The proper use of chemical fertilizer is important for the restoration of soil fertility as well as in the intensification of smallholder farms. Macroeconomic factors, particularly pricing policy, have eliminated fertilizer subsidies, and drastically reduced the demand for and use of fertilizer. There is a linkage between high population density and greater incentives to improve soil productivity since investment in soil fertility and measures to maintain productivity becomes more rewarding and profitable as the scarcity value of land increases with respect to labor. Another approach involves extensification of agriculture by clearing new land, often in an unsustainable way. Extensification is also a means of gaining ownership to new land.
Poverty can be a disincentive to undertaking improved land management practices and intensification.
Poor farmers living in villages are often engaged in cash labor at the time of field preparation and the land tend to suffer most from soil erosion and fertility decline. Several important aspects of farmer behavior were revealed through the examination of farming practices. For example, deforestation was primarily a result of increasing the area under cultivation, not fuelwood gathering. The use of fire is widespread as it is the best means of reducing the incidence of livestock disease, encourages regeneration of grass and pasture for livestock, and is also used in clearing new land. Its use was widespread.