Socio-Economic Dimensions of Crop- Livestock Integration in Slopeland Areas

Lauro T. Niog
Deputy Director
Southern Mindanao Agricultural Programme (SMAP)
Davao City, Philippines, 1998-09-01

Introduction

Most uplands in Asia, particularly the Philippines, face an ecological crisis. The slopeland areas, which account for more than 80% of the uplands, have been subjected to severe natural resource loss due to indiscriminate deforestation and destructive upland farming practices. These activities when combined with natural causes of soil erosion lead to the demise of slopelands or to its unproductiveness. The current rate of exploitation has become so alarming, that many rural development programs have begun focusing their goals on reducing environmental degradation while providing income generating opportunities for the inhabitants and farming communities in these areas.

Despite this critical situation, many agriculturists and environmentalists agree that solutions are available to minimize if not totally eliminate the negative economic, social, and environmental impact of these destructive endeavors.

As farming remains the main livelihood source of these inhabitants, there is a need to assist them identify and engage in sustainable farming practices that will help rationalize resource conservation with farm income generation.

One option is crop-livestock farming, a system that continues to expand in the slopeland areas. Just as trees and cash crops are integral to many indigenous farming systems, so too are animals. In conventional agricultural science, animal production is regarded as integrated with crop farming. Animals provide manure and draught power for cultivation, forages are part of the cropping cycle, and the animals and crops form part of the same production unit. Whereas, these forms of integration do exist in smallholdings in the tropics, additional forms of crop-livestock integration have also evolved, occurring not only within but also between production units.

The Basic Needs of a Crop-Livestock Enterprise in Slopeland Areas

Countries may have different conditions owing to their respective policies and laws governing slopelands. It is recognized, however, that the following basic needs may apply partly or fully for the fulfillment of the potential of this slopeland enterprise.

As the tropics and subtropics can grow and raise almost the same crops and animals, the selection of what crops can be integrated with animals, or what animals can be integrated with crops, will greatly depend on the availability of the following elements:

Land

Slopelands are mostly marginal lands. It needs different types of farming practices to be able to maximize production in a sustainable manner.

Considerations in determining the land requirement of a crop-livestock enterprise include:

1. Suitability of the crop. The crop to be planted should be the main determinant in selecting the land. For instance, in a corn-cattle project, the adaptability of corn is very important in selecting the area. The residue of the corn will be used as feed for cattle, and when there are no residues, supplementary feeds can be gathered or procured. Corn, however, has no other option but to contend with its growth in the area where it is planted.
As for the livestock component, it can either be allowed to graze freely in the land or it can be confined with cut-and-carry employed. This latter alternative would thus require a minimal land area.
2. Size of the land. The area should be big enough to supply the requirements of both crop and livestock. Because of the two production units being implemented on the same piece of land, it is expected that the normal requirement of the basic commodity may need to be expanded to accommodate the other. If cattle will be allowed to graze under the trees, the distances of coconut trees should be wider as the crops will need more sunlight to enhance their forage growth.
3. Elevation of the land. Climatic conditions in the slopeland areas are vital in determining the crop that can grow best as well as the livestock that can adapt to the climate in the area. Although it is true that livestock can be provided facilities and confinement when the climate is too cold, this may be too costly for smallholders living in the slopelands. Studies show that cattle, sheep and goats can still adapt to elevation up to 1,800 meters in tropical and subtropic countries.

Labor

Since most of the inhabitants in the slopeland areas have smallholdings, the tendency is to engage in family enterprises. This situation limits the scale or size of the crop-livestock enterprise to the farmers' household.

Availability of labor affects the outcome of the enterprise. The amount of labor needed depends entirely on the type of crops and animals to be integrated. Fruit trees will have different labor requirements compared to cash crops like vegetables or corn, and so with large animals versus small animals. This is further affected by the method of rearing the animals, that is, whether it be by grazing or confinement, the latter being obviously more labor-intensive.

