Tree Planting Incentives
9563743 at EIGG.SMS.ED.AC.UK
Thu Aug 22 10:05:12 EST 1996
Dear Members of the Agroforestry Group,
As mentioned in my message of the 31st of May this year
I am doing a study on tree planting incentives in developing
countries. The study is for my MSc and has to be complete by
the end of August. I am interested in all projects which
offer tax grants, subsidies, free seedlings, food for work etc.
to farmers or private business.
It is extremely difficult to uncover details of these projects
so I am summarising my findings so far in the hope that some
readers can provide additional details. My apologies that the
following has become a rather long list. Please send me
information on any additional projects that you are aware of, or
correct any errors in the following list.
Many thanks to all those who responded to my first message!
Michael Painter Edinburgh EH9 3JU
University of Edinburgh Tel: +44 (0)131-667 9352
Darwin Building Fax: +44 (0)131-662 0478
Mayfield Road E-mail: 9563743 at eigg.sms.ed.ac.uk
Albania: 1. Forestry Project (World Bank, Feb. 1996), FAO / World
Bank Co-operative Programme (CP), Environmental Report headed by
Mr. Brylski outlines funding for Communal Forest and Pasture
Management. US $ 2.3 million for funding of selected communal
investment projects in restoration of degraded areas, including
planting of fodder and fuel wood trees. For each 30 communes one
forest technician be provided. The forestry component is only a
small part of the overall project if funding goes ahead.
Algeria: 1. Forestry and Watershed Management (World Bank), project
implemented in 1992.
Argentina: 1. Argentina Forestry Development Report, World Bank Staff
Appraisal Report, 1995, Small Farmers Component, 3,000 small farm
families will receive grants from Argoforestry Fund of US $ 2.3 million.
Grants not exceeding US $ 1,000 or equivalent.
2. The Government of Argentina (1996) will finance projects of up to
US $ 500 thousand for five years. The state bank will issue credits
from a US $ 13 million / year budget as an incentive for planting.
Aim to encourage private investment to plant 15 million ha. for lumber
Bangladesh: 1. US $ 4.2 million loan by the World Bank for Karnaphuli
paper mill in 1955.
2. Forest Resource Management (World Bank), project implemented in 1992.
Belarus: 1. Forestry Development (World Bank), project implemented in 1994.
Benin: 1. Natural Resource Management (World Bank), project implemented
Bhutan: 1. Forestry III (World Bank), project implemented in 1994.
Bolivia: 1. Programa de Repoblamiento Forestal (PROFOR). A Swiss
financed project working with the regional development corporation of
Cochabamba in central Bolivia since 1984. About 1,000 ha. of Pinus and
Eucalyptus spp. planted every year but also native species. Seedling
are provided by twelve nurseries for distribution to around 300
communities. From 1984-7 the project provided food for work, however
the farmers valued the food more than the trees so this was stopped.
Road construction was giving as an incentive from 1987-93 but this
also out weighted the tree component of the project and lead to problems
between the communities and the project. Fencing was offered for those
who planted more than five ha. between 1986-8 but proved expensive and
not full proof.
Brazil: 1. Law 5106/66 was passed by the Federal Government of Brazil
in 1966. It allowed individuals and companies up to 50% of reforestation
expenses to be deducted from income tax. This meant that the costs were
incurred before the rebate was collected so a new law was passed in 1970,
Law 1134/70. This enabled companies to apply for the expenses, up to
50% to be taken off their income tax, of new forest investment projects.
The project had to be approved by the Brazilian Institute for Forest
Development (IBDF), established by the government in the 1960s.
Unfortunately, due to lack of funds and the remoteness of some projects
they could not all be checked. Some companies would receive a percentage
of their tax back but would not implement the project. A new law in 1974
created the Fiscal Incentives Fund into which companies paid funds to be
distributed to the projects. In 1983 more regulations required companies
investing in forestry to anticipate their investment six months in advance.
Then in 1987 the tax deduction was reduced to 10% and finally in 1988
incentives were discontinued. However from 1966 to 1992 the amount of
planted forest increased from 470 thousand hectares to 6.2 million
hectares, mostly of short rotation Eucalyptus.
2. Mato Grosso Natural Resources Management (World Bank), project
implemented in 1992.
