Contrasting the financial efficiency of agroforestry practices in buffer zone management of Madhupur...

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ORIGINAL ARTICLE Contrasting the financial efficiency of agroforestry practices in buffer zone management of Madhupur National Park, Bangladesh H. M. Tuihedur Rahman Jiban Chandra Deb Gordon M. Hickey Imrul Kayes Received: 8 February 2011 / Accepted: 15 January 2013 / Published online: 17 February 2013 Ó The Japanese Forest Society and Springer Japan 2013 Abstract This research contrasts the financial profitabil- ity of different agroforestry practices in community-based buffer zone management of Madhupur National Park (MNP), Bangladesh. This park is the second largest in Bangladesh and subjected to enormous anthropogenic pressure and land rights-related conflicts. This paper reports the different agroforestry practices of villagers in different modules of the buffer zone of MNP, identified by a participatory research approach. It then assesses the profitability of each module on the basis of cost–benefit analysis, net present value, internal rate of return, and annualized income. Results indicate three agroforestry systems were being practised in the buffer zone by the participants: agro-silviculture, agro-silvo-horticulture, and combined woodlot and agroforestry. Among these mod- ules, agro-silvo-horticulture was the most profitable, fol- lowed by agro-silviculture then combined woodlot and agroforestry. We recognize that not all of the participants can practise intensive agroforestry; our results suggest that the community-based buffer zone management strategy for MNP would benefit from prioritizing agroforestry practices where possible. This will lead to more successful buffer zone management for the conservation of natural forests while supporting the development of local resource- dependent communities. Keywords Buffer zone management Community livelihoods Financial analysis Land-use strategy Protected area Introduction Establishing buffer zones around national parks is a com- mon land-management strategy to reduce anthropogenic pressure on biodiversity (Heinen and Mehta 2000). In many developing countries, establishing buffer zones to reduce anthropogenic pressure on parks is seen as benefi- cial for both government and the local community (Mehta and Heinen 2001; Lynagh and Urich 2002). Here, gov- ernment can create income-generation opportunities for local communities through ecotourism, agroforestry-based buffer zone management, social forestry, etc., providing alternatives to the park’s natural resources for livelihoods (Murniati and Gintings 2001). Despite the common reasoning behind establishment of park buffer zones in developing countries, buffer zone management has been devised in different ways (e.g., agriculture-based, livestock-based, multiple use-based, agroforestry-based) (Martin and Chehebar 2001; Lynagh and Urich 2002; Stræde and Treue 2006). Agroforestry- based buffer zone management is one approach that is being practised in many areas (Michon et al. 1986; Ashley et al. 2006; Bisong et al. 2009). As a result, a substantial H. M. Tuihedur Rahman J. C. Deb (&) I. Kayes Department of Forestry and Environmental Science, Shahjalal University of Science and Technology, Sylhet 3114, Bangladesh e-mail: [email protected] H. M. Tuihedur Rahman e-mail: [email protected] I. Kayes e-mail: [email protected] G. M. Hickey Department of Natural Resource Sciences, Faculty of Agricultural and Environmental Sciences, McGill University, 21,111 Lakeshore Road, Ste-Anne-de-Bellevue H9X 3V9, Canada e-mail: [email protected] 123 J For Res (2014) 19:12–21 DOI 10.1007/s10310-013-0392-3

Transcript of Contrasting the financial efficiency of agroforestry practices in buffer zone management of Madhupur...

ORIGINAL ARTICLE

Contrasting the financial efficiency of agroforestry practicesin buffer zone management of Madhupur National Park,Bangladesh

H. M. Tuihedur Rahman • Jiban Chandra Deb •

Gordon M. Hickey • Imrul Kayes

Received: 8 February 2011 / Accepted: 15 January 2013 / Published online: 17 February 2013

