The Dark Past and Bright Future of Timber and Agroforestry Investing
When the average person thinks of timber and agroforestry, images of razed rainforests, displaced species, and disenfranchised indigenous groups probably spring to mind. With deforestation linked to these issues as well as global warming and climate change, it’s little wonder that timber and agroforestry tend to conjure negative connotations. But the truth is, the timber and agroforestry industries are rapidly changing for the better. Modern agroforestry, also known as agro-sylviculture, is a practice in which trees are combined with agricultural developments to create a healthier, more diverse, more ecologically sound, sustainable, and profitable land-use system.
The wisdom behind maintaining biodiversity by planting trees alongside crops dates beyond the Native Americans, but it has only recently started to gain traction worldwide. Benefits abound. Planting trees fights erosion, enriches soil, and provides necessary protection against the elements and potential crop predators. Also, the process has been proven to promote long-term sustainability and soil productivity. Agroforestry often improves the short-term yield of the primary crop as well.
In addition to increased primary crop yields, another benefit is the secondary product of timber, which further adds to the profitability of an agricultural project. All told, growing timber in conjunction with standard agricultural crops has been shown to reduce poverty, contribute to cleaner water, fight global warming, decrease local deforestation, curtail the need for chemicals and pesticides, improve soil quality, and provide a number of other secondary and tertiary benefits.
As a USDA study and other research has shown, the main challenges preventing the widespread adoption of modern agroforestry techniques are unfamiliarity with technologies and a lack of training or expertise, funding, and awareness regarding agroforestry success. It is in this struggle that investors can play a vital and compelling role. By funding modern timber and agroforestry initiatives, investors not only generate profits but help build momentum for the sustainable agroforestry movement. The success of agroforestry projects will attract even more publicity and investment. In this way, an investment in modern timber and agroforestry can snowball into better practices across the industry.
Investors and businesses often feel like they need to choose between generating a profit or making the world a better place. With modern timber and agroforestry initiatives, the two are no longer mutually exclusive.