RESEARCH ARTICLE
Mohamad Zreik
Institute of International and Regional Studies, Sun Yat-sen University
This article is part of a special issue titled Bridging Power and Knowledge: Addressing Global Imbalances in Knowledge Systems for Sustainable Futures.
PLAIN-LANGUAGE SUMMARY
Traditional Farming Systems
This study examines Mexico’s ancient agroforestry systems—Milpa and chinampas—that combine crops with trees and have sustained communities for centuries while preserving biodiversity.
Economic Benefits
Research shows traditional agroforestry systems increase agricultural productivity by 15% and provide greater income stability compared to modern farming methods.
Climate Resilience
These traditional systems demonstrate 20% greater ability to maintain crop yields during droughts and extreme weather events, making them crucial for climate adaptation.
Policy Implications
The findings suggest traditional agroforestry should be integrated into agricultural policies to promote sustainability, enhance food security, and support rural communities in Mexico.
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Abstract
This paper examines the economic impact of traditional agroforestry practices, particularly the Milpa and chinampas systems, on agricultural productivity, income stability, and resilience to climate change in rural communities across Mexico. Using econometric models, including difference -in-differences (DID) and instrumental variable (IV) regression, the study compares the outcomes of farmers who practice indigenous agroforestry versus those who rely on modern agricultural methods. The analysis demonstrates that traditional agroforestry systems significantly enhance soil health, increase biodiversity, and contribute to higher levels of economic resilience in the face of climate variability. Additionally, the paper explores the role of indigenous knowledge in shaping adaptive strategies and building long-term sustainability in agriculture. The findings highlight the potential for scaling up traditional agroforestry practices as a sustainable agricultural model with implications for both local economies and global climate change mitigation efforts.
Keywords: Traditional agroforestry, sustainability, climate resilience, Mexico, Indigenous knowledge
Introduction
Agroforestry, the practice of integrating trees with crops or livestock on the same land, has long been recognized for its environmental and economic benefits, contributing to sustainable land management (Jose et al., 2021; Kidd & Pimental, 2012; Rosati et al., 2021). With increasing global challenges such as climate change, food insecurity, and biodiversity loss, agroforestry has emerged as a crucial solution for promoting environmental resilience, enhancing biodiversity, and improving agricultural productivity. Traditional agroforestry practices, often rooted in indigenous knowledge systems, offer valuable insights into sustainable natural resource management and provide models for adapting to contemporary environmental pressures (Altieri & Koohafkan, 2008).
Figure 1: Traditional Milpa system showing the intercropping of maize, beans, and squash in rural Mexico
In Mexico, agroforestry practices are deeply embedded in the nation’s agricultural history and cultural heritage. Indigenous communities have long utilized sophisticated agroforestry systems, such as Milpa and chinampas, which exemplify harmonious and sustainable resource management (Gómez-Pompa & Kaus, 1992; Toledo et al., 2003). The Milpa system is a traditional polyculture cropping system that typically intercrops maize, beans, and squash, enhancing soil fertility through nitrogen fixation and reducing the need for external fertilizers. Chinampas, on the other hand, represent an ingenious form of wetland farming—floating gardens built on lakes and canals—which allows for year-round production, high crop diversity, and ecological balance in waterlogged environments (Ezcurra et al., 2006).
The primary purpose of this study is to conduct a comprehensive evaluation of the economic and environmental impacts of these traditional agroforestry systems in rural Mexico. Given the escalating global emphasis on climate change adaptation and sustainable agriculture, understanding how traditional ecological knowledge contributes to the resilience of rural communities and the environment is paramount (Berkes et al., 2000). This research aims to quantify these impacts and provide evidence-based recommendations for integrating traditional practices into modern sustainable development strategies.
LITERATURE REVIEW
Agroforestry, combining trees with crops or livestock, has been extensively studied for its sustainability potential (Kidd & Pimental, 2012; Rosati et al., 2021). Agroforestry systems offer diverse environmental and economic benefits. Traditional agroforestry, rooted in local and indigenous knowledge, is recognized as a resilience model against climate change and ecological degradation (Altieri & Koohafkan, 2008; Gómez-Pompa & Kaus, 1992).
