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Greening and producing: An economic assessment framework for integrating trees in cropping systems

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  • Van Vooren, Laura
  • Reubens, Bert
  • Broekx, Steven
  • Pardon, Paul
  • Reheul, Dirk
  • van Winsen, Frankwin
  • Verheyen, Kris
  • Wauters, Erwin
  • Lauwers, Ludwig

Abstract

Environmental measures in an agricultural context often lead to extra constraints in current farming. This suggests trade-offs between the environmental objectives and profitability. Whether trade-offs exist, or may be turned into win-win, depends on creative farm options to comply new constraints. This paper concentrates on Ecological Focus Areas as a new EU Common Agricultural Policy greening requirement, and investigates profitability changes of two greening options with permanent woody elements, hedgerows and alley cropping. We predicted discounted gross margins for a hedgerow and alley cropping greening option and four market scenarios on a representative arable farm in Flanders (Belgium). Starting from the tree row, over a distance of 1.64 times the tree height, relative crop yield is 70% as compared to a treeless situation. Between 1.64 and 9.52 times the tree height, relative yield is 107%. Beyond that point, the effect is considered negligible. Discounted gross margins are calculated to account for the time horizon. Relative discounted gross margins at farm level, compared to the business as usual option, vary between 91% and 108%, depending on market conditions and policy support. The calculations show that fulfilment of the 5% ecological focus area greening requirement on arable farms with hedgerows and alley cropping only becomes economically competitive to the traditional cropping systems with extra financial stimuli (e.g. greening payments). We also show and discuss how the calculations can be fine-tuned and used in policy making, e.g. by i) getting better insights in the tree-crop interactions, ii) including the effect of e.g. crop type, tree species, tree line space and tree line orientation in the meta-information, iii) evaluating this conditional competitiveness and suggesting a better linking between subsidy level and ecological value and ecosystem services and iv) exploring novel valorization channels for wood products.

Suggested Citation

  • Van Vooren, Laura & Reubens, Bert & Broekx, Steven & Pardon, Paul & Reheul, Dirk & van Winsen, Frankwin & Verheyen, Kris & Wauters, Erwin & Lauwers, Ludwig, 2016. "Greening and producing: An economic assessment framework for integrating trees in cropping systems," Agricultural Systems, Elsevier, vol. 148(C), pages 44-57.
    • Handle: RePEc:eee:agisys:v:148:y:2016:i:c:p:44-57
    DOI: 10.1016/j.agsy.2016.06.007
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    References listed on IDEAS

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    1. Imran A. Toor & Elwin G. Smith & Joann K. Whalen & Anwar Naseem, 2012. "Tree-Based Intercropping in Southern Ontario, Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 60(2), pages 141-154, June.
    2. Viechtbauer, Wolfgang, 2010. "Conducting Meta-Analyses in R with the metafor Package," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 36(i03).
    3. Siti Nuryanah & Sardar M. N. Islam, 2015. "The Context of the Case Study," Palgrave Macmillan Books, in: Corporate Governance and Financial Management, chapter 5, pages 145-156, Palgrave Macmillan.
    4. Woodall, G. S. & Ward, B. H., 2002. "Soil water relations, crop production and root pruning of a belt of trees," Agricultural Water Management, Elsevier, vol. 53(1-3), pages 153-169, February.
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    1. Maya Sollen-Norrlin & Bhim Bahadur Ghaley & Naomi Laura Jane Rintoul, 2020. "Agroforestry Benefits and Challenges for Adoption in Europe and Beyond," Sustainability, MDPI, vol. 12(17), pages 1-21, August.
    2. Pontes, Laíse da Silveira & Porfírio-da-Silva, Vanderley & Moletta, José Luiz & Telles, Tiago Santos, 2021. "Long-term profitability of crop-livestock systems, with and without trees," Agricultural Systems, Elsevier, vol. 192(C).
    3. Thiesmeier, Alma & Zander, Peter, 2023. "Can agroforestry compete? A scoping review of the economic performance of agroforestry practices in Europe and North America," Forest Policy and Economics, Elsevier, vol. 150(C).
    4. Paut, Raphaël & Sabatier, Rodolphe & Dufils, Arnaud & Tchamitchian, Marc, 2021. "How to reconcile short-term and long-term objectives in mixed farms? A dynamic model application to mixed fruit tree - vegetable systems," Agricultural Systems, Elsevier, vol. 187(C).
    5. Martinelli, Gabrielli do Carmo & Schlindwein, Madalena Maria & Padovan, Milton Parron & Gimenes, Régio Marcio Toesca, 2019. "Decreasing uncertainties and reversing paradigms on the economic performance of agroforestry systems in Brazil," Land Use Policy, Elsevier, vol. 80(C), pages 274-286.
    6. Staton, Tom & Breeze, Tom D. & Walters, Richard J. & Smith, Jo & Girling, Robbie D., 2022. "Productivity, biodiversity trade-offs, and farm income in an agroforestry versus an arable system," Ecological Economics, Elsevier, vol. 191(C).
    7. Borremans, L. & Marchand, F. & Visser, M. & Wauters, E., 2018. "Nurturing agroforestry systems in Flanders: Analysis from an agricultural innovation systems perspective," Agricultural Systems, Elsevier, vol. 162(C), pages 205-219.

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