Agroforestry vs. forestry for the rural poor: a socio-economic evaluation

Abstract

The paper evaluates Forest Farming for the Rural Poor (FFRP) component of social forestry in the Indian State of Orissa within the framework of the stated socio-economic policy objectives. Both the distributional equity and efficiency aspects have been accounted for in the analysis. Based on two criteria (net present value and land expectation value) the socio-economic profitability and optimum rotations have been determined for dense plantations in three site qualities and compared with the results for agroforestry. The net socio-economic benefits for agroforestry are shown to be larger than for dense plantations in SQI. The reverse was found for SQII, the net socio-economic benefits are comparatively less in agroforestry than in the dense plantations. The net socio-economic benefits in SQIII are negative for both the agroforestry and dense plantations. It is found that for the FFRP policy to be socially profitable in SQIII, the investment funds should be acquired by diverting consumption-oriented funds from rural development programmes.