This manual labor limitation is the reason why most of the crop-livestock enterprises in slopeland areas are smaller and often not within the economy of scale sizes. Indonesia and the Philippines have an average of 2 head of cattle per farm family, while Japan has five times more. This proves that because of improved facilities in developed countries, the carrying capacity, in terms of labor requirement, can also be increased.

Therefore, in determining the size of the crop-livestock enterprise, one should consider the availability of labor in the farm family. Likewise, support facilities should be considered to ensure its viability and sustainability in the slopeland areas.

Capital

Assuming that land is already available and labor will be the counterpart or equity of the farmer, additional capital is still needed for some important items, such as:

Production inputs, e.g. seeds, fertilizers, chemicals, stocks, supplementary feeds, biologics, etc.
Farm implements/equipment
Production facilities like water system
Post-harvest support facilities
Marketing support

As already known, the slopeland areas have to utilize indigenous farming systems to reduce cost, increase profit and ensure sustainability. It is not advisable to have an enterprise which is capital-intensive in these areas.

The Importance of Conservation and Management of Slopeland Areas

The slopeland areas which are mostly in the uplands have been considered frontier territory, a safety valve for the poor and dispossessed, and more importantly, it serves as the life support system of the lowland and aquatic areas.

Over the years, the resources present in these areas, which were once considered inexhaustible, have been expended in a prodigal manner while the population dependent upon them has grown as rapidly as ever. The ecological balance continues to decrease because these areas are now under agriculture of one type or another. This has accelerated severe ecological damage that has in turn caused the following:

Increased runoff that has led to increasing incidence of flash floods causing severe damage and destruction to crops, properties and infrastructure in the lower region.
Increased erosion, that has caused severe siltation, decreased water levels in rivers, and drying-up of spring sources that the populace depend upon.
Downstream effects include a lowering of water quality through turbidity and pollution and the destruction of coral reefs.
However, if slopelands are properly managed, they can contribute greatly to arresting the social, economic, and environmental concerns of most countries. The environmental damage, particularly to the soil, is so devastating for the present generation that this should always be taken into consideration in slopeland farming. Actual experiences showing destruction to the soil resource in one region in Mindanao are presented in Table 1 to forewarn all concerned stakeholders.

The Application of Sustainable Techno-Logies

Sustainable technologies in agricultural development have become popular. It has been observed that the mainstream approach to modernizing agriculture has led to dependency on external inputs such as seed, fertilizer, pesticides, machinery and fuel. In recent years, a shift away from this dependence on non-renewable natural resources was seen as imperative. Efforts have been made to promote and practice forms of land use which make efficient use of locally available resources. The concept of site-appropriate agriculture builds on a long tradition of location economics and farm management theory. Concepts being promoted are:

Ecologically-sound agriculture
Biological husbandry
Organic farming
Conservation agriculture

All refer to forms of agricultural land use which depend primarily on local resources to achieve lasting productivity. This is widely termed as sustainable agriculture with low levels of external inputs. In other countries, it is termed as ecofarming. This type of agriculture cannot be applied in an absolute sense, nor can it be expressed in quantitative terms. Ecology is defined as a science which deals with the relationship between organisms and their environment. Thus, ecofarming or sustainable agriculture which relates to a developmental process must be continuously assessed to determine whether or not specific measures are of value. This means that farming technologies are not good or bad per se; their value depends on their applicability within a particular system (e.g. whereas minimum tillage may be recommendable in slopelands, ploughing may be necessary in flatlands).

The Need for Community Organizing

A farmer may be able to implement, on his own, a crop-livestock enterprise, however small, because of the prevailing situation in slopeland areas. Data gathered showed that farmers in these areas in Mindanao have smallholdings or small farm size (i.e., ranging from 1 to 3 hectares per farmer), limited capital, insufficient labor, difficult access to credit, poor transport system, and no postharvest facilities or marketing support. If these limitations are not arrested, the slopeland farmers are expected to remain dependent on external inputs from traders who have their own interest (profit) to serve.

