Since 2010, Chile's Law 20.412 has paid smallholder and family farmers via INDAP/SAG competitive rounds to restore degraded agricultural soils; 2025 Biobío-region rounds alone approved 561 management plans covering over 1,000 ha for roughly 676 million pesos.
561 plans
Management plans approved (Biobío region, 2025, two rounds) (2025)
1,000+ hectares
Degraded agricultural land treated (Biobío, 2025) (2025)
676 million CLP (~US$700,000)
Incentive investment (Biobío, 2025, two rounds) (2025)
90 %
INDAP financing share of eligible costs
Details
Maturity
Established
Promoter
Instituto de Desarrollo Agropecuario (INDAP), Chile
Period
2010-present
Keywords
soil restoration, agri-environmental payments, smallholder agriculture, erosion control
Context
Chile's Sistema de Incentivos para la Sustentabilidad Agroambiental de los Suelos Agropecuarios (SIRSD-S) was established by Law 20.412 in 2010, consolidating an earlier soil-recovery incentive scheme. The programme is coordinated by the Undersecretariat of Agriculture and jointly implemented by SAG and INDAP, which serves small-scale family farmers.
Activities
Farmers submit management plans through regional competitive 'concursos' and, if approved, receive incentive payments — INDAP finances up to 90% of eligible costs for its clients — covering practices such as re-establishing vegetation cover on bare or degraded soils, correcting soil acidity or salinity with lime or amendments, applying phosphorus fertilisers, and erosion-control works.
Results
In the Biobío region alone, two concurso rounds reported in 2025 approved a combined 561 management plans, treating just over 1,000 hectares of degraded agricultural land, for a combined incentive investment of approximately 676 million pesos (roughly US$700,000), administered through INDAP area offices across eight localities.
Conclusions
As a nationwide, statutory programme running continuously since 2010, SIRSD-S represents one of Latin America's longer-running agri-environmental payment schemes for smallholder soil restoration. Its evidence base is mainly administrative rather than independently measured soil-quality or yield outcomes; no peer-reviewed impact evaluation of its effect on erosion rates, water infiltration or long-term productivity was identified.
Implementation
Indicative cost
Medium (€50k–€500k) — Regional example: ~676 million CLP (~US$700,000) for 561 plans/1,000+ ha in Biobío alone (two 2025 rounds); INDAP covers up to 90% of eligible costs for its smallholder clients — the national aggregate spend across all regions would be considerably higher.
Time to results
Long (> 3 years) — Established by Law 20.412 in 2010 (building on an older SIRSD predecessor); operates via continuous annual/regional competitive rounds through the present.
Staffing & skills
INDAP (Instituto de Desarrollo Agropecuario) regional area offices, SAG (Servicio Agrícola y Ganadero), Undersecretariat of Agriculture (coordination)
Conditions for success
Statutory basis (Law 20.412) ensuring continuous national budget allocation
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