Economic aspects of agroforestry

Agroforestry is analysed by means of economic concepts. The paper is mainly theoretical, since there are little adequate data to test the conceptual framework.Agroforestry needs not be limited to integration of agriculture and forestry on a plot, but may also include integration on a holding. Design and evaluation of agroforestry systems require thorough knowledge of relationships between agriculture and forestry. Complementary and supplementary relationships, mainly resulting from biological factors, were identified, which make agroforestry an efficient system of land use.Agroforestry can be an appropriate technology in areas with fragile ecosystems and subsistence farming. The objectives of participants in an agroforestry programme may not coincide with social objectives, and so do not lead to the socially optimum combination of agriculture and forestry. For that social optimum institutional arrangements will often be required.This paper is s shortened updated version of part of a lecture series on agroforestry, organized by the Departments of Forestry, Agricultural University, Wageningen 29].The author thanks his colleagues C.P. Veer and K.F. Wiersum for helpful comments.