Potential Economic Impact of Improving Returns to Smallholder Tree-Farmers In Leyte: A Cost Benefit Analysis of ACIAR Project ASEM/2003/052

This paper presents the results of a cost benefit analysis of the likely impact of ASEM/2003/052 Improving financial returns to smallholder tree farmers in the Philippines. Three main categories of project benefits are identified which coincide with short, medium and long term outcomes, namely: (1) improved returns to existing tree farmers from increased volume and quality of merchantable timber combined with higher stumpage prices flowing from improved market access; calculated to have a net present value of AU$2.4million, (2) improved returns to existing tree farmers from subsequent rotations of tree farms from increased volume and quality of merchantable timber from better management and prices, calculated to have a net present value of AU$3.9million, and (3) expansion of the area of tree farms planted due to the higher returns available, and attributable to, project outputs