3. Rondonia Natural Resources (World Bank), project implemented in 1992.
4. Pilot Program to Conserve the Brazilian Rainforest (World Bank, 1994).
Possible Integrated Sub-projects - provision of time-based tax incentives
for sawmills and pig iron production which adopt appropriate forest
conservation practices and introduction of Agroforestry Production
Systems for small farmers - Production of saplings.
Burkina Faso: 1. Yatenga project started in 1979 by Oxfam. Farmers
were encouraged to build microcatchments and to construct bunds to
slow water run off. Oxfam's total investment by 1986 was US $ 150,000
and has enabled farmers to plant leguminous acacias along the contours
of their bunds.
Burundi: 1. Conservation and Afforestation. A project run by the
Government providing seedlings to encourage tree planting.
Chile: 1. US $ 20 million loan by the World Bank for pulp and paper
industry in 1953.
2. Law P. L. 701, 1974. Incentives of 75-90% of the cost was
reimbursed after trees were planted. Applied to land not under
trees cover but with potential. Twenty year limit has been extended
although the government is having difficulties in redirecting the
incentive to small farmers. 1.6 million ha. have been planted, mostly
of exotic species like Pinus radiata, by medium to large companies.
The incentives have successfully created an profitable industry, however
80% of the incentive went to the three largest companies.
China: 1. Afforestation of the North China Plain by the Government
of the People's Republic of China. Five shelter-belts, 520 km long,
planted in the 1950s stabilised a large area previously subject to
erosion by wind and flooding. During 1986-1990 another two shelter-
belts, 420 km long, were added. The tree species used for afforestation
are Paulownia spp, Robinia pseudoacacia, Populus spp, Salix spp and
Ulmus pumila. Planting also took place along river flood-plains. The
management of the stands is the responsibility of farmers under contract.
However Investment and input for their establishment come from local
Government. Crops are usually sown between the trees and increases in
production have occurred.
2. Forest Resource Development Conservation (World Bank), project
implemented in 1994.
3. Loess Plateau (World Bank), project implemented in 1994.
Colombia: 1. Natural Resource Management (World Bank), project
implemented in 1994.
Ecuador: 1. Plan Maestro de Forestacion (PLANFOR) implemented by
Instituto Ecuadoriano Forestal y areas Naturales y Vida Silvestre
(INEFAN) in May 1993. The government will co-finance the cost of
planting and maintenance, averaging $300 / hectare. Planting 100,000
hectares during four years and 600,000 in the two decades. Reports
that many find it not worthwhile to apply for support because of
inspections and paperwork, lack of technical support and credit problems.
Egypt: 1. Introduction of the Neem Trees, Global Environmental Facility
(GEF). The responsible NGOs are The Tree Lovers Association and The
National Association for the Preservation of the Environment. The
duration of the project is from January 1993 to January 1996.
US $ 26,500 for establishing a nursery to provide 50,000 Neem seedlings.
Ethiopia: 1. Konso Development Programme (KDP), NORAGRIC supported
tree planting in Konso, began in 1977. Food for work incentives for
communal areas but farmers planted along their own boundaries with
seedlings from the nurseries. Moringa oleiofera and Terminalis brownii
favoured along with Eucalyptus globulus and camldulensis.
Gabon: 1. Forestry and Environment (World Bank), project implemented
Ghana: 1. Regenerative Agriculture Project by The Ghana Rural
Reconstruction Movement. Based in the Akuapem North District of the
Eastern Region of Ghana. Implemented in 1987, provided free seeds and
seedlings plus free meals and transportation during training sessions
and monthly meetings. The training was mostly for agroforestry techniques
and most farmers established hedgerow inter-cropping. However several
farmers realised that their immediate need was fuel wood and instead
of pruning their hedgerows allowed their trees to grow. This shaded the
cropping areas meaning plants performed poorly. Farmers also complained
because of lack of credit to pay for extra labour required to maintain
the agroforestry plots.
Haiti: 1. Agroforestry Outreach supported by USAID started in 1981.
Funds were provided to Pan American Development Foundation (PADF),
Operation Double Harvest (ODH) and CARE. Seedlings were distributed
for free in small containers. Farmers were at first offered US $ 0.10
for each seedling surviving after one year from planting. This incentive
was dropped because of the high demand for seedlings. Through 170 NGOs
27 million trees were planted in five years by 110,000 farmers. The
survival rate was around 45%. USAID extended funding for another three
2. Forestry and Environment (World Bank), project implemented in 1992.
3. Community Agroforestry (New Forests Project), working with The Office
of Development and Applied Studies (ODEA) and The National Association
of Haitian Pastors (APNH). One million seeds of Leucaena leucocephala
and Gliricidia sepium will be distributed to 100 communities selected
by APNH. Plans to expand tree nurseries to start producing fruit trees
for planting in 1996.