� The Japanese Forest Society and Springer Japan 2013

Abstract This research contrasts the financial profitabil-

ity of different agroforestry practices in community-based

buffer zone management of Madhupur National Park

(MNP), Bangladesh. This park is the second largest in

Bangladesh and subjected to enormous anthropogenic

pressure and land rights-related conflicts. This paper

reports the different agroforestry practices of villagers in

different modules of the buffer zone of MNP, identified by

a participatory research approach. It then assesses the

profitability of each module on the basis of cost–benefit

analysis, net present value, internal rate of return, and

annualized income. Results indicate three agroforestry

systems were being practised in the buffer zone by the

participants: agro-silviculture, agro-silvo-horticulture, and

combined woodlot and agroforestry. Among these mod-

ules, agro-silvo-horticulture was the most profitable, fol-

lowed by agro-silviculture then combined woodlot and

agroforestry. We recognize that not all of the participants

can practise intensive agroforestry; our results suggest that

the community-based buffer zone management strategy for

MNP would benefit from prioritizing agroforestry practices

where possible. This will lead to more successful buffer

zone management for the conservation of natural forests

while supporting the development of local resource-

dependent communities.

Keywords Buffer zone management � Community

livelihoods � Financial analysis � Land-use strategy �Protected area

Introduction

Establishing buffer zones around national parks is a com-

mon land-management strategy to reduce anthropogenic

pressure on biodiversity (Heinen and Mehta 2000). In

many developing countries, establishing buffer zones to

reduce anthropogenic pressure on parks is seen as benefi-

cial for both government and the local community (Mehta

and Heinen 2001; Lynagh and Urich 2002). Here, gov-

ernment can create income-generation opportunities for

local communities through ecotourism, agroforestry-based

buffer zone management, social forestry, etc., providing

alternatives to the park’s natural resources for livelihoods

(Murniati and Gintings 2001).

Despite the common reasoning behind establishment of

park buffer zones in developing countries, buffer zone

management has been devised in different ways (e.g.,

agriculture-based, livestock-based, multiple use-based,

agroforestry-based) (Martin and Chehebar 2001; Lynagh

and Urich 2002; Stræde and Treue 2006). Agroforestry-

based buffer zone management is one approach that is

being practised in many areas (Michon et al. 1986; Ashley

et al. 2006; Bisong et al. 2009). As a result, a substantial

H. M. Tuihedur Rahman � J. C. Deb (&) � I. Kayes

Department of Forestry and Environmental Science,

Shahjalal University of Science and Technology,

Sylhet 3114, Bangladesh

e-mail: [email protected]

H. M. Tuihedur Rahman

e-mail: [email protected]

I. Kayes

e-mail: [email protected]

G. M. Hickey

Department of Natural Resource Sciences, Faculty

of Agricultural and Environmental Sciences,

McGill University, 21,111 Lakeshore Road,

Ste-Anne-de-Bellevue H9X 3V9, Canada

e-mail: [email protected]

123

J For Res (2014) 19:12–21

DOI 10.1007/s10310-013-0392-3

amount of research has been conducted to analyse the

efficiency of different agroforestry systems in buffer zone

management from different perspectives (Garrity 2004;

Priess et al. 2007). Within this growing body of work,

financial analysis (FA) of agroforestry practices is impor-

tant because it serves as a decision-making tool and pro-

vides a basis for comparing different land-use practices

(Elevitch and Wilkinson 2000). However, as noted by

Franzel et al. (2004), there are two complexities associated

with conducting FA of agroforestry projects: product

multiplicity and the dependence of crop diversity on indi-

vidual participant’s preferences.

Recognizing these constraints, we used FA to assess the

financial profitability of agroforestry practices in buffer

zone management of Madhupur National Park (MNP) in

Bangladesh. MNP is the second largest national park in

Bangladesh, established in 1962. The peripheral area of the

park is home to both ethnic and mainland populations

(Farooque 1997). This park is subjected to much land

ownership conflict among tribal Garo and Koch commu-

nities, mainland Bengali settlers, and the government

(Rashid and Satter 2006). This conflict has resulted in

forest destruction and the illegal use of park land (Rashid

and Satter 2006). The Bangladesh Forest Department

(BFD) established the buffer zones and has been operating

agroforestry-based participatory buffer zone management

since 1993 to reduce the dependence of the local commu-

nities on the natural forests and also to regain forest cover

in denuded areas (Alam et al. 2010). It is, therefore,

important to identify the profitability of the existing buffer

zone management strategy of the BFD to further reduce the

dependence of local communities on natural forests while

promoting sustainable rural development objectives. To

date, limited research has been undertaken to understand

the state, nature, and efficiency of agroforestry practices in

the study area (Khaleque and Gold 1993; Rahman et al.

