Continuous soil erosion if unchecked would have adverse consequences on agricultural productivity. Of the many soil conservation measures in place to address this issue, those that are large-scale can not only limit soil erosion but also restore soil cover. In the Teesta River Watershed in Darjeeling district in the Eastern Himalayas, the government has undertaken soil conservation interventions at the sub-watershed level. This study assesses whether farm profits are significantly different between treated and untreated sub-watersheds, using data from a primary survey conducted in Darjeeling in the year 2013. The major problem in estimating the impact was identification and hence we used instrument variable. We estimated a farm profit function using the two-stage least square method and found that overall profits were higher in treated sub-watersheds than in untreated sub-watersheds.
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