Hostname: page-component-cd9895bd7-dk4vv Total loading time: 0 Render date: 2024-12-26T06:19:52.294Z Has data issue: false hasContentIssue false

The challenge of making climate adaptation profitable for farmers: evidence from Sri Lanka's rice sector

Published online by Cambridge University Press:  31 January 2022

Antonio Scognamillo*
Affiliation:
Agrifood Economics Division, Food and Agricultural Organization of the United Nations, Rome, Italy
Nicholas Sitko
Affiliation:
Inclusive Rural Transformation and Gender Equity Division, Food and Agricultural Organization of the United Nations, Rome, Italy
Sidath Bandara
Affiliation:
Hector Kobbekaduwa Agrarian Research and Training Institute, Colombo, Sri Lanka
Shantha Hewage
Affiliation:
Hector Kobbekaduwa Agrarian Research and Training Institute, Colombo, Sri Lanka
Thilani Munaweera
Affiliation:
Hector Kobbekaduwa Agrarian Research and Training Institute, Colombo, Sri Lanka
Jihae Kwon
Affiliation:
Agrifood Economics Division, Food and Agricultural Organization of the United Nations, Rome, Italy
*
*Corresponding author. E-mail: Antonio.Sognamillo@fao.org

Abstract

Adapting agricultural systems to changes in seasonal precipitation is critical for the agricultural sector in Sri Lanka. This paper presents evidence on the adoption drivers and the welfare impacts of agricultural strategies adopted by Sri Lankan rice farmers to adapt to low rainfall conditions. We estimate the causal impact of adopting different adaptive strategies across three different dimensions: (a) sensitivity to water stress, (b) household productivity, and (c) household livelihood conditions. The results highlight important trade-offs faced by farmers between reducing vulnerability to water stress and maximizing profitability and welfare outcomes. These findings are important for informing policies to support climate adaptation among smallholders, and to build and improve the climate resilience of Sri Lanka's rice sector.

Type
Research Article
Copyright
Copyright © Food and Agriculture Organization of the United Nations, 2022. Published by Cambridge University Press

