Social and environmental impacts of payments for environmental services for agroforestry on small-scale farms in southern Costa Rica

Agroforestry on small-scale farms has potential to provide important ecological services, such as carbon sequestration and maintenance of biological diversity, while also providing on-farm products for domestic use and marketing. Payments for environmental services (PES) are an increasingly popular mechanism for encouraging production of ecological services on agricultural lands and may also contribute to poverty reduction and sustainable farming practices through adoption of new farming technologies. There is little current information, however, on the degree to which PES increase tree planting relative to a baseline or the effects of program participation on farmer livelihoods. This study examined the initial impacts of a recent PES program for agroforestry in southern Costa Rica by: (1) assessing the efficiency of PES in increasing reforestation relative to baseline tree planting activities; (2) examining farmer perceptions of socioeconomic and environmental impacts of PES; and (3) exploring obstacles to adoption of agroforestry practices. Thirty-six participant and non-participant farmers were given semi-structured interviews. Key informant interviews were conducted with forestry engineers, farmers' associations, NGOs, and government agencies. Farmers reported positive economic benefits in the first 2-3 years of program participation. PES participants also planted substantially more trees and more species than non-participant farmers. The PES program was effective in overcoming initial economic and technical obstacles that made adoption of agroforestry unattractive. Strong local organizations played a key role in facilitating adoption. Additional investment in short- to medium-term technical support will likely be necessary for broad retention of agroforestry practices beyond the life of the PES contracts.