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Economic Analysis of Agroforestry Land Use System to Protect Soil Erosion
Abstract:
Agricultural activities in the Su watershed lead to the problem of soil erosion. The agroforestry system is a way to solve this problem. The agroforestry system has been scientifically and technically proven to be effective in soil erosion control but its economic aspects have not yet been studied. The objectives of the study were to assess the economic feasibility of agroforestry system and to investigate farmers’ attitude on agroforestry system.
The expected net present value (ENPV) for the maize plantation where soil erosion occurred was THB3,427. On the other hand, the ENPVs for maize-teak and maize-vetiver plantations were THB108,111.39 and THB1,166.31, respectively. The result of sensitivity analysis showed a possibility for investment. Maize-teak plantation had liquidity constraint. Farmers cannot receive returns from teak for six to 15 years.
Results also revealed that farmers had low understanding of agroforestry and had less interest in this system since teak cannot provide them returns every year and vetiver cannot be sold. Thus, extension program on soil erosion is necessary. Planting maize-teak for soil conservation is important for sustainable agriculture. Off-farm activities to fulfill the shortage of liquidity and providing credit for teak investment are also very vital.