3 Economic Analysis of Agroforestry Adoption Thal region of Pakistan

Abstract

This Study is conducted in the district Bhakar, a Hybrid-Arid Zone of Thal, Pakistan. This study aims to examine, whether adoption of agroforestry on dune increases the utility of farmer or not? Also we find the effect of socioeconomic factors e.g. age, education and number of family members of farmer on the adoption decision. Also we attempt to determine that how the farm-size, availability of tube well,non-farm income and the distance from the market effect the behavior to adoption of agroforestry system. We illustrate the decision of farmer adoption by using household production theory. By running Logistic regression analysis, we estimated result which shows that the age, education, distance to market and the farm size have the significant effect on adoption. On the other hand the number of adult family member, availability of tube well in dunes are not have significant effect. When the age, education of farmer and distance from the market increases,it will increase the likelihood to adopt the agroforestry technology. On the other hand as the farm-size increases, the farmers are less likely to adopt. The availability of non-agricultural monthly income is also having a positive and significant effect on adoption of agroforestry. So, these are the main factor that will lead to adoption of agroforestry system in Bhakkar.