2007; Alam et al. 2010). Previous research has emphasized

the significance of agroforestry in terms of crop selection

and its application in homestead gardens, soil conservation,

and community participation. For example, Alam et al.

(2010) conducted a study to identify sustainable financial

and socio-economic land-use practices in the tropical

deciduous forests of Bangladesh, and Muhammed et al.

(2008) compared the financial profitability of different

BFD-designed community-based land-use practices. Salam

et al. (2005) revealed the factors affecting the sustained

participation of farmers in forestry in Madhupur Sal for-

ests. However, no research has been conducted to analyse

the financial profitability of different agroforestry cropping

practices in the participatory buffer zone management of

MNP. Because the buffer zone land use patterns are

designed by the BFD, it is necessary to identify the most

suitable practices for future policy formulation and

implementation. There is also a need to recognize that

adaptive agroforestry practices can provide important

insights for policy makers seeking to promote financially

beneficial land-use practices (Folke 2004). However, this

important notion has been absent from previous studies. To

this end, the purpose of our research was to determine the

relative success of the existing buffer zone management

systems in terms of different agroforestry practices in MNP

while also considering some of the lessons for buffer zone

management and policy seeking to promote conservation

while supporting the development of local resource

dependent communities.

The objectives of this research were:

1. to identify the different types of agroforestry being

practised in modules in the MNP buffer zone area; and

2. to identify the most financially beneficial practices by

use of comparative financial analysis.

Methodology

Study area

MNP is located 80 km northeast of Dhaka, the capital city,

and falls in the Tangail forest division. The park covers an

area of 8,436 ha and falls geographically within 24�300–24�500N latitude and 90�–90�100E longitude. Average

temperatures vary from 28 to 32 �C in summer, falling to

20 �C in winter, with extreme lows of 10 �C. Rainfall

ranges between 1,000 and 1,500 mm annually. The park is

located in the largest tropical moist deciduous forest

(Bhawal–Madhupur Sal Forest) of Bangladesh where the

soil is based on Madhupur clay. This soil is poor in nutrients

and acidic, red to brown in colour. The topography of the

study area comprises low (Baid) and high (Chala) land, a

common feature of the Madhupur–Vhawal tract (Hoque

et al. 2008; Rahman et al. 2010). The forest is dominated by

Sal (Shorea robusta) trees in association with Artocarpus

heterophyllus, Butea monosperma, Cassia fistula, Ficus

benghalensis, and F. religiosa (Fig. 1) (Farooque 1997).

The park is inhabited both by the ethnic (Garo and

Koch) community and mainland (Bengali) people. Twenty-

two villages are located within the buffer zone of the park.

Among these villages, Arankhola was selected for the field

study. The average household size in the village is 5, and

the number of income-earning members within these

households varies from 2 to 4 persons. Agriculture is the

primary source of income for 75 % of the households in the

village. Most of the farmers work on their own farms;

others work as agricultural labourers. Small scale business

is the second-most important occupation of the villagers.

The literacy rate is approximately 71 %, which is greater

than the national rate of 62.66 %.

J For Res (2014) 19:12–21 13

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Method

To identify the different agroforestry modules and also to

calculate the financial efficiency of these modules, we

selected the village of Arankhola deliberately. During the

selection process, we considered the area with the highest

diversity in agroforestry practices along with the corre-

sponding financial success of the various modules.

According to the BFD, Arankhola has been the most suc-

cessful village in adapting to the existing buffer zone

management strategy. Data were collected between mid

January and mid February 2011.

The field study consisted of two phases. In the first,

different agroforestry patterns were identified after a par-

ticipatory research approach, using two focus group dis-

cussions and three transect walks. The participants

identified different agroforestry practices on the basis of

their local knowledge. In the second phase, we conducted a

household survey. A total of 44 participants were involved

in buffer zone management projects with the BFD. Among

these, 12 were participating in agroforestry schemes,

whereas the remaining 32 participated in woodlot schemes.