To sustain the benefits gained from their individual crop-livestock enterprise or economic activities, the need for strong community or farmers' organization is very important. It can serve as the foundation of slopeland communities' long term capability for a self-directed and self-propelled sustainable development. This in turn means less dependence on external support.

There are two main strategies of strengthening community organizations. These are the conduct of technical as well as human resource development training. These will enable them to acquire the necessary knowledge to enhance their skills in the implementation of various enterprises and economic activities as well as in managing their organizations. From these training programs will emerge leaders. Moreover, a strong and active participation of the members in communal activities will be seen. The community's institutional development can be strengthened further through the following important elements:

Organization-building - this involves registration to acquire legal per-sonality
Resource build-up - the organization can engage in savings mobilization as funding source of their economic activities; and
Linkage development - tapping partner institution for common benefit of the members of the organization.

Having advanced the status of the organization, the benefits of community organization in a crop-livestock enterprise in slopeland areas include:

Easy access to credit
Bulk procurement of feeds, fertilizers, etc. that can reduce cost
Complementation of feeding between members
Ease and profitability of group marketing of products
Group-facilitated veterinary and animal health care services
Establishment of communal rather than individual support facilities that can save cost (e.g., communal water systems or irrigation system)
Easy and cheaper investment for establishing communal enterprises for the members (e.g. post-harvest facilities - driers, etc.)

The success indicators of community organizations can include: diversification and/or expansion of viable enterprises, consolidation of resources, savings or capital build-up generation, creation of umbrella organizations or federations, realization of marketing tie-ups with businesses, and stronger working linkages with other institutions. Table 2 shows the SMAP achievements in community organizational development in its covered areas. The SMAP experience proves that community organizing works and is needed in the uplands.

The Socio-Economic Considerations and Indicators

(to ensure the sustainability of the enterprise)

For presentation purposes, a mango-goat integrated enterprise will be used to show the socioeconomic considerations and indicators that ensured the sustainability of this enterprise in the slopelands of Mindanao.

