Future Challenge: A Paradigm Shift in the Forestry Sector - Smallholder Tree Growing for Rural Development and Environmental Services - page 445

where timber is 'cleared' to provide short-term economic returns, without plantations
being established (Barr et al. 2004; Sheng and Cannon 2004). When established many
forest plantations operate on the premise that there are economies of scale in the plant-
ing, managing and harvesting of trees . In fact, the 'economies of scale' may derive
from harvesting, marketing and processing stage and from regulatory frameworks or
subsidized credit directed to large operators (Barr 2001, 2002).
Tree plantations are a paradox. They are an important and efficient source of
wood and non-wood products, but are also a main cause of forest conversion and
the loss of environmental services provided by those natural systems. A plantation
strategy is required that maximizes their good characteristics and limits their nega-
tive impacts. Across the tropics there are large areas of deforested land in different
degrees of degradation. Priorities should target degraded lands that can support tree
plantations. Policies forbidding forest conversion should be strictly enforced.
Government subsidies for plantation establishment should be restricted to those
achieving land rehabilitation. Criteria for these measures should be developed at the
national level. To avoid conflict, local communities should be informed of plantation
establishment plans and given opportunity to provide input. More effective would
be the simultaneous development of corporate-community plantation partnerships
(FAO 2003b). Those partnerships are addressed in more detail below.

21.4.4 Smallholder Tree-Based Systems

Here we refer to land use systems that include natural forests, planted tree-based
systems and systems that are a combination of both. For the purpose of our discus-
sion the term and concept are interchangeable with smallholder agroforestry sys-
tems , which are small landholdings or parcels managed by individuals or groups of
farmers. Depending on local needs or opportunities, smallholder systems may
focus on tree crops, agricultural crops, livestock or a combination. These various
systems will differ greatly in size, species component, tree density, tree longevity,
and management intensity (Roshetko et al. 2007a). A shortage of local forest
resources is often the catalyst of spontaneous expansion of smallholder agroforestry
systems. This type of farmer-led spontaneous smallholder agroforestry develop-
ment has occurred in Bangladesh (Byron 1984); Sri Lanka (Gunasena 1999); the
Philippines (Luzon: Pasicolan and Tracey 1996; Schuren and Snelder, Chapter 3,
this volume; Cebu: FAO 1993; and Mindanao: Magcale-Macandog et al. 1999);
Kenya (Scherr 1995; Place et al. 2002); and Indonesia (Sumatra: Michon and
Bompard 1987). In addition, proximity to urban centres creates high demand for
timber, fruit and other forest products and stimulates spontaneous smallholder agro-
forestry. This is particularly true for areas far away enough from the extractive for-
est frontier and/or with large enough farms to support tree crops in addition to
seasonal cash crops (Schuren and Snelder, Chapter 3, this volume). In other situa-
tions (e.g. in central and east Java) the (temporary) migration of the young people
to cities results in extensification of land use with tree farming as a form of a 'living