Estimated Financial Performance of Exotic and Indigenous Tree Species in Smallholder Plantations in Leyte Province

Abstract

This paper examines the need for estimates of financial performance of individual tree species for promoting smallholder forestry on Leyte Island in the Philippines, and presents some initial estimates of net present value and internal rate of return for smallholder plantings of indigenous and traditionally grown (exotic) tree species. Levels of profitability are found to be marginal for commercial production, particularly for native species. Data deficiencies are noted, and improved estimates of tree growth rates and rotation lengths in particular are needed to improve predictions of financial performance of smallholder forestry.