Selecting an optimal farm enterprise combination in traditional agroforestry systems using portfolio model analysis.

Abstract

The portfolio model revealed that agroforestry farmers allocated more land to agricultural crops relative the forest crops in the ratio 80.7 to 19.3 The expected return was N1,316.63 for forest crops and N2,305.54 for agricultural crops per hectare. Various levels of agricultural and forest crop combinations to reduce risk to enterprise were made. Less risk adverse farmers will plant more of forest crops on their agroforestry farms. The tolerable minimum risk system is an agroforestry system in which 80% of the land is allocated to forest crops and 20% is used for agricultural crops. A major constrain to higher earnings from traditional agroforestry farms is that resources are not fully tapped as tree crops are largely incidental to major agricultural crops.  

Keywords: Traditional Agroforestry, Optimal Farm Enterprises combination portfolio model analysis.