India: 1. Uttar Pradesh Forestry Project, World Bank. From 1979-83
planting on private land surpassed targets while village woodlots failed.
2. Gujarat Forestry Project, World Bank - aided, begun 1980. Planted
32,000 ha. under farm forestry on private land but self help village
woodlots fell short of targets by 57%. Mainly planted eucalyptus for
poles and pulpwood.
3. Karnataka project, Kolar district. About 50,000 ha. of eucalyptus
planted. Estimates of profit from sales of poles but wood unsuitable
for fodder and cooking fuel.
4. Maharashtra Forestry (World Bank), project implemented in 1992.
5. West Bengal Forestry (World Bank), project implemented in 1992.
6. Andhra Pradesh Forestry (World Bank), project implemented in 1994.
7. Forestry Research Education (World Bank), project implemented in 1994.
Indonesia: 1. Watershed Conservation Management (World Bank), project
implemented in 1994.
Kenya: 1. Kenya Woodfuel Development Programme (KWDP), Department of
Forestry, Kenya (1971-87), Subsidised seedlings, mainly Pinus spp,
cypress and Eucalyptus spp. Produced 60 million seedlings per annum
for free distribution at US $ 0.50 per 100 seedlings. Needed better
management and a wider choice of species otherwise successful. Some
problems, because of cultural taboos against women planting trees,
were overcome in the Kakamega district. The shrubby trees Sebania
sesban and Calliandra calothyrsus were interplanted with crops by
women. Over 75% of trees on farms were planted by the farmer.
2. Turkana Rural Development Programme (TRDP). Norwegian funded, 1980s.
Protecting areas with fencing and restricted access to allow regeneration.
Acacia and Dobera glabra trees were becoming established. People were
also paid to construct water microcatchments by food for work and
Prosopis trees were reported to be growing well.
3. Kenya Renewable Energy Development Project set up six Agroforsetry
/Energy Centres. In 1982 the Mtwapa Agroforestry Centre in the coastal
district Kilifi Leucaena leucocephala was one of the trees suggested
for use in ally cropping. Many farmers incorporated trees into their
fields for fodder.
4. Agroforestry Extension Project (Beijer Institute and ETC Foundation,1983).
5. Siaya district (CARE, 1984).
6. Paulownia (Kir) tree seedlings provided by Hillary Sebe Maloba
sponsored by Dr. Peter R. Beckford. Free seedlings from Paulownia N.
Research Centre, P. O. Box 40, Kayonzo via Mumias, Kenya. Kakamega,
Kamurial and Mumias zones.
7. Wildlife Services (World Bank), project implemented in 1992.
8. Kitale project, The Vi Tree Planting Foundation (SIDA, 1983),
Free seedlings, to be phased out in 1996.
Korea: 1. Village Fuelwood Plantations, a Government project assisted
by a loan from the World Bank. Report No. 958a - KO. Part of a rural
infrastructure project, countrywide. US $ 14 million to establish 127
thousand hectares of plantations over all of Korea's nine provinces.
Mostly established on private land by communal labour. The owner
receives 10% of the wood over the rotation, normally 20 years, and
retains ownership of the land. Seedlings, fertiliser and technical
assistance were provided by government agencies. A mixture of species
including Black locust, Alder, Bush Clover, Indigo Bush, Polar, Larch
and Pine were chosen depending on the site, with not more than 35%
timber trees. Usually planted at about 4,000 stems per hectare. Village
Associations were given powers by the Government to use privately
Lao PDR: 1. Forest Management (World Bank), project implemented in 1994.
The project will make grant funds available to each community for small
scale development projects aimed at replacing unsustainable use of
forest resources and increasing agricultural productivity.
Madagascar: 1. World Bank loan in the mid 1980s for pine plantation project.
Malawi: 1. Lilongwe City Council Fuelwood Plantations begun in 1971.
Three thousand hectares were planted, mainly with Gmelina, by the Capital
City Development Authority. Another 14 thousand ha. plantation was
proposed in 1988.
