Author(s)

A. Möller & U. Ranke

Abstract

Soils are non-renewable resources. World-wide in many regions a sustainable use of soils is endangered through anthropogenic accelerated soil erosion. From the economic point of view erosion protection is the transfer soil use potential into the future. However, in developing countries such as Indonesia usually only short term profit counts and consequently soil resources suffer from accelerated exploitation. Advising farmers that soil erosion protection measures not only ensure a prolonged agricultural potential for the future, but can also include economic benefits is a promising attempt to promote the use of soil erosion protection measures. The prerequisite for the decision process on a farm level is the possibility to estimate the costs of soil erosion. In Indonesia mostly reliable data are missing, and also no expensive surveys can be accomplished. Therefore, less data intensive methods such as the \“replacement cost” or the \“productivity change” method were used to estimate the \“on-farm-costs” of soil erosion in Sleman on Java. The \“replacement cost” method resulted in clearly higher costs compared to the \“productivity change” method. This is due to an over-estimation of the costs by the \“replacement cost” method. The use of both methods comparing costs and benefits of soil protection measures indicate similar decision guidelines. However, more information is necessary on the additional effects of soil conservation and political constraints to be a base for sound decision-making on a farm level, but making information available on the benefits of conservation measures helps farmers in their decision process to invest in soil conservation. Beyond this, soil erosion is also a societal problem, including external costs making up a large portion of the economic effects of soil erosion. Keywords: soil erosion, on-farm costs, replacement cost method, productivity change.

Keywords

soil erosion, on-farm costs, replacement cost method, productivity change.