Financial Analysis of the Use of Land: Agriculture or Woodlot

Land

Irene S. Egyir¹  Jacqueline Ninson¹  Edward Ebo Onumah¹  Akwasi Mensah-Bonsu¹ 

[1] Department of Agriculture Economics and Agribusiness, College of Basic and Applied Science, University of Ghana, Legon-Accra P.O. Box LG 25, Ghana;

关键词: agriculture;    woodlot;    profitability;    deforestation;    land use;   

DOI  :  10.3390/land11050642

来源: DOAJ

【 摘 要 】

Agriculture is the main driver of deforestation. In other to reduce deforestation, a viable alternative livelihood strategy, aside from agriculture, must be in place to provide a sustainable income for investors. Managing forests for sustainable production (the forest economy) has been suggested as an alternative for sustainable land use practice. In the current study, we undertook a comparative analysis of woodlots and agriculture. The profitability of agriculture and woodlot production in Ghana was compared using a profitability model. We looked at profitability in terms of Net Present Value (NPV) and the Benefit-Cost Ratio (BCR) of three regions in Ghana, namely, Ashanti, Bono-East, and Western Regions. We found that woodlot producers with contractual relationships with the Forest Commission and other forestry companies produce the highest Net Present Value (NPV) and Benefit-Cost Ratio (BCR). However, this profitability is marginally higher than that of agriculture, which gives a fixed yearly return. This means woodlot production may not be a panacea to reducing agriculture in Ghana.

【 授权许可】

Unknown