2. Lilongwe Land Development Project (LLDP), a Wood Energy Programme
funded by the World Bank. Phase I ran from 1980 - 1985 and set up
nurseries to sell seedlings to farmers. Farmer - based afforestation
was encouraged and many large and medium land holders converted part
of their arable land to woodlots for construction pole production.
The project was successful for large to medium scale farmers as there
was a market for construction poles and the five year rotation was a
reasonable pay-back period. However small land holders needed multi-
purpose species because of land and labour shortages for monoculture
woodlots. Urban fuelwood and pole plantations begun in 1980, 11,800 ha.
were planted inside forest reserves in Blantyre, Zomba, Lilongwe and Dowa.
3. National Rural Development Programme (NRDP), (Wood Energy Project,
1986), Small payment for each tree surviving after two years.
4. Blantyre City Fuelwood project proposed in 1988. Ten thousand
hectares of mixed eucalyptus, gmelina, pines, melia and natural woodland.
Mali: 1. Koro Village Agroforestry Project (VAP), implemented in 1986
by CARE, support from Norwegian Ministry for Development Co-operative
through its Sahel-Sudan-Ethiopia (SSE) Programme. Help in establishing
nurseries to provide seedlings for fruit trees, windbreaks and live hedges.
2. Agroforestry Development in Goumanko, GEF Small Grant, (Action
Couverture et Developpement (ACD), 1994-5), establishing tree nurseries.
3. Project de Plantation d'Arbre Fuitier Pour le Groupement Feinin de
Torodo, GEF Small Grant, (Mission Sahel), Planting of fruit trees.
Niger: 1. Majja Valley Project started by CARE and the Niger Forest
Service in 1974 and supported by USAID since 1981. Windbreaks of
neem trees were planted by volunteers paid in food and guards were
paid to protect the trees in the dry season. The wood is shared
equally among the land owners. Some livestock owners have moved away.
Nigeria: 1. In August 1992 Dr. E. E. Enabor prepared a report for
the Forestry Management Evaluation and Co-ordinating Unit (FORMECU)
on Private Plantation Development with Incentives. It was part of
the proposed World Bank Forestry III Project. The government has
been planting trees but not enough so private individuals and
companies need to be encouraged. The Incentive scheme for private
plantations proposed to run a pilot initiative consisting of; Incentive
payments of 70% of establishment costs for private individuals and
institutions; 50% of wood based industry and 40% for pulp and paper
industry paid promptly one year after the work, for the first five
years. These incentives were to be linked with a loan. Technical
assistance from the Federal and State Forestry sectors were to be
provided and plantations monitored by FORMECU. The project was never
Poland: 1. Forest Development Support (World Bank), project implemented
Philippines: 1. Agro-Forestry Development Plan, initiated by the Paper
Industries Corporation of the Philippines (PICOP) in the late 1960s
together with the Government of the Philippines. They were supported
by a loan from the World Bank, Report No. 424a -PH. To ensure raw material
for the paper mill farmers were offered loans in the Bislig Bay area in
Eastern Mindanao. Loans were granted to about 1,300 small holders by
the Development Bank of the Philippines (DBP) to assist in tree planting.
PICOP provided seedlings of Albizza falcataria at cost price and gave
technical assistance. Over seven years 10,400 hectares were to be planted.
The cost of the project was estimated at US $ 1.5 million.
Rwanda: 1. Agro-Pastoral de Nyabisindu (PAP) (Government, 1965),
continued as Agro-silvo-pastrol project (PIASP) in 1983 distributing
5 million fruit trees by 1987.
2. ISAR(Government department)/IITA FSR Program Bugesera-Gisaka-Migongo
(BGM) region (1983), Established nurseries 10-15 per 60,000 inhabitants
and gave away free seedlings.
3. Gituza project (CARE, 1985), Free seedlings.
Senegal: 1. The Koumpentoum Entente, 1981, assisted with outside
funding. In the village of Diam Diam 250 ha. were set aside for
planting. One hundred ha. of Eucalyptus were planted with some
Somalia: 1. The Step Plan supported by The InterChurch Response
for the Horn of Africa (ICR) started in refugee camps in Luuq
district in 1982. People were provided with seeds, then if
successfully planted, seedling bags. Trees which survived were
purchased for 2 Somali shillings each. The next steps were land
preparation, nursery work and tree planting with payment in tools.
