financial and economic analyses of agroforestry systems

336 Pages·2012·12.79 MB·English

FINANCIAL AND ECONOMIC
ANALYSES OF
AGROFORESTRY SYSTEMS
edited by
Gregory M. Sullivan
Susan M. Huke
Jefferson M. Fox

FINANCIAL AND ECONOMIC
ANALYSES OF
AOROFORESTRY SYSTEMS
NITROGEN FIXING TREE ASSOCIATION
The NITROGEN FIXING TREE ASSOCIATION (NFTA) is a nonprofit organization, in
corporated in Hawaii in 1981. The association's 1,500 members, around the world, are dedi
cated to the use of nitrogen fixing trees (NFTs) to improve the well-being of small-scale resource
poor farmers in developing countries. The NFTA encourages and supports the improved un
derstanding and use of these important multipurpose trees, through international research,
outreach and communication programs. NFTA promotes the wise planting and management
of NFTs to conserve soil and water resources, develop sustainable land use systems, and
safeguard against destruction of our natural resources. Building the technical capabilities of
scientists and extension agents to improve the use of NFTs in rural development forestry is
of utmost importance to NFTA.
FORESTRY SUPPORT PROGRAM
Located in the Office of International Forestry of the United States Forest Service, the FOR
ESTRY SUPPORT PROGRAM (FSP) was established to bring the knowledge and experience
of the professional forestry community to bear on the forestry development activities of the
U.S. Agency for International Development (USAID). FSP provides technical assistance to
USAID in identifying, designing, managing, and evaluating field projects and country strate
gies in forestry and related natural resources management. This program is managed jointly
by the Forest Service and the Office of International Cooperation and Development (OICD),
both of the U.S. Department of Agriculture. FSP is funded primarily by the Office of En
vironment and Natural Resources of the USAID's Bureau for Research and Development
(USAID/R&D/ENR).
EAST-WEST CENTER
The EAST-WEST CENTER was established in Hawaii in 1960 by the United States Congress
"to promote better relations and understanding between the United States and the nations
of Asia and the Pacific through cooperative study, training, and research:' The ENVIRON
MENT AND POLICY INSTITUTE (EAPI), East-West Center, was established in October
1977. Through interdisciplinary and multinational programs of research and training, the in
stitute seeks to develop concepts and methods for sustainable environmental management and
to address major environmental issues of the Asia-Pacific region. Reconciling development
with the environment by bringing social and natural systems into harmony with one another
is EAPI's overall objective.
tEI'E5
'qIUSAID
UNITED STATES AGENCY FOR INTERNATIONAL DEVEWPMENT
The UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT is the U.S.
Government Agency that provides 7.5 billion dollars per year in economic and humanitarian
assistance to more than 80 developing countries worldwide.
FINANCIAL AND ECONOMIC
ANALYSES OF
AOROFORESTRY SYSTEMS
Proceedings of a workshop
held in Honolulu, Hawaii, USA, July 1991
edited by
Gregory M. Sullivan
Susan M. Huke
Jefferson M. Fox
1992
Funded with the support of:
The U.S.D.A. Forest Service
Forestry Support Program (USAID/USFS/OICD)
lropical Forestry Program (USFS)
The U.S. Agency for International Development
Africa Bureau
Research and Development Bureau
Forest Resources Management (FRMII) Project
Forestry/Fuelwood Research and Development (F/FRED) Project
USAID/Honduras
The East-West Center
Views expressed in this book do not necessarily reflect the opinion of the editors or the
organizations for whom they work.
For copies, wrile to: Nitrogen Fixing Tree Association
1010 Holomua Road
Paia, Hawaii 96779-9744
Phone [phone]
Fax [phone]
Reproduction of material is permissible. However, we request that acknowledgment of the source
be made by citing it as follows:
Sullivan, Gregory M., Susan M. Hoke, and Jefferson M. Fox (editors). 1992.
Financial and Economic Analyses of Agroforestry Systems. Proceedings of a
workshop held in Honolulu. Hawaii. USA. July 1991. Paia, Ill: Nitrogen Fixing
Tree Association.
iv
CONTENTS
Foreword, Hans Gregersen ......... . ..........•........•. . ............. ix
Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
List of Contributors .............. . .... .. ............................. xiii
Executive Summary, D. Evan Mercer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. xv
