Financial returns of Rhamnus prinoides based agroforestry practice in Tigray, Ethiopia

• Published in: Agroforestry systems 2024-03, Vol.98 (3), p.679-696
• Main Authors: Tesfay, Abadi, Birhane, Emiru, Gebremeskel, Destaalem, Meressa, Abrha Megos, Rannestad, Meley Mekonen
• Format: Article
• Language: English
• Subjects: Agricultural land; Agriculture; Agroforestry; Biomedical and Life Sciences; Continuous cropping; Crops; Economics; Farmers; Forestry; Households; Life Sciences; Monoculture; Net present value; Profitability; Rain; Rainfed farming; Rhamnus prinoides; Small farms; Sole cropping
• ISSN: 0167-4366; 1572-9680
• DOI: 10.1007/s10457-023-00939-8

Smallholder farmers in Tigray have been growing Rhamnus prinoides trees/shrubs with annual crops in rain-fed farmlands. Although this agroforestry system is widely practiced, there are no sufficient scientific reports on its profitability and financial returns. The objective of this research was to analyze the financial profitability and relative financial advantages of R. prinoid -based agroforestry compared to monocropping practices, in eastern Tigray. Data were collected using a structured questionnaire from 123 randomly selected households who practiced R. prinoides -based agroforestry. To address the objective, we estimated the net present values (NPV), Annuity values, and benefit to cost ratio (BCR) on per hectare basis. The annuity and BCR of agroforestry were compared with those of adjacent monoculture farms of the associated crop components in agroforestry. The land equivalent ratios (LER) of the agroforestry were calculated and compared with sole crops. The NPV and BCR of the agroforestry were 5.6 and nearly fourfold higher than that of the monocropping, respectively. Similarly, the R. prinoides -based agroforestry LER was 0.33–1.36% higher as compared to monocultures. Stocking density and age of agroforestry affected the financial return from R. prinoides -based agroforestry. We concluded that R. prinoides -based agroforestry has superior financial performance over monocrops and is financially less risky. Therefore, the adoption of R. prinoides -based agroforestry practices is a viable option for smallholder farmers to maximize net returns from their rain-fed farmlands and resource inputs.