The study estimates a multinomial endogenous switching regression model of adoption of sustainable land management practices (SLMPs) and their impacts on crop income by applying a counterfactual analysis using a cross-sectional survey of 354 farm households and 1305 plots from Basonaworana district, Ethiopia. The results come up with four major findings. First, implementations of SLMPs either in combination or standalone significantly increase crop net income. Second, a more comprehensive approach (a joint adoption of all SLMPs considered) is the best income yielding portfolio. Suggesting this portfolio is the most successful land management strategy that makes the adopters to generate more crop net income. Third, when SLMPs are implemented in any combination (mix) with another practice, they provide higher crop net income than adopting each practice in isolation, except practicing combined SWC and manure. The last but not the least, had the non-adopters adopted SLMPs, they would have gained greater crop net income. Therefore, the study suggests investment in SLMPs is payoff venture, thus designing appropriate policies and strategies that promote adoption SLMPs is recommended.
Keywords: counterfactual analysis, net income, Ethiopia, multinomial endogenous switching regression, sustainable land management practices