Economics of agroforestry
Agroforestry provides a landowner the opportunity to develop a portfolio of short- and long-term investments that allow for some spreading of financial risk through diversification. In general, diversification of investment provides financial advantages, although it also introduces the need for additional management expertise to deal with the added complexity of the farm operation. For farms with land particularly unsuitable for crops, agroforestry provides a way to remove the unsuitable land from crop production over an extended period as the trees mature. Agroforestry also provides social benefits by functioning as a protective system that ensures resource conservation, although some of these benefits are not directly measurable.
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