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6 Land Issues

Much forest conversion is driven by policies and actions outside of the forestry sector. Therefore, forest boundaries contract and expand in unplanned and unintended ways because of policies and activities exogenous to public forestry administrations. As a result, any assessment of forest policy must consider a complex web of intersectorial and cross-cutting relationships. Some areas that should be included in the analysis are:

Macroeconomic policies also affect forests through their impact on investment, public spending, foreign trade and other economic variables that have consequences for land use. It can be argued that macroecomic distress puts pressure on forested frontiers to accommodate the overflow of marginalized persons, although this has not been systematically documented. Macroeconomic stabilization has to be judged as generally helpful for forests (J.Laarman, 1999).

The aggregate impact of agricultural policies and infrastructural development is far more significant for forest conversion than policies within forestry itself. Forests are favored by polices, technologies and market trends that reduce the demand for cropping and grazing land. These two activities have competing claims over forest lands as open-access resources and are the main causes of deforestation in Latin America. An overview of agricultural policies affecting forestry is presented in Box 4.

Subsidies and taxes in most of Latin America have discriminated against forest in favor of grazing, cropping, and other non-forest development. This implies that fiscal measure can be modified to correct the bias. However, fiscal reform is a highly challenging policy for achieving socially optimal land uses (J.Laarman, 1999).

In Latin America, deforestation for commercial uses has been more common than in other regions. The forest industries do not necessarily cause direst deforestation, but often contribute to it by opening up virgin areas, which are later invaded by colonists (IDB, 2002).

Road expansion or improvement (paving) may add to population growth in remote areas, accelerating forest alteration and conversion. The expansion of roads is a policy concern in Central America, particularly in Panama. (J.Laarman, 1999).

6.1 Land cover and deforestation

Table 21 shows the current land use and land cover state of Latin America. At the regional level, forest are 48% of the total land followed by permanent pastures with 30%. Arable land is 6.4% and permanent crops only 1.2%.

Forests area ratio on and above the regional indicator could be found in Belize, Brazil, Colombia, Honduras, Guyana, Paraguay, Peru, Venezuela and Suriname. Guyana and Suriname are special cases, with more than 86% of forest area. Forest area more than 20% country land area but less than the regional indicator (48%) could be found in Chile, Costa Rica, Ecuador, Guatemala, Mexico, Nicaragua and Panama.

Table 21 Land use and deforestation in Latin America, 2000

Country

Total Land Area

Forest and woodland

Permanent pasture

Permanent crops

Arable land

Other land types

Annual deforestation rate

(000 Has)

(000 Has)

(%)

(%)

(%)

(%)

(%)

(%)

Argentina

273 669

34 648

13

51.9

0.8

9

28

-0.8

Belize

2 280

1 348

59

2.2

1.1

3

53

-2.3

Bolivia

108 438

54 390

49

31.2

0.2

2

19

-0.3

Brazil

845 651

53 068

64

21.9

1.4

6

8

-0.4

Chile

74 880

15 536

21

17.3

0.4

3

60

-0.1

Colombia

103 870

49 601

48

39.4

1.7

3

11

-0.4

Costa Rica

5 106

1 968

39

45.8

5.5

4

11

-0.8

Ecuador

27 684

10 557

38

18.4

5.2

6

39

-1.2

El Salvador

2 072

121

6

38.3

12.1

27

-3

-4.6

Guatemala

10 843

2 850

26

24.0

5.0

13

35

-1.7

Guyana

19 685

16 879

86

6.2

0.1

2

10

-0.3

Honduras

11 189

5 383

48

13.5

3.2

10

38

-1.0

Mexico

190 869

55 205

29

41.9

1.3

13

16

-1.1

Nicaragua

12 140

3 278

27

39.7

2.4

20

9

-3.0

Panama

7 443

2 876

39

19.8

2.1

7

43

-1.6

Paraguay*

39 730

23 372

59

54.6

0.2

6

-18

-0.5

Peru

128 000

65 215

51

21.2

0.4

3

28

-0.4

Suriname

15 600

14 113

90

0.1

0.1

0.4

12

n.s.

Uruguay

17 502

1 292

7

77.4

0.2

7

-5

5.0

Venezuela

88 205

49 506

56

20.7

1.1

3

24

-0.4

Latin America

1 984 856

950 721

48

30.0

1.2

6.4

17

 

Source: FAOSTAT 2002; FAO: FRA 2000; FAO 2001: State of the World’s forests;
* Due to discrepancies within database about forest area, this data will not be analysed.

Box 4. Agricultural policies affecting forestry

Traditional exports crops: Subsidies and price supports for products such as beef, bananas, coffee and citrus fruits increase the demand for new lands to produce them. Traditional crops occupy comparatively large areas in Honduras, possibly implying new pressure on the forest frontier. However, the supply response may be constrained by world commodity prices, trade policy in the industrialized countries and other factors.