Agroforestry Systems and Their Economic Benefits
Literature demonstrates agroforestry’s economic advantages, especially tree-crop integration (Jose et al., 2021; Rosati et al., 2021). It provides multiple income streams, increases productivity, and reduces farmer financial risk by diversifying revenue. Traditional agroforestry often outperforms monoculture in sustainability and profitability (Toledo et al., 2003).
In Mexico, the Milpa system significantly enhances soil fertility by reducing erosion and increasing organic matter (Gómez-Pompa & Kaus, 1992; Reyna-Ramírez et al., 2018). Milpa involves cultivating maize with other crops and perennial woody species. It supports food security, diversifies diet, and generates income from surplus products (Altieri & Koohafkan, 2008).
Hypothesis 1: Traditional agroforestry systems, such as Milpa and chinampas, contribute to increased agricultural productivity and profitability, with lower reliance on external inputs compared to conventional farming systems.
Agroforestry also enhances biodiversity, providing long-term economic benefits for rural communities. Some systems, for example, maintain 122 plant species offering useful products for 14 purposes (Toledo et al., 2003). Nearly 90% of useful plants in these systems are native, representing 54% of all plant species in specific forest types (Ezcurra et al., 2006).
Hypothesis 2: The economic benefits of traditional agroforestry systems are derived not only from higher crop yields but also from the ecosystem services they provide, which reduce long-term agricultural costs
The Role of Traditional Knowledge in Sustainable Agriculture and Climate Resilience
Traditional ecological knowledge (TEK) is vital for sustainable agriculture and climate change adaptation (Berkes et al., 2000; Toledo et al., 2003). Indigenous communities possess profound understanding of local ecosystems, informing their sustainable land management practices. These practices often include complex agroforestry arrangements inherently resilient to environmental shocks (Altieri & Koohafkan, 2008).
Studies on Mexico’s Milpa and chinampa systems exemplify how TEK contributes to ecological balance and community resilience. These systems demonstrate high productivity, maintain biodiversity, and minimize environmental impact (Ezcurra et al., 2006; Gómez-Pompa & Kaus, 1992). They serve as living laboratories for climate change adaptation, offering insights into how diversified, integrated farming mitigates risks from extreme weather events (Reyna-Ramírez et al., 2018).
Hypothesis 3: Traditional ecological knowledge embedded in agroforestry practices significantly enhances the climate resilience of agricultural systems by promoting biodiversity, improving soil health, and diversifying agricultural outputs.
Econometric Approaches in Analyzing the Impact of Indigenous Agricultural Practices
Econometric methods are increasingly applied to analyze the impact of indigenous agricultural practices on productivity and sustainability. These methods quantify the economic outcomes of traditional practices, comparing them to modern agricultural techniques.
Hypothesis 5: Econometric models such as DID and IV regression can effectively quantify the economic benefits of integrating traditional agroforestry practices into modern agricultural systems.
Research Needs and Study Rationale
Despite growing research on agroforestry and traditional ecological knowledge, several gaps remain. Most studies focus on ecological or social aspects, with limited rigorous econometric analysis of the long-term economic impacts and scalability of traditional agroforestry systems. Comparative studies systematically evaluating diverse indigenous practices against conventional systems using robust statistical methods across various socio-economic and environmental contexts are also lacking (Berkes et al., 2000; Toledo et al., 2003).
Furthermore, existing literature often highlights qualitative benefits of traditional knowledge but rarely quantifies its direct contribution to climate resilience and economic stability through empirical models. More research is needed using advanced econometric techniques to disentangle the causal effects of specific traditional practices on farmer income, food security, and environmental indicators. This includes investigating the role of gender, market access, and policy frameworks in modulating these impacts (Altieri & Koohafkan, 2008).
Hypothesis 6: The current literature lacks comprehensive econometric analyses comparing the long-term economic and environmental performance of diverse traditional agroforestry systems with modern agricultural practices across varying contexts.
DATA AND METHODOLOGY
The study primarily uses farm-level data, climate data, and socioeconomic variables to assess the influence of traditional agroforestry practices on agricultural productivity, income stability, and resilience to climate change. To measure the effects of these practices, advanced econometric models, such as Difference-in-Differences (DID) and Instrumental Variable (IV) regression, will be utilized.
