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. Subsidy

    A benefit given by the government to groups or individuals usually ...
  4. Investment Farm

    An agricultural business operation that is purchased and operated ...
  5. Agflation

    An increase in the price of food that occurs as a result of increased ...
  6. Timber Investment Management Organization ...

    A management group that aids institutional investors in managing ...
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
  6. What economic indicators do agriculture investors need to watch?

    Agriculture investors should pay close attention to the commodity data and statistics related to the production, supply and ... 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. Personal Finance

    Building Green For Your House And Wallet

    The earth-smart money is on these environmentally friendly housing projects.
  6. Budgeting

    Downshift To Simplify Your Life

    Learn how to ditch the rat race with voluntary simple living.
  7. Options & Futures

    The Biofuels Debate Heats Up

    Interest in these new energy sources is growing. Should you buy in?
  8. 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.
  9. Stock Analysis

    4 Top Dividend-Paying Agriculture Stocks

    Here are four different ways to play dividend-paying agro stocks.
  10. Economics

    Is Organic Really Worth The Extra Money?

    It's the shopping decision that seems to pit thrift against family health. Find out when buying "organic" matters most.

You May Also Like

Hot Definitions
  1. Capital Stock

    The common and preferred stock a company is authorized to issue, according to their corporate charter. Capital stock represents ...
  2. Unearned Revenue

    When an individual or company receives money for a service or product that has yet to be fulfilled. Unearned revenue can ...
  3. Trailing Twelve Months - TTM

    The timeframe of the past 12 months used for reporting financial figures. A company's trailing 12 months is a representation ...
  4. Subordinated Debt

    A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known ...
  5. International Financial Reporting Standards - IFRS

    A set of international accounting standards stating how particular types of transactions and other events should be reported ...
  6. Geometric Mean

    The average of a set of products, the calculation of which is commonly used to determine the performance results of an investment ...
Trading Center