BIOECONOMIC POTENTIAL FOR SILVOPASTORAL AGROFORESTRY SYSTEM IN NORTH WALES

2020 ◽  
Vol 3 (1) ◽  
pp. 41-66
Author(s):  
Michael Jide Nworji
Keyword(s):  
Net Present Value ◽  
Economic Value ◽  
Flow Analysis ◽  
Agroforestry System ◽  
Agroforestry Systems ◽  
Livestock Grazing ◽  
Economic Viability ◽  
Base Case ◽  
Discounted Cash Flow ◽  
North Wales

Purpose: This study evaluated the bio-economic potentials of temperate lowland silvopastoral agroforestry systems in North Wales, United Kingdom.Methodology: The bioeconomic analysis compared three land-use plausible scenarios (‘forestry’, ‘pasture / livestock’ and ‘agroforestry’) at 3.5% discount rate on a 10-hectare farm over a 30-year rotation using discounted cash flow analysis and national costs and prices for both livestock and tree products based on 2016 baseline data. Base case net present value (NPV) and annual equivalent value (AEV) were calculated for each production livestock grazing, farm forestry, and silvopastoral agroforestry scenario, assuming no policy interventions.Findings: Generally, results of the economic analyses indicated that under the baseline case, assuming no policy interventions, none of the options was viable. This study also showed that increase in lamb sale price, wood price, and wood yield improved the economic viability of the three investment options significantly. Again, the viability of the three investment options in this study is shown to decrease with increase in discount rates. Furthermore, this study disclosed that the application of prevailing government grant/subsidy schemes significantly improved the economic viability of the three investment options as livestock, forestry and agroforestry options showed positive NPV and AEV values at the baseline assumptions and are therefore adjudged economically viable as they all met the decision rule criteria for investment acceptance. Forestry was the most viable option with the highest NPV and AEV, followed by pasture/livestock and agroforestry options.Unique contribution to theory, practice and policy: This study underscored the imperative need for policy makers to improve awareness of the benefits of grant incomes and address farmers’ concerns about the economic viability of livestock, forestry and agroforestry investments. The results of this research will help promote greater awareness of the economic value of trees in extensively grazed landscapes in the United Kingdom as well as provide a basis for future comparisons and analysis of farm programs and ecosystem service markets.

Assessing the economic viability of integrated crop−livestock systems in Mato Grosso, Brazil

2019 ◽  
Vol 35 (6) ◽  
pp. 631-642 ◽  
Author(s):  
Júlio César dos Reis ◽  
Mariana Y. T. Kamoi ◽  
Daniel Latorraca ◽  
Rafael F. F. Chen ◽  
Miqueias Michetti ◽  
...  
Keyword(s):  
Beef Cattle ◽  
Production System ◽  
Net Present Value ◽  
Livestock Grazing ◽  
Economic Viability ◽  
Continuous Cropping ◽  
Cattle Production ◽  
Study Region ◽  
Mato Grosso ◽  
Livestock Systems

AbstractPopulation growth and rising incomes have led to increasing global demand for meat products. Meeting this demand without converting remaining natural ecosystems or further degrading ecosystems is one of the largest global sustainability challenges. A critical step to overcoming this challenge is to increase the productivity of livestock grazing systems, which occupy the largest land area of any type of agriculture globally. Integrated crop−livestock systems (iCL), which re-couple crop and livestock production at the farm scale, have been considered a promising strategy to tackle this challenge by restoring degraded pasturelands and providing supplemental nutrition to livestock. However, few studies have analyzed the economic viability of such systems, especially in Brazil, an important player in global food systems. This paper presents an economic analysis of iCL in Mato Grosso, Brazil, the largest grain and beef producer in the country, which spans the ecologically diverse Amazon, Cerrado and Pantanal biomes. We compare the economic performance of an integrated soybean/corn and beef cattle system to a continuous crop (soybean/corn) system and a continuous livestock (beef cattle) production system from 2005 to 2012. We use empirical case study data to characterize a ‘typical’ farm for each production system within the study region. We find that the integrated crop−livestock system has a higher annual net present value (NPV) per hectare (ha) than continuous cropping or livestock under a range of discount rates. However, under a scenario of substantially higher crop prices, the continuous cropping outperforms iCL. While iCL is not feasible in all regions of the Amazon and Cerrado, our results indicate that in places where the biophysical and market conditions are suitable for production, it could be a highly profitable way to intensify cattle production and potentially spare land for other uses, including conservation. Nevertheless, additional credit and technical support may be needed to overcome high upfront costs and informational barriers to increase iCL areas as a sustainable development strategy for agriculture in the Amazon and Cerrado regions.

