economic analysis of different models of shelterbelts used to protect hog barns
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André Vézina, ITA campus La Pocatière
Economic analysis of different models of shelterbelts used to
protect hog barns
André Vézina, forest engineer, M. Sc.Christian Rivest, technologist
Frédéric Lebel, rural economist
André Vézina, ITA campus La Pocatière
Breakdown of the presentation History of the project Description of windbreaks and the farm that
is seeking protection Description of the economic parameters Results
André Vézina, ITA campus La Pocatière
Why conduct an economic study? Arguments to convince the producers Lack of information on the subject Great demands for windbreaks Momentum needed to adopt this new way of
doing things
André Vézina, ITA campus La Pocatière
History of the project Project conducted by the Syndicat des
producteurs de porc de la Mauricie Evaluate the economic stakes of planting
windbreaks around livestock buildings Evaluate various windbreak models Develop a decision-making tool for
consultants
André Vézina, ITA campus La Pocatière
CollaboratorsGuy Beauregard, MAPAQSerge Dupond, MRC de MaskinongéCamille Caron, MAPAQJean-Pierre Hivon, Le groupe Envir-Eau-Sol incSteeve Lampron, Syndicat des producteurs de porc
de la MauricieRaymond Leblanc, Fédération des producteurs de
porc du QuébecPatrrick Lupien, Syndicat des producteurs de bois
de la MauricieAlexandre Tourigny, UPA de la Mauricie
Project paid for by CDAQ express
André Vézina, ITA campus La Pocatière
Methodology Collection period: period required to recover
investment Discounted margin:Revenues – expenditures
The resulting margins have been adjusted to constant dollars using a year of reference while keeping in mind the historic discounting rate.
André Vézina, ITA campus La Pocatière
Methodology The inflation rate is based on historic price
indexes at time of purchase Opportunity cost for the rent for money
based on a historic discount rate Simulations over 40 years to take into
account the harvest of the hardwood trees
André Vézina, ITA campus La Pocatière
Reduction in heating costs Hedgerows aged 0 to 10 years: 0% Hedgerows aged 10 to 20 years: 2,5% Hedgerows aged 20 to 40 years: 10%
These savings apply to the models with at least one row of non-deciduous trees. For the hedgerows made up of deciduous trees only, the reduction is only 40% of the rates listed above.
André Vézina, ITA campus La Pocatière
Reduction in snow removal costs Hedgerows aged 0 to 5 years: 0% Hedgerows aged 5 to 10 years: 10% Hedgerows aged 10 to 40 years: 20%
These savings apply to the models with at least one row of non-deciduous trees or one row of shrubs.
André Vézina, ITA campus La Pocatière
Revenues Wood prices listed by the buyers in June
2006 Wood volumes from windbreaks were
validated by field measurements during the summer of 2006
Harvesting revenues from lumber The tops of hardwood trees are also sold as
firewood
André Vézina, ITA campus La Pocatière
Revenues Fruit harvest:
Yields and prices have been calculated using data on white elderberry from the CEPAF (1.25 kg/stem/year)
André Vézina, ITA campus La Pocatière
Establishment costs For a 700 m hedgerow planted on plastic
mulch (70% grant included): Costs for purchasing and vegetation
transportation Costs for material (plastic mulch, broches and
collerettes) Labour costs associated to preparation and
plantation Soil preparation
André Vézina, ITA campus La Pocatière
Maintenance costs Replacement of trees that have died during
the first year Mowing during the first 5 years Shearing from 2 to 10 years Pruning from 10 to 30 years
André Vézina, ITA campus La Pocatière
Loss of harvesting land 50% of the establishment area Width of the hedgerow adjusted according
to the age and the number or rows Loss of revenue from one rotation
Corn-grain/corn-grain/soya
André Vézina, ITA campus La Pocatière
Windbreak models to protect livestock buildings
6 models recommended in eastern Canada 1 to 3 rows of trees or shrubs Height of vegetation at planting stage: 30-
60 cm (except for one model where it measures 1.5 to 2 m)
Length of the hedgerow: 700 m Plantation on plastic mulch
André Vézina, ITA campus La Pocatière
Single-row models Non-deciduous trees Spruce and hybrid poplar Hardwood species and shrubs 2 metre spacing between vegetation
André Vézina, ITA campus La Pocatière
André Vézina, ITA campus La Pocatière
André Vézina, ITA campus La Pocatière
Hybrid poplar-spruce with 2 m spacing, 2 years, La Pocatière
André Vézina, ITA campus La Pocatière
André Vézina, ITA campus La Pocatière
André Vézina, ITA campus La Pocatière
Red ash – Red oak (17 years, 2.5 m)
Sandy loam, St-Aubert de l’Islet
André Vézina, ITA campus La Pocatière
2- or 3-row models 2 rows: Hybrid poplar/non-deciduous trees 2 rows: Hardwoods/non-deciduous trees 3 rows: Hybrid poplars/non-deciduous
trees/hardwoods
André Vézina, ITA campus La Pocatière
André Vézina, ITA campus La Pocatière
Hybrid poplar with 2 m spacing
White spruce with 3 m spacing
FRR-phyo-CHGF-viburnum with 2 m spacing
2 years, sandy loam, St-Pascal de Kamouraska
André Vézina, ITA campus La Pocatière
After 5 years
André Vézina, ITA campus La Pocatière
Description of the farm seeking protection
Start-to-finish type of farm 150 sows producing 2924 swine 915 swine at finishing stage maternal pig house - 766 m2
finishing pig house - 945 m2
farm road - 300 m heating costs: $10 000/year
André Vézina, ITA campus La Pocatière
Results Collection period: period required to
recover investment. Discounted margin: Revenues –
expenditures.