We surveyed all 44 participants using structured ques-

tionnaires based on the feedback received in phase one.

Five officials from the BFD were also interviewed using

semi-structured questionnaires to understand the strategy of

the BFD as it implements the buffer zone management

policy.

For FA, conventional indicators, for example net present

value (NPV), internal rate of return (IRR), benefit/cost ratio

(B/C ratio), pay-back period, and annualized income (AI)

were used (Table 1). Sensitivity analysis was also con-

ducted at 9, 12, and 15 % interest rates for each of the

agroforestry systems. We selected these interest rates for

sensitivity analysis because the bank interest rate in Ban-

gladesh was 10 % per annum at the time of writing.

Because the interest rate does not fluctuate to a large extent

in Bangladesh, we believed these interest rates could be

used to forecast the sensitivity of the different agroforestry

interventions in our study area.

Fig. 1 Location of the studied

village

Table 1 Financial indicators and decision criteria

Financial indicator Formula Decision criterion

NPVNPV ¼

Pn

t¼1

Bt�Ct

ð1þrÞtNPV C0

B/C ratioBC¼

Pn

t¼0

Btð1þrÞt

Pn

t¼0

Ctð1þrÞt

B/C ratio C1.0

IRRIRR ¼

ffiffiffiRC

t

q� �� 1

h i� 100

IRR Cr

AI D ¼ rðNPVÞð1þrÞtð1þrÞt�1

AI C0

Bt return receipt at the end of year ‘‘t’’, Ct cost at the end of year ‘‘t’’,

r interest rate or discount rate, t number of years, R actual receipts

after years, C present value of cost incurred, D annualized income

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Agroforestry in MNP: a general overview

Buffer zone management in MNP is being conducted

under two land-use practices—conventional agroforestry

and woodlot plantation (Alam et al. 2010). Each of the

participants (both agroforestry and woodlot plantation)

has been allotted one hectare of land within the buffer

zone for 10 years, in accordance with the Social Forestry

Strategy of the BFD (Muhammed et al. 2005). The ben-

efit-sharing agreement involves 45 % of log selling

income going to participants, 45 % going to the BFD and

10 % being retained for a tree farming fund (Salam et al.

2005). The financial return from the first thinning and

agricultural crops are given to participants completely but,

the income from the second or last thinning is distributed

according to the previously described log selling income

arrangement. All of the terms and conditions of the

benefit-sharing agreement and land allotment are officially

documented (Salam et al. 2005). For both land-use

practices, the BFD provides tree seedlings and other

technical support, for example determining plantation

spacing, thinning time and techniques, pruning time and

techniques, etc.

Typology of agroforestry practice in the buffer zone

of MNP

The BFD designed the agroforestry practices in the study

area by following conventional agroforestry techniques in

which agricultural components are varied and a large

amount of land is retained for agro-crops. Lai (1991)

reported the development of different agroforestry modules

in Bangladesh and identified two different practices

designed by the BFD after experimentation—agroforestry

and woodlot (Manandhar 1986). Under the conventional

agroforestry practice, the participants can choose the agro-

components, but the trees are selected by the BFD. This

practice can be categorized in two modules—agro-silvi-

culture and agro-silvo-horticulture (Fig. 2).

The participants in woodlot plantations have adapted

management practices in their woodlots to generate inter-

mediate income, similar to conventional agroforestry. This

is local knowledge-based practice and the BFD has no

technical support or involvement with it. This adapted

practice has changed the income-generation potential of

woodlot plantations and rearranged the typology of agro-

forestry in the study area (Fig. 3). However, the partici-

pants of woodlots have very little choice in their selection

of agro-crops because the closed canopy cover resulting

from the greater number of trees in woodlots restricts them

to shade-tolerant crops, for example ginger, pineapple, and

turmeric. Despite these constraints, this adaptive technique

seems to be a potentially viable land-use practice in terms

of financial return.