scholarly journals Financial Feasibility of Investing in Smallholder Cow-Calf Cooperatives in Baluran National Park

Agro Ekonomi ◽  
2017 ◽  
Vol 28 (1) ◽  
pp. 126
Author(s):  
Mark Rademaker ◽  
Any Suryantini ◽  
Jangkung Handoyo Mulyo
Keyword(s):  
National Park ◽  
Flow Analysis ◽  
Livestock Grazing ◽  
Farm Labor ◽  
Conservation Priorities ◽  
Conservation Areas ◽  
Discounted Cash Flow ◽  
Management Plans ◽  
Cow Calf ◽  
The Government

Livestock grazing is a major driver of human-wildlife confl ict in conservation areas. Currently, it is estimated that 3000 heads of cattle illegally grazing within Baluran National Park (BNP) in East Java. The recent research has suggested the potential of livestock system intensifi cation to reduce land-use and conflict through conservation priorities. The research goal was to investigate the fi nancial feasibility of starting intensive cow-calf cooperatives by smallholders in the BNP area. Data were collected using Farm surveys in a Criterion sampling design. Optimal herd management plans were generated using whole farm Linear Programming and fi nancial feasibility was assessed using Discounted cash-flow analysis and debt-servicing capabilities. Investment lifetime was set at 15 years and four alternative varieties of cattle were taken from Bali, Peranakan Ongole, Limousin and Simmental. Results show that investing in all varieties represents a positive investment opportunity. Bali cattle obtaining the highest NPV ($53.769), IRR (14,25%) and B/C ratio (1,13). Farmer income can be increased by 163% by combining additional Off-farm labor. However, debt servicing capabilities of cow-calf cooperative activities showed that the loan principal can only be repaid in the 10th year instead of the maximum eight years set by the government cow-calf credit scheme. We urge the government to reconsider either the grace period or the repayment time of the credit scheme to better fit the cash-fl ow characteristics of cow-calf enterprises.

scholarly journals Productivity and Economic Evaluation of Agroforestry Systems for Sustainable Production of Food and Non-Food Products

2020 ◽  
Vol 12 (13) ◽  
pp. 5429
Author(s):  
Lisa Mølgaard Lehmann ◽  
Jo Smith ◽  
Sally Westaway ◽  
Andrea Pisanelli ◽  
Giuseppe Russo ◽  
...  
Keyword(s):  
Food Products ◽  
Agroforestry System ◽  
Agroforestry Systems ◽  
Agricultural Products ◽  
Economic Viability ◽  
Gross Margin ◽  
Viability Assessment ◽  
Arable Crops ◽  
Land Equivalent Ratio ◽  
Tree Component

Agroforestry systems have multifunctional roles in enhancing agronomic productivity, co-production of diversity of food and non-food products and provision of ecosystem services. The knowledge of the performance of agroforestry systems compared with monoculture is scarce and scattered. Hence, the objective of the study was to analyze the agronomic productivity and economic viability of diverse agroforestry systems in Europe. A network of five agroforestry systems integrating arable crops, livestock and biomass trees was investigated to assess the range of agricultural products in each agroforestry system. Land Equivalent Ratio (LER) was used to measure the agronomic productivity, whereas gross margin was used as an indicator for economic viability assessment. LER values ranged from 1.36–2.00, indicating that agroforestry systems were more productive by 36–100% compared to monocultures. Agroforestry gross margin was lower in Denmark (€112 ha−1 year−1) compared to United Kingdom (€5083 ha−1 year−1) and the crop component yielded higher returns compared to negative returns from the tree component in agroforestry. Hence, the study provided robust field-based evidence on agronomic productivity and economic viability assessment of agroforestry systems in diverse contexts for informed decision making by land managers, advisory services, farmers and policymakers.

