Social and economic evaluation of innovative alley coppice systems mixing timber trees with bioenergy wood crops in agroforestry systems Tosi L2/6,Nahm M1, Paris P2,*, Pisanelli A.2, Douglas GC3, Morhart C4, Graves A5 *Correspondence author: piero.paris@ibaf.cnr.it 1 Forest Research Institute Baden-Württemberg (FVA), Freiburg, Germany; 2CNR-IBAF Porano, Italy; 3Teagasc Kinsealy Research Centre, Dublin 17, Ireland; 4Chair of Forest Growth, Albert-Ludwigs-University of Freiburg, Germany, 5Centre for Environmental Risks and Futures,Cranfield University, United Kingdom; 6DIBAF, Univ. of Tuscia, Viterbo, Italy. Introduction Alley coppice (AC) is an innovative agroforestry system where high value timber trees, or standard trees,are planted in lines with bioenergy short rotation coppice (SRC) as intercrop. AC is a new studied system whose rationale is based on already known tree based systems, like traditional coppice with standards, and modern SRC, alley cropping and mixed plantations (Morhart et al. 2014). AC potentially provides several benefits, in terms ofenvironment, increasing biodiversity and reducing soil erosion; wood quality of standard trees, increasing their stem formand branching habit, as well as reducing pruningintensity thanks to light competition between species; economically, providing an income to farmers due to the biomass production during the standard trees growth. Being innovative, AC needs to be tested and assessed in terms of social acceptability, as well as profitability. The objective of this paper is to: i) assess the farmers’ interest in AC systems; ii) evaluate the economic profitability of AC systems. The study has been carried out within the framework of the AgroCop European project (www.agrocop.com). Material An on-farm survey was conducted with the aim to identify farmers who more likely would be interested to test and adopt AC system on farm land, according to their socio-economic characteristics, knowledge and awareness. A structured questionnaire was prepared and submitted to a sample of farmers located in Italy. Farmers were chosen among those with experience in alley coppice or short rotation coppice. An economic simulation comparing AC (poplar SRC mixed with wild cherry) and monocultures of the same species was run. For this purpose, we developed a database on costs and prices of timber and SRC plantation forestry across Europe. AC systemwas simulated according to a standard scheme taken from Morhart et al (2014). In both cases standard trees have to be thinned at the 9th and 20thyear, leaving the best 30 trees in AC system and the best 70 trees in monoculture. The site conditions are optimal in all three cases, without the need for irrigation. According to our experience, we estimated an average biennial yield of 20 todt/ha of biomass for pure poplar, which decreases in AC system, due to the reduction of land used for SRC and the light competition between species. For standard trees, we assume a final dimension of about 60 cm DBH and a total stem height of 28 m, with an average of 5 m of branch-free trunk for veneering or sawing. During the first 20 years of the AC system, we assumed a SRC yield reduction equal to the area Alley Coppice Poplar SRC 2.5 x 0.5 4800 (planting time) Tree species Spacing (m) Number of trees W. Cherry 28 x 12 30 (at 60 years) RotationCycle (year) 60 2 years x 20 years x 3 cycles Cover Area % Yield: Timber in m3 Biomass in MgDM 22 78 1-20 years: 6 MgDM ha-1y-1 21-40 years: 5 MgDM ha-1y-1 41-50 years: 4.2 MgDM ha-1y-1 42.3 m3ha-1 16.8MgDM ha-1 SRC Hybridpoplars 2.5 x 0.5 8000 (planting time) 2 years x 20 years x 3 cycles 100 1-60 years: 10 MgDMha-1y-1 PlantationForestry W. Cherry 12 x 12 70 (at 60 years) 60 100 98.7 m3ha-1 39.2 MgDM ha-1 Tab. 2Main cultural characteristics of the compared tree systems for economic simulation occupied by the standard trees. During the second 20 years, to the above mentioned yield reduction of SRC we added a further -15%, equal to the standard tree canopy closure at age 30. For the third 20 years, a further yield reduction of -40%, equal to the standard tree canopy closure at age 30. Finally, we estimate a production of 1.41 m3/tree of valuable wood and 0.56MgDM/tree of firewood, sold as biomass for energy. For the economic comparison, we use Net Present Value (NPV): π πΆπ‘ πππ = ∑ (1 + π)π‘ π‘=0 Where n is cycle length (years), t is year, C is cashflow (revenues – costs), i is discount rate. NPV is an estimate of the current value of all future incomes from an investment. A discount rate of 3% was used.Considering the high uncertainly of timber and biomass prices, and the consequent difficulty to predict revenues for a long period, a comparison was made between three level prices at farmgate both for biomass (40, 60, 100 €/tDM) and for valuable woods (150, 300, 500 €/m 3). For costs, we used data from German experimental fields of the Agrocop project. Expected benefit Average score economic benefits 4.27 social benefits 3.37 biodiversity conservation 4.33 landscape improvement 4.40 soil quality improvement 4.22 Table 2: Farmers’ evaluation of the most important expected benefits from AC system. Farmers were asked to score from 1 (low) to 5 (high) the expected benefits according to their experience and knowledge. Results A total amount of 20 questionnaires was completed and returned. Most of the interviewed farmers are located in Northern Italy, in the Po Valley plain. The survey evidenced that farmers have a great awareness and experience concerning plantation forestry. Most of them, in fact, manage various typology of plantation forestry, combining different design and planting scheme, planting several woody species. Among them, the most common are walnut and cherry as primary species aimed producing timber;hornbeam, ash and oaks, as species aimed producing biomass or other secondary products or services. Concerning the management aspects of these plantations, most of the farmers claim that the weed control represents the main constraint. Nevertheless, farmers report satisfactory tree growth rates. Economic analysis are currently underway. From the very early results it seems that pure SRC plantation should be the more profitable system, without considering the many risks over a 60 year period. Discussion The interviewed farmers appeared to be familiar with managing forest plantations as species mixtures and with the value of fuelwood. However, the value of the timber and biomass produced during the rotation appeared to be farmers’ main source of uncertainty, with no clear idea of what demand there would be for both wood products, and they assigned a higher rank to the importance of environmental benefits such as biodiversity, landscape, soil fertility improvement (tab. 2).Thus, farmers are interested on mixed cultural models of plantation forestry, although the economic final objective is not very clear. AC could be an innovative option for timber and bioenergy production, integrating some of the advantages that are characteristic of agroforestry systems into mixed tree plantations.Economic simulations, under optimal site conditions, will demonstrate the most profitable cultural option (AC vs SRC vs Plantation forestry) under various scenarios of wood prices and discount rates. The SRC component has an important role to play, not only producing biomass, but also increasing the quality of the valuable timber by improving timber tree form, reducing the costs of management operations and for giving a revenue during the growth of standard trees.SRC should be a continuous source of revenue for farmers during the growth of standard trees, and should guarantee a profit even when the valuable wood price should be low. This is an important issue, considering the uncertainty of timber wood price. However in our economic simulations we considered only a moderate competition between tree species, assuming a loss of yield for SRC equal to reduction of canopy closure. Further economic simulations should include possible realistic scenarios of the mutual detrimental competitions. References: Morhart C., Douglas G., Dupraz C., Graves A., Nahm M., Paris P., Sauter U., Sheppard J., Spiecker H. (2014).Alley coppice – a new system with ancient roots. In: Annals of forest science, article in press. DOI: 10.1007/s13595-014-0373-5