Category Archives: Volume 27 No. 1 (2005)

Potential Economic Impact of Improving Returns to Smallholder Tree Farmers in Leyte: A Cost Benefit Analysis of ACIAR Project ASEM/2003/052


Author(s): John L. Herbohn1 and Steve R. Harrison2

Abstract

This paper presents the results of a cost-benefit analysis of the likely impact of research project ASEM/2003/052 Improving financial returns to smallholder tree farmers in the Philippines funded by the Australian Centre Cot International Agricultural Research. Three main categories of project benefits are identified which coincide with short, medium and long-term outcomes, namely (1) increased returns to existing tree farmers from increased volume and higher quality of merchantable timber combined with higher stumpage prices flowing from improved market access (estimated to have a net present value of A$ 1.9 M), (2) increased returns to existing tree farmers from subsequent tree rotations due to increased volume and higher quality of merchantable limber from better management and higher prices (estimated NPV of A$ 1.22 M), and (3) expansion of the timber plantation area due to the higher returns available as a result of project outputs (estimated NPV of A$ 7.79 M). These estimated net present values suggest that the research project is a highly rewarding investment in economic terms.

Keywords : registered tree farm, market access, discount rate, timber quality, stumpage price

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Using a Typology of Tree-growers to Guide Forestry Extension


Author: Jerome Vanclay

Abstract

This paper introduces the concept of a landholder typology as a means for targeting non-industrial forest policy and extension. An intuitive typology for farm forestry in sub-tropical Australia is developed, and used to illustrate how an extension strategy can be varied to reach the various groups in a cost-effective manner. Types of tree growers identified include lifestylers, those deriving supplementary income from forestry, and those who aim to generate their primary income from forestry. It is argued that the nature of extension effort should be targeted towards the information needs within each grower type.

Keywords : Forestry extension, subjective typology, harvesting strategy, lifestyle tree-grower

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DENR Rules and Regulations Governing Timber and Timber Products Planted on Private Land


Author: Felipe S. Calub

Abstract

The Philippine government has a policy of encouraging landholders to plant trees, and where practicable to relax all impediments to the harvest and transport of trees. A clearly defined set of regulations applies nationally to the harvest and disposition of trees planted in private land. This policy involves a balance between encouraging reforestation and preventing loss of natural forests. Some differences in regulations exist between premium species and benguet pine as against other species including those commonly grown in plantations. While there is no policy of levying charges for tree registration, in some cases a contribution is required for the unfunded costs of the DENR officer who inspects, maps and certifies the plantation. Depending on volume of timber transported, approval may be given by the CENRO or may be required from the Secretary. Forest policy continues to evolve, and greater facilitation of plantation forestry is a policy objective.

Keywords : tree registration, national reforestation program, alienable and disposable land, logging moratorium, premium species, titled lands

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Impediments to Microfinancing of Smallholder Forestry on Leyte Island, the Philippines


Author: Dennis P. Peque

Abstract

This paper discusses the status, impediments and prospects for microfinancing of smallholder forestry on Leyte Island, the Philippines. Surveys were conducted to determine the availability of microfinancing as well as the interest of landholders and finance providers in microfinancing. Representatives from the Department of Environment and Natural Resources (DENR) and Department of Agriculture (DA) were also interviewed with regard to their views regarding the prospects of microfinancing. The study was designed to provide in Formation to support policy-makers and planners in devising incentive packages for smallholder forestry. It was found that there is limited microfinancing available for forestry on Leyte Island. The arrangement is generally for projects of DENR whereby participants are given financial support to develop a particular area or carry out a particular forestry activity. The majority of the respondents who established their own tree farms did not receive any external support from the government or any other private donors. A few, however, benefited from the seedlings distributed free by DENR and DA. On the other hand, 53% of the respondents (most with relatively low incomes) signified interest in microfinancing for forestry if ever it becomes available, subject to the acceptability of loan arrangements. According to banks, they make loans available to any borrower regardless of the intended use of the money as long as borrowers provide collateral or a guarantor.

Keywords : tree farmers, community-based forest management, credit institutions, collateral, guarantor.

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Estimated Financial Performance of Exotic and Indigenous Tree Species in Smallholder Plantations in Leyte Province


Author(s): Steve R. Harrison1, Tyron J. Venn2, Renezita Sales3, Edwin O. Mangaoang3 and John F. Herbohn4

Abstract

This paper examines the need for estimates of financial performance of individual tree species for promoting smallholder forestry on Leyte Island in the Philippines, and presents some initial estimates of net present value and internal rate of return for smallholder plantings of indigenous and traditionally grown (exotic) tree species. Levels of profitability are found to be marginal for commercial production, particularly for native species. Data deficiencies are noted, and improved estimates of tree growth rates and rotation lengths in particular are needed to improve predictions of financial performance of smallholder forestry.

Keywords : Leyte smallholders, indigenous species, net present value

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Identification of Strengths, Weaknesses, Opportunities and Threats of the Community-based Forest Management Program


Author(s): Jungho Suh1 and Nick F. Emtage2

Abstract

A survey was undertaken during a workshop to identify the strengths, weaknesses, opportunities and threats (SWOT) of Community-based Forest Management in Leyte Province, the Philippines. A form with open-ended questions, rather than oral discussion sessions traditionally associated with the SWOT analysis, was presented to each member of the group simultaneously. The survey method with a questionnaire was aimed at minimising the time requirement, preventing the data from being biased by a few dominant players, and obtaining relative frequencies. The greatest strength of the forestry program is seen to be the empowerment given to rural communities to plant and manage trees on publicly controlled lands. Other strengths include the resources and training provided to support the program, and fostering cooperation between community members. Lack of foreign and local funding to support the program were viewed as the most important weakness. The possible withdrawal or depletion of foreign funding was seen as a major potential threat. Respondents are also concerned about whether communities can find markets for their timber and non-timber forest products. Other challenges include the lack of timber processing facilities in Leyte and instability and complexity of government regulations. With regard to opportunities, respondents tended to report what they would like to see done to improve performance of the program, rather than program innovations, probably because as yet little timber harvesting has taken place.

