Economic viability of trees from agri-silvi-pastoral system compared to tree plantation in a small property

Abstract

This study aimed to compare the economic viability of the forestry component from an agri-silvi-pastoral system to tree plantation in a small property in Esperança do Sul municipality, Rio Grande do Sul, State, Brazil. The agri-silvi-pastoral system used only eucalyptus, and the tree plantation was formed using eucalytpus and black wattle. The analysis was carried out using tree component and data were obtained by forest inventory. The indicators selected for economic and financial analysis were: net present value (NPV), equivalent annual value (EAV), internal return rate (IRR), benefit/cost reason (B/C) and average cost of production (ACP). The discount rate used was 7.5% year^-1. Both systems were considered economically and financially viable, in 10 or 15 years rotation. However, 15 years rotation presented the biggest financial return. Agri-silvi-pastoral system was considered feasible, maintaining positive results even with higher interest rates. Even though the tree plantation presented greater economic returns, the agrisilvipastoral system showed more environmental benefits.