Profitability of Smallholder Private Tree Plantations in Talacogon, Agusan Del Sur, Philippines

Abstract

This study sought to assess the financial options for smallholder
private tree plantation management in Talacogon, Agusan Del Sur,
Caraga Region, Philippines. Profitability analysis was conducted to
evaluate market options by which farmers can enhance their profit
from establishing tree plantations. The study used a purposive
survey, which was complemented by secondary data review to
assess the extent of private sector involvement in forestry activities.
Simple descriptive statistics and time series analysis were
performed.

Tree farming in private lands is a thriving business among local
people in Talacogon. There were 192 registered tree farmers in the
municipality holding private tree plantation ownership certificate
(PTPOC) with a total land area of 914 ha in 2010. This business
gives a net income of USD 4,545 to 5,681 to farmers, and an
average yield of 220 m3 ha–1 over a ten–year rotation. The outlook
for engaging in tree plantations is bright in the light of a number of
government restrictions in harvesting timber from natural forests.
These restrictions create a situation of timber scarcity that boosts
confidence in establishing tree plantation in private lands.

Results showed that farmers could potentially get higher income in
the processing of timber into intermediate and final products.
There is also potential of utilizing logging wastes (e.g. pulp and
paper production, wood manufactured articles, etc.), estimated to
be around 25–40% of gross volume produced. Thus to further
improve the tree farm industry situation, tree farmers suggested
that government must provide financial assistance, encourage
investment in strategic wood processing plants in the area, take
measures to stabilize tree price, work for the reduction of tax on
land and harvested products, and lastly, improve and properly
maintain farm–to–market roads in the municipality.