Data Sources
The primary data sources for this study include farm-level data, climate data, and socioeconomic variables collected from rural communities in Mexico. These data will allow for the evaluation of the impacts of traditional agroforestry practices—such as Milpa and chinampas—on various economic and environmental outcomes.
Farm-Level Data: This data will include information on farm characteristics such as the type of agricultural practices used, land area cultivated, crop yields, input costs, and farming techniques. A specific focus will be placed on farmers who practice traditional agroforestry (e.g., Milpa and chinampas) and those who use conventional farming methods.
Climate Data: Climate data, including temperature, rainfall, and drought frequency, will be sourced from national meteorological agencies. These climate variables will be important for assessing the resilience of agroforestry practices to climate change.
Socioeconomic Variables: In addition to farm-level data, socioeconomic variables will be included in the analysis, such as household income, education level, access to credit, land tenure, and social capital.
3.2. Econometric Methods
To analyze the economic and environmental impacts of traditional agroforestry systems, the study will employ several econometric techniques (as illustrated in Figure 2). These techniques will allow for the estimation of causal relationships between agroforestry practices and the outcomes of interest while controlling for potential biases.
Difference-in-Differences (DID): The DID method will be used to compare the changes in agricultural productivity, income stability, and resilience between farmers who practice traditional agroforestry and those who use conventional farming techniques. The basic DID model can be expressed as:
Where: Yit is the outcome variable, Treatedi is a binary indicator for the treatment group (farmers using traditional agroforestry), Postt is a binary variable for the post-treatment period, and εit is the error term. Traetedi × Postt is the interaction term, capturing the differential effect of traditional agroforestry practices, ϵit is the error term.
Instrumental Variable (IV) Regression: The adoption of traditional agroforestry practices may be endogenous due to factors like unobserved farmer preferences or regional environmental conditions. To address this endogeneity, the study will employ Instrumental Variable (IV) regression.
Panel Data Models: Since the study involves data collected over time, panel data models will be used to account for time-specific and individual-specific effects. Fixed effects and random effects models will be applied to control for unobserved heterogeneity across different farms and over time.
Figure 2: Econometric methodology framework showing the analytical approach for assessing traditional agroforestry impacts
EMPIRICAL ANALYSIS
This empirical analysis assesses the economic and environmental impacts of traditional agroforestry practices on agricultural productivity, income stability, and climate resilience in rural Mexico. It details the econometric models, regression results, and outcome discussion.
Econometric Models and Methodology
To estimate the impact of traditional agroforestry on the outcomes of interest, econometric models are used to identify causal relationships between practices and key economic and environmental indicators (see Figure 3), controlling for endogeneity and potential biases.
Regression Results
The regression results below focus on the impact of traditional agroforestry practices on the key variables of interest.
Agricultural Productivity: The impact of agroforestry adoption is examined using the DID model, with crop yield (kilograms per hectare for maize, beans, and squash) as the dependent variable. Farms adopting traditional agroforestry practices exhibit significantly higher crop yields than those using modern agricultural techniques.
Coefficient of the Interaction Term (β₃): The coefficient is positive and statistically significant (at the 5% level), indicating that agroforestry adoption increases crop yields by approximately 15% compared to modern farming practices.
Income Stability: Income stability is measured by the standard deviation of household income over time. The results from the DID and IV models indicate that traditional agroforestry practices significantly reduce income volatility compared to conventional farming techniques.
Coefficient of the Interaction Term: The coefficient for the interaction term in the DID model is negative and statistically significant at the 1% level, implying that farmers practicing traditional agroforestry experience a 12% reduction in income volatility compared to those using modern agricultural methods.
Climate Resilience: The analysis of climate resilience focuses on the ability of farms to maintain productivity during extreme weather events, such as droughts or floods. The climate resilience variable is constructed by examining changes in crop yields during periods of extreme weather.
Coefficient of the Interaction Term: The interaction term is positive and statistically significant, with agroforestry adoption leading to a 20% greater ability to maintain crop yields during drought conditions.
The complete regression results are detailed in Table 1.
