The financial analysis of short rotation tree crops in an agroforestry system is presented in this study. Agroforestry is the practise of growing two or more perennial woody plant species on a same plot of ground. Based on the amount of forest cover, the district, blocks, and villages were chosen using a multi-stage purposive sampling approach. For this study, the Dharmapuri district in Tamil Nadu was chosen. Farmers choose Malabar Neem (Melia dubia) because of its various applications despite the fact that there are several short rotation tree species cultivated in the research region. Agri-Silviculture and Silviculture, two significant agroforestry systems in the research area, were chosen. 80 sample farmers who were polled in January and February of 2020 provided the primary data for the agricultural year 2018–19. Benefit-Cost Ratio (BCR), Net Present Worth (NPW), and Internal Rate of Return (IRR) financial analyses were carried out to determine if an investment in an agri-silviculture and sylviculture system would be feasible. According to the findings, fulfilling urgent financial needs and earning more money were the main drivers for the adoption of short rotation tree crops (68 percent each). In the agri-silviculture and sylviculture systems, the net present value per hectare was respectively Rs. 3,43,823 and Rs. 1,97,909. It has been determined that the Agri-Silviculture system’s BCR is greater (2.01) than the Silviculture system (1.66). When compared to growing Malabar Neem trees alone, growing it alongside agricultural products is more advantageous since it may provide money all year round in a short amount of time. The farmer is able to cover unanticipated costs by using tree crops as a reserve.
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