General
First, as argued, one farmer may differ from his/her neighbour in its livelihood strategy, as expressed through differences in crops grown, inputs used and engagement in off-farm activities. As will be shown such differences in strategies are likely to be a result of -largely unobserved- heterogeneity in goals and preferences, in addition to other, directly observable, differences in household characteristics. Second, differences in past cropping strategies and for example the maintenance of one or more fertility hotspots, has given rise to heterogeneity in land and farm. Third, livestock plays a crucial role in maintaining soil fertility levels, but also serves as an important insurance and wealth storage mechanism. The relative preferences for such non-productive roles of livestock may vary among households and relate to differences in livestock and other household assets...
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