Tree Planting Incentives

[MICHAEL PAINTER]

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
IERM				UK
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 
production.

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 
in 1992. 

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 
in 1993. 

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 
years. 
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 
owned land.

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 
financed.

Poland: 1. Forest Development Support (World Bank), project implemented 
in 1994. 

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 
indigenous species. 

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.