Fragile Lands of Latin America Strategies for ... - PART - USAID

An Economic Analysis of Huastec Forest Management 195
Table 5
Economic Return on Cash and Non-Cash Investment from Huastec Production
(pesos/community/#)
- - ---
Component Total Inputs Total Benefrts Net Return
Milpa (and fallow) 12,611,830 30,186,000 17,574,170
Sugarcane fields 63,893,577 243,375,000 179,481,430
Te'lom 13,200,000 362,782,000 349,582,000
Livestock 55,442,000 42,577,600 (1 2,864,400)
Total 145,147,407 678,920,000 533,773,200
- - - - - -- - -
a Based on total area of 406 ha in the community of Tamjajnec (98 households).
Based on late 1987 exchange rate of 2,200 pesos per US$.
community (usually near Tampico), and some of their earnings are
contributed to the farmstead operation. A few young people join the
military or move to the city to seek work. They occasionally send
money home. The intra-community paid labor opportunities generally
provide cash income fix women and teenagers from more impoverished
families. Women also earn pocket money in a variety of ways: e.g., the
sale of eggs, fruits, garden produce, cooked food, and pottery, or by
sewing garments for neighbors. In households that maintain bees, the
men sell the honey, and women make candles for sale. In addition,
some households operate small stores or radio repair services out of
their homes.
Table 5 summarizes the economic returns to the community from
farmstead production. These, I feel, are conservative estimates. Much
of subsistence production has not been assigned any value. My analysis
indicates that the average Huastec household earns a net benefit equiv-
alent to U.S. $2,477 per year from farm production. As a community,
this estimated 1987 benefit represents a net return on investment
equivalent to U.S. $598 per hectare. The management of Huastec te'loms
represents U.S. $391/ha (65%) of total net return on investment with
coffee production. Without coffee production, total net returns on in-
vestment are U.S. $290/ha, to which te'lom management contributes
US. $84/ha (29%).
There are four comments I wish to make here. First, I have used
the figures for a good coffee yield. When coffee production is good, the
return from the te'lom is the highest of any farm component. But
during many years, coffee production is very low. Sugarcane gives the
second highest return, but it is the most reliable. From the farmer's
point of view, the sugarcane is the basic income commodity (limited