Land Allocation with the Introduction of Teak: A Case Study of Smallholder Farms in Southern Togo

Subsistence landholders in southern Togo are interested in planting teak on their land for income generation. The purpose of this study was to determine how smallholder farmers could allocate land among maize, cassava, and teak plantings in order to optimize financial returns. A linear programming model was developed to calculate the optimal land allocation for maize, cassava, and teak. The model was solved for five farmer types using 15- and 30-yr teak rotations, with timber priced at alternative market and government market prices, and with discount (real interest) rates of 8, 11, and 15%. The analyses indicate that growing teak is profitable for most smallholders if grown on a 15-yr rotation and sold on the alternative market. For Land Rich-Labor Poor farmers, teak is profitable under all regimes.