Financial Analysis of the Use of Land: Agriculture or Woodlot

Autor: Jacqueline Ninson, Irene S. Egyir, Akwasi Mensah-Bonsu, Edward Ebo Onumah
Jazyk: angličtina
Rok vydání: 2022
Předmět:
Zdroj: Land, Vol 11, Iss 5, p 642 (2022)
Druh dokumentu: article
ISSN: 2073-445X
DOI: 10.3390/land11050642
Popis: 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.
Databáze: Directory of Open Access Journals