Peasant Households in Semi-Arid San José: Confronting Risk Through Diversification Strategies.

III. SAN JOSÉ LLANGA, THE FACE OF DIVERSITY

San José Llanga is an agropastoral peasant community located 116 Km south of La Paz (Bolivia's capital), in the Province of Aroma Department of La Paz. It is located in the Central Altiplano, at an elevation of 3,725 and 3786 mts. above sea level (Washington-Allen, 1993). The closest town is Patacamaya, 16 km away and accessible via a dirt road. San José is inhabited by approximately one hundred households distributed between six human settlements called zones: Callunimaya, Sabilani, Barrio, Tholatia, Incamaya and Espiritu Wilki. The community extension is 7,200 Has of land: 1993 estimates show 48% covered by native grasses, 31% in fallow, 6% with cultivated forages, 5% with food crops, and the remaining 10%, occupied by buildings, rivers, roads, and uncultivated land (Massy and Valdivia, 1995).

The agropastoral production system in SJL combines sheep and cattle herding on natural rangeland with crop production. The main food and forage crops are potato, quinoa, barley, and alfalfa. Several varieties of these and other crops are planted on small parcels of land. Fallow agricultural land and crop residues are important supplements to grazing (Yazman et al., 1995).

The semi-arid high plateau of the Bolivian Central Altiplano may be characterized as an area with a high degree of abiotic perturbations. Washington-Allen (1993) summarizes these perturbations as periodic drought, frequent frosts, occasional floods and seasonal wind erosion. Mean annual precipitation between 1943 and 1990 at Patacamaya Research Station was 402 with a 31% coefficient of variation and a mean annual temperature of 10.4 degrees Celsius.

Precipitation also varies within the year with very low rainfall from April through August. Rain may start between September and December and last through March. Frosts are considered the main danger for food cultivation. Le Tacon et al. (1992) estimate that in the Patacamaya region potato cultivation has one out of two chances of ending its normal cycle, and quinoa six possibilities in ten. Notable difference in the incidence of first risks at the local community have been found to be a function of topographic characteristics and soil type of the land parcels. These perturbations when combined with partial market integration and lack of insurance markets result in diversification as a strategy for risk reduction and persistence. The latter is defined as viable economic households.

Potatos, quinoa, and llamas are the main indigenous crops and livestock in the region. Criollo sheep and cattle production, together with barley cultivation, have been in the region since the colonial period, and have progressively displaced llama production. Nowadays there are no llamas in the region. During the extension workers 1960s introduced new potato varieties and popularized the use of tractors, fertilizers and pesticides for the cultivation of the new varieties. New breeds of sheep were introduced to improve both meat and wool production.

Crossbreeding with native animals resulted in more meat production and better wool characteristics for the textile industry. This period follows an acceleration of the population growth rate. Most farmers in the village now have at least a few crossbred or improved animals in their herds. Criollo sheep are usually smaller and more resilient than the improved. During the major Bolivian textile firms went bankrupt. Since then, 1980s local fibers find it very difficult to compete with imports.

Although cattle have been in the village for almost as long as sheep, in the past they were used primarily as draft animals. With the introduction of Fomento Lechero (FL) Program (an extension program that organizes production and milk delivery) in 1989, dairy production became more important. Construction of a road from Patacamaya to SJL and agreements with the parastatal dairy program, PIL (Planta de Industrializacion Lechera) facilitated adoption of dairy production. PIL sends a truck to SJL each morning to collect milk.

Irrigation is a risk reducing mechanism in agriculture. A 23 km irrigation canal brings water from the Desaguadero river (the main Central Altiplano stream) to a small portion of San José and four other communities at the end of the dry season. This irrigation allows alfalfa cultivation in the area during the period when the main natural forages are exhausted. However, these waters contain a high degree of salts and irrigation could cause serious soil erosion in the long term. Alfalfa is also grown in fluviosols along the banks of a small river that crosses the north part of the territory and where water flows after a rainfall. The water table in the area is very high.

