World Agroforestry Centre Science Meeting 2008 Market Dynamics for Agroforestry Investments as influenced by Property Rights and Incentives Mike Norton-Griffiths D.Phil. Nairobi, Kenya [email protected] Web Site: mng5.com (cid:197)(cid:197) (well worth a visit!!) HEALTH WARNING • These analyses are in progress and are by no means in final form. • They are best used as illustrations of ideas rather than as completed analyses. • If you really would like to use them in a publication then best to seek my advice first as to their status. • Contact me on [email protected] Tenure Private & Customary Economic & Environmental aspects Incentives Endogenous, Social and Exogenous Interactions Create investment opportunities for agroforestry goods and services Differential impacts on flows v. stocks Transformation of tenure from Customary (cid:198) Private Tenure Status Of Agricultural Land In Kenya Land Status Km2 % Population % Government and Trust Land 12,525 18% 409,568 5% Commercial Leasehold 8,275 12% 671,930 9% Private Tenure 21,350 30% 4,919,040 63% Customary Tenure 29,275 41% 1,809,195 23% Total 71,425 100% 7,809,733 100% Net Returns to Land ($/ha/yr) and Moisture Availability 400 )r 350 $ Total net returns to land (profits) Y / $887 million from 50,000 km2 a 300 h of agricultural land / $ ( d 250 $ n a L 200 $ o t s $ n 150 r u t e 100 R $ t e N 50 $ 0 A. HB.u mSiudb-HCu. mSied mi-H u miD. TraE.n sS.e mi-Arid F. Arid Moisture Availability Influence of Land Tenure on Net Returns to Land 400 Private Tenure Customary Tenure ) r y /a Tenure "gap" = $425 million h 300 / $ ( d n a L 200 o t s n r u t e R 100 t e N 0 A. HB.u mSiudb-HCu. mSied mi-H u miD. TraE.n sS.e mi-Arid F. Arid Zones of Moisture Availability Influence of Land Tenure on Investment in Woodlots 3.0 ) 2.5 2 m Private Tenure k / Customary Tenure a 2.0 h ( s t o ld 1.5 o o W 1.0 f o a e Ar 0.5 0.0 A. HB.u mSiudb-HCu. mSied mi-H u miD. TraE.n sS.e mi-Arid F. Arid Zones of Moisture Availability Economic Impact of Secure Tenure n o 70 i t a Kiambu r e p 60 O - o C 50 Kisii c im o n Nakuru o 40 c E n i 30 Bungoma s d ol h e 20 Kwale s u o Isiolo H 10 % 0 10 20 30 40 50 60 70 80 90 100 % Agricultural Land Adjudicated Tenure Effects: Economic and Environmental Indicators Land Use Private Tenure Customary Tenure Tenure Effect Economic Indicators: Net returns to land ($/ha/yr) $301.80 $ 83.00 3.6 Cash crops (ha/km2) 12.90 2.33 5.5 Livestock returns ($/ha/yr) $25.20 $8.62 2.9 Managed pastures (ha/km2) 5.17 0.13 39.8 Environmental indicators: Total woody vegetation 24.33 22.32 1.1 Privately managed woody veg 11.45 3.01 3.8 Woody crops 4.31 0.24 18.0 Hedgerows (km/km2) 23.55 5.14 4.6 Woodlots 1.27 0.06 21.2
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