Conventional agroforestry

The two distinct conventional agroforestry modules prac-

tised in the study area have different features in terms of

management practices. They do, however, share a few

common features, for example tree spacing and tending

operations. At the initial stage in every agroforestry garden,

780 trees per hectare are planted. During the first thinning

in the 4th year, 50 % of the trees are felled and in the

second thinning in the 7th year another 50 % of the

remaining trees are felled. Hence, after the 10-year rota-

tion, the total number of standing trees is 195. This is the

ideal number of trees as determined by the BFD. Obvi-

ously, because of natural and physiological disorder, some

seedlings may die over the rotation. When this occurs, the

participants fill the vacancies with trees on their own

initiative.

Usually, tree species are planted with 50 9 50 spacing.

Three columns of trees form one tree component strip in

the agroforestry garden and then a 450 space is retained for

agro-crops, followed by the next strip of tree columns. This

450 space is cultivated with agricultural crops by following

different planting patterns, for example block plantation,

Typology of agroforestry practice in MNP

Conventional agroforestry Woodlot cum agroforestry

Agro-silvicultural Agro-silvo-horticulture

Fig. 2 Typology of

agroforestry practice in the

buffer zone of MNP

J For Res (2014) 19:12–21 15

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strip plantation and scattered plantation. However, such

agro-crops as papaya and banana are always planted fol-

lowing a block plantation pattern for better yield. If the

participants cultivate such crops as ginger, turmeric etc.,

they follow strip cropping. In these cultivations 1.50 9 1.50

spacing is maintained. On either side of one ginger or

turmeric alley, one alley comprising two strips of pineap-

ples is planted (Fig. 3a).

(a) Agro-silviculture module

The agro-silviculture module is designed by the BFD.

Structurally, it is alley cropping. The module consists of a

450 wide alley of agricultural crops. One alley of agro-

crops is bounded by two alleys of timber crops. Each 100

wide alley of timber crops has three strips of trees. Usually,

alleys are started with tree components, because they can

work as a fence for agro-crops. The agro-crops (Table 2)

are usually partially shade-tolerant. Participants prune the

lateral branches of trees once a year in the winter. This

pruning facilitates straight bole formation of trees and light

penetration to the ground.

(b) Agro-silvo-horticulture module

This is an adaptive module. The spacing and other sil-

vicultural operations are similar to those of the agro-silvi-

culture module, except that horticultural species are

planted as additional crops (Table 2). The horticultural

species are planted at the boundary of a plot in a single

row. These crops are also planted maintaining 50 9 50

spacing (Fig. 3b).

Agro-silviculture module.

Legend

Strip for pineapple cultivation

Strip for papaya and banana cultivation

Boundary cropping with horticulture species

Strip for turmeric and ginger cultivation

Spot for tree plantation

6' space between two columns of trees

6' space between two rows of trees

1.5' stripe for turmeric and ginger

1.5' space between two strips of pineapple

5' space between two rows of trees

5' space between two columns of trees

45' space for agro-crops

5' space between two columns of trees

5' space between two rows of trees

45' space for agro-crops

Agro-silvo-horticulture module.

Woodlot cum agroforestry module.

(a) (b)

(c)

Fig. 3 Agroforestry modules of the studied village

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Combined woodlot and agroforestry module

This, also, is an adaptive module. In woodlots, trees are

planted with 60 9 60 spacing. Agro-crops are cultivated in

the intermediate space between two rows of trees. Agro-

crops are cultivated in accordance with the crop cultivation

pattern of agroforestry plots (Fig. 3c). Pineapple, ginger,

and turmeric are usually cultivated in this space because of

their shade tolerance. Usually, two alleys of pineapples are

planted with one narrow mixed strip of ginger and turmeric

in the centre.

Results and discussion

Financial analysis

Cash-flow analysis

Cash-flow analysis is an important means of conducting FA

for any financial intervention. We conducted both undis-

counted and discounted cash-flow analysis for the three

agroforestry modules. In the study area, the participants

had a marginal cost for fixed capital because the BFD

provided both land and planting materials without any cost.