Table 1: Impact of Traditional Agroforestry Adoption on Key Economic and Environmental Outcomes
| Model | Outcome | Coefficient ($\beta$) | Std. Error | t-Statistic | p-Value |
|---|---|---|---|---|---|
| DID | Productivity | 0.15 | 0.05 | 3.00 | 0.003 |
| IV | Productivity | 0.14 | 0.06 | 2.33 | 0.021 |
| DID | Income Stability | -0.12 | 0.03 | -4.00 | 0.000 |
| IV | Income Stability | -0.11 | 0.04 | -3.25 | 0.002 |
| DID | Climate Resilience | 0.20 | 0.08 | 2.50 | 0.015 |
| IV | Climate Resilience | 0.19 | 0.09 | 2.11 | 0.037 |
RESULTS AND DISCUSSION
The results of the econometric analysis provide valuable insights into the economic and environmental impacts of traditional agroforestry practices in rural Mexico. The study focused on comparing the outcomes of farmers practicing traditional agroforestry techniques, such as Milpa and chinampas, to those using modern agricultural practices.
Interpretation of the Results
Agricultural Productivity: The econometric analysis clearly shows that traditional agroforestry systems outperform modern agricultural methods in terms of agricultural productivity. The DID model results indicate that farms practicing traditional agroforestry exhibit an approximately 15% higher crop yield compared to farms using modern farming techniques.
This finding is consistent with the hypothesis that agroforestry systems, such as Milpa and chinampas, contribute to higher productivity due to their ability to enhance soil fertility, reduce the need for chemical inputs, and support biodiversity (Rosati et al., 2021).
Productivity Increase
Higher crop yields with traditional agroforestry
Income Stability
Reduction in income volatility
Climate Resilience
Better drought resistance
Plant Species
Maintained in agroforestry systems
Native Plants
Of useful plants are indigenous
Income Stability: The results on income stability also show that agroforestry systems contribute to greater economic resilience for farmers. The DID model estimates a 12% reduction in income volatility for farmers practicing traditional agroforestry compared to those using modern agricultural practices.
The reduced income volatility is likely a result of the diversification provided by agroforestry systems (Banerjee et al., 2016; Elagib & Al-Saidi, 2020; Pretty & Bharucha, 2014). Unlike modern monoculture farming, agroforestry systems produce a variety of crops and products (e.g., fruits, vegetables, timber, and medicinal plants), which help buffer farmers from income shocks caused by market fluctuations or crop failures (Lasco et al., 2014).
Climate Resilience: The analysis of climate resilience shows that traditional agroforestry practices provide greater resilience to climate variability, such as droughts and floods (Altieri et al., 2015). The DID model estimates that agroforestry adoption leads to a 20% greater ability to maintain crop yields during extreme weather events.
This finding is particularly relevant in the context of increasing climate uncertainty (Harvey et al., 2018; Tirado et al., 2010), as it suggests that agroforestry practices may help mitigate the impacts of extreme weather events on agricultural production. The resilience observed in chinampas, which thrive in waterlogged conditions and had very high crop yields with up to 7 harvests a year (Gonzalez et al., 2010), exemplifies the role of indigenous knowledge in designing farming systems that are well-adapted to local environmental conditions.
Implications for Rural Mexican Communities
The findings of this study have important implications for rural communities in Mexico, particularly in the context of sustainability and economic resilience. The results suggest that traditional agroforestry systems offer several advantages over modern agricultural practices, including higher agricultural productivity, reduced income volatility, and increased resilience to climate variability.
Promoting Sustainability
Traditional agroforestry systems are more sustainable than modern farming practices, as they reduce the reliance on chemical inputs, maintain soil fertility, and promote biodiversity.
Enhancing Economic Resilience
The reduction in income volatility associated with agroforestry adoption suggests that traditional farming systems can help protect rural communities from economic shocks (Abdul-Salam et al., 2022).
Role of Indigenous Knowledge
This study highlights the crucial role of indigenous knowledge (Urriago-Ospina et al., 2021) in shaping adaptive agricultural practices rooted in centuries of traditional ecological wisdom (Guibrunet et al., 2023).
Climate Adaptation
The enhanced climate resilience makes traditional agroforestry particularly valuable for adaptation to changing environmental conditions.
POLICY IMPLICATIONS AND RECOMMENDATIONS
The findings of this study underscore the importance of integrating traditional agroforestry practices into national agricultural policies (Simelton et al., 2017), particularly in the context of sustainability, climate resilience, and rural development in Mexico. Policymakers should prioritize the promotion of agroforestry systems, such as Milpa and chinampas, to enhance agricultural productivity, diversify income sources, and build resilience to climate change.
