies have to be tailored to meet those different preferences.
The southern part of Nigeria is known for its vast rainforests; however, the region has been grappling with persistent deforestation, a critical issue that undermines the vital environmental services forests provide. Despite the crucial roles forests play in maintaining biodiversity, regulating the climate, and supporting local livelihoods, their sustainability in the region is under threat, especially by small-scale farming, which is considered a major driver of deforestation.
The study, titled What incentives motivate smallholder farmers to reduce deforestation? Evidence from Nigeria's rainforest region was based on data from 634 farmers in Cross River State, located in Nigeria’s rainforest region. The study provides crucial insights into addressing agricultural-driven deforestation and implementing more effective forestry management policies.
How agriculture affects deforestation
In developing countries like Nigeria, small-scale agriculture is identified as one of the primary drivers of deforestation. Farmers often clear forests to expand their farms and improve productivity, relying on the fertile soil in forest areas. The shift usually harms the environment and jeopardizes the long-term sustainability of farming in the country.
The study examined the preferences of smallholder farmers for different types of incentives that could help reduce deforestation. Through data collection and advanced modeling techniques, the researchers aimed to understand which types of interventions would resonate most with farmers and reduce their reliance on forest clearance.
The study used two key models to analyze farmers’ incentive preferences: the Conditional Mixed Process (CMP) and the multinomial probit model. These models allowed the researchers to have an understanding of farmers' choices regarding both financial and non-financial incentives.
Results show diversity in farmers’ preferences for incentives
The results revealed significant diversity in farmers' preferences: 38% of the farmers preferred receiving financial support, like direct payments or subsidies, to help them reduce deforestation. Almost half of the farmers preferred non-financial support, including the supply of seeds and fertilizers, job opportunities for the youth, and programs to help them start up businesses.
This finding indicates that while financial compensation might be appealing to some, others prioritize non-financial support that can enhance their livelihoods and provide long-term benefits.
One particularly striking finding from the study is that 20% of the farmers expressed unwillingness to accept any incentives but preferred to continue clearing new forest areas for farming. This indicates a deep-rooted reliance on forest resources for farming, and perhaps a lack of trust in, or awareness of, alternative methods of land use. This subgroup of farmers presents a challenge for forestry management efforts, as their resistance to incentives may hinder efforts to achieve sustainable land-use practices.
Socioeconomic factors influence farmers’ preferences
The study also explored the various socioeconomic and institutional factors that influence farmers' choices regarding incentives. It found that farmers’ socioeconomic status, access to resources, and institutional factors significantly shape their preferences. For example, farmers with greater access to forest resources or married farmers were more likely to favor farm inputs as non-financial incentives that help improve farm productivity and provide broader economic opportunities.
Additionally, institutional factors such as government policies and membership of forest management organisations also played a key role in shaping farmers’ decisions. These findings highlight the importance of tailoring incentive schemes to the local context, taking into account the unique needs and circumstances of different farming communities.
Policy implications
The study suggests that providing uniform incentives to all farmers may not be the most effective approach to combating deforestation. Instead, policymakers should design diverse incentive programs that recognize the varied preferences of smallholder farmers. The policy document could include a combination of financial incentives, access to training programs, provision of farm inputs, and employment opportunities, each tailored to address the specific needs of different farmers.
“It is crucial to recognize that incentives should not be seen as a one-time fix but as part of a broader, long-term strategy for sustainable land management,” Chizoba Oranu, one of the researchers, said.
Chizoba said that engaging farmers in conversations about the benefits of forest conservation, providing technical support, and ensuring that farmers have viable alternatives to deforestation will be essential to reducing the pressure on Nigeria’s forests.