Since their arrival, Fomento Lechero extension researchers have been working with community members to expand the dairy herds to include new breeds of cattle. The two most popular breeds to improve milk production are Holstein and Brown Swiss. Cross-breeding with the existing native cattle improves milk yields. Most farmers own at least one crossbred animal in their dairy enterprise. Households in the community have quickly adopted the dairy activity; by 1992-1993, a significant number of households in SJL were selling milk to PIL. Thus, the FL program combined with the construction of a road to SJL with support of a peasant development program financed by the European Community (Programa de Auto Desarrollo Campesino -PAC) has led to significantly higher levels of market integration for families in SJL. Fomento Lechero closed its activity at the end of 1995, and PIL is in the process of being privatized. It has been agreed that milk producer associations of the La Paz and Cochabamba departments will own part of the stock in the new milk firm, but there is a great deal of uncertainty about future prices, transport, and technical support policies.

The study of San José Llanga will shed light on the role of diversity in income generation, degrees of risk, and wealth. Our interest is to understand strategies of household reproduction in areas of high environmental and market uncertainty and risk, to promote development of production technologies and policies that may improve the quality of life.

What are the impacts of the introduction of new technologies on production strategies and income? Is the dairy business leading to a specialization in commercial activities? What are the characteristics of the producers who adopted the new technologies? Are the technologies introduced risk reducing, and are they sustainable allowing for resource regeneration? Do these policies reduce risk in the short run but have a negative effect in the long run?

This study utilized data obtained from a previous survey of 45 families randomly selected to represent the population of San José. The survey was developed by the Gender and Livestock Project to analyse the impact of dairy farming in this community (Valdivia et al. 1995, Céspedes et al. 1995, Dunn et al. 1994). Income, resources and productive activities correspond to calendar year 1992-93. Synthetic variables were constructed with this data, in our view appropriate to establish a San José household production typology. The construction of new variables also relies on the knowledge gained from other research projects on resource access mechanisms, use of labor, and the role of livestock in San José (Cala y Jetté, 1994; Espejo y Jetté, 1995; Markowitz y Jetté, 1994; Sherbourne et al.; Valdivia et al. 1995). These studies influenced the selection of variables for cluster analysis to distinguish groups with distinct household strategies.

Construction of a typology for assessment of appropriate technologies considered groupings as a function of the quality and quantity of key resources and income. In order to understand the selection made it is necessary to present some of the characteristics of the San José household production systems.

Natural and Economic Resources

Potatos are the basic food staple throughout all the Highlands. Potato production in the Andes is very sensitive to weather conditions. Potato market prices vary significantly throughout the year and between years. Although potato cultivation in San José requires a significant investment of cash (to rent the tractor and to purchase fertilizers and pesticides), the product is mainly for home consumption. Only when there is no frost during the production cycle, and rainfall is average, it is possible to sell a significant share of the crop. The tractor is used to till. This saves labor, and its use is also a result of fewer draft animals since dairy cattle are taking their place. Chemical fertilizers, easier to apply than manure, contribute higher yields particularly in parcels with a reduction in the fallow period due to population increase. Pesticides are required for the new potato varieties because these are prone to pests. Potato is a dryland farming activity [secano] and each household can plant up to a dozen varieties. Some of these varieties (small and sour ones) are destined to food stock reserves in the form of dehydrated potatoes (chuño) (Huanca et al., 1995).

The use of a tractor allows households to devote more time and more land to forage crops: barley, alfalfa and recently oats. Forage crops are cultivated in the irrigated parcels and along the river where soil humidity is higher. Barley is also a dryland crop. These are usually fed to livestock, mainly cattle, and are rarely sold. When available sheep also feed on forages (Yazman et al., 1995).

Sheep are the household's source of meat, wool, manure and cash. They are the main source of animal protein in the diet (Murillo and Markowitz, 1995). Sale of live animals is one of the principal sources of cash to buy food. In times of severe drought, these animals play a critical role in the household economy; they are more resilient and can be sold to buy fodder for the cattle. Dairy cattle in the last five years have become a regular source of cash. At the same time, improving the number and quality of cattle constitute the main forms of capital accumulation.

All household members older than five participate in some way in production activities. Men tend to manage the dairy enterprise, women manage the sheep enterprise, and both manage the crop enterprise (Sherbourne et al, 1996). Children participate in all three, depending on the need for labor at a particular time. Teen age girls are crucial for animal grazing. Boys older than fifteen frequently leave the community to study in an urban college or to learn a trade. Overall, household distribution of labor is flexible. Labor availability constrains the household's ability to crop, herd animals, participate in communal infrastructure building projects, and eventually engage in off-farm activities. Exchanges of labor between households of the same kin are customary, especially during planting and harvesting. A common type of exchange between households in sheep herding consists of a family leaving their animals (or some of them) during one year with another family which in return will keep half of the lambs borne during the year. This is a frequent arrangement between migratory people and their relatives in the community. Only one or two households in the community could afford to hire laborers on a regular basis.