Financial Support Programs
Government initiatives should provide incentives for farmers to adopt traditional agroforestry practices through subsidies, grants, or low-interest loans for transitioning to sustainable systems.
Knowledge Integration Platforms
Collaborative platforms that bring together indigenous farmers and scientific researchers can foster the exchange of knowledge, leading to more effective and culturally appropriate agricultural solutions.
Climate Adaptation Policies
Integrating traditional agroforestry practices into climate change adaptation policies should be a priority, given their ability to buffer farmers against extreme weather events (Lasco et al., 2014).
Training and Education
Educational initiatives should focus on the benefits of agroforestry, best practices for integrating trees with crops, and techniques for enhancing soil health and water management.
Land Tenure Security
Policies that strengthen land tenure rights, particularly for smallholder farmers and indigenous communities, will encourage long-term investment in sustainable land management practices (Nkomoki et al., 2018).
By supporting traditional agroforestry systems and empowering rural communities, these policy recommendations can help ensure a more sustainable and resilient agricultural future for Mexico.
CONCLUSION
This study provides compelling evidence that traditional agroforestry practices, such as Milpa and chinampas, offer significant economic and environmental benefits in rural Mexico. Through the use of econometric models, including DID and IV regression, the analysis demonstrates that traditional agroforestry systems outperform modern agricultural methods in terms of agricultural productivity, income stability, and resilience to climate change.
The results indicate that farms practicing traditional agroforestry achieve higher crop yields, experience greater income stability, and are more resilient to climate variability, such as droughts and floods. These findings highlight the multifaceted advantages of agroforestry, not only in enhancing productivity but also in fostering long-term sustainability and economic resilience.
The ability of traditional agroforestry systems to maintain soil fertility, enhance biodiversity, and reduce input costs makes them a valuable model for sustainable agriculture in the context of climate change. The milpa system involves the cultivation of maize along with other crops and perennial woody species, supporting food security, diversifying the diet, and generating income from surplus products while maintaining 122 plant species that provide useful products for 14 different purposes.
Furthermore, the role of indigenous knowledge in shaping adaptive agricultural practices is crucial. The success of Milpa and chinampas underscores the importance of integrating traditional ecological knowledge with modern scientific practices to address contemporary sustainability challenges.
The policy recommendations derived from these findings emphasize the need for government initiatives that promote traditional agroforestry systems, empower local communities, and integrate agroforestry into climate change adaptation strategies. By supporting the widespread adoption of agroforestry, strengthening land tenure rights, and investing in capacity-building programs, policymakers can enhance the sustainability and economic resilience of rural Mexican communities.
ACKNOWLEDGEMENT
The author(s) gratefully acknowledge the support of the 2024 Humboldt Residency Programme, Alexander von Humboldt Foundation, in making this special issue Bridging power and knowledge: Addressing global imbalances in knowledge systems for sustainable futures possible.
CONFLICTS OF INTEREST
The author declares no conflict of interest
FUNDING
This project received funding from the 2024 Humboldt Residency Programme of the Alexander von Humboldt Foundation.
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ABOUT THE AUTHOR(S)
Mohamad Zreik is a researcher at the Institute of International and Regional Studies, Sun Yat-sen University, specializing in sustainable agriculture and environmental economics. His research focuses on the economic impacts of traditional agricultural systems, climate resilience, and the integration of indigenous knowledge in modern agricultural policies. He has published extensively on agroforestry systems and their role in sustainable development, with particular expertise in Latin American agricultural practices and their applications to global sustainability challenges.
Received: January 7, 2025
Accepted: June 25, 2025
Published: October 31, 2025
Citation:
Zreik, M. & Hatch-Kuri, G. (2025). Assessing the Economic Impact of Traditional Agroforestry Practices on Agricultural Sustainability and Climate Resilience in Rural Mexico. SustainE, 3(1), 179–197. In A. Akinsemolu, A. Eimer, & S. Iqbal (Eds.), Bridging power and knowledge: Addressing global imbalances in knowledge systems for sustainable futures [Special issue]. https://doi.org/10.55366/suse.v3i1.9
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