Research Projects

Economic Benefits of Agroforestry Systems,
Gainesville, Florida

Project Team

• J. R. R. Alavalapati, Principal Investigator, University of Florida, Gainesville, Florida

• Ram Shrestha, Post-doc, University of Florida, Gainesville, Florida

• Gouranga Das, Post-doc, University of Florida, Gainesville, Florida

Objective

The overall objective is to conduct economic evaluations of agroforestry systems so that landowners, extension personnel, and other decision makers can correctly assess the potential of agroforestry practices among many land-use options.

Work done

A modified Hartman model was developed to investigate the economic potential of silvopasture as a means of restoring longleaf pine (Pinus palustris) on private land. Specifically, the model was used to investigate the impact of payments to the landowner for sequestering carbon and the effect of lengthening the rotation to produce red-cockaded woodpecker (Picoides borealis) habitat. The results suggested that silvopasture is more profitable than either traditional ranching or traditional forestry. Further, it was found that, carbon payments increased the profitability, optimal rotation age and optimal tree density for both silvopasture and traditional forestry. In addition, extending the rotation to 60 years to produce red-cockaded woodpecker habitat is less costly with silvopasture than with traditional forestry. These results suggest that silvopasture may be an attractive land use option for landowners who desire to restore longleaf pine on their land. We have developed a prototype computable general equilibrium (CGE) model to help estimate economy-wide impacts of potential policies that can internalize environmental benefits and costs of ranching and silvopasture practices. We have applied the model to simulate economy-wide effects of a tax on pollution runoff and a compensation for environmental benefits of silvopasture such that ranchers should not be made worse off. Research is still in preliminary stages.

Research plan for 2004-2005

We plan to extend the CGE work in several ways. We will refine the model so that it is more focused on the ranching sector of the economy. This will reduce errors related to sector aggregation choices and thus improve the overall accuracy and predictability of the model. In addition, we will try to incorporate an environmental welfare variable to capture the utility that households receive from environmental services of silvopasture. Also, utilizing previously collected information, we plan to determine the proper levels of these subsidies and taxes.

Publications/output

Refereed articles

Alavalapati, J.R.R., R.K. Shrestha, A. Stainback, and J.R. Matta. 2004. Agroforestry development: An environmental economic perspective. Agroofrestry Systems 61-62 (in press).

Shrestha, R.K. and J.R.R. Alavalapati. 2004. Estimating ranchers’ cost of agroforestry adoption: A contingent valuation approach. In: Valuing agroforestry systems: Methods and applications. Alavalapati, J.R.R. and E. Mercer (eds.), Kluwer Academic Publishers, Dordrecht, The Netherlands (in press).

Shrestha, R.K., J.R.R. Alavalapati, J. R.R., and R. Kalmbacher. 2004. Exploring the potential for silvopasture adoption in south-central Florida: An application of SWOT-AHP method. Agricultural Systems (in press).

Shrestha, R.K. and J.R.R. Alavalapati. 2004. Effect of ranchland attributes on recreational hunting in Florida: A hedonic price analysis. Journal of Agricultural and Applied Economics (in press).

Stainback, G.A. and J.R.R. Alavalapati. 2004. Restoring longleaf pine through silvopasture practices: An economic analysis. Forest Policy and Economics (In press).

Stainback, G.A., J.R.R. Alavalapati, R.K. Shrestha, S. Larkin, and G. Wong. 2004. Effect of pollution taxes and carbon payments on the adoption of silvopasture. Journal of Agricultural and Applied Economics (in press).

Shrestha, R.K. and J.R.R. Alavalapati. 2004. Valuing environmental benefits of silvopasture practice: A case study of the Lake Okeechobee Watershed in Florida. Ecological Economics (in press).

Montambault, J. and J.R.R. Alavalapati. Socioeconomic research in agroforestry: A decade. Agroforestry Systems (in review).

Shrestha, R.K. and J.R.R. Alavalapati. Cattle Ranchers’ Willingness to Accept for Sivopasture Adoption: A Contingent Valuation Approach. Agricultural Economics (in review?).

Non-refereed articles:

Shrestha, R. and J.R.R. Alavalapati 2003. Florida ranchers' willingness to adopt silvopasture practices: A dichotomous choice contingent valuation approach. Proceedings of the Southern Forest Economics Workers Annual Conference. March 17-18, 2003. Steverson Moffat (ed), New Orleans, Louisiana, pp: 317-329.

Stainback, G.A., J.R.R. Alavalapati, R.K. Shrestha, S. Larkin, and G. Wong. 2003. Reducing phosphorus runoff through silvopasture: An Ecological economics approach. Proceedings of the Southern Forest Economics Workers Annual Conference. March 17-18, 2003. Steverson Moffat (ed), New Orleans, Louisiana, pp: 423-434.

Alavalapati, J.R.R. 2003. Environmental economic analysis of silvopasture: A case study from Florida. Seminar in School of Forest Resources, August 11, Penn State Univeristy, State College, Pennsylvania.

Alavalapati, J.R.R. 2003. Environmental economic analysis of silvopasture practices in the Lake Okeechobee Watershed. Wetlands Seminar Series, University of Florida, Gainesville, April 2, 2003.

Shrestha, R.K. and J.R.R. Alavalapati. 2003. Economic analysis of ‘green’ beef production through silvopasture: A case study from south-central Florida, School of Forest Resources and Conservation Seminar Series, University of Florida, April 03, 2003.

Shrestha, R.K. and J.R.R. Alavalapati. 2003. An economic analysis of ranchers’ willingness-to-pay to participate in silvopasture practices in Florida. Southern Forest Economics Workshop, March 17-18, New Orleans.

Shrestha, R.K. and J.R.R. Alavalapati (2002). Valuing environmental benefits of silvopasture: Using a stated preference approach. J. Wayne Reitz Seminar Series, Food and Resource Economics Department, University of Florida, November 01, 2002.

Shrestha, R.K. and J.R.R. Alavalapati (2002). Environmental valuation of agroforestry using choice-based stated preference method. Second World Congress of Environmental and Resource Economists, Monterey, California, June 24-27, 2002.

Stainback, G.A., J.R.R. Alavalapati, R.K. Shrestha, G. Wong. 2003. Reducing phosphorous runoff through silvopasture: An ecological economics approach. Southern Forest Economics Workshop, March 17-18, New Orleans.

Stainback, G.A., J.R.R. Alavalapati, R.K. Shrestha, and G. Wong. 2003. Environmental economic valuation of silvopasture: A dynamic optimization approach. School of Forest Resources and Conservation Seminar Series, University of Florida, January 30, 2003.

Timko, T., J.R.R. Alavalapati, J.Zhang, and G. Das 2004. Effect of Environmental Tax and Incentives for Silvopasture on Florida’s Ranching Industry: A CGE Approach. Southern Forest Economics Workshop, March 14-16, St. Augustine, Florida.