Interactions between restoration and financial analysis: the case of Cuneo War Wounded House

2018 ◽  
Vol 8 (2) ◽  
pp. 145-161 ◽  
Author(s):  
Rita Fabbri ◽  
Laura Gabrielli ◽  
Aurora Greta Ruggeri
Keyword(s):  
Net Present Value ◽  
Financial Analysis ◽  
Economic Valuation ◽  
Flow Analysis ◽  
Cash Flows ◽  
Internal Rate Of Return ◽  
Discounted Cash Flow ◽  
Content Type ◽  
Built Heritage ◽  
Simple Strategy

Purpose The purpose of this paper is to examine the cross-sectoral collaboration between conservation and economic appraisal, and to process a financial analysis for private owners of a built heritage. Design/methodology/approach The methodology applied addresses the financial analysis of restoration through a discounted cash flow analysis, together with a life cycle costing. Costs and revenues are both analysed in this paper. Some energy-saving measures are applied to cut running costs and decrease the energy required by the building, using as reference the “Guidelines for improving energy efficiency in cultural heritage” drafted by MiBACT, which considers the respect of restoration principles. In order to increase revenues, part of the building is rented. The attractiveness of the investment opportunity is valued through the calculation of the net present value of cash flows, the payback period and the internal rate of return. Findings The paper offers a simple strategy for the planning of cost-revenues, preventively allowing verification if the conservation is economically feasible and if the owners can afford the operation. The strategic planning will give the owners the chance of maintaining the property of their building and achieve a proper restoration on it. Originality/value The novelty of the paper is the study of cooperation between conservation and economic valuation, but also the focus on a specific portion of twentieth-century heritage, the war-wounded houses, which represent a widespread patrimony, on which it is not clear how to operate yet.

scholarly journals Specialized Discounted Cash Flow Analysis Formulas for Valuation of Benefits and Costs of Urban Trees and Forests

2011 ◽  
Vol 37 (5) ◽  
pp. 200-206
Author(s):  
Kristin Peterson ◽  
Thomas Straka
Keyword(s):  
Cash Flow ◽  
Net Present Value ◽  
Flow Analysis ◽  
Urban Forestry ◽  
Urban Trees ◽  
Present Value ◽  
Discounted Cash Flow ◽  
Appraisal Method ◽  
Individual Trees ◽  
Benefits And Costs

Urban trees and forests have distinct benefits and costs that can be evaluated financially. While there are appraisal methods commonly used to value individual trees and urban forests, one method that is difficult to use in practice is a discounted cash flow (DCF) analysis. This is the appraisal method that best accounts for the time value of money and allows for a temporal comparison of benefits and costs. Current timber appraisal methods are discussed for urban situations and DCF analysis is presented as a viable supplemental appraisal method for valuation of the urban trees. Simple models are presented that allow for the solution of DCF-type urban forestry valuations using conventional software valuation packages. Examples are provided of typical urban tree benefit and cost scenarios, with DCF calculations of present value (PV) and net present value using the specialized DCF formulas.

scholarly journals Techno-Economic Assessment of Concentrated Solar and Photovoltaic Power Plants in Brazil

2021 ◽  
Vol 19 ◽  
pp. 583-588
Author(s):  
Guilherme de Sousa Torres ◽  
◽  
Tulio Andre Pereira de Oliveira ◽  
Anesio de Leles Ferreira Filho ◽  
Fernando Cardoso Melo ◽  
...  
Keyword(s):  
Power Plants ◽  
Net Present Value ◽  
Renewable Energy Sources ◽  
Relevant Literature ◽  
Economic Assessment ◽  
Economic Viability ◽  
Discounted Cash Flow ◽  
Cost Of Energy ◽  
Energy Trade ◽  
Project Data

The need for a diverse energy matrix has been promoting a favorable environment for integrating new renewable energy sources, such as Concentrated Solar Power plants (CSPs). Nonetheless, as a consequence of the incipient solar generation via CSPs in Brazil, there is a unsatisfactory number of researches that handle technical and economic assessments of CSP plants performance on this country. Given this scenario, this study proposes an assessment of the technoeconomic viability of the implementation of 100 MW CSP plants in Brazil, considering the Solar Tower (ST) systems, Parabolic Trough Collectors (PTC), Linear Fresnel (LFR) Reflectors and Dish Stirling (DS) Systems, and comparing the results to a photovoltaic (PV) plant. This study utilizes project data of power plants collected from the relevant literature and applies it to the city of Bom Jesus da Lapa, Brazil. The CSP techno-economic viability is evaluated through the analysis of the annual energy generated, as well as the economic viability indicators, such as the Net Present Value, the Internal Rate of Return, the Discounted Payback and the Levelized Cost of Energy, and through a single-variable sensitivity analysis. This analysis employs the discounted cash flow model, considering the energy trade in a Regulated Contracting Environment

