Green Horizons

Many small farms and woodland owners are reluctant to produce tree-based products using traditional forestry practices because of the long time between planting and income generation. Incorporating agroforestry practices, such as alley cropping, silvopasture, and forest farming into overall farm operations have the potential to provide a more regular flow of income. However, the application of agroforestry practices is still limited in many states because farmers do not have the tools to help them decide if these practices are financially viable. Relevant case studies, coupled with realistic financial decision support tools, are needed to train natural resource professionals and convince landowners.

To that end, the University of Missouri’s Center for Agroforestry economist, Larry Godsey, has received funding from the USDA National Agroforestry Center to develop the necessary case studies and associated financial decision support tools.

In the first phase of the project, case studies for all five agroforestry practices (alley cropping, riparian corridor management, silvopasture, wind and/or odor breaks, and forest farming) will be derived from selected landowners or land managers that are currently using agroforestry technologies as part of their land management strategy. Through a series of open- and close-ended questions, the individuals will describe the challenges and considerations that formed the basis of the adoption decision, and identify any incentives that aided in the decision-making process. In addition, key economic information will be collected for incorporation into the financial analysis tools.

In the second phase of the project, Godsey’s team will use the data collected in the case studies to build Excel-based financial decision support models that will incorporate multiple sources of revenue along with growth and yield tables for long- and medium-term horticultural enterprises. They will allow a farmer or land manager to identify the impact their management decisions will have on predicted growth and yield of the agroforestry crop and various financial indicators, such as net present value (NPV), annual equivalent value (AEV), internal rate of return (IRR), and payback period (PBP) of the agroforestry enterprise.

To participate in this timely research effort, contact Larry Godsey (573) 884-3216, godseyl@missouri.edu.