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 Method

    This method of accounting is available for farmers who do not ...
  4. Crop Year

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

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

    A measurement of the amount of a crop that was harvested per ...
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. Economics

    How To Invest In Farming Without Owning a Farm

    Investors have a number of ways to get exposure to the agriculture and farming sector besides actually having to buy a farm.
  4. 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.
  5. 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.
  6. Insurance

    Futures Fundamentals: A Brief History

    Before the North American futures market originated some 150 years ago, farmers would grow their crops and then bring them to market in the hope of selling their inventory. But without any indication ...
  7. 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.
  8. Options & Futures

    Using Decision Trees In Finance

    These decision-making tools play an integral role in corporate finance and economic forecasting.
  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. 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.
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 is the point of agricultural subsidies?

    Read about the historical origins of agricultural subsidies, and find out why the government spends hundreds of billions ... Read Answer >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
  6. 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 >>
Hot Definitions
  1. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  6. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
Trading Center