Agroforestry

DEFINITION of 'Agroforestry'

The integration of agriculture and/or farming with forestry so the land can simultaneously be used for more than one purpose. This practice is meant to have both environmental and financial benefits. The presence of trees can provide benefits such as sheltering livestock from the elements and improving the soil so that crops will be more productive. The agroforestry system can also provide a more even income for landowners since all of their income is not tied to a few crops or a single season. Agroforestry can also make it easier for farmers to transition from one type of crop to another as market demand for their products changes.

BREAKING DOWN 'Agroforestry'

Agroforestry does require more planning and know-how than simpler land uses because the system must take into consideration the diverse and sometimes contradictory needs of each component (the grazing needs of cattle versus a tree's need to have its roots undisturbed, for example). Examples of types of agroforestry practiced in the United States include alleycropping, silvopasture, windbreaks, riparian buffer strips and forest farming.

RELATED TERMS
  1. Investment Farm

    An agricultural business operation that is purchased and operated ...
  2. Farm Price Index - FPI

    An index that monitors the prices received by farmers for sales ...
  3. Crop Year

    The time period from one year's harvest to the next for an agricultural ...
  4. Farm Income

    Farm income refers to profits and losses incurred through the ...
  5. Crop Yield

    A measurement of the amount of a crop that was harvested per ...
  6. IRS Publication 225 - Farmer's ...

    A document published by the Internal Revenue Service that details ...
Related Articles
  1. Fundamental Analysis

    The Industry Handbook: The Agriculture Industry (COW, LSTK)

    Learn about the major lines of businesses involved in the agriculture industry and why this industry as a whole may be the most important in the world.
  2. Investing

    Three Agriculture Startups Disrupting Monsanto

    Even as technology startups have disrupted other industries, agriculture has remained immune to its effect. But that is about to change.
  3. Investing

    Smart Farming Technology Storms Silicon Valley

    Silicon Valley may be known for growing tech startups, but now the iconic region is welcoming an entirely new breed of residents, startups focusing on smart farming.
  4. Fundamental Analysis

    Using Decision Trees In Finance

    A decision tree provides a comprehensive framework to review the alternative scenarios and consequences a decision may lead to.
  5. Savings

    Why Organic Food Is So Expensive

    Discover how organic farmers face many obstacles. Learn why your organics cost so much more than conventional foods and if there is any hope for falling prices.
  6. Options & Futures

    Using Decision Trees In Finance

    These decision-making tools play an integral role in corporate finance and economic forecasting.
  7. Investing News

    Technology: Increasing Indoor Farming's Efficiency

    Indoor farming has gone high-tech. An increasing number of investors are now sitting up and taking notice.
  8. Real Estate

    How to Keep a Land Investment From Going Bust

    Investing in land can yield big returns. But investors should consider their goals, as well as the following details, to make the deal a success.
  9. Stock Analysis

    Agriculture ETFs For Everyone

    Whatever turn the economy takes, the demand for food may be the most certain aspect of an otherwise uncertain global economy.
  10. Investing Basics

    A Primer For Investing In Agriculture

    In this article, we'll look at the agriculture sector and the different ways investors can approach it.
RELATED FAQS
  1. How does seasonality affect the forest products sector?

    Find out why the concept of seasonality is critical to understanding the forest products sector for both producers and consumers ... Read Answer >>
  2. What economic indicators do agriculture investors need to watch?

    Agriculture investors should keep an eye on land prices, interest rates, inflation, harvest performance and speculative investment ... Read Answer >>
  3. When do I need to file an IRS Schedule F form?

    If you are a farmer, your farming business may require you to file a Schedule F with the IRS. Read Answer >>
  4. What percentage of the global economy is comprised of the forest products sector?

    Find out what percentage of the global economy is comprised of the forest products sector, and learn why coming up with an ... Read Answer >>
  5. What average annual return does the forest products sector generate?

    Investing in the forestry sector provides investors access to an alternative asset class that provides both consistency and ... Read Answer >>
  6. What are the main factors that drive share prices in the forest products sector?

    Understand how the basics of supply and demand provide a workable foundation for determining share price movement within ... Read Answer >>
Hot Definitions
  1. Physical Capital

    Physical capital is one of the three main factors of production in economic theory. It consists of manmade goods that assist ...
  2. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  3. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  4. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  5. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
Trading Center