economic analysis of different models of shelterbelts used to protect hog barns

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


Breakdown of the presentation History of the project Description of windbreaks and the farm that

is seeking protection Description of the economic parameters Results


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


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


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


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.


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


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.


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.


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


Revenues Fruit harvest:

Yields and prices have been calculated using data on white elderberry from the CEPAF (1.25 kg/stem/year)


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


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


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


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


Single-row models Non-deciduous trees Spruce and hybrid poplar Hardwood species and shrubs 2 metre spacing between vegetation


Hybrid poplar-spruce with 2 m spacing, 2 years, La Pocatière


Red ash – Red oak (17 years, 2.5 m)

Sandy loam, St-Aubert de l’Islet


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


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


After 5 years


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


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.


Numberof rows Tree species

Cumulative discounted

margin after 5 years ($)

Cumulative discountedmargin after 10

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


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


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


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


Number of

rows

Tree species

Cumulative

discountedmargin after 5

years ($)

Cumulative

discountedmargin after 10 years ($)

Cumulative

discountedmargin after 20 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


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


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


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


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.


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.


Conclusion Have to quantify the other EGS (ecological

goods and services) stemming from shelterbelts Carbon sequestration Biodiversity Landscapes

economic analysis of different models of shelterbelts used to protect hog barns

Documents

ita campus

consultantsandr vzina

kgstemyearandr vzina

thingsandr vzina

firewoodandr vzina

hardwood treesandr vzina

rural economistandr

hog barnsandr vzina