The economic evaluation of crop research proposals

1991 ◽  
Vol 31 (6) ◽  
pp. 825
Author(s):  
JR Page ◽  
MN Hunter ◽  
W Easdown
Keyword(s):  
Cash Flow ◽  
Net Present Value ◽  
Flow Analysis ◽  
Evaluation Procedure ◽  
Economic Evaluations ◽  
Discounted Cash Flow ◽  
Expected Benefits ◽  
Rural Industries ◽  
Benefits And Costs ◽  
Crop Research

This paper describes a simple evaluative procedure that scientists can use to measure the relative profitability of crop research proposals. The procedure used a series of questions about the expected benefits and costs of projects. The resultant cash flow budgets were then subjected to a standard investment evaluation procedure called discounted cash flow analysis. The measures of profitability used were the net present value (NPV) and the internal rate of return (IRR). An evaluation of 17 project proposals for legume research in central Queensland gave IRR values ranging from negative to 147%. The NPV ranged from -$A189000 to +$14.5 million. This range of profitability is probably typical of research proposals for rural industries. It demonstrates the worth of evaluating proposals so that only the most profitable projects are funded. This procedure was easy to use and was well accepted by most scientists. The inclusion of economic evaluations, as described here, with applications for rural research funds is expected to strengthen the case for and improve the chances of funding.

The Siemens Digitalization Strategy in a Value-Based Management Framework

2021 ◽  
pp. 183-209
Author(s):  
Diana Claudia Cozmiuc ◽  
Ioan I. Petrisor
Keyword(s):  
Business Models ◽  
Net Present Value ◽  
Economic Value ◽  
Digital Technologies ◽  
Value Added ◽  
Economic Value Added ◽  
Discounted Cash Flow ◽  
Business Context ◽  
Value Based Management ◽  
New Business

The digital economy is growing at unprecedented speed and scale. Digital technologies generate the digital transformation of everything – organizations, industries, society. Digital technologies and digital business models disrupt industries in a digital vortex to a different degree by industry. In the new business context, value creation changes from the classical net present value of discounted cash flow or economic value added. Changes are given mostly by uncertainty. Reconciling classical value with digitalization becomes a research topic – the topic of this chapter. The chapter is a case study on Siemens, a Harvard Business Review case in digitalization, and one of the most important value-based management practitioners in the world, in the view of the economic value added model and in the view of journals indexed in Web of Science. The Siemens case is used to explore how economic value added and digitalization can work together and finds that they do in different stages that follow the logic of the innovation lifecycle.

Evaluation of Development Process of Strategic UAV Considering the Risk

2012 ◽  
Vol 433-440 ◽  
pp. 1506-1512
Author(s):  
Esmaeel Saberi ◽  
Mahdi Mohammadzadeh ◽  
Isa Nakhai Kamal Abadi ◽  
Mohsen Sadegh Amalnik
Keyword(s):  
Real Option ◽  
Development Process ◽  
Net Present Value ◽  
Operating Cost ◽  
Flow Analysis ◽  
High Volume ◽  
Discounted Cash Flow ◽  
Real Option Analysis ◽  
Novel Approach ◽  
Financial Research

Economic evaluation of macro projects requiring a high volume of investment is one of important issues in the area of financial research. To deal with this problem, a great number of models such as direct operating cost, discounted cash flow analysis (e.g. net present value or internal rate of return), decision tree and real option analysis have been developed. Application of real option analysis has drawn more attention in recent researches because of the ability to assess the flexibility and considering the risk. In the present article, also, this theory is used to evaluate the development process of strategic unmanned aerial vehicle (UAV). To do this, a model comprising 4 development stages is used with each stage applying a novel approach to implement the model. In particular, we have tried to calculate and include the risk in an organized form in the model. Results obtained from a case study will be described at the end.

Sign in / Sign up

Export Citation Format

Share Document