Social Considerations and Indicators

1. Land ownership/tenure status. The type of crops to be planted depends greatly again on the tenure status of the land to be developed. Permanent crops like fruit trees which have 5 - 50 years of economic life span will be most likely to be implemented only in lands with ownership or stewardship. In the case of animals, they can be transferred from one place to another with no direct relation to land ownership or tenure status, as the feeding system can easily be shifted (e.g. from grazing to cut and carry system).
In the Philippines, lands are classified into two types, Public Forest Land for which no ownership titles can be issued; and Alienable and Disposable (A & D) lands for which can be issued permanent ownership titles. Classified as Public Forest Lands are those with 18% slopes and above. They can still be developed with the issuance of stewardship certificates for 25 years, which are renewable for another 25 years. Those below 18% slopes are A & D which can be developed by the owner with no reservations.
In Mindanao, it has been proven that where land tenure is not a problem, development of crop-livestock enterprises is faster and more successful. This is because farmers are not hesitant to invest in land which they know will not be taken from them. Permanent crops like fruit trees and coconuts are usually integrated with animals. Successful crop-livestock enterprises are thus mostly found in areas below 18% slope or above with stewardship agreement. The thinking of many farmers is that permanent crops planted will help in securing ownership or stewardship of public lands.
2. The role of farmers' organizations. Farmers organizations serve as the nerve center of communal activities in slopeland areas. These organizations provide a venue to discuss problems and solutions related to their enterprises. They also facilitate active cooperation among the members, enabling them to address the higher needs of of their produce, accessing credit and others. In other words, the production stage of the enterprise can be assisted by the farmer-organization in many ways.
One important role it can play as well is on policy advocacy matters related to crops and livestock. For crops, the organization can lobby, for instance for the reduction of prices of production input, and support for the improvement of facilities like farm-to- market roads which normally could not be provided to one farmer alone. For livestock, the farmers can express their sentiments on importation of meat and other livestock products. Through the farmer's organizations, the government can be influenced to formulate and implement policies that will protect the interest of the crops and livestock entrepreneurs.
3. Labor distribution and manpower needs of integrated production systems. In a mango-goat enterprise, where the area of the land utilized is 1/2 ha and the number of goats is 1 doe and 1 buck for one farmer, labor distribution at one production cycle is 90 full man-days for mango and 15 full man-days for goat. Mango production will need at least one person to work on land preparation, planting, and tree guard installation for 30 man-days. After that, maintenance work will need a part time person up to harvesting for 60 man-days. The goats, on the other hand, will need only 14 man-days from forage establishment (e.g. planting of hedgerows) to main-tenance.
In this enterprise, the main commodity is mango; therefore, the farmer should concentrate on it while the goat can be taken care of by other members of his family. In this situation, the goat can be confined, and the use of a cut and carry system is appropriate.
One important thing to consider therefore, is to select the right crop at the right time (wet or dry season) to be integrated with the livestock and vice-versa. If one commodity is labor-intensive then the other must be less labor-intensive to avoid problems of providing labor requirements of two commodities at the same time.
4. The emerging role of housewives and children in crop-livestock enterprises. While the farmer (normally the husband) works full time in the farm, the wife and the children can provide the labor requirements of the other enterprises within the farm. This is especially useful if there are two production units or commodities on the same piece of land.
The wife and children do the lighter load of weeding, applying fertilizers, watering, planting, harvesting and maintenance. As much as possible, they do the work that can be delegated by the farmer husband so that their enterprise can be expanded. Children, however, have limitations on time as they are attending classes in school. In underdeveloped countries, however, they are expected to work in the farm on off days from school. There are still a lot of school children who are forced to stop schooling and are obliged to work in the farm to earn a living. This is due to the widespread poverty in slopeland areas. In Mindanao, drop-outs range from 40% to 60%.
5. The need for participatory communication (farmer and community) at all stages of the crop-livestock enterprise. Participative community based approach is the key to sustainability of development initiatives. This also applies to crop-livestock enterprises where farmers should be involved from the planning and implementation to the evaluation stages. It is important that the beneficiaries of any development programs, the community and the implementors, jointly appreciate the relevant information needed in determining the enterprise to be established.
Based on SMAP development process, the following stages of developing an enterprise necessitates full participation/involvement of the farmer beneficiaries together with their families and the community officials or leaders:

Stage 1

Data collection
Before identifying an enterprise, it is very important to understand the community situation, which needs development of a community profile with the following information:

1. People
The number of men, women and children (by age group)
Social groups (ethnicity, language groupings)
Household characteristics (size and location, length of stay in the community)
Number of people by occupation and education level
Structure of society (affiliation to churches and membership in organizations),
leadership
2. Resources
Community natural resources (water sources, fuelwood lots, etc.)
Land classification and use (alienable and disposable, forest, etc.)
3. Facilities
Community facilities (churches, schools)
Health clinics
Water supplies
Communications (roads, vehicles)
Multi-purpose pavement
Barangay Hall, Multi-purpose building
Power (electricity)
4. Seasonality
Rainfall
Crop/harvest
Labor in agriculture (periods of much and little work)
Food availability (shortage, abundance, type)
Illness by type (for people and animals)
Fiestas
Water supply
Fuel availability
Income/credit (times of need, for what)
5. Farms
Size
Land tenure
Soil type
Cropping pattern (temporary crops)
Permanent crops
Livestock
Inland fisheries
6. Markets
Source of farm inputs
Farm product outlet
Marketing organizations; and
Buyers organizations

Stage 2
Identification of
Problems, Needs,
and Solutions It is important as well for the beneficiary and the community as a whole to agree on the priority problems and needs to be addressed, and also the solutions. Capability to plan and implement the identified solutions through projects or enterprise establishment should be considered.

