Land-use choices follow profitability at the expense of ecological functions in Indonesian smallholder landscapes

TLDR

Tropical smallholder mosaics produce both economic and ecological goods, yet the trade‑offs driving current land‑use choices remain poorly understood. The study calls for prioritizing strategies that balance ecological and economic goals to sustainably manage Indonesian smallholder landscapes. Smallholders favor high‑yield oil palm and rubber monocultures that replace forest and agroforest, boosting economic returns while reducing ecological functions and increasing fertilizer use and nutrient leaching.

Abstract

Abstract Smallholder-dominated agricultural mosaic landscapes are highlighted as model production systems that deliver both economic and ecological goods in tropical agricultural landscapes, but trade-offs underlying current land-use dynamics are poorly known. Here, using the most comprehensive quantification of land-use change and associated bundles of ecosystem functions, services and economic benefits to date, we show that Indonesian smallholders predominantly choose farm portfolios with high economic productivity but low ecological value. The more profitable oil palm and rubber monocultures replace forests and agroforests critical for maintaining above- and below-ground ecological functions and the diversity of most taxa. Between the monocultures, the higher economic performance of oil palm over rubber comes with the reliance on fertilizer inputs and with increased nutrient leaching losses. Strategies to achieve an ecological-economic balance and a sustainable management of tropical smallholder landscapes must be prioritized to avoid further environmental degradation.