Non-traditional export-crops: In Costa Rica, there is a major controversy with regards to shrimp farming, which is apparently hurting mangroves and fishing in the Gulf of Fonseca.

Livestock: Given the land-intensive character of cattle production, the consequences for forests are potentially significant.

Institutional framework: Institutional strengthening will help control the expansion of agriculture into new areas.

Technology generation and transfer: Short-run supply will increase on the existing pastures and cropland, and long-run increase of agricultural income will stimulate the demand for new land.

Land tenure: On the whole, tenure reform should be one of the most positive elements for forest protection.

Trade and prices: Protectionism through tariffs on agricultural inputs and exemptions for agricultural exports could motivate an increase agriculture income in the short-run.

Rural finance: Credit programs and extension services have been developed mainly for livestock and cropping, and only much less so for forest management and agroforestry. Improved credit availability will raise short-run agricultural output and potentially expand the long-run demand for new land. Source: (J.Laarman, 1999)

Permanent pasture is the second main land use and has been relevant for forestry, since there is a tradition for livestock breeding through turning forests into pastures. Currently, Argentina, Bolivia, Colombia, Costa Rica, El Salvador, Mexico, Nicaragua Paraguay and Uruguay have more than 30% (regional indicator) of permanent pastures. Other countries which have more than 20% but less than 30% of pastures are: Brazil, Guatemala, Peru and Venezuela.

The regional indicator of arable land is 6,4% and El Salvador exceeds this one as it has 27% of arable land. A similar case is presented in Nicaragua, where the arable land account for 20% of the total land.

Deforestation rates where found in all the countries (0.1% in Belize to 4.6% in El Salvador) except for Uruguay which has a high rate of aforestation (5%).

6.2 Outlook for land use

The following projections for land use towards 2020, Figure 34 and Table 22 Outlook of land use in Latin America, 2020 ) were done using current annual land use change rate, calculated from data from 1990 and 2000 (FAOSTAT) for each land use and from the FRA 2000 for forests. No significant change in land policies is reflected in these projections. These projections are reflected in Figure 34 Forest area in Latin to Figure 37 Permanent crops in Latin America, 1970, 2000 and projections to 2020 (1000 Ha)

Table 22 shows the projected land use and land cover of Latin America for 2020. In the regional perspective, forest are 44% of the total land followed by permanent pastures with 30, 6%. Arable land is 7% and permanent crops only 1,5%. All of these indicators have increased respect to 2000, except for the forest one.

Table 22 Outlook of land use in Latin America, 2020

Country

Forest and woodland

Permanent pasture

Permanent crops

Arable land

(000 Has)

(%)

(%)

(%)

(%)

Argentina

29 506

11

51.7

0.8

9

Belize

846

37

2.3

2.4

5

Bolivia

49 973

46

32.4

0.3

2

Brazil

502 007

59

22.1

1.7

9

Chile

15 228

20

17.5

0.7

1

Colombia

45 780

44

41.1

1.7

2

Costa Rica

1 676

33

46.2

7.0

3

Ecuador

8 292

30

19.9

6.0

5

El Salvador

47

2

61.7

11.2

28

Guatemala

2 023

19

26.0

6.4

14

Guyana

15 895

81

6.2

0.1

2

Honduras

4 403

39

13.6

3.2

6

Mexico

44 249

23

44.7

2.4

14

Nicaragua

1 783

15

39.7

3.2

33

Panama

2 083

28

20.0

2.1

7

Paraguay*

21 143

53

57.8

0.2

7

Peru

60 191

47

21.1

0.6

3

Suriname

13 680

88

0.1

0.1

0.4

Uruguay

3 428

20

77.6

0.2

8

Venezuela

45 692

52

20.7

1.2

2

Latin America

867 926

44

30.6

1.5

7

Source: FAOSTAT 2002; FAO: FRA 2000; FAO 2001: State of the World’s forests;
* Due to discrepancies within database about forest area, this data will not be analysed.

Forests area ratio on and above the regional indicator could be found in Bolivia, Brazil, Colombia, Guyana, Paraguay, Peru, Suriname and Venezuela. Respect to 2000, Belize and Honduras have fallen below the regional indicator. Guyana and Suriname still the most forested countries in relative terms, with more than 81% of forest area. Forest area more than 20% country land area but less than the new regional indicator (44%) could be found as in 2000 in Chile, Costa Rica, Ecuador, Guatemala, Mexico and Panama. Respect to 2000, Nicaragua has fallen below this range.

Permanent pasture will still be the second main land use. In 2020, Argentina, Bolivia, Colombia, Costa Rica, El Salvador, Mexico, Nicaragua Paraguay and Uruguay have more than 30% (regional indicator) of permanent pastures. Other countries which have more than 20% but less than 30% of pastures by 2020 are: Brazil, Guatemala, Peru Venezuela and Panama.

