Agroforestry

AAA

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.

INVESTOPEDIA EXPLAINS '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. Paper Industry ETF

    An exchange-traded fund that invests primarily in manufacturers ...
  2. Farm Credit System - FCS

    The Farm Credit System is a nationwide network of cooperative ...
  3. Commercial Grain Stock

    The current amount of harvested grain crops stored domestically, ...
  4. Farm Price Index - FPI

    An index that monitors the prices received by farmers for sales ...
  5. Agricultural Credit

    Any of several credit vehicles used to finance agricultural transactions, ...
  6. Crop Year

    The time period from one year's harvest to the next for an agricultural ...
RELATED FAQS
  1. What countries are driving most of the growth of the food and beverage sector?

    The countries driving most of the growth of the food and beverage sector are the primary emerging market economies of China ... Read Full Answer >>
  2. What is the point of agricultural subsidies?

    Every five years, new legislation is introduced and passed through the U.S. Congress to subsidize farmers and agricultural ... Read Full Answer >>
  3. What are tradable commodities?

    Tradable commodities consist of basic goods used in commerce that are often interchangeable with other goods of the same ... Read Full Answer >>
  4. What country produces the most coffee?

    According to the 2014-2015 forecast provided by the U.S. Department of Agriculture's Foreign Agriculture Service, Brazil ... Read Full Answer >>
  5. What percentage of the global economy is comprised of the forest products sector?

    The forest products sector is comprised of companies that plant, grow, harvest, and process wood and wood-related products ... Read Full Answer >>
  6. How does scarcity affect global agriculture stocks?

    Agricultural products are a commodity and their prices are related to other commodities, particularly crude oil. Crops including ... Read Full Answer >>
Related Articles
  1. Home & Auto

    5 Investment Risks Created By Global Warming

    Climate-change deniers and believers alike would be wise to prepare for the worst.
  2. Personal Finance

    Go Green With Socially Responsible Investing

    Find out how morals and ethics can bring you a surprising return.
  3. Economics

    What Does It Mean To Be Green?

    Green investing is the new buzz word for companies and investors. Find out what it means.
  4. Options & Futures

    Top 10 Green Industries

    Put a little green in your wallet by investing in these growing areas.
  5. Budgeting

    Downshift To Simplify Your Life

    Learn how to ditch the rat race with voluntary simple living.
  6. Personal Finance

    Building Green For Your House And Wallet

    The earth-smart money is on these environmentally friendly housing projects.
  7. Options & Futures

    The Biofuels Debate Heats Up

    Interest in these new energy sources is growing. Should you buy in?
  8. Economics

    The Farmer's Grip on Japanese Politics

    If you live in Tokyo, Japan's biggest city, then your vote is cheap. If you want your voice to count, move out to the countryside and buy a farm.
  9. 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.
  10. Mutual Funds & ETFs

    Are These 3 Agricultural ETFs, ETNs a Good Bet?

    Three top tier agriculture ETFs and ETNs to consider when the time is right.

You May Also Like

Hot Definitions
  1. Xetra

    An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra ...
  2. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  3. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  4. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  5. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  6. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!