Financial attractiveness of smallholder tree plantations in the Amazon: bridging external expectations and local realities

Abstract

This paper compares the financial attractiveness of forest and agroforestry plantations promoted by external organizations with tree growing practices of Amazonian smallholders. Based on 80 case studies and interviews with 112 forestry professionals from Brazil, Bolivia, Peru and Ecuador, the paper characterizes the economic, environmental and structural implications, and identifies the respective financial costs and benefits. Six case studies provided data for in-depth financial analyses. The results showed that the expectations of externally promoted smallholder tree and agroforestry plantations were not met. Despite significant inputs, smallholders generated at best annual net incomes of US$200-$1,000 per ha from NTFP plantations, and up to US$800-$1,000 from timber plantations in the year of harvest. This corresponded to around one-third of the initially expected returns. Overall, only around 1% of the smallholders participating in such initiatives managed to produce and commercialize any plantation products. Smallholders' practices of complementary tree growing in conjunction with agriculture and managing natural regeneration of timber and NTFP products were often underestimated by professionals. They required low input, didn't rely on external support, were highly flexible in risky environments, and some presented financial returns comparable to some well functioning plantations.

Acceleration and novelty: community restoration speeds recovery and transforms species composition in Andean cloud forest

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Amazonian farmers' response to fire policies and climate change

“…the share of a that is lost. 5 Alternatives to fire use are generally more productive but also more fire sensitive (Bowman et al,2008;Hoch et al, 2012;Nepstad et al, 2001;Nepstad et al, 1999). Intuitively, any productive system needs more (fire sensitive) inputs than slash and burn agriculture.…”

“…Controlled fire is a cheap "voluntary worker", substituting for capital and labor in land preparation, pest control and soil mineralization in pastures and cropland (Nepstad et al 1999). Many obstacles to fire-free alternatives are well documented and relate to poor market access, high costs and unavailability of labor and capital, and network externalities associated with local knowledge (Harwood, 1996;Hoch et al, 2009;Hoch et al, 2012;Pokorny et al, 2012).…”

Domestication of native tree species for timber plantations: key insights for tropical island nations

“…Since this is a long-lived pioneer species it has long seemed a candidate for domestication (Nichols 1994). Hoch et al (2012) offered a more pessimistic view of smallholder plantations, concluding that smallholder production of timber is generally unprofitable. This conclusion was drawn from the observation that only one percent of smallholders in externally promoted tree-planting programs in the Amazon were ultimately able to produce and commercialize any plantation timber.…”