PART I FINANCIAL AND ECONOMIC ANALYSES OF AGROFORESTRY
SYSTEMS: AN OVERVIEW OF THE CASE STUDIES, Sara I. Sche" . . 1
PART II GROUP THEMES ON IMPORTANT TOPICS IN FINANCIAL AND
ECONOMIC ANALYSES OF AGROFORESTRY SYSTEMS . ........ 13
Financial and Economic Analyses of Agroforestry Systems:
Highlights of Themes Discussed, Kjell A. Christophersen ............... 15
Theme 1: Preparation for Economic and Financial Analyses
of Different Agroforestry Systems . . . . . . . . . . . . . . . . . . . . . .. 22
Theme 2: Methodology-Data Collection for the F"mancial and
Economic Analyses of Agroforestry Systems: What
to Measure and Why? ................. .. .... .. .. . ... 28
Theme 3: Use of Experiment Station and On-Farm Trial
Results for Economic and Financial Analyses of
Agroforestry Systems ................................ 43
Theme 4: Market Analysis as a Part of Economic and Financial
Analyses of Agroforestry Systems ... . ................... 46
Theme 5: Methods and Models for Economic Analyses . . . . . . . . . . . . . .. 52
Key Questions for the Future, Paul St~ and Kje/l A. Christophersen ..... 64
PART III CASE STUDIES, CRmQUES, AND INVITED PAPERS ... . ... .. . .. . 73
A. Ex-ante Assessment of Agroforestry Development ........... .. ....... 75
1. Economics of Agroforestry Systems, Marcelino Avila ......... .... 77
2. Population Density, Soil Erosion, and Profitability
of Alternative Land-Use Systems in the Tropics:
An Example in Southwestern Nigeria, Simeon K. Ehui . . . . . . . . . . .. 95
Critique ............... .......................... 107
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3. Comparison of Agroforestry Practices in Senegal
Using Financial Anaylsis, G. Edward KJJrch .................... 109
Critique ...... ... . . .... .. ... ..... . .......... . .... 125
4. A Framework for Economic Evaluation of Smallholder
Agroforestry: With Particular Reference to the
Semi-Arid Zone of West Africa, Timothy O. Williams ............ 127
B. Assessment of Management Options for Agroforestry . . . . . . . . . . . . . . . . . 145
5. Optimum Fodder-Mulch Allocation of Tree Foliage Under
Alley Farming in Southwest Nigeria, M. A. Jabbar and J. Cobbina . .. 147
6. Bio-economic Modeling of Agroforestry Systems: A Case Study
of Leucaena and Maize in Western Kenya, T. H. Thomas, P. A.
Wojtkowski, P. G. Bezkorowajnyj, D. Nyamai, and R. W. Willis ...... 153
Critique . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
7. Economic Evaluation of Agroforestry Systems of Cacao
(Theobroma cacao) with Laurel (Cordia alliodora) and Por6
(Erythrina poeppigiana) in Costa Rica, H. H. von Platen .......... 174
Critique . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
C. Economic Assessment of Agroforestry on Farms ................... 191
8. Economic Analysis of Living Fences in Central America:
Development of a Methodology for the Collection and Analysis
of Data with an Illustrative Example, Carlos C. Reiche . . . . . . . . . . . . 193
Critique . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
9. Crop Losses and Their Economic Implications Due to Growing
of Eucalyptus on Field Bunds-A Pilot Study, N. C. Saxena .. . ..... 208
Critique . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
10. Haitian Tree Farm Financial Case Studies, Donald R. Street . . . . . . . . 222
Critique . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238
D. Aggregate Economic Effects of Agroforestry Practices ................ 241
11. Economic Analysis of Indigenous Agroforestry: A Case Study
on Pohnpei Island, Federated States of Micronesia,
William Raynor . ... .................................... 243
Critique . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . 259
vi
12. Benefits, Costs, and Equity: Analysis of a Social Forestry
Site in Central Java, William Sunderlin ....................... 261
Critique . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271
13. Are Modem Agroforestry Practices Economically Viable?
A Case Study in the Ecuadorian Amazon, Jorge Uquillas,
Alvaro Ram(rez, and Carlos Sere ............................ 273
Critique . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
Appendices ........................................................ 295
A. Glossary ................................................. 297
B. Summary of Financial and Economic Criteria for Investment Analyses . . . . 308
C. Workshop Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309
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