FINANCIAL ANALYSIS OF SMALL-SCALE FORESTS IN THE AMU DARYA LOWLANDS OF RURAL UZBEKISTAN

The establishment of forests on small-scale marginal lands in the Amu Darya Lowlands in Uzbekistan is an alternative use of land abandoned from cropping. Over four consecutive years biomass data were collected from Elaeagnus angustifolia, Ulmus pumila, and Populus euphratica plantings and complemented with data of mature trees (15–20 years) growing naturally on marginal land. These formed the basis for elaborating 20-year growth functions for these species. The potential for capital investment in the small-scale forests was assessed by considering annual fuelwood, fodder and fruit production, plus the stumpage value after 20 years. The benefit to cost ratio (BCR) and Net Present Value (NPV) were compared at 10%, 16% and 24% discount rates. At a 16% discount rate (base case), the NPV for E. angustifolia was greatest (13,924 US$ ha−1)1, followed by P. euphratica(4,096 US$ ha−1), and U. pumila (1,717 US$ ha1) showing a BCR of 7.8, 2.2 and 1.8, respectively. These suggest that afforestation is a prom...