The resulting margins have been adjusted to constant dollars using a year of reference while keeping in mind the historic discounting rate.
André Vézina, ITA campus La Pocatière
Numberof rows Tree species
Cumulative discounted
margin after 5 years ($)
Cumulative discountedmargin after 10
years ($)
Cumulative discounted
margin after 20 years ($)
Cumulative discounted
margin after 40 years ($)
Recupe-ration delay
(years)
1 Spruce, pine or cedar -1 885 -677 6 873 35 756 11
1 Hybrid poplar and spruce -2 351 -811 9 809 38 692 11
1 Hardwoods and shrubs -2 633 -1 920 3 884 25 913 14
2 Hybrid poplar/spruce, pine or cedar -2 992 -1 688 9 408 38 291 13
2 Hardwoods/spruce, pine or cedar -3 239 -2 945 3 658 37 459 15
3Hybrid poplar/spruce,
pine or cedar/hardwoods
-4 210 -3 638 6 446 40 165 16
André Vézina, ITA campus La Pocatière
Répartition des revenus cumulatifs actualisés pour un écran boisé de peupliers hybrides et d'épinettes sur une rangée
24 108 $ 56%
17 177 $ 39%
2 248 $ 5%
Revenus liés aux économies de chauffageRevenus liés aux économies de déneigementRevenus liés à la récolte du bois
Distribution of cumulative discounted margin for a single-row windbreak of hybrid poplar and spruce
Revenues from heating savings
Revenues from snow removal savings
Revenues from timber harvest
André Vézina, ITA campus La Pocatière
Répartition des revenus cumulatifs actualisés pour un écran boisé de pleupliers hybrides, d'épinettes et feuillus nobles sur trois rangées
8 882 $ 18%
17 177 $ 34%
24 108 $ 48%
Revenus liés aux économies de chauffageRevenus liés aux économies de déneigementRevenus liés à la récolte du bois
Distribution of cumulative discounted margin for a 3-row windbreak of hybrid poplar, spruce and hardwoods
Revenues from heating savingsRevenues from snow removal savingsRevenues from timber harvest
André Vézina, ITA campus La Pocatière
Evolution over 40 years of the cumulative discounted margin of the 3 row model
-100000
1000020000300004000050000
1 4 7 10 13 16 19 22 25 28 31 34 37 40Years
Con
stan
t dol
lars
snow removal heating
collection period
poplar
hardwood
André Vézina, ITA campus La Pocatière
Number of
rows
Tree species
Cumulative
discountedmargin after 5
years ($)
Cumulative
discountedmargin after 10 years ($)
Cumulative
discountedmargin after 20 years ($)
Cumulative discounted
margin after 40 years ($)
Recupe-ration delay
(years)
3Hybrid
poplar/spruce, pine or cedar/hardwoods
-4 210 -3 638 6 446 40 165 16
3
Hybrid poplar/spruce, pine or cedar/hardwoods (without a grant)
-7 099 -6 527 3 557 37 276 20
3
Hybrid poplar/spruce, pine or cedar/hardwoods (with large trees)
-30 520 -29 949 -19 865 13 855 35
Impacts of grants and large trees
André Vézina, ITA campus La Pocatière
Répartition des coûts cumulatifs actualiséss pour un écran boisé de peupliers hybrides et d'épinettes sur une rangée
1 243 $-26%
3 035 $-62%
563 $-12%
Coûts liés à l'implantation des écrans boisésCoûts liés aux pertes d'espace cultivableCoûts liés à l'entretien des écrans boisés
Distribution of cumulative discounted margin for a single-row windbreak of hybrid poplar and spruce
Costs of establishing the hedgerowCosts due to loss of harvesting landMaintenance costs
André Vézina, ITA campus La Pocatière
Répartition des coûts cumulatifs actualisés pour un écran boisé de pleupliers hybrides, d'épinettes et feuillus nobles sur trois rangées
1 238 $-12%
2 232 $-22%
6 532 $-66%
Coûts liés à l'implantation des écrans boisésCoûts liés aux pertes d'espace cultivableCoûts liés à l'entretien des écrans boisés
Distribution of cumulative discounted margin for a 3-row windbreak of hybrid poplar, spruce and hardwoods
Costs of establishing the hedgerowCosts due to loss of harvesting landMaintenance costs
André Vézina, ITA campus La Pocatière
Summary (discounted margin)
Flips to the plus side in 10 to 20 years Between $35 000 and $40 000 at the end of
40 years Main revenue: reduction in heating and
snow removal costs Main cost: maintenance
André Vézina, ITA campus La Pocatière
Summary A single row of non-deciduous trees
provides a slightly lower discounted margin than those of 2 or 3 row hedgerows also including hardwoods or poplars that can be harvested.
However, the maintenance, harvest and wood tranformation required for hedgerows with two or three rows generate more economic activity.
André Vézina, ITA campus La Pocatière
Summary Furthermore, it is much easier to ensure
long-term protection with the models using two or three rows rather than just one.
Finally, the benefits to biodiversity and carbon sequestration are generally superior in the models with more than one kind of vegetation.
André Vézina, ITA campus La Pocatière
Conclusion Have to quantify the other EGS (ecological
goods and services) stemming from shelterbelts Carbon sequestration Biodiversity Landscapes
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