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abidoye, BO, Kurukulasuriya, P, Reed, B and Mendelsohn, R (2017) Structural Ricardian analysis of South-East Asian agriculture. Climate Change Economics 8, 1740005.CrossRefGoogle Scholar
Asfaw, S, Di Battista, F and Lipper, L (2016) Agricultural technology adoption under climate change in the Sahel: micro-evidence from Niger. Journal of African Economies 25, 637669.CrossRefGoogle Scholar
Bang, H and Robins, JM (2005) Doubly robust estimation in missing data and causal inference models. Biometrics 61, 962973.CrossRefGoogle ScholarPubMed
Barrett, CB, Bezuneh, M and Aboud, A (2001) Income diversification, poverty traps and policy shocks in Côte d'Ivoire and Kenya. Food Policy 26, 367384.CrossRefGoogle Scholar
Barrett, CB, Sherlund, SM and Adesina, AA (2008) Shadow wages, allocative inefficiency, and labor supply in smallholder agriculture. Agricultural Economics 38, 2134.CrossRefGoogle Scholar
Burchfield, EK and De La Poterie, AT (2018) Determinants of crop diversification in rice-dominated Sri Lankan agricultural systems. Journal of Rural Studies 61, 206215.CrossRefGoogle Scholar
Chithranayana, RD and Punyawardena, BVR (2014) Adaptation to the vulnerability of paddy cultivation to climate change based on seasonal rainfall characteristics. Journal of the National Science Foundation of Sri Lanka 42, 119127.CrossRefGoogle Scholar
Deininger, K, Jin, S and Sur, M (2007) Sri Lanka's rural non-farm economy: removing constraints to pro-poor growth. World Development 35, 20562078.CrossRefGoogle Scholar
Deressa, TT, Hassan, RM, Ringler, C, Alemu, T and Yesuf, M (2009) Determinants of farmers’ choice of adaptation methods to climate change in the Nile Basin of Ethiopia. Global Environmental Change 19, 248255.CrossRefGoogle Scholar
Deressa, TT, Ringler, C and Hassan, RM (2010) Factors affecting the choices of coping strategies for climate extremes. Discussion Paper, International Food Policy Research Institute. Available at https://www.ifpri.org/publication/factors-affecting-choices-coping-strategies-climate-extremes.Google Scholar
De Silva, CS, Weatherhead, EK, Knox, JW and Rodriguez-Diaz, JA (2007) Predicting the impacts of climate change: a case study of paddy irrigation water requirements in Sri Lanka. Agricultural Water Management 93, 1929.CrossRefGoogle Scholar
Di Falco, S (2014) Adaptation to climate change in Sub-Saharan agriculture: assessing the evidence and rethinking the drivers. European Review of Agricultural Economics 41, 405430.CrossRefGoogle Scholar
Di Falco, S and Veronesi, M (2013) How can African agriculture adapt to climate change? A counterfactual analysis from Ethiopia. Land Economics 89, 743766.CrossRefGoogle Scholar
Di Falco, S, Veronesi, M and Yesuf, M (2011) Does adaptation to climate change provide food security? A micro-perspective from Ethiopia. American Journal of Agricultural Economics 93, 829846.CrossRefGoogle Scholar
Esham, M and Garforth, C (2013) Agricultural adaptation to climate change: insights from a farming community in Sri Lanka. Mitigation and Adaptation Strategies for Global Change 18, 535549.CrossRefGoogle Scholar
Etwire, PM, Fielding, D and Kahui, V (2019) Climate change, crop selection and agricultural revenue in Ghana: a structural Ricardian analysis. Journal of Agricultural Economics 70, 488506.CrossRefGoogle Scholar
FAO (2020) Country Brief on Sri Lanka. Food and Agriculture Organization of the UN. Available at http://www.fao.org/giews/countrybrief/country.jsp?code=LKA.Google Scholar
Gorst, A, Dehlavi, A and Groom, B (2018) Crop productivity and adaptation to climate change in Pakistan. Environment and Development Economics 23, 679701.CrossRefGoogle Scholar
Government of Sri Lanka (2021) Paddy statistics. Department of Census and Statistics, Sri Lanka. Available at http://www.statistics.gov.lk/Agriculture/StaticalInformation/rubpaddy.Google Scholar
Handawela, J and Kendaragama, KMA (1995) Soil management for rain-fed farming on Alfisols in Sri Lanka. Available at https://agris.fao.org/agris-search/search.do?recordID=GB9705273.Google Scholar
Hassan, R and Nhemachena, C (2008) Determinants of African farmers’ strategies for adapting to climate change: multinomial choice analysis. African Journal of Agricultural and Resource Economics 2, 83104.Google Scholar
Hirano, K, Imbens, GW and Ridder, G (2003) Efficient estimation of average treatment effects using the estimated propensity score. Econometrica 71, 11611189.CrossRefGoogle Scholar
Holden, ST and Binswanger, HP (1998) Small-farmer decision making, market imperfections, and natural resource management in developing countries. In Lutz, E, Binswanger, H, Hazell, P and McCalla, A (eds), Agriculture and the Environment: Perspectives on Sustainable Rural Development. Washington, DC: World Bank, pp. 5070.Google Scholar
Imbulana, L (2006) Water allocation between agriculture and hydropower: a case study of Kalthota irrigation scheme, Sri Lanka. In Mollinga, PP, Dixit, A and Athukorala, K (eds), Integrated Water Resources Management: Global Theory, Emerging Practice and Local Needs. India: Sage Publications, pp. 219248.Google Scholar
