3 graphs; 12 tables; 14 ref. Appendix. Summary (En) AIBA-SEARCA, College, Laguna 4031 - Philippines

The economic feasibility of using green manure (GM) depends upon the relative prices of land, labor, and fertilizer and the relative benefits of employing these resources in other economic ventures. To estimate the economics of GM use and to understand the farm-level constraints to its adoption, a farm survey was conducted in the Central Tarai of Nepal, in southern India, and in northern Philippines. The short-term benefits of using GM were negative in India and Nepal and positive in the Philippines. Green manure users obtained significantly higher yields from nonuser farms. But the discounted long-term benefits were generally small. Green manure may be economical in the long runiof evaluated in absolute terms. However, when alternative returns to land, labor, and capital in GM use were compared with other opportunities (for example, legume production in India and Nepal), the latter gave higher income and was equally beneficial in sustaining resource productivity over time. AV: of seed, lack of irrigation water, and high incorporation costs were the constraints to the adoption of GM. These constraints can be overcome through institutional adjustments once GM becomes economically feasible. Green manure research should concentrate on enhancing the other economic uses of GM crops so that it can generate significant returns in the short run; the long-run benefit will automatically come along

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