Can’t See the Wood for the Trees: The Returns to Farm Forestry in Ireland

摘要: The period 2007-2009 witnessed considerable variability in the price of outputs such as milk and cereals this was compounded by a high degree volatility inputs fertilizer, animal feed energy. Previously, Irish farms have used returns to off-farm employment well agricultural support payments Single Farm Payment (SFP) Rural Environmental Protection Scheme (REPS) protect their living standards against low uncertain market returns. However, downturn economy has led reduction availability also discontinuation REPS. This may lead an increase afforestation on farms, forestry offers greater certainty through provision annual premium addition SFP. decision afforest represents significant long-term investment that should not be entered into without careful economic consideration. aim paper is use Discounted Cash Flow (DCF) analysis method calculate under alternative opportunity costs associated with conventional activities being superseded. are calculated using Forestry Investment Value Estimator (FIVE). These were then incorporated DCF model along five enterprises, which would potentially superseded forestry. approach allows for calculation Net Present (NPV) three scenarios.