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 287

4.00 90

80

3.50

70

3.00 60

50

2.50

40

2.00 30

20

1.50

10

1.00 0

0 5 10 15 20

Year

Imperata-IMPLUS Maize-FPLUS Imperata-TIMPLUS

Maize-TCLUS Maize-TCSFLUS Timber-TIMPLUS

Timber-TCLUS Timber-TCSFLUS Timber-TPLUS

Fig. 14.2 Predicted yields of the alternative land use systems, Claveria, Misamis Oriental,
The Philippines

than in other land use systems. Yet, the least reduction in timber yield of one per-
cent was observed under TPLUS system. This result could be explained by the
lower rate of soil loss under this system. 3

14.3.4.2 Financial Profitability of Alternative Land Use Systems

The results of the benefit-cost analysis are presented in Table 14.5. With a discount
rate of 25 percent, all land use systems have positive NPV, which implies that they
were all profitable at this level of the cost of capital. The timber plantation system
(TPLUS) obtained the highest NPV (PhP 241,170 ha −1 ) followed by TCSFPLUS
(PhP 98,121 ha −1 ) and the lowest NPV (PhP 271 ha −1 ) was obtained by the Imperata -
grazing (IMPLUS) system. The current farmers' practice of annual maize cropping
(FPLUS system) predicted a relatively higher NPV (PhP 21,161 ha −1 ) than IMPLUS
system, but lower than the TIMPLUS system (PhP 35,031 ha −1 ), TCLUS system
(PhP 56,074 ha −1 ), and the TCSFLUS system (PhP 98,121 ha −1 ). Consequently, the
TPLUS system predicted the highest annualized net benefits (PhP 60,996 ha −1
year −1 ) to farmers and the lowest ANB (PhP 69 ha −1 year −1 ) was from IMPLUS

3 Soil erosion results are discussed in detail in the succeeding environmental impacts section.