Improving Productivity, Profitability and Sustainability of Degraded Grasslands Through Tree-Based Land Use Systems in the Philippines - Smallholder Tree Growing for Rural Development and Environmental Services - page 275

Chapter 14
Improving Productivity, Profitability and
Sustainability of Degraded Grasslands Through
Tree-Based Land Use Systems in the Philippines
C.D. Predo 1 * and H.A. Francisco 2
Abstract This study aimed to quantify and analyze the productivity, profitability
and sustainability of alternative land uses in the degraded grasslands using a bio-
economic modeling approach. It was conducted in Claveria, Misamis Oriental in
Mindanao, the Philippines. Results of bioeconomic analysis showed that tree-based
land use systems have significantly higher financial profitability and environmental
benefits. The latter were measured in terms of higher carbon sequestration, least
soil erosion, and sustained soil nutrients relative to current farmers' practice of
maize cropping. Despite these, survey results showed the extent of tree farming
remains low (<10 percent of land area). The risk analysis indicated that while
timber-based systems earned the highest net present value (NPV), they seemed to
be the most risky options as reflected by the high coefficient of variations of the
NPV ranging from 164 percent to 205 percent. The study recommended measures
to reduce price risk and the need to improve risk management capability of farmers
to promote expansion of smallholder tree farming. Provision of relevant and timely
price information and price risk insurance are such possibilities. It is also suggested
that payments to farmers for environmental services like carbon sequestration be
explored to encourage expansion of tree-based land use systems.
Keywords Bioeconomic analysis, carbon sequestration, Imperata grasslands, land
use, risk analysis, tree growing