3.4 Incentives for the Conservation of PGRFA
59
As long as diversity of PGRFA is not priced 25 , and as long as a price for
PGRFA is not higher than the agricultural market price, the maintenance of
PGRFA diversity in farmers' fields will be negatively correlated to the overall
agricultural development in a specific region (as discussed in Chap. 2.2).
Therefore, the maintenance of PGRFA diversity in farmers' fields for other
reasons than PGRFA conservation may be interpreted as "de facto conservation"
of PGRFA diversity (Meng et aI., 1997).
Even if farmers are producing PGRFA diversity as a positive external effect to
all beneficiaries of PGRFA diversity without costs, the evolution of the marginal
costs and benefits of the farmers' production system determine the level of
diversity. Farmers conserve PGRFA diversity de facto by utilizing farmers'
varieties on their whole farm (mainly resource-poor farmers) or only on parts of it,
in spite of access to modern varieties and the agro-ecological possibilities (mainly
resource-rich farmers). They do so, because the private anticipated benefit of their
production system (including traditional varieties) in terms of insurance, breeding,
taste, and so forth, is higher than that of an alternative system (including a higher
amount or solely modern varieties), as has been shown in Chapter 3.3 and in
different studies, e.g., Brush and Meng (1996). The farmers will go on
maintaining their production system and consequently a specific level of PGRFA
diversity, as long as their private marginal benefit is higher than their private
marginal costs because of the renouncement of higher yields or other benefits
determined by the change of the production system. A change of the production
system to a "modern" one would inevitably reduce the level of agrobiodiversity.
Wherever farmers are able to change their production systems, the costs of
maintaining the production system and therefore the de facto conservation of
PGRFA diversity have to be reflected as opportunity costs of potential income lost
by not planting modern varieties. Being able to change their production system
because of market integration, resource-rich farmers reflect their opportunity costs
for maintaining their production system and therefore the level of PGRFA
diversity (Fig. 3.3. ).
As described and seen in Fig. 3.3. , the marginal costs of maintaining PGRFA
as traditional varieties are the lowest for the group of economic and ecological
marginalized farmers, without any other production possibilities and hence
without any opportunity costs of maintaining their production system and
therefore the level of PGRFA diversity (represented by the marginal cost curve of
the resource-poor farmers MC",F)' The only opportunity costs reflected are either
the abandonment of agricultural production due to outmigration from the marginal
areas or the change to non-agricultural occupation.
When given realistic alternatives, i.e., by abolishing the marginalized
preconditions of production, farmers are not prepared to bear the cost of
renouncing short-term profit. Consequently they will change their farming
strategies, incorporating modern varieties and dropping farmers' varieties. This
means that technical improvement and development at the farm level creates the
possibility to choose between traditional varieties and modern varieties and the
1S
With all the institutional implications, e.g., property rights solutions, solved.
59
As long as diversity of PGRFA is not priced 25 , and as long as a price for
PGRFA is not higher than the agricultural market price, the maintenance of
PGRFA diversity in farmers' fields will be negatively correlated to the overall
agricultural development in a specific region (as discussed in Chap. 2.2).
Therefore, the maintenance of PGRFA diversity in farmers' fields for other
reasons than PGRFA conservation may be interpreted as "de facto conservation"
of PGRFA diversity (Meng et aI., 1997).
Even if farmers are producing PGRFA diversity as a positive external effect to
all beneficiaries of PGRFA diversity without costs, the evolution of the marginal
costs and benefits of the farmers' production system determine the level of
diversity. Farmers conserve PGRFA diversity de facto by utilizing farmers'
varieties on their whole farm (mainly resource-poor farmers) or only on parts of it,
in spite of access to modern varieties and the agro-ecological possibilities (mainly
resource-rich farmers). They do so, because the private anticipated benefit of their
production system (including traditional varieties) in terms of insurance, breeding,
taste, and so forth, is higher than that of an alternative system (including a higher
amount or solely modern varieties), as has been shown in Chapter 3.3 and in
different studies, e.g., Brush and Meng (1996). The farmers will go on
maintaining their production system and consequently a specific level of PGRFA
diversity, as long as their private marginal benefit is higher than their private
marginal costs because of the renouncement of higher yields or other benefits
determined by the change of the production system. A change of the production
system to a "modern" one would inevitably reduce the level of agrobiodiversity.
Wherever farmers are able to change their production systems, the costs of
maintaining the production system and therefore the de facto conservation of
PGRFA diversity have to be reflected as opportunity costs of potential income lost
by not planting modern varieties. Being able to change their production system
because of market integration, resource-rich farmers reflect their opportunity costs
for maintaining their production system and therefore the level of PGRFA
diversity (Fig. 3.3. ).
As described and seen in Fig. 3.3. , the marginal costs of maintaining PGRFA
as traditional varieties are the lowest for the group of economic and ecological
marginalized farmers, without any other production possibilities and hence
without any opportunity costs of maintaining their production system and
therefore the level of PGRFA diversity (represented by the marginal cost curve of
the resource-poor farmers MC",F)' The only opportunity costs reflected are either
the abandonment of agricultural production due to outmigration from the marginal
areas or the change to non-agricultural occupation.
When given realistic alternatives, i.e., by abolishing the marginalized
preconditions of production, farmers are not prepared to bear the cost of
renouncing short-term profit. Consequently they will change their farming
strategies, incorporating modern varieties and dropping farmers' varieties. This
means that technical improvement and development at the farm level creates the
possibility to choose between traditional varieties and modern varieties and the
1S
With all the institutional implications, e.g., property rights solutions, solved.