Stage 3
Preparation
of the Feasibility
Study
The enterprise or project identified must have a study to determine whether it is technically, financially, socially and environmentally feasible. Data must be validated jointly by the community and the intended beneficiaries or farmers.
Stage 4
Implementation
Stage

There should always be discussion by the farmer with the community on the problems affecting the implementation. The farmer may need training to enhance his skills. Thus, it is important to identify who needs to be approached for support in the community before considering outside support.
Stage 5
Monitoring and
Evaluation
Farmers should know if the enterprise is performing according to expectation. They must ensure that there are no violations of laws or negative impact to the populace. After evaluation, the farmer and the community may inject improvements on the technologies to increase productivity and profitability of the enterprise.

6. The role of cultural values and traditions In most cases, the cultural values and traditions influence the motivation which results in the active participation of the people in the community. If the enterprise is parallel to their cultural practices, there will be no problem of accepting responsibility by the people concerned which is of critical importance to the success of the enterprise. For example, a pig project will not be acceptable to the Muslim community.
Decision-making has to take into account the existing system in the community. Under the Muslim community again, the Datu or Head should agree to the activity or enterprise, otherwise the support of the clan will not be to the fullest.
Involvement of women in the implementation, and their sharing of the fruits of the enterprise as well as access to factors of production and support services, and their rights such as land ownership and inheritance, must be considered.

Economic Considerations and Indicators

1. The capital investments. The investment needed in a crop-livestock enterprise could be sourced from different entities through:
the farmer himself
loans
partnership
savings
The capital requirement need not necessarily be contributed all at the same time. For example, surplus cash earned by farmers is often invested first in livestock and the offspring of the animals provide the income. Animals in turn can be used to finance cropping inputs. This can also be done in another way, in which investment goes first to fast-income-generating crops or cash crops to enable the farmers to accumulate capital to invest in livestock.
In this respect, the integration should be properly timed. It can be scheduled by phases especially if there is limited capital. Investment planning is therefore the key to optimize the productivity of the capital intended for any enterprise.

2 The economic returns from the integrated system. In terms of economic viability, the enterprise return-on-investment should not be below the prevailing stock market rate or prime interest of the banks. From the economists' point of view, the cost:benefit ratio can also serve as the indicator of viability, such that when the ratio is high, income exceeds cost. If the enterprise was funded by a loan, economic viability could also mean that payback period is shorter than the economic life span of the enterprise.
In computing the economic returns for the integrated system, it is important to include the by-products of the main crops as well as the value of the inputs resulting from the interaction of the two production units. As in the case of the mango-goat enterprise (please see table 3 and Table 4 of Gross Margin Production at 1 doe/1 buck level) the following are some of the additional benefits derived that added value to the enterprise:
Manure of the goat
Nitrogen fixing benefit of legume trees such as Renzonii and Flemingia restoring fertility to the soil
Cash crop production while mangoes are still small
Services of the buck which are paid for by other goat farmers
3. The need for markets to absorb the produce. No enterprise will succeed without markets. In SMAP, marketing is viewed as a planning process of enterprise development which does not only cover selling. It is a process by which the stages of enterprise development are related to marketing such as:
Identification of crops/livestock Select only those that are marketable or in demand.
Timing of production Aside from seasonality, harvesting should be timed to high demand that falls on lean months. It is also important that drying, storage, and transport of the product to the market be facilitated.
Processing The potential of the product for processing to have added value is a major consideration in selecting the crop. It provides opportunity for high profit and diversified marketing for the produce to be all absorbed in the market.
4. The need for credit to support small farmers with little capital. Credit is a factor that can sustain the enterprise or even diversify/expand it if the resources and market will allow. Slopeland farmers though have problems in securing credit for of various reasons:
Land tenure problem
Lack of collateral
Stringent requirements of banks (track record, etc.)
Need for groups/organizations to be registered
Insufficient capital or equity
Insurance scheme needed to cover crops/livestock in the slopelands
Without credit facility or access to financing, the small farmers will continue to depend on traders who charge very high interest rates and buy farmers' products at very low prices. Access to credit will result in less dependency on traders and more profit for the enterprise.

