Payment for Environmental Services and the Financial Viability of Agroforestry Systems: An Integrated Analysis of Socio-Environmental Projects in the Descoberto Basin—Federal District

Abstract

The policy of payments for environmental services is implemented in public policies in Brazil, and there are many efforts to increase projects that subsidize rural producers, combining payments with incentives for good agricultural practices that promote these services. Thinking about ways to add these values in projects to restore degraded areas is an opportunity to generate monetary benefits for producers and attractiveness for stakeholders, aiming to increase investments in projects of this nature and gain scale in the restoration of these areas. In this way, this study evaluated the financial viability of a project to implement 16.9 hectares of agroforestry systems in agrarian reform settlements located in the Descoberto HydrographicBasin near Brasília, Federal District, and the proposition of a scenario of payment for environmental services associated with adoption of this agricultural practice by producers. The results were promising for both investors and farmers, as demonstrated by the financial analysis criteria (NPV: USD 63,097.49, IRR: 71%, simple payback: 3 years). The PES scenario was even more attractive, proving to be an encouraging increase for the adoption of this practice by producers.

Keywords

• agroforestry
• environmental services
• environmental valuation
• payments for environmental services (PER)