Social Capital

Non market relations are essential to access land. The main form to acquire property rights is through inheritance. Communal rules prohibit the sale of plots to people who are not community members. However, there are ways to access land temporarily through renting or, more importantly, using the land that belongs to a relative who has migrated. This ensures that ownership rights of the migrant will be maintained. These mechanisms mitigate the differences that do exist regarding land ownership in the community. This is one of the reasons why land ownership was not a significant criteria to classify households in the community. Espejo (1994) found no significant correlation between land possessions and animal numbers. Land quality is more important than quantity contributing to farmers wealth.

Inheritance and dowry are the most important sources of initial livestock capital. As the heads of household grow old and their children marry, they progressively redistribute their animals to the new households. Espejo (1994) found a significant correlation between the number of sheep that were inherited and the number of cows that a household possesses. A greater number of sheep at the beginning of the life cycle allows the household to cover the major part of its domestic needs with sheep sales and to accumulate cattle through biological reproduction at a faster rate. Households very rarely buy sheep, except one or two breeding stock every other year. Improved dairy cattle is purchased with earnings from sales of old cows and young males. Part of the profits of cattle sales are invested in land at urban centers, new off-farm businesses, or important social commitments.

The only financial institution present in the region during the 1960s and 1970s was the Bolivian Agricultural Bank (BAB), which supplied credit tied to specific agricultural production projects. Some rural development programs (PAC, Fomento Lechero) also provided credits in the form of forage seeds. The BAB was closed, and PAC and Fomento Lechero concluded their activities in 1995. This same year new private financial institutions opened offices in Patacamaya. These institutions lend small amounts of money for any purpose on a short term basis and at very high interest rates (2 to 4% per month). The communal authorities or a group of neighbors are asked to guarantee the loans that a person receives.

Selection of variables for the groupings:

1. Life cycle plays a role in defining types of producers that may not be in a position to look for changes and innovation. The age of the male head of household was used as the indicator. When a male was not present, female head of household age was used.
2. Labor, assigned 15 or older a weight of one, adult worker; 9 to 14 years a weight of 0.6 (due mainly to schooling time); 6 to 8 years of age a weight of 0.3, and 4 to 5 a weight of 0.1. These weights were based on previous studies of herding patterns by the young (Ramos et al., 1995; Paredes, 1995). Deere and DeJanvry (1981) used similar weights in their study of demographics and social differentiation among Peruvian peasants.
3. Quality of land considered planted and utilized forage area, including alfalfa and forage barley. The variable was measured in hectares.
4. To capture the potential differences in technology, we used the number of improved sheep belonging to the family, including crossbred animals.
5. The number of criollo sheep belonging to the family captured sheep indigenous technology.
6. The number of improved cattle that belong to the family, including adult and young animals, was an indicator of adoption of a new technology.
7. The number of criollo cattle that belong to the family, including adult and young animals, correspond to the indigenous set of activities.
8. Wages included payments to labor unrelated to the household's agricultural production activities. This is considered important because it is a measure of market integration to other economic activities. It has been found that if this takes place in areas different from where the family unit exists, risk can be spread (Low, 1986).
9. Consumption consisted of the sum of in-kind and cash income generated by food production (potatoes, quinua, wheat, grain barley, phaba beans. For livestock it included consumption and sales of sheep, as well as sheep milk; cattle milk sales, wages and other income such as handcrafts and sales of thola (wood shrub) and manure. This is based on Cespedes et al showing sales of sheep to fund household needs. This variable was used to establish differences between groups regarding welfare.
10. Net income from cattle consisted of income generated through the sales of live animals (plus sales of manure and non-PIL milk production). It reflects the households ability to capitalize and reinvest their assets.

Only one variable refers to land holdings. Land property does not represent a significant discriminating criteria. We found that fluviosols and irrigated land under cultivation are more representative of distinct producer strategies. Similar findings were established in Peru (Hopkins and Barrantes, 1987). These lands are almost exclusively used for forages in San José. This is consistent with the fact that animal numbers and species reflect more accurately the intensity of agricultural activity and wealth levels.

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