Analysis

The socioeconomic considerations and indicators discussed will be very important and meaningful for the farmer-entrepreneur who plans to engage in any crop-livestock enterprise. It is equally important to understand that the two aspects (social and economic) may not necessarily meet, and many times one is sacrificed because of the hierarchy of needs in a given community. Sometimes the enterprise is economically viable and an income earner, but it is not socially acceptable as it is against the norms or cultural practices of the people in the community. More importantly, the other aspects like environmental concerns and sustainability must be given equal consideration and attention to ensure success of the enterprise.

Policy Concerns and Issues

There are only few concerns and issues that need to be attended to in the crop-livestock enterprise in the slopeland areas.

These are:

Land tenure The government should come-up with measures to improve the distribution and ownership of the land to optimize the utilization of this resource.
Conservation and protection laws formulated and implemented. This is the only way that upland resources can be preserved for the next generation.
Disparity of support by all sectors between slopeland and lowland farmers must be reduced.
Education or value orientation will help reduce ecological problem caused by lack of knowledge on environmental issues.

Summary

The integration of crop-livestock in slopeland areas is a common practice in many countries. The considerations of establishing these enterprises outlined in this paper are relevant to anyone who plans to engage in it, especially if the conditions described are present. As emphasized, however, the most important thing that needs to be ensured is the sustainability of the crop-livestock enterprise. It can be summarized, therefore, that the following factors should be considered to ensure sustainability of the enterprises in the slopelands:

1. Policy support
2. Appropriate technology
3. Environmental protection
4. Socio-cultural aspects
5. Enhanced institutional and management capacity
6. Economic and financial analysis showing high viability

The government and private sector are therefore encouraged to give their sincere contributions and concerns in ensuring that the above factors are met and made relevant to the agricultural activities in the slopeland areas.

Appendix Southern Mindanao Agricultural Program's Process of determining wealth/income groupings or socio-economic dimension ranking (SEDR) in communities
Methods

