Existing incentives do not incorporate the net benefit to society of these measures. Even where the incentive exists, farmers often lack the cash, labor, and knowledge to make investments. Cuts in agricultural credit programs reduced the capacity of farmers to invest in these technologies. Even after overvalued currencies are devalued and markets are liberalized, there remain major policy and structural constraints to farmer investment. Identifying cost-effective systems, policies, and public investments to increase the farmer's incentive and capacity to use chemical fertilizer, organic matter, improved seed, and equipment is crucial.
Livestock husbandry can be a boon to farm investments.
Mixed farming benefits crop productivity. Nevertheless, pastures are waning under population pressure and there is a need to intensify livestock husbandry through use of stabling and corralling. Making farmers lives more stable and predictable is crucial to investment. Land tenure insecurity, political instability, policy caprice, and greatly fluctuating prices undermine investment. Land security raises complex issues.