EROSION PRODUCTIVITY MODELING OF MAIZE FARMING IN THE PHILIPPINE UPLANDS PART III - ECONOMIC-ANALYSIS OF ALTERNATIVE FARMING METHODS/

Two previous papers in this series (Nelson et al., this issue) describ ed the use of the Agricultural Production Systems Simulator (APSIM) to simulate the effect of erosion on maize yields from open-field farmin g and hedgerow intercropping in the Philippine uplands. In this paper, maize yields simulated with APSIM are used to compare the economic vi ability of intercropping maize between leguminous shrub hedgerows with that of continuous and fallow open-field farming of maize. The analys is focuses on the economic incentives of upland farmers to adopt hedge row intercropping, discussing farmers' planning horizons, access to cr edit and security of land tenure, as well as maize pricing in the Phil ippines. Insecure land tenure has limited the planning horizons of upl and farmers, and high establishment costs reduce the economic viabilit y of hedgerow intercropping relative to continuous and fallow open-fie ld farming in the short term, In the long term, high discount rates an d share-tenancy arrangements in which landlords do not contribute to e stablishment costs reduce the economic viability of hedgerow intercrop ping relative to fallow open-field farming, (C) 1998 Elsevier Science Ltd. All rights reserved.