advocated: Well-being (Socio-Economic) Ranking
STEP 1: Collect the names of household heads in the community (e.g. you can do this through the social mapping exercise). Write each of these names down on sufficient index cards for the exercise and number each card on its reverse side.
STEP 2: Identify your Key Informants. Choose at least six men and women (i.e. 3 women, 3 men - always have an equal number of both sexes) for this exercise. Be sure to select persons who have good knowledge of the community, i.e. those who have resided in the community for a long time. If there are different ethnic/cultural/tribal groups in a community be sure to have each represented in the Key Informant group.
STEP 3: Discuss the exercise with the Key Informants. Explain the need to collect baseline information on Income/Well-being groupings to measure the change in the prosperity of the community over time.
Try and ensure that the Key Informants are briefed separately from other groups participating in the PRA exercises, so that they carry out their analyses undisturbed.
Jointly with Key Informants, establish the groupings which the Key Informants should use to categorize different households, e.g.:
1. The richest
2. Those with high social status
3. Those who are averagely well off
4. People who are poor
5. People who are very poor
STEP 4: Card Sorting. Explain to the Key Informants that they are to pile up the cards with the names of the different households into different piles, one of each of the agreed 'wealth' categories. Explain that each Key Informant is to do the exercise by themselves, applying their own criteria for putting households into each of the categories as they go along.
1. The richest. For instance, people who:
- Have houses with good lumber & galvanized iron roofing;
- Own large farm planted with some permanent crops;
- Own several water buffalo and ploughs;
- Have non-farm income;
- Are able to send children to college;
- Are highly self-sufficient - i.e. they can handle their own household problems without other people's help; and
- Can help others to solve financial/social problems.
2. Those with high social status. For instance, people who:
- Can manage their own affairs
- Own a farm of a reasonable size;
- May be officers in community groups (e.g. Church Groups, Farmers'
Organizations);
- Have a fair degree of independence; and
- Can sometimes afford to hire farm labor.
3. Those who are averagely well off. For instance, people who:
- Mainly own small plots;
- Own a single water buffalo;
- Can only just support family needs; and
- Have many dependents
4. People who are poor. For instance, people who:
- Farm small parcels of lands;
- Are tenants;
- Do not produce enough to meet their needs;
- Have some small livestock; and
- Cannot send children to school
5. People who are very poor. For instance, people who:
- Are old persons, widows, widowers, 'refugees';
- Own no land at all;
- Have a few chickens;
- Work as paid farm labor; and
- Are unable to support family.
Be careful to explain, however, that each Key Informant should establish their own criteria, and that at the end of the exercise they will be asked to explain the criteria individually to the facilitator.
Proceed. Ask the Key Informants to sort the cards you have given them into piles.
STEP 5. Interview each Key Informant.
a) Check that the informants are happy with their classification of households.
b) Count the number of households in each pile and list each household number in each pile on a separate recording sheet.
c) Ask (discretely) what category each informant would put themselves in.
d) If polygamy is practiced in the community, ask the female informants to count the number of wives per household head. Record this on each card for later correlation.
STEP 6 Ask each informant to 'characterize' each of their piles, i.e. to define the criteria they
used for putting households into the different piles.
In asking the informants to explain their classifications make sure you cover the
following questions:
- Kind and quantity of assets/resources owned or possessed;
- Income sufficiency and sources of income;
- Education levels of households;
- Influence in key social groups/organizations (e.g. Church groups, cooperatives, etc.); and
- Use of wage labor (e.g. as an employer or employee).
With each informant, on each sheet listing the households in each pile of cards, write
down the criteria used by the informant to ìcharacterizeî each pile.
STEP 7 Calculate the score of each household.

The score assigned to each household by each Key Informant should be calculated
using the following scoring equation.
Pile Number of Household
x 100
Total Number of Piles
It should be noted that in the "five pile" system for categorizing households outlined above, Pile 1 is the richest, and a household categorized into this pile will score 20 [(1 divided by 5) x 100], while Pile 5 is the lowest category and a household listed in this pile will score 100 [(5 divided by 5) x 100]. In short, the richer the household, the lower it will score.
Each household number should then be analyzed using the matrix shown opposite, in which the score given to each household by each informant is used to compute each household's Average Rank Score. For each household, the scores recorded by each and every one of the Key Informants are added together and then divided by the number of informants.
STEP 8. Divide the households up into logical groupings
To do this, you need to work out where the breaks in the household rankings are, i.e. where the break between ranked households is larger than average.

Re-validate groupings by interviewing sample households selected at random from each of the above groupings. N.B. At this time, ask the interviewees to estimate the average income of the households in each of the groupings.
STEP 9. Uses of wealth ranking.
Wealth (Socio-economic) Ranking is used to identify the social/wealth position of different households within communities. Once conducted, it can be used to help ensure that households in all income groups within communities can be assisted through different types of project.
If communities are asked to put a value on the income of ranked households by grouping, this same exercise can be used to conduct ex-post evaluation on the impact of SMAP on the well-being of communities after the completion of the project, as it will permit impact evaluators to assess how different households have prospered (in income terms) during the intervention of SMAP. Use the following matrix for this.

Table 4. Gross margin analysis of goat production (1 doe and 1 buck) per beneficiary

Index of Images

Formula 1
Table 1 Distribution of Slope Classes and the Degree of Erosion in the Southern Mindanao Region of the Philippines
Table 2 Verifiable Indicators of Organizational Development
Table 3 Gross Margin Analysis of a One-Half Hectare Mango Orchard.
Table 4