The second issue relates to equity. To date, the adopters of
the structures have been financially better-off farmers in Dewas
district with relatively larger landholdings. While the 10% rainwater
harvesting model is profitable even after accounting for
the loss in productive land due to construction of the structures,
poorer farmers with smaller landholdings are reluctant to adopt
the model for both risk- and financial-related reasons. Setting aside
even small portions of land is a risk for smallholder farmers. In addition, access to and financing of the significant initial investment
cost associated with structures—between INR 360,000 and
INR 485,000 for a 0.8 ha structure 9—is a significant challenge as
reported by many non-adopting farmers. Government subsidies are
available to support farmers on a limited basis, but not all eligible
farmers are able to access the subsidy or other forms of external
financing.
The second issue relates to equity. To date, the adopters ofthe structures have been financially better-off farmers in Dewasdistrict with relatively larger landholdings. While the 10% rainwaterharvesting model is profitable even after accounting forthe loss in productive land due to construction of the structures,poorer farmers with smaller landholdings are reluctant to adoptthe model for both risk- and financial-related reasons. Setting asideeven small portions of land is a risk for smallholder farmers. In addition, access to and financing of the significant initial investmentcost associated with structures—between INR 360,000 andINR 485,000 for a 0.8 ha structure 9—is a significant challenge asreported by many non-adopting farmers. Government subsidies areavailable to support farmers on a limited basis, but not all eligiblefarmers are able to access the subsidy or other forms of externalfinancing.
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