Analysis of Agroforestry Farm Profitability and Potential  Economic Value of Carbon Sequestered by Agroforest  Lands in Oyo State, Nigeria

Olatoye C. FOLUKE; Oladimeji U. YUSUF; Sanni A. SUKURAT; Abdulkadir AISHAT

doi:10.35219/jards.v2i1.8824

Olatoye C. FOLUKE Department of Agricultural Economics, Faculty of Agriculture/Institute of Agricultural Research (IAR) Ahmadu Bello University, Zaria, Kaduna State, Nigeria
Oladimeji U. YUSUF Department of Agricultural Economics, Faculty of Agriculture/Institute of Agricultural Research (IAR) Ahmadu Bello University, Zaria, Kaduna State, Nigeria
Sanni A. SUKURAT Department of Agricultural Economics, Faculty of Agriculture/Institute of Agricultural Research (IAR) Ahmadu Bello University, Zaria, Kaduna State, Nigeria
Abdulkadir AISHAT Department of Soil Science, Faculty of Agriculture/Institute of Agricultural Research (IAR) Ahmadu Bello University, Zaria, Kaduna State, Nigeria.

DOI: https://doi.org/10.35219/jards.v2i1.8824

Keywords: Agroforestry production, Carbon sequestration, Economic value, Profit

Abstract

https://doi.org/10.35219/jards.2025.1.05

The potentials of agroforestry farming are yet to be fully exploited for carbon sequestration, increased crop and farmers’ income. This study estimates the agroforestry farm profitability and potential economic value of carbon sequestered by agroforest land in Oyo State, Nigeria. A three-stage sampling procedures were
adopted to select 346 agroforestry farmers involved in one agroforestry practice or the other. A structured electronic questionnaire (Kobotoolapp) and field observation were used in collecting primary data for the 2022 cropping season. Descriptive statistics and the Net Present Value (NPV) statistics were used for the data analysis. The potential net economic value of carbon sequestered in the study area was ₦7,246.37 ($9.18) per ha. The results indicated that agroforestry practices in the study area have a huge capacity to sequester carbon and in the long run, generate additional income for smallholder farmers. Although, carbon revenues drop at 0.2- 0.3% of NPV, however, carbon payments can still generate substantial revenue for farmers especially when carbon payments are combined with other payments for environmental services provided by agroforestry. Agroforestry practice was adjudged to be profitable with the net farm income of agroforestry farmers as ₦237,966.68 ($311.12) in the last production season. Furthermore, the returns on investment were said to be at 0.63. Despite significant results recorded from agroforestry practices, there is a greater need to create better awareness among farmers on the carbon sequestration and carbon credit generating potential of agroforestry by relevant agencies of government such as the Ministry of Environment.