Information sheet Factsheet Cost-Benefit Analysis of Food Forests
Can food forests be profitable?
Calculating the costs and benefits of a food forest is not an easy task. The complexity of the design and the range of possible end products and services often make it difficult to clearly visualise the costs and benefits, especially for food forests. To convey this topic clearly and in an accessible way to those new to the food forest world, we have created a Fact sheet on Food Forests For this fact sheet, a fictitious scenario (we call it the ''food forest case'') was developed based on the design and marketing possibilities of Eetbos Deinze. The aim of the fact sheet is to inspire and give the reader an insight into factors, such as marketing, processing and widening activities (tour guides and workshops) in the food forest and how these factors can influence the profitability of the fictitious food forest.
Food forests factsheet
This Food Forest Fact Sheet paints a picture of a farmer converting part of his plot (0.8 ha of permanently mown grassland) into a food forest with various fruit-bearing, nitrogen-fixing and mineral-building species. The simulated food forest is fictitious, but the infill, outlets, etc. for the food forest has been chosen in consultation with 3 Flemish food forest farmers and researchers, in order to present the most realistic case possible. The design is largely based on the experimental site of Eetbos Deinze. In terms of outlets, fresh and processed products are sold in the small farm shop. Broadening activities include giving tours and workshops, with workshops not included in the base scenario. Other assumptions made are described on pages 3 to 6 in the fact sheet.
A cost-benefit analysis: what does it involve?
A partial business analysis was carried out for the fictitious food forest. This means that only the costs and benefits that change due to the conversion to the food forest were taken into account, such as the costs of planting and managing the trees and shrubs, building a barn (for the farm shop and possibly workshop space), processing by external contractors, and so on. This therefore does not include costs for leases, agricultural equipment, farm vehicles and/or vans that were already present on the farm. Statements on profitability (described by net present value (NHW), internal rate of return (IR) and payback year) therefore only refer to the profitability of the 0.8 ha food forest (not the entire farm). The model used is financial in nature: only real income and expenses were taken into account, with all costs and benefits shown excluding VAT. Depreciation was not included in the model. Own labour (performed by the farmer) was assigned a cost (gross hourly wage). Figures included in the model came from various publications, online sources, existing models, interviews, and personal communication with food forest farmers and other actors. Certain figures (mainly specific working hours and biophysical yields) remain uncertain because they are not well known or variable; further research is needed to obtain more accurate data. The example in the fact sheet is therefore intended as inspiration and should not replace expert advice. It is possible to try the tool INTACT (via the Agroforestry Planner) to estimate the profitability of your agroforestry design or plan. Discuss the possibilities with your accountant or adviser.
Would you like to read the Dutch version? Click on: Factsheet Voedselbossen