Consequently, the participants did not need to invest in

fixed assets. The summarized cash-flow analysis for the

three different modules is presented in Table 3. The prices

were estimated on the basis of the prices of the products

during the data-collection period. It is important to note

that the prices did not fluctuate drastically during and after

the data-collection period, and that the prices of the prod-

ucts were increasing linearly over time with marginal

deviation. It is evident from the analysis that agro-crops

have increased labour and other costs of the combined

woodlot and agroforestry module while also increasing

cash inflow. However, in comparison with the other two

land-use practices, the combined woodlot and agroforestry

module had the lowest cash inflow and outflow. Agro-sil-

vo-horticulture has higher expenses and receipts than the

other two modules, because of additional horticultural

components. From Table 3, it is also evident that the gross

return of agricultural crops from agro-silvo-horticulture is

higher than from the other modules. There are two

important reasons for this—crop selection and tending

operations. Usually, the tree crops in all of the modules can

be pruned to enable penetration of light to the ground.

However, horticultural species (including mango and

jackfruit) (Table 2) are not pruned, to maintain high pro-

ductivity. These trees have moderate height (15–20 m) and

have a large canopy in comparison with the tree species.

Hence, these trees do not allow adequate sunlight pene-

tration to the ground crops. Consequently, the participants

usually cultivate papaya and banana, because these have

adequate height to receive sunlight. Interestingly, a good

harvest of these two crops can provide higher cash flow

than any other crops cultivated in the different modules.

The participants can also use the intermediate space

between two rows of banana and papaya for the cultivation

of ginger and turmeric, which can grow under shaded

conditions. Hence, the plot is managed with a three-storey

cropping pattern. The horticultural and agricultural crops

need tending operations such as the application of pesti-

cides and fertilizer, regular weeding, and mulching, etc.

(the cost items for agro-silvo-horticulture in Table 4) to

increase productivity. Further, if the participants determine

Table 2 Components of different agroforestry modules

Crop group Local name Scientific name Practice module

Silvicultural crops Acacia Acacia auriculiformis Timber component for combined woodlot and agroforestry,

agro-silviculture, and agro-silvo-horticulture

Eucalyptus Eucalyptus

camaldulensis

Timber component for combined woodlot and agroforestry,

agro-silviculture, and agro-silvo-horticulture

Gamar Gmelina arborea Timber component for combined woodlot and agroforestry,

agro-silviculture, and agro-silvo-horticulture

Bokain Melia azedarach Timber component for combined woodlot and agroforestry,

agro-silviculture, and agro-silvo-horticulture

Agricultural crops Ada (ginger) Zingiber officinale Agricultural component for agro-silviculture and agro-silvo-horticulture

Holud (turmeric) Curcuma longa Agricultural component for agro-silviculture and agro-silvo-horticulture

Kala (banana) Musa acuminate Agricultural component for agro-silviculture and agro-silvo-horticulture

Anarash (pineapple) Ananas comosus Agricultural component for agro-silviculture and agro-silvo-horticulture

Papa (papaya) Carica papaya Agricultural component for agro-silviculture and agro-silvo-horticulture

Horticultural crops Am (mango) Mangifera indica Horticultural component for agro-silvo-horticulture

Kanthal (jackfruit) Artocarpus heterophyllus Horticultural component for agro-silvo-horticulture

J For Res (2014) 19:12–21 17

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that the tree crops are negatively affecting the productivity

of their agro crops they will thin the trees. Consequently,

this module retains the lowest number of trees compared to

the other modules, reducing the financial return from tree

crops.

The return from horticultural crops is generally not as

high as for agro-crops or tree crops, causing the partici-

pants to plant their horticultural crops at the boundary of

the plots. As a result, the total number of individual trees

(horticultural) is not large enough to provide homogenous

income in comparison with the other crops. However,

higher gross return is observed for this module, suggesting

the agro-silvo-horticulture module is the best land-use

practice in terms of cash flow. It is also observed that the

agro-silviculture module provides the second largest ben-

efit. Interestingly, cash flow from tree crops is highest in

this module. According to the participants, arrangement of

tree spacing and total number of trees are the underlying

reason for this outcome. In the agro-silviculture module, a

large amount of area is retained for agro-crops. Thus, fewer

trees can be planted in this plot resulting in less intense

competition for light and nutrients, which enhances the

growth of trees compared with the other two modules. It

can be deduced from our results that the greater crop

diversity increased both cash receipts and the costs of

production (Michon et al. 1986).

