Economic analysis of application two agroforestry combinations in the sloping lands

Abstract

The degraded lands on sloping lands can be rehabilitated by implementing the two agroforestry systems of Falcataria moluccana (sengon)–Arachis hypogaea (groundnut) and Anthocephalus cadamba (jabon)–Glycine max (soybean). The aims of this research were to estimate the production cost, revenue, and profit of two agroforestry systems of sengon–groundnut and jabon–soybean, analyze their financial feasibility, and and select one of two agroforestry systems for the rehabilitation of the sloping lands. This research calculated the production cost, revenue, profit, Net Present Value (NPV), Benefit Cost Ratio (Net B/C Ratio), and Internal Rate of Returns (IRR). The application of agroforestry system of sengon–groundnut needs production cost and produces revenue and profit also has the NPV and Net B/C Ratio values bigger rather than that of jabon-soybean. Two agroforestry systems of sengon-groundnut and jabon-soybean are feasible to be implemented for rehabilitation the degraded lands on sloping lands. From an economic perspective, the application of the agroforestry system of sengon-groundnut is better compared with that of jabon-soybean to rehabilitate the degraded lands on the sloping lands, and this recommendation is further supported by the hydro-orological and silvicultural aspects.