Keywords : participatory assessment, empowerment of rural communities, local government units, resource availability, timber marketing.

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Variations in Socioeconomic Characteristics, Farming Assets and Livelihood Systems of Leyte Rural Households


Author(s): Nick F. Emtage1 and Jungho Suh2

Abstract

This paper presents data from a survey of rural households in four rural communities in Leyte Province, the Philippines. Households in extreme poverty were found in each of the communities; on average more than half the households have cash incomes below the poverty threshold. The situation is particularly severe in one community, where cash incomes are less than half the poverty threshold, land ownership is highly concentrated, few households can supply the majority of their own food, and education levels and housing quality are low. The other three communities all face challenges to their development, but their situation appears to be relatively stable in comparison, possibly due to the outcomes of agricultural infrastructure development and access to land provided through community forestry programs.

Keywords : community survey, socio-economic characteristics, food self-sufficiency, extreme poverty, poverty threshold, Gini coefficient, agrarian reform.

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Present Tree Planting and Management Activities in Four Rural Communities in Leyte Province, the Philippines


Author(s): Edwin O. Cedamon1, Nick F. Emtage2, Jungho uh3, John L. Herbohn2, Steve R. Harrison4 and
Eduardo O. Mangaoang5

Abstract

Demand for timber in Leyte Province continues to increase whilst supplies from domestic sources have contracted following suspension of logging in remaining natural forests. One approach to meet the deficit in timber supplies has been to encourage timber planting by smallholders. A survey was undertaken in four rural communities to help assess present tree planting and management activities of households and their tree planting and management intentions. It was found out that not more than 100 trees are managed by each of about 61% of the households who have planted trees. There were 88 different species planted or managed by, households, but 83% of the total trees planted belong to only 10 species, including mahogany, ipil-ipil, gmelina and molave. The primary purpose of tree planting is to meet household needs for timber for dwelling construction and fruit production. About 72% of the total trees being managed by households were planted, as distinct from natural regeneration, with planting stock coming mostly from own seeds, nursery and wildlings. Only four respondents had registered any of their trees with the Department of Natural Resources and Environment (necessary for commercial harvesting), the main reason for lack of registration appearing to be lack of awareness of this procedure.

Keywords : smallholder farmers, household survey, number of trees planted, species choice, on-farm timber use, tree registration.

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Cost-Effective Systems for Seedling Production and Tree Farm Establishment


Author(s): Eduardo 0. Mangaoang, Edwin D. Cedamon and Arturo E. Pasa

Abstract

Experiences from the ACIAR Smallholder Forestry Project reveal that production and use of high quality seedlings is a critical consideration for successful tree farming and reforestation activity, considering that most reforestation activities have been largely dependent on nursery-produced seedlings. While the use of polyethylene bags has been the traditional technique for raising seedlings, planting stock produced often has a deformed or J-shape taproot and may develop to mature trees with poor anchorage in the field. The research project introduced the use of hiko tray as potting containers in seedling production as a way of resolving the problem of J-rooting and producing higher quality seedlings. An economic analysis was conducted to determine the comparative advantage and feasibility of the polybag and hiko tray techniques, with a view of promoting the adoption of the hiko technique among tree farmers, especially the smallholders. Results of the study revealed that the hiko tray technique is superior to the traditional polybag technique in terms of labour efficiency and cost in the nursery and field establishment, aside from the fact that higher quality seedlings are produced that provide the tree farmer a higher level of assurance of timber harvest and cash income from forestry.

Keywords : Hiko tray, J-rooting, windthrow, labour requirement, outplanting.

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Nursery Management in Relation to Root Deformation, Sowing and Shading


Author(s): Edwin D. Cedamon1, Eduardo O. Mangaoang1, Nestor O. Gregorio2, Arturo E. Pasa2 and John F. Herbohn3

Abstract

The polybag is widely used for seedling production in the Philippines. Seedlings conunonly have root deformation which has adverse effects as they grow and develop into mature trees. This study assessed the influence of potting technique and hardening intensity on the growth performance of seedlings in nursery and field conditions. Seedlings of bagras (Eucalyptus deglupta) and mangium (Acacia mangium) were grown in hiko trays and 4″x 6″ polybags at the College of Forestry nursery, Leyte State University (LSU). Kalumpit (Terminalia microcarpa) and pellita (Eucalyptus pellita) were used for a trial in the Conalum Agroforestry Farmers Association (CAFA) nursery in Inopacan, Leyte, aimed at validating LS11 results and at the same time evaluating farmers’ perceptions on the use of hiko trays and polybags in seedling production. ft was found that seedlings of bagras, mangium, kalumpit and pellita grown in hiko trays have smaller diameter and height compared with those in polybags at 12 weeks. Root deformation of seedlings was absent in biko trays but high with seedlings in polybags. As perceived by both farmers and ACIAR researchers, hiko tray seedlings are of high quality exhibiting sturdy shoot, trained roots and homogenous growth.

Keywords : potting techniques, shading intensity, seedling quality, J-rooting, air pruning, community nursery trial.

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