IUCN (2016) Conservation of soil resources of the Kapiriggama Village Tank Cascade System. Technical Note # 6, International Union for Conservation of Nature, Colombo, Sri Lanka & Government of Sri Lanka. Available at .Google Scholar
Kassie, M, Jaleta, M, Shiferaw, B, Mmbando, F and Mekuria, M (2013) Adoption of interrelated sustainable agricultural practices in smallholder systems: evidence from rural Tanzania. Technological Forecasting and Social Change 80, 525540.Google Scholar
Kim, HY, Ko, J, Kang, S and Tenhunen, J (2013) Impacts of climate change on paddy rice yield in a temperate climate. Global Change Biology 19, 548562.CrossRefGoogle Scholar
Kim, K, Chavas, JP, Barham, B and Foltz, J (2014) Rice, irrigation and downside risk: a quantile analysis of risk exposure and mitigation on Korean farms. European Review of Agricultural Economics 41, 775815.CrossRefGoogle Scholar
Kumara, ADS and Bandara, DC (2002) Effect of nitrogen fertilizer on yield and quality parameters of three sugarcane varieties. Tropical Agricultural Research 14, 117127.Google Scholar
Kurukulasuriya, P and Mendelsohn, R (2008) Crop switching as a strategy for adapting to climate change. African Journal of Agricultural and Resource Economics 2, 105126.Google Scholar
Kurukulasuriya, P, Kala, N and Mendelsohn, R (2011) Adaptation and climate change impacts: a structural Ricardian model of irrigation and farm income in Africa. Climate Change Economics 2, 149174.CrossRefGoogle Scholar
Lobell, DB, Schlenker, W and Costa-Roberts, J (2011) Climate trends and global crop production since 1980. Science 333, 616620.CrossRefGoogle ScholarPubMed
Lunceford, JK and Davidian, M (2004) Stratification and weighting via the propensity score in estimation of causal treatment effects: a comparative study. Statistics in Medicine 23, 29372960.CrossRefGoogle ScholarPubMed
Madduma Bandara, CM and Wickremagamage, P (2004) Climate change and its impact on upper watersheds of the hill country of Sri Lanka. In Herath, S, Pathirana, A and Weerakoon, SB (eds). Proceedings of the International Conference on Sustainable Water Resources Management in Changing Environment of the Monsoon Region, Colombo, Sri Lanka: United Nations University, National Water Resources Secretariat, pp. 94109.Google Scholar
Mahendrarajah, ES (2003) Agroforestry as a means of alleviating poverty in Sri Lanka. Proceedings of the XII World Forestry Congress, Food and Agricultural Organization of United Nations. Available at https://www.fao.org/3/XII/0964-A1.htm.Google Scholar
Molua, EL (2002) Climate variability, vulnerability and effectiveness of farm-level adaptation options: the challenges and implications for food security in Southwestern Cameroon. Environment and Development Economics 7, 529545.CrossRefGoogle Scholar
Nayakekorala, HB (1998) Human induced soil degradation status in Sri Lanka. Journal of Soil Science Society of Sri Lanka 10, 135.Google Scholar
Reardon, T, Stamoulis, K, Balisacan, A, Cruz, ME, Berdegué, J and Banks, B (1998) Rural non-farm income in developing countries. In The State of Food and Agriculture 1998. Rome: Food and Agriculture Organization of the United Nations, pp. 282356.Google Scholar
Robins, JM, Rotnitzky, A and Zhao, LP (1994) Estimation of regression coefficients when some regressors are not always observed. Journal of the American Statistical Association 89, 846866.CrossRefGoogle Scholar
Rosenbaum, PR and Rubin, DB (1983) The central role of the propensity score in observational studies for causal effects. Biometrika 70, 4155.CrossRefGoogle Scholar
Seo, SN and Mendelsohn, RO (2008) An analysis of crop choice: adapting to climate change in South American farms. Ecological Economics 67, 109116.CrossRefGoogle Scholar
Seo, SN, Mendelsohn, R and Munasinghe, M (2005) Climate change and agriculture in Sri Lanka: a Ricardian valuation. Environment and Development Economics 10, 581596.CrossRefGoogle Scholar
Shand, R (ed) (2002) Irrigation and Agriculture in Sri Lanka. Colombo, Sri Lanka: Institute of Policy Studies. Available at .Google Scholar
UNESCAP (2010) Economic and Social Survey of Asia and the Pacific 2010. Bangkok, Thailand: United Nations. Available at .Google Scholar
Weerakoon, WMW, Mutunayake, MMP, Bandara, C, Rao, AN, Bhandari, DC and Ladha, JK (2011) Direct-seeded rice culture in Sri Lanka: lessons from farmers. Field Crops Research 121, 5363.CrossRefGoogle Scholar
WFP (2017) Sri Lanka's food production hit by extreme drought followed by floods. News release, World Food Programme. Available at .Google Scholar
Zubair, L (2002) El Niño–southern oscillation influences on rice production in Sri Lanka. International Journal of Climatology 22, 249260.CrossRefGoogle Scholar
Supplementary material: PDF

Scognamillo et al. supplementary material

Scognamillo et al. supplementary material

Download Scognamillo et al. supplementary material(PDF)
PDF 1.5 MB