Agroforestry adoption in Mexico: using Keynes to better understand farmer decision-making

James F. Casey, Washington and Lee University

Abstract

The objective of this paper is to empirically test the hypothesis that reducing uncertainty for farmers through investment in human capital increases the likelihood of participation in an agroforestry development program. A model based on Keynes’s notion of profit expectations and “weight” is developed in order to gain some insight into agroforestry adoption behavior. Data was collected near the Calakmul Biosphere Reserve in the state of Campeche in southeastern Mexico. One hundred seventy-five farmers were interviewed from January through March of 1998. Results support the hypothesis that human capital investment improves the likelihood of participation in an agroforestry development program.