The Economic Viability of Agroforestry Practices in Increasing ‎Farmer Income and Land Productivity in Marginal Areas

  • Authors

    • Sulhan Universitas Dayanu Ikhsanuddin, Indonesia
    https://doi.org/10.14419/pjd3ns68

    Received date: July 7, 2025

    Accepted date: November 22, 2025

    Published date: December 29, 2025

  • Agroforestry; Farmer Income; Land Productivity; Marginal Areas; Non-Timber Forest Products

  • Abstract

    This study explores the economic viability of agroforestry practices in enhancing farmer income and land productivity in marginal areas, ‎with a focus on Indonesia. Agroforestry systems, integrating trees with crops, are increasingly recognized as sustainable ‎solutions for improving soil fertility, reducing erosion, and providing diversified income sources for farmers in marginal lands. The study ‎reveals that agroforestry has led to significant improvements in farmer income, with increases of 27% to 35%, primarily due to additional ‎income from non-timber forest products (NTFPs). Moreover, agroforestry has been shown to enhance land productivity by improving soil ‎health and water retention, contributing to a 30% increase in crop yields. However, significant barriers, including high initial investment ‎costs and limited market access, hinder the widespread adoption of agroforestry. The study highlights the importance of institutional and ‎policy support, such as subsidies, training programs, and improved market access, in overcoming these barriers. The findings suggest that ‎agroforestry can be a viable solution for improving economic outcomes in marginal areas, but further policy interventions and research are ‎needed to facilitate its broader adoption‎.

