Exploring the Agroforestry Adoption Gap: Financial and Socioeconomics of Litchi-Based Agroforestry by Smallholders in Rajshahi (Bangladesh) - Smallholder Tree Growing for Rural Development and Environmental Services - page 216

Chapter 11
Exploring the Agroforestry Adoption Gap:
Financial and Socioeconomics
of Litchi-Based Agroforestry by Smallholders
in Rajshahi (Bangladesh)
S.A. Rahman 1 * , W.T. de Groot 2 , and D.J. Snelder 2
Abstract This paper takes a multistrata agroforestry system, based on Litchi
chinensis and widely practised in North Bangladesh, as a case study to address
the common problem of lack of adoption in agroforestry. Although the financial
cost-benefit analysis of agroforestry systems may show clear-cut profitability, these
systems are often hardly adopted by farmers. Our data clearly show this pattern.
Net present values and returns to labor of agroforestry were five times higher than
those of alternative (annual) crops, and yet the adoption rate remained very low,
even though an agroforestry project had been carried out in the study area and agro-
forestry had positive cultural value. Common economic reasoning is that in such
cases, adoption is hampered by capacity constraints of the farmers. Our data allow
to argue, however, that not the capacities but rather the motivations of the farmers
are key, in spite of the financial characteristics of the system. This is caused by
the underlying institutional structures, that are highly unconducive to agroforestry.
We conclude that action for agroforestry should focus first of all to get supportive
institutions (rules and organisations) in place before focusing on trees and projects,
if needed at all.
Keywords Tree-based system, cost-benefit analysis, institutional economics,
smallholder farmers