Expansion of Acacia decurrens plantation on the acidic highlands of Awi zone, Ethiopia, and its socio-economic benefits
2021
Yazie Chanie | Anteneh Abewa
Expansion of Acacia decurrens plantation on the acidic highlands of Awi zone, Ethiopia, and its economic benefit was undertaken in Fagita-Lekoma district to assess major motives of farmers behind the expansion of A. decurrens plantation. Cost–benefit analysis, benefit–cost ratio, net present value, and internal rate of return (IRR) were used to compare benefits. A. decurrens plantation was introduced as a public forest plantation by government and expanded as private plantation for charcoal making in which experts and traders were eye openers for the innovation. High economic benefit, source of firewood and fencing, improving soil fertility and decreasing run-off, tolerance to natural hazards compared to annual crops, and sources of employment were found to be the major motives behind the expansion of A. decurrens plantation. Over 5-year period, crop production generated a net present value of 5,430.54 Ethiopian Birr/ha with benefit–cost ratio of 1.09 while A. decurrens plantation generated a net present value of 26,682.68 with benefit–cost ratio of 1.53 and IRR of 58%. Farmers are fetching attractive financial benefits from A. decurrens plantation that indicates plantation is a more attractive business than crop production. Further study on the soil properties and environmental aspects of A. decurrens plantation, marketing, and value chain is recommended.
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