The regional indicator of arable land is 7%. As in 2000, El Salvador and Nicaragua are far over this rate. Nicaragua has increased this ratio from 20%.

At the regional level, if current change rates continue, Latin American forests are likely to shrink by 9% in 2020 Figure 34. Permanent pasture, permanent crops and arable lands would increase by 2%, 24,7% and 13,1%, respectively. Countries which are likely to loose at least 20% of their forests by 2020 are Mexico, Belize, Ecuador, Guatemala, Nicaragua and Panama; and more than 60% in El Salvador if current deforestation rates continue. On the other hand, the major expansion of pastures expected for 2020 is of more than 60% in El Salvador.

Central America

• Belize forests are expected to decrease by 37%. There will be an increase of pressure of land for permanent crops and arable lands since they are expected to increase by 114% and 74% respectively; and in a less proportion for permanent pastures, by 4%.

• In Costa Rica, possible trade-offs between permanent crops and arable lands are expected, since the former is expected to increase by 27% and the latter to decrease by 24%. Permanent pasture is expected to increase by 1% only and forests to decrease by 15%.

• El Salvador, forests will decrease dramatically by 61% whereas permanent pastures will increase by 61%. Arable land is expected to increase by 4% and permanent crops to decrease by 7%.

• Guatemala, permanent crops are expected to increase by 28%. Arable land is expected to increase by 10% and permanent pastures by 8%. Forests are expected to decrease by 29%.

• Honduras will have an important loss of arable lands, -42% and forests, -18%. Permanent crops and pastures are expected to increase by 1% each.

• In Mexico an important increase of permanent crops is expected by 86%, and also of arable lands and permanent pasture, by 7% each; whereas forest will decrease by 20%.

• Nicaragua will have a high pressure for arable lands since they will increase by 64%, permanent crops by 35% and forests will decrease by 46%. No change is expected for permanent pasture.

• Panama, shows a high decrease of forests (-28%) and no change for arable lands and permanent crops. Permanent pastures will increase by 1%.

South America

• In Argentina, forests are expected to decrease by 15% and permanent pastures by -0,3%. Permanent crops and arable lands are not expected to vary.

• In Bolivia there will be more demand for land for permanent crops (44%). Arable lands and permanent pastures will increase by 5% and 4% respectively and forest areas would decrease by 6%.

• Brazil has a high rate of land change of 39% for arable lands and 20% for permanent crops. Pastures are expected to increase by 1% and forests are expected to decrease by 8%.

• In Chile, possible trade-off between arable lands and permanent crops are expected as they will change by -45% and 76% respectively. Permanent pasture is expected to increase only by 1% and forests are expected to decrease by 2%.

• In Colombia, an increased demand for permanent pastures and crops is expected (4% each) and a decreased one for arable lands of 26%. Forests are expected to decrease by 8%, one point less than the regional indicator.

• Ecuador has a high level of forest change, a decrease of 21% and a high level of increase of permanent crops, 17%. Permanent pastures are expected to increase by 8% and arable lands to decrease by 4%.

• In Guyana, forests are expected to decrease by 6% and permanent crops by 14%. Permanent crops and arable lands are not expected to vary.

• Paraguay arable lands are expected to grow by 19% and permanent pastures by 6%; permanent crops are expected to decrease by 2%.

• Peru permanent crops should increase by 53%, arable lands by 12% and no change is foreseen in permanent pasture. Forest is expected to decrease by 8%.

• Suriname is a special case, since annual change rate for forests was not available; therefore, an annual change rate based on 1990 and 1994 forest area from FAOSTAT was calculated and applied to forest area in 2000. The result is a decrease of 3% for 2020. On the other hand, permanent pasture will increase by 10% and permanent crops will decrease by 17%. No change is expected for arable lands.

• Uruguay is the only country with growing prospects for its forests, 165% respect to 2000, however this result could indicate current forest policy that promote plantations and are circumstantial and not real future trends for this country. A reduction of 20% of permanent crops and an increase of 7% of arable lands is also expected. No change is expected for permanent pastures.

• Venezuela is expected to have a decrease of 18% of arable lands and 8% of forest area; and an increase of 12% of permanent crops. As for Uruguay, no change is expected for permanent pastures.

Figure 34 Forest area in Latin America, without Brazil, 1970, 2000 and projections to 2020 (1000 Ha)

Source: FAOSTAT, projections using annual change rate from FRA 2000 (1990-2000).

Figure 35 Permanent pastures in Latin America, 1970, 2000 and projections to 2020 (1000 Ha)

Source: FAOSTAT, projections using annual change rate 1990-2000.

