Output Diversification among Small-Scale Hillside Farmers in El Salvador

In this study the authors analyze the degree of output diversification (anything produced in the farm that is not a subsistence crop, i.e., corn or beans) among 520 hillside farmers in El Salvador. Techniques were employed to construct a comparison group that resembles the treatment group based on observed characteristics while statistical controls were applied to measure differences on diversification for the treatment group at two points in time (2002 and 2005) and between the treatment and comparison groups at a given point in time (2005), allowing for before-after and with-without comparisons. The outcome of the study showed that overall, more diversified farm plans are positively associated with farm size, schooling, participation in communal organizations, and with the frequency of extension visits, which captures the PAES intervention. Also, farmers involved with PAES have significantly increased the number of agricultural activities in their farms between 2002 and 2005.