Anyone could start the plan but to continue they had to pass each
step. Only 15% of people went on to step two but after this 80%
went on. When involved for nine months they earn 240 Somali shillings
(US $ 15). Women were 90% of participates and got training and tools
even if they left the area.
Sudan: 1. Sudan Renewable Energy Project (SREP) supported by USAID.
The Um Inderaba Village Project got a grant from the SREP of S stlg 10,000.
The villagers established a nursery, planted a windbreak of Prosopis
species, neem trees for shade and Acacia and Zizyphus species for
fuel and fodder. They protected and watered the trees. In Um Tureibat
and El Khwei nurseries were established but there was very little
interest in planting.
Swaziland: 1. The Forestry Department was encouraging small fenced
woodlots controlled by a specific number of homesteads. The main
species used was wattle.
Tanzania: 1. Town council woodfuel plantation in Mbeya through the
1950s and 1960s planted coniferous softwoods.
2. Ruvu North Forest Project, near Dar es Salaam, started in 1965
but was destroyed in 1973-4 by drought and termites. SIDA funded
the project again in 1981 and established 200 hectares of eucalyptus
terecticornis and cassia sianiea.
3. The Hado Project in Kondoa assisted by SIDA. In 1979 an eroded
area was destocked of cattle. By 1986 there was impressive regeneration
of natural vegetation. The area has been divided equally between the
people. In Gubali Village a 300 ha. plantation was established but
burnt by local people.
4. Municipal tree plantation in Iringa started in 1983 and planted
about 100 ha. of eucalyptus. 5. Musoma project, The Vi Tree Planting
Foundation (SIDA, 1985), Free seedlings.
6. Tanzania Forestry Action Plan (TFAP), supported by Finland in 1988.
7. Miti ni Mali (Trees and Wealth), Forestry Division provided seedlings.
Tree were planted in community wood-lots but because the workers and
beneficiaries were not clearly defined the project was not a success.
However it was noted that a large number of the seedlings had been
planted in homesteads where they were well looked after and continue
to be a source of food, shelter and a seed bank. There were also
problems with transport.
8. CDA green belt at Dodoma had planted 7 thousand ha. in 1988 and
planned 22 thousand ha. enrichment planting of natural woodland using
both local and exotic species.
9. Forest Resources Management (World Bank), project implemented in 1992.
Tunisia: 1. Second Forestry Development (World Bank), project
implemented in 1993.
Venezuela: 1. Natural Parks Management (World Bank), project
implemented in 1993.
Uganda: 1. Masaka project, The Vi Tree Planting Foundation (SIDA,
1985), Free seedlings.
2. Uganda Department of Forestry (UDF)/CARE Tree Planting Project
(1986-88), Gave away Eucalyptus spp. seedlings.
3. Forest Rehabilitation Project (WB, EEC, DANIDA, CARE, UNDP,
NORAD and Ugandan Government). This project is currently being
considered for implementation.
Zambia: 1. World Bank loan of US $ 5.3 million for industrial plantations.
2. Operation Kwacha Programme, Katete district (SIDA). Report by
Bolin and Larsson, 1983. Free seedlings.
3. Lusaka Woodfuel Project proposed for up to 20 thousand ha. to be
planted within Kamaila, Chisamba, Karubwe and Chipilepile Forest
Reserves north of Lusaka. The project never received external funding.
4. Zambia Fuelwood Plantation Project. Proposal for woodlots near
Lusaka and other towns.
Zimbabwe: 1. Forest Commission Rural Afforestation Project (RAP)
(1982), supplied seedlings. Nurseries were established providing
seedlings at a cost of 10 Zimbabwe cents per tree.
2. Mwenezi, Mavingo Province. Local initiative in 1982 to separate
arable land and pasture. Pasture was fenced off within woodland.
Wire fencing was purchased with funding by an EEC grant with the
possibility of establishing live fencing.
3. School nurseries were set up in 1985 in Gutu district to provide
seedlings at Z 1 cent per tree. For about Z $ 100 a 5-10 thousand
tree nursery could be established in a school.
4. Co-ordinated Agricultural and Rural Development (CARD) Programme
in Gutu, Masringo Province in the late 1980s. This is an area of
high population density and nurseries and woodlots were set up,
mainly to provide fuelwood. Multi-purpose species and agroforestry
practices were encouraged.
Central America: 1. Madelana-3 Project (USAID and FINNIDA, 1981).
Many Thanks Michael Painter.
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