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Analysis of the Economic Benefits from Systematic Improvements to Shifting Cultivation and Its Evolution Towards Stable Continuous Agroforestry in the Upland of Eastern Bangladesh

S.A. RAHMAN
Research fellow
Dept. of Sociology, University of Rajshahi, Rajshahi 6205, Bangladesh

M.F. RAHMAN
Professor
Dept. of Sociology, University of Rajshahi, Rajshahi 6205, Bangladesh

A.L. CODILAN
Instructor II, Institute of Renewable Natural Resources, College of Forestry and Natural Resources, University of the Philippines Los Banos, College, Laguna 4036, Philippines

K.M.FARHANA
Research fellow
Institute of Bangladesh Studies, University of Rajshahi, Rajshahi 6205, Bangladesh

Abstract/ Executive Summary:

Shifting cultivation is claimed as the major cause of drastic deforestation in the uplands of Eastern Bangladesh. Agroforestry is considered as one of the very few options to protect the existing forest and, additionally, lift people out of the poverty trap. This paper indicates that agroforestry may not only be good for (agro)biodiversity and sustainability but has a good economy rate of return. Both quantitative and qualitative methods are used to analyze data. The financial analysis indicates that agroforestry systems give positive and much higher net present value (NPV) than shifting cultivation. In addition, it is more profitable and less risky than other agricultural options. Appropriate strategies leading to the right choice of species, optimal species combinations, solving land tenure problems, ensuring initial support and imparting training to farmers could promote agroforestry systems and enhance farm income.

Keywords: Shifting cultivation, Agroforestry, Poverty, Economic benefit, Environment

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End Date:

Program Area: Socio-economic and Policy

Commodity: Agroforestry

Objectives:

Several studies indicate that agroforestry can give nearly twice the benefit-cost ratio (B/C) of traditional agriculture. There is also evidence to suggest that from farmers’ own perspective, agroforestry can be more profitable and less risky than other agricultural options.

Methodology:

The objective of this research is to assess the benefit-cost of shifting cultivation compared to agroforestry and prescribe some policy suggestions regarding how agroforestry can best be applied. This research focused on four different areas in Khagrachari District in the uplands of Eastern Bangladesh, Dighinala, Atmile, Jamtali and Noimile. Research methods used were first, a census and Rapid Rural Appraisal (RRA) for basic information on the areas; secondly, structured interviews with a purposive sample of 100 households focused particularly on experiences, capacities and motivations for shifting cultivation and Agroforestry; and lastly, Participatory Rural Appraisal (PRA), with 60 semistructured interviews and 7 focus groups, geared particularly towards local knowledge, visions, barriers, actual and envisaged costs and benefits of agroforestry and shifting cultivation. Other data were gathered by way of interviews with key informants (Government, non-government and public organizations) and market prospecting. The secondary data are from statistical yearbooks, local administrative and various related sources. Research data were collected from November 2004 to June 2005. For many elements of the study, qualitative and semiquantitative analyses, guided by the research objectives, were carried out. Qualitative analyses were used particularly for the tree and crop combinations in agroforestry and shifting cultivation, environmental benefits, bankability etc. Semi-quantitative analyses were used to present the actual and envisaged cost and benefit of both cultivation practices. The constant comparative method was used for this analysis. This method is well suited for this research because the mentioned human and natural phenomena were described easily by this approach. The quantitive-economic parts of the study were made by the use of econometric techniques, combined with micro-economic models, particularly cost-benefit analysis of agroforestry and shifting cultivation at the household level. The net present value (NPV), internal rate of return (IRR), benefit-cost ratio (B/C) and payback period of agroforestry and shifting cultivation were calculated and compared. The NPV determines the present value of net benefits by discounting the streams of benefits and costs back to the beginning of the base year.

Source of Information: International Forestry Review Vol.9(1), 2007

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Achievement/Findings:

Some farmers in the uplands of eastern Bangladesh are practicing agroforestry that is well organized, ecologically sound, and could provide high yields. But for others, shifting cultivation is the norm but has become increasingly unsustainable due to the shortening of fallow periods and the loss of environmental conservation methods. Although agroforestry is more profitable and less risky than shifting cultivation it is necessary to provide important institutional support to enable farmers to shift gradually from one approach to the other. The institutional support needs to comprise, most importantly, credit facilities, land tenure security, extension services and adequate access to markets. Substantial initial investment also needed to move from shifting cultivation to agroforestry. Different extension programs implemented in Bangladesh are biased towards lowland agriculture (ADB 2001, Rasul 2003). As a result, most farmers in upland areas are not getting any benefit from extension services. To address this inherent problem, the government should design necessary extension programmes to address the needs of farmers. The Bangladesh Agricultural Bank, which is mandated to provide agricultural credit, does not provide credit for tree growing. Moreover, the Bank requires collateral, which cannot be offered by the majority of upland people, as they do not have land certificates. Having being denied formal credit, poor farmers are forced to get a loan from local moneylenders with an associated high-interest rate, which in turn further reduces their ability to make investments inland. Provision of both short- and long-term formal credit would enable farmers to overcome the problem of shortage of investment funds.

Knowledge Management: Journal