Estimation of cost-effectiveness of poplar wood production in poplar plantations in Ravni Srem [Serbia] based on the cost-benefit method | Процена исплативости производње дрвета у засадима тополе у Равном Срему [Србија] на бази методе корист-трошак

Cost-effectiveness of polar cultivation was analysed based on one of the indicators for the assessment of agriculture and forestry projects – cost-benefit (р). Poplar plantations of the clone I-214 of different rotations and on different soil types were analysed in the area of Ravni Srem. The aim of the study was to evaluate the justification of the invested financial means in wood production in poplar plantations, based on the analysis of costs and receipts at different plantation ages, using the cost-benefit method. It was found that in all 13 analysed compartments, the average cost-benefit ratio was 0.36. This means that the costs at the discount rate of 12% are about 2.8 times higher than the receipts. Accordingly, it can be asserted that it is economically unjustified to invest in the projected stands, but only in the case when the value of social capital accounts for 12%. Based on the analysis of sensitivity of the cost-benefit method, it was concluded that cost benefit ratio for p=8-12% was below 1 within the study range of costs and receipts changes, while for p=4-6% this ratio was above 1 in some cases of decrease in costs, i.e. increase in receipts. It was noted that the change in р depending on the change in costs, developed by the exponential function, and the change in r depending on the change in receipts developed by the linear function. Also, it was concluded that at the lower discount rates, the values of r moved towards 1, so for 8% r=0.71, and for 6% r=0.94. The value at the discount rate of 4% indicates that the project is cost-effective and that the invested EUR 1 makes EUR 1.22. This fact is especially important when poplar cultivation projects are ranked. For this reason, this method is used for the evaluation of social benefits, i.e. for economic analyses. It is almost never applied in the analysis of private investments.