  • References

    1. Abdul-Salam, Y., Ovando, P., & Roberts, D. (2022). Understanding the economic barriers to the adoption of agroforestry: A Real Options analysis. Journal of Environmental Management, 302, 113955. https://doi.org/10.1016/j.jenvman.2021.113955.
    2. Amare, D., & Darr, D. (2023). Profitability of Smallholder Agroforestry Woodlot Innovations. Human Ecology, 51(5), 1009–1019. https://doi.org/10.1007/s10745-023-00446-5.
    3. Beshir, M., Tadesse, M., Yimer, F., & Brüggemann, N. (2022). Factors affecting the adoption and intensity of use of tef-Acacia decurrens charcoal production agroforestry system in Northwestern Ethiopia. Sustainability, 14(8), 4751. https://doi.org/10.3390/su14084751.
    4. Canton, H. (2021). Food and Agriculture Organization of the United Nations—FAO. In The Europa directory of international organizations 2021 (pp. 297–305). Routledge. https://doi.org/10.4324/9781003179900-41.
    5. Castle, S. E., Miller, D. C., Ordonez, P. J., Baylis, K., & Hughes, K. (2021). The impacts of agroforestry interventions on agricultural productivity, ecosystem services, and human well‐being in low‐and middle‐income countries: A systematic review. Campbell Systematic Reviews, 17(2), e1167. https://doi.org/10.1002/cl2.1167.
    6. Chavan, S. B., Dhillon, R. S., Sirohi, C., Keerthika, A., Kumari, S., Bharadwaj, K. K., Jinger, D., Kakade, V., Chichaghare, A. R., & Zin El-Abedin, T. K. (2022). Enhancing farm income through boundary plantation of poplar (Populus deltoides): an economic analysis. Sustainability, 14(14), 8663. https://doi.org/10.3390/su14148663.
    7. Chavez, J., Nijman, V., Sukmadewi, D. K. T., Sadnyana, M. D., Manson, S., & Campera, M. (2024). Impact of Farm Management on Soil Fertility in Agroforestry Systems in Bali, Indonesia. Sustainability, 16(18), 7874. https://doi.org/10.3390/su16187874.
    8. Cresswell, J. (2013). Qualitative inquiry & research design: Choosing among five approaches.
    9. Dhakal, A., Maraseni, T. N., & Timsina, J. (2022). Assessing the potential of agroforestry in Nepal: socio-economic and environmental perspectives. In Agriculture, natural resources and food security: lessons from Nepal (pp. 375–394). Springer. https://doi.org/10.1007/978-3-031-09555-9_21.
    10. HASANNUDIN, D. A. Y. U. L., NURROCHMAT, D. R., & EKAYANI, M. (2022). Agroforestry management systems through landscape-life scape integration: A case study in Gowa, Indonesia. Biodiversitas: Journal of Biological Diversity, 23(4). https://doi.org/10.13057/biodiv/d230420.
    11. HERYANDI, H., Qurniati, R., Darmawan, A., & Yuliasari, V. (2022). Agroforestry for biodiversity and climate change mitigation in Batutegi Protection Forest, Lampung, Indonesia. Biodiversitas Journal of Biological Diversity, 23(3). https://doi.org/10.13057/biodiv/d230352.
    12. Islam, K. K., Saifullah, M., & Hyakumura, K. (2021). Does traditional agroforestry a sustainable production system in Bangladesh? An analysis of socioeconomic and ecological perspectives. Conservation, 1(1), 21–35. https://doi.org/10.3390/conservation1010003.
    13. Jaya, A., Elia, A., Antang, E. U., Octora, M., Ichriani, G. I., Dohong, S., & Sulistiyanto, Y. (2022). A study of agroforestry farming for tropical peatland conservation and rehabilitation in Central Kalimantan, Indonesia. Mires & Peat, 28. https://doi.org/10.19189/MAP.2021.OMB.STA.2368.
    14. Keprate, A., Sharma, V., Bhatnagar, S., Thakur, R., Abbas, G., Bhardwaj, D. R., & Sharma, P. (2024). Economic Studies in Agroforestry for Livelihood Security. Agroforestry, 443–479. https://doi.org/10.1002/9781394231164.ch15.
    15. Korneeva, E. A. (2022). Economic assessment and management of agroforestry productivity from the perspective of sustainable land use in the south of the Russian plain. Forests, 13(2), 172. https://doi.org/10.3390/f13020172.
    16. Latifah, S., Sani, M. A., & Simorangkir, A. J. F. (2022). Species Diversity and Carbon Storage of Undergrowth and Litter in the Agroforestry System of North Sumatera-Indonesia. International Journal of Conservation Science, 13(3), 1003–1014.
    17. Low, G., Dalhaus, T., & Meuwissen, M. P. M. (2023). Mixed farming and agroforestry systems: A systematic review on value chain implications. Agricultural Systems, 206, 103606. https://doi.org/10.1016/j.agsy.2023.103606.
    18. Maia, A. G., dos Santos Eusebio, G., Fasiaben, M. do C. R., Moraes, A. S., Assad, E. D., & Pugliero, V. S. (2021). The economic impacts of the diffusion of agroforestry in Brazil. Land Use Policy, 108, 105489. https://doi.org/10.1016/j.landusepol.2021.105489.
    19. Ntawuruhunga, D., Ngowi, E. E., Mangi, H. O., Salanga, R. J., & Shikuku, K. M. (2023). Climate-smart agroforestry systems and practices: A systematic review of what works, what doesn’t work, and why. Forest Policy and Economics, 150, 102937. https://doi.org/10.1016/j.forpol.2023.102937.
    20. Owusu, V., Akoto-Adjepong, V., Acheampong, E., & Barnes, V. R. (2022). Farmer perceptions and economic performance of cocoa agroforestry shade levels in Ghana. Journal of Sustainable Forestry, 41(10), 922–940. https://doi.org/10.1080/10549811.2021.1883444.
    21. Pandey, A. K., Tripathi, Y. C., & Kumar, A. (2016). Non timber forest products (NTFPs) for sustained livelihood: Challenges and strategies. Research Journal of Forestry, 10(1), 1–7. https://doi.org/10.3923/rjf.2016.1.7.
    22. Paut, R., Sabatier, R., & Tchamitchian, M. (2020). Modelling crop diversification and association effects in agricultural systems. Agriculture, Ecosystems & Environment, 288, 106711. https://doi.org/10.1016/j.agee.2019.106711.
    23. Pitopang, R., Atmoko, A. T., Mertosono, S. R., & Ramawangsa, P. A. (2021). Plant diversity in agroforestry system and its traditional use by three different ethnics in Central Sulawesi Indonesia. IOP Conference Series: Earth and Environmental Science, 886(1), 12058. https://doi.org/10.1088/1755-1315/886/1/012058.
    24. Prabawani, B., Hadi, S. P., Fisher, M. R., Warsono, H., Dewi, R. S., & Ainuddin, I. (2024). Socioeconomic perspective of agroforestry development in Central Java. Environmental and Sustainability Indicators, 22, 100354. https://doi.org/10.1016/j.indic.2024.100354.
    25. Raj, A., Jhariya, M. K., Banerjee, A., Meena, R. S., Nema, S., Khan, N., Yadav, S. K., & Pradhan, G. (2022). Agroforestry a model for ecological sustainability. In Natural resources conservation and advances for sustainability (pp. 289–307). Elsevier. https://doi.org/10.1016/B978-0-12-822976-7.00002-8.
    26. Rathore, S. S., Babu, S., El-Sappah, A. H., Shekhawat, K., Singh, V. K., Singh, R. K., Upadhyay, P. K., & Singh, R. (2022). Integrated agroforestry systems improve soil carbon storage, water productivity, and economic returns in the marginal land of the semi-arid region. Saudi Journal of Biological Sciences, 29(10), 103427. https://doi.org/10.1016/j.sjbs.2022.103427.
    27. Sahoo, G., Wani, A. M., Sharma, A., & Rout, S. (2020). Agroforestry for forest and landscape restoration. Int. J. Adv. Study Res. Work, 9, 536–542.
    28. Sarvade, S., Shrivastava, A. K., Rai, S. K., Bisen, S., Bisen, U., Bisen, N. K., Agrawal, S. B., & Khan, M. I. (2020). Socio-economic study of farming communities, their knowledge on climate change and agroforestry systems in the cluster of villages of Chhattisgarh plain region, Madhya Pradesh. Journal of Pharmacognosy and Phytochemistry, 1, 2158–2166.
    29. Siarudin, M., Rahman, S. A., Artati, Y., Indrajaya, Y., Narulita, S., Ardha, M. J., & Larjavaara, M. (2021). Carbon sequestration potential of agroforestry systems in degraded landscapes in West Java, Indonesia. Forests, 12(6), 714. https://doi.org/10.3390/f12060714.
    30. Singh, V., Johar, V., Kumar, R., & Chaudhary, M. (2021). Socio-economic and environmental assets sustainability by agroforestry systems: a review. https://doi.org/10.30954/0974-1712.04.2021.6.
    31. Tebkew, M., Asfaw, Z., Worku, A., & Atinkut, H. (2024). Comparative financial profitability of agroforestry and cereal monocropping practices in Northwestern Ethiopia. https://doi.org/10.21203/rs.3.rs-3815373/v1.
    32. Thiesmeier, A., & Zander, P. (2023). Can agroforestry compete? A scoping review of the economic performance of agroforestry practices in Europe and North America. Forest Policy and Economics, 150, 102939. https://doi.org/10.1016/j.forpol.2023.102939.

  • Downloads

  • How to Cite

    Sulhan. (2025). The Economic Viability of Agroforestry Practices in Increasing ‎Farmer Income and Land Productivity in Marginal Areas. International Journal of Accounting and Economics Studies, 12(8), 907-914. https://doi.org/10.14419/pjd3ns68