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Abstract
On-farm tree cultivation is considered an important strategy to mitigate detrimental
environmental impacts of agricultural land-use change (ALUC). In South Africa,
however, little is known about farm-level incentives and constraints that govern
ALUC decisions among small-scale farmers. To address this knowledge gap, this
study employs a mixed multinomial logit (MMNL) model by using a combination of
revealed and stated preference data. After correcting for endogeneity, the estimated
results show that decisions about ALUC are rationally derived and driven by clear
but heterogeneous preferences and trade-offs between crop productivity, food security
and labour saving. The results further show that the decision to plant sugarcane is
constrained by landholding, whilst farmland afforestation is negatively influenced by
household size. Decisions to convert land use are also driven by the behaviour of peer
groups and agro-ecological conditions. Based on these findings, important policy
implications for sustainable land use are outlined.