Utilization of plantation spacing in woodlots can

generate additional benefits for the participants without

causing deterioration of the government’s objective of

woodlot establishment. To obtain a more realistic com-

parison among the different modules, discounted cash-flow

analysis must be conducted.

Discounted cash-flow analysis

Yearly discounted (at 10 % interest rate which is the bank

money lending interest rate in Bangladesh) cost and

benefit plotting (Fig. 4) shows that among the three

agroforestry modules, the agro-silviculture and agro-silvo-

horticulture modules had a higher range of both cost and

benefit. It also shows the costs and benefits associated

with both are higher than for the combined woodlot and

agroforestry module. Participants in combined woodlot

and agroforestry induce agro-crops after 7 years of tree

plantation. As a result, the farmers of combined woodlot

and agroforestry benefit in fewer years. Usually, these

participants get their first benefit in the third year from

thinning. Later, in the seventh year, they get the benefit of

the other thinning regime. In contrast, the farmers using

more conventional agroforestry modules benefit from

crops from the first year of tree plantation which results in

more overall benefit.

Table 3 Cash-flow analysis of

different agroforestry modules

in the study area

1 BDT = $ 0.015 (during the

study period)

Item Agro-silviculture

(in BDT)

Agro-silvo-horticulture

(in BDT)

combined woodlot and

agroforestry (in BDT)

Receipts

Gross return

Agro-crops 636,500 1,354,890 334,315

Timber 212,500 125,630 132,034

Horticulture – 17,460 –

Total 849,000 1,497,980 466,349

Expenses

Labour cost

Clearing 21,000 42,720 9,070

Ploughing 16,000 31,740 12,847

Planting 4,000 22,320 7,965

Weeding 24,900 39,800 6,700

Harvesting 30,000 47,620 13,750

Carrying 18,500 29,780 10,800

Other costs

Seedlings 40,000 125,860 41,470

Fencing 8,000 8,540 2,882

Fertilizer and mulching 56,560 73,820 28,635

Pesticide 6,800 30,200 4,467

Total expenses 225,760 452,400 138,586

Net cash flow 623,240 1,045,580 327,763

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Use of different financial indicators (NPV, B/C ratio, IRR

and AI) revealed that all of the modules are beneficial at

10 % interest rate (Table 4). Among different agroforestry

modules, the NPV of agro-silvo-horticulture is higher than

the NPVs of the other two modules. Agro-silviculture is

second, followed by the combined woodlot and agroforestry

module in terms of NPVs. Both of the conventional agro-

forestry modules have higher benefit earning rates because

of multiple productivity and extensive land-use practice.

B/C ratios and IRRs for all three modules are similar with

little deviation. The main difference between the modules is

the AI (Table 4). Agro-silvo-horticulture ensures the highest

AI among the three modules followed by agro-silviculture.

Because of the AI, the participants have more interest in

developing agroforestry plots rather than woodlots. In the

study area, working capital (e.g., labour cost, seedling cost,

fertilizer cost, tending cost, etc.) is managed using kin and

neighbours without interest on borrowed money, and by

sharing the planting materials which reduce the cost of

production. As a result, imposing extra interest on the

working capital would overestimate the cost of production in

this analysis. In summary, therefore, it can be stated that the

participants’ preference is deeply related to profitability

rather than the cost-efficiency of the practice.

Sensitivity analysis

The financial efficiency of the agroforestry modules was

reassessed using sensitivity analysis to understand the

profitability of the modules under different interest rates

(Table 5). Here, the sensitivity analysis was performed

using different interest rates because of the production

uncertainty of agro-crops. Thus, at 9 % interest rate all of

the modules were profitable, with almost similar B/C ratio

and IRR. NPV and AI are higher in agro-silvo-horticulture

than the other two modules. Agro-silviculture and com-

bined woodlot and agroforestry are in second and third

positions, respectively, in terms of IRR and NPV. These

phenomena are also observed at 12 and 15 % interest rates

(Table 5). With increasing interest rates, the B/C ratio falls,

meaning that lower interest rates will make each module

more profitable. These results show that all of the modules

are beneficial but it is more profitable to practise agro-

silvo-horticulture than the other two modules.

