Working Paper N° 5/2023: Map of Agricultural Potential in Bolivia

Abstract: in this paper we develop a high-resolution map of agricultural potential in Bolivia by combining existing economic and geographical information at the most disaggregated level possible. We assume that farmers know which crops are most suitable for their environment and circumstances, and therefore start by determining the most common crop/livestock in each municipality, as well as the average yields and prices for these crops. We then proceed to develop a high-resolution Production Cost Factor, which depends on physical conditions (e.g. slope, soil quality, precipitation, minimum and maximum temperatures, etc.) as well as legal restrictions (e.g. protected area, near river, etc.). This allows us to generate a map of the net annual agricultural value per hectare. Finally, we calculate the net present value of agriculture by taking into account how many years a plot is typically continuously cultivated in each municipality. The resulting shapefile with the Map of Agricultural Potential in Bolivia accompanies this paper and can be downloaded here: https://drive.google.com/drive/folders/1Oal7D_efneqASRJd_XzAhNTwRFkPeovi?usp=sharing

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