Economic analysis of living fences in Central America: development of a methodology for the collection and analysis of data with an illustrative example

Central America has experienced a high degree of deforestation and degradation of its natural resources, resulting in a scarcity of forest products against increasing demands for the same products. As a possible solution, development of agroforestry systems has become a priority in the region. To show the small farmer that these agroforestry systems are beneficial and also to identify the most appropriate systems, good data for analysis are needed. During initial phases in the development of socioeconomic research in agroforestry systems, there were few or no methodologies available for data collection and economic analysis of agroforestry systems. The Tropical Agricultural Research and Training Center, CATIE, responded by developing standard forms and systematic methodologies, including three aproaches, for collecting and analyzing this information. The data and summary analysis are stored and accessible in a computer database. A summary of these methodologies and an example of a 10-year financial cash flow analysis of a living fence system are presented. It was found that establishing and managing 715 m of living fences under small farm conditions generates an internal rate of return of 28.8 perecent and a net present value of benefits equivalent to 107,23. Using a 12 percent discount rate, this system represents a profitable alternative for the small farmer.

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Bibliographic Details
Main Authors: 79154 Huke, S.M. (ed.), 68670 Fox, J.M. (ed.), 109724 Reiche C, C.E., 122296 Sullivan, G.M. (ed.), 15145 Nitrogen Fixing Tree Association, Paia, Hawaii (EUA), 7241 East-West Center, Honolulu,, Hawaii (EUA). Environment and Policy Institute, 39247 Workshop on Financial and Economic Analysis of Agroforestry Systems Honolulu, Hawaii (EUA) 22-26 Jul 1991
Format: biblioteca
Published: Paia, Hawaii (EUA) NFTA 1992
Subjects:AGROFORESTERIA, CERCA VIVA, ANALISIS ECONOMICO, EXPLOTACION EN PEQUENA ESCALA, EUCALYPTUS CAMALDULENSIS, CASUARINA, ZEA MAYS, AMERICA CENTRAL,
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Summary:Central America has experienced a high degree of deforestation and degradation of its natural resources, resulting in a scarcity of forest products against increasing demands for the same products. As a possible solution, development of agroforestry systems has become a priority in the region. To show the small farmer that these agroforestry systems are beneficial and also to identify the most appropriate systems, good data for analysis are needed. During initial phases in the development of socioeconomic research in agroforestry systems, there were few or no methodologies available for data collection and economic analysis of agroforestry systems. The Tropical Agricultural Research and Training Center, CATIE, responded by developing standard forms and systematic methodologies, including three aproaches, for collecting and analyzing this information. The data and summary analysis are stored and accessible in a computer database. A summary of these methodologies and an example of a 10-year financial cash flow analysis of a living fence system are presented. It was found that establishing and managing 715 m of living fences under small farm conditions generates an internal rate of return of 28.8 perecent and a net present value of benefits equivalent to 107,23. Using a 12 percent discount rate, this system represents a profitable alternative for the small farmer.