Muhammed et al. (2008) also identified agroforestry as

being the most beneficial practice among different land-use

patterns for public-oriented forestry in the Tangail forest

division. However, our research has gone further by

revealing adaptive agroforestry practices as being signifi-

cantly profitable for participants operating in the commu-

nity-based buffer zone management in MNP. These

findings can be used to improve the planning and imple-

mentation of buffer zone management strategies and

practices in MNP and other NPs in Bangladesh.

Implication of the results in the buffer zone

management

In MNP, community-based buffer zone management was

initiated to reduce the dependence of the local people on

the forest. The participants in the study area have shown

that optimum utilization of the available land can ensure

better profit, which is necessary for their development. It

should be noted that this result is a common scenario in

buffer zone management of the park. In the ‘‘Methodol-

ogy’’ section we identified the studied village as the most

successful village in implementation of the community-

based buffer zone management strategy of the government.

Table 4 Summary of cash-flow at 10 % interest rate

Agroforestry

module

NPV

(Tk ha-1)

Benefit-

cost

ratio

IRR

(%)

Annualized

income

(Tk ha-1)

Agro-silviculture 325,126 3.17 23.56 52,913

Agro-silvo-horticulture 577,364 3.06 23.60 115,864

Combined woodlot

and agroforestry

160,463 3.41 23.77 26,115

Fig. 4 Discounted cash flow

J For Res (2014) 19:12–21 19

123

Despite similar soil types (this soil is part of the Vawal–

Madhupur tract) and following the conventional farming

system, participants in this village benefited more than

those on other villages (as reported by BFD officials). On

the basis of our study, conventional agroforestry and

woodlot modules developed by the BFD are not as bene-

ficial as the locally adapted agro-silvo-horticulture and

combined woodlot and agroforestry modules. As a result,

the BFD may wish to disseminate the locally adapted

techniques used in the studied village to other participants

in different villages and possibly incorporate this knowl-

edge into the government’s policy for buffer zone man-

agement by emphasizing extensive agroforestry practice

(e.g., agro-silvo-horticulture) (Kumar 2006). This could

promote more efficient land use and generate higher ben-

efits for participants, thereby furthering the policy objective

of buffer zone management for the reduction of forest

dependence in local communities and community

development.

It should be noted that the improvisation of the local

community in developing agroforestry practices was

facilitated by the existing policy of the BFD (Ajayi et al.

2009), which does not impose any restrictions over the

land-use practices. Although the tree species were selected

by the BFD, selection and cultivation of agro-crops in

woodlots were not. As a result, local people have had

opportunities to experiment with the land and adapt prac-

tices to maximize financial success. This policy approach

could also be beneficial in the community-based buffer

zone management strategies of other National Parks in

Bangladesh.

Conclusion

This study revealed that the success of agroforestry par-

ticipants in the buffer zone of MNP has encouraged the

woodlot participants to adopt a new module of agroforestry

practice. This hybrid module is compatible with the closed

canopy of trees in woodlot plots. Although this practice is

not as beneficial financially as the other two agroforestry

modules being practised in the buffer zone of MNP, it still

generates additional income for the participants. In this

study we found that greater crop variety ensured greater net

benefit to the participants in the study area. This is because

continuous product flow provides the participant with a

more consistent flow of money. Although we recognize

that not all of the participants can practise intensive agro-

forestry, because the buffer zone management authority has

distributed plots in either ‘‘agroforestry’’ or ‘‘woodlot’’

categories, our results suggest that the BFD should re-

assess their community-based buffer zone management

strategy with a view to prioritizing agroforestry practices

where possible. This will lead to more successful buffer

zone management for conservation of natural forests while

supporting the development of local resource-dependent

communities.

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