The relationship between development and deforestation is complex and dynamic
(Humphreys, 2006; Mather, 1991; Sands, 2005). One point of view is that development will
increase land productivity and thereby reduce the need to clear forests to meet food
requirements. Another is that development will produce further capital and incentive to
expand and clear more forest. The former may be the case when constrained by a fixed
food demand. The latter may be the case when food demand may not be satisfied owing
to a continuing export market and rising internal population with rising levels of
consumption. Profits from deforestation vary from less than a dollar to thousand dollars
per hectare depending on location, technologies and land use systems (Chomitz et al.,
2007). It is also argued by the workers that richer farmers were better able to finance
deforestation while a poor farmer can’t afford to clear much forest. Conversely, through
transfers, stronger credit markets and better opportunities for off-season employment can
increase income as well as deforestation by small land holders.