Financial analysis of agroforestry land uses and its implications for smallholder farmers livelihood improvement in Ethiopia

摘要

A study was conducted in central highland Ethiopia to: (1) assess the financial feasibility and relative financial attractiveness of three agroforestry practices (small-scale woodlot, homestead tree and shrub growing and boundary tree and shrub growing); (2) evaluate the impacts of implementation of these land uses on farm households income and (3) identify the constraints for the implementation and expansion of the agroforestry practices. Then, 82 different land uses (21 small-scale woodlots, 35 homesteads and 26 boundary plantings) which were older than 15 years and established by the current owner were selected for the financial analysis. The input and output data were filled in a data sheet by face-to-face interview with the owners. The results showed that small-scale woodlot is the most profitable agroforestry practice followed by boundary plantings and homesteads. An ex-ante analysis of implementing the agroforestry practices showed that with minimum land area allocated for the practices, a household can generate net discounted revenues ranging from 5,908 to 26,021 Ethiopian Birr (532-2,342 USD) in 15 years at 10 % interest rate. Hence, the expansion of such agroforestry practices has a vital effect on farm household's income. Lack of proper planning and poor in-depth understanding about roles of trees and shrubs for household's income, land and seedling shortage, financial constraints and labor scarcity were identified as major problems for the expansion of agroforestry practices in the area. A thorough extension service comprising both efficient land resources utilization and proper planning practices could enhance the expansion of agroforestry practices and thereby positively influence the farmer's livelihood.