A Discounted Cash Flow and Capital Budgeting Analysis of Silvopastoral Systems in the Amazonas Region of Peru | Land Portal

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October 2020
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© 2020 by the authors; licensee MDPI, Basel, Switzerland. This article is an open access article.

Silvopasture is a type of agroforestry that could deliver ecosystem services and support local livelihoods by integrating trees into pasture-based livestock systems. This study modeled the financial returns from silvopastures, planted forests, and conventional cattle-pasture systems in Amazonas, Peru using capital budgeting techniques. Forests had a lower land expectation value (USD 845 per hectare) than conventional cattle systems (USD 1275 per hectare) at a 4% discount rate. “Typical” model silvopastures, based on prior landowner surveys in the Amazonas region, were most competitive at low discount rates. The four actual silvopastoral systems we visited and examined had higher returns (4%: USD 1588 to USD 9524 per hectare) than either alternative pure crop or tree system, more than likely through strategies for generating value-added such as on-site retail stands. Silvopasture also offers animal health and environmental benefits, and could receive governmental or market payments to encourage these practices.

Authors and Publishers

Author(s), editor(s), contributor(s): 

Chizmar, Stephanie
Castillo, Miguel
Pizarro, Dante
Vasquez, Hector
Bernal, Wilmer
Rivera, Raul
Sills, Erin
Abt, Robert
Parajuli, Rajan
Cubbage, Frederick


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