Financial Return from Eucalypts Planted on Paddy Bunds

Abstract

This research was carried out in Chachoengsao province and aimed to compare the f inancial return from three land uses: paddy f ield (PF), single-row planting of eucalypts (75 trees/rai) on a paddy bunds (OEP) and two-row planting of eucalypts (150 trees/rai) on a paddy bunds (TEP). The sample households who had planted the three crops were interviewed. Eucalypt trees from the paddy bunds plots were sampled to estimate growth and yield. The two f inancial indicators used in this study were net present value (NPV) and benef it cost ratio (BCR) at discount rates of 7, 10, 13 and 16% over an investment period of 7 years. The results showed that
all three land uses were f inancially acceptable and prof itable. The f inancial return comparison of each land use showed that the NPV of TEP at a discount rate of 7, 10, 13 and 16% was 17,595, 15,378, 13,513 and 11,934 baht/rai, respectively. For the same interest rates, the NPV of OEP was 17,133, 15,073, 13,337 and 11,866 baht/rai, respectively and the NPV of PF was 8,375, 7,563, 6,875 and 6,276 baht/rai, respectively. The results of sensitivity analysis of the land uses at discount rates of 7 and 16% showed that OEP was worthwhile and a lower risk than either TEP or PF.

Keywords: eucalypt, f inancial return, paddy bunds, agroforestry