Figure 36 Arable lands in Latin America, 1970, 2000 and projections to 2020 (1000 Ha)

Source: FAOSTAT, projections using annual change rate 1990-2000.

Figure 37 Permanent crops in Latin America, 1970, 2000 and projections to 2020 (1000 Ha)

Source: FAOSTAT, projections using annual change rate 1990-2000.

Figure 38 Land use in Latin America, projections to 2020

Figure 38 shows the different change ratios in land use change for the year 2020. The change ratio for forests is shown in the y-axis and the change ratio for arable land and permanent crops land in x-axis. The size of the bubble shows the proportion of permanent pasture, for graphical reasons, it is a point when it is negative or near zero. For example, forests in Nicaragua will reduce by 46% respect to 2000 and the arable land and permanent crops will increase by 61%, however, permanent pastures are not expected to change. Therefore, countries can be grouped according to these variables, if the countries are located in the right side of the graphic, the lower in the y-scale and show a big bubble size then the worse situation for forest area.

This figure shows that countries in Latin America fall into four broad groups in terms of their land use towards 2020.

The first groups includes: Uruguay, Chile, Guyana and Venezuela. In these countries land pressure for pastures and crops is relatively low. Forest will be reduced by less than 10%, except in Uruguay, where forests are expected to increase respect to 2000.

The second group includes: Bolivia, Peru, Argentina, Costa Rica, Suriname, Honduras and Colombia. In these countries land pressure is higher than in group 1 but forests are not expected to reduce for more than 12%.

The third group includes: Ecuador, Guatemala, Mexico, Panama, Paraguay and Brazil. Land will be demanded less than by group 2 but deforestation is likely to increase by more than 15%.

The fourth group includes: El Salvador, Nicaragua and Belize. High rates of deforestation and demand for land for crops and pastures are expected in this group.

6.3 Land tenure

Tenure insecurity is an obvious disincentive for managing trees and forests, it is also the main obstacle for forest certification, together with uncontrolled colonization. Land tenure for agriculture and forestry should be analysed in the context of the country Forestry Outlook Study. General trends are showed in the following paragraphs.

Natural Forests._ Land tenure of natural forests vary considerably throughout Latin America. In tropical South American countries with the largest forest areas, most of the forests are State owned.

In the southern cone countries, 75% of the forest land in Argentina is privately owned and in Chile, 70% of the natural forest area is private. Colombia, has private forest management and tribal group property, 18 million has in 1998. Honduras, (also) private property for natural forests since 1992 (Laarman 1999). Effective ownership is weakly established in most Latin American countries, causing considerable difficulties for sustainable forest management.

Plantations._ In general, most of the plantations belong to the private sector in Latin America. High land concentration of land for plantations is found in Chile, where 71% of the plantations belong to 2% of the forest owners and the rest to small and medium sized owners. In Argentina, all commercial forest plantations belong to the private sector. The other extreme is Mexico where social land tenure has been a constant obstacle for the development of large-scale forest plantations because of legal and organizational constraints. Small landowners have begun plantations partnerships in Colombia (Smurfit-Carton de Colombia) in 1986, this scheme may increase the income of small landowners and reduce land pressure.

6.4 Other land issues and forestry

In general terms, forestry in Latin America is developed in four fields; each of them presents different challenges and opportunities. An overview for them is presented in Table 23.

Table 23 Fields for forestry development in Latin America

Natural Forests and related policies

Plantations

Secondary forests

Agroforestry

Natural forest management has to compete with subsidized agriculture and ranching.

International and government focus on biodiversity conservation is increasing the area of protected areas.

Brazil and Chile lead the region in cutting-edge technologies for in industrial wood production.

Argentina has an interesting surface of plantations.

Uruguay, Peru and Bolivia has the best potential for non-industry plantations.

Not receiving as much attention as they merit.

They have a potential role as producers of industrial and household wood; providers of environmental services, including carbon sinks.

Suitable environment for growing valuable species (mahogany, cedar); and fast-growing commercial pioneer species.

Apart from protection from fire and grazing, they do not need special efforts for their establishment.

Considerable promise in documented cases (e.g., Honduras), by improving soils, decreasing hydric deficit and considerably increasing crop yield; producing domestic wood and valuable timber (e.g., mahogany, cedar).

Particularly important in the type of hill farming practiced in Latin American countries.

The value of shade trees or plantations to cattle in pastures is not well understood, nor is the potential of fodder trees. Requires working closely with cattle owners to change their attitudes and practices.

Source: (IDB, 2002), (Brown, 2002)

Forest policies: Plantation incentives, forest management, deforestation and certification

Plantation incentives: Tax incentives rather than direct subsides have been the most common form of government support to plantations on private land.

• Fiscal incentives have been phased out (Brazil).

• Incentives directed to small landowners (Chile).

• Incentive program for co-operative and private landowners (Mexico).

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