Agroforestry as a Climate-Smart Strategy: Examining the Factors Affecting Farmers’ Adoption

Agroforestry production systems have shown growing adoption in Bangladesh, offering ecological and economic benefits in the face of climate change. This study investigates the scale of agroforestry adoption, investment returns, factors influencing uptake, and challenges faced by farmers. Using a multistage random sample of 340 respondents, we find that while 75% of farmers are aware of agroforestry, adoption remains limited. Our analysis focuses on specific tree–crop combinations favored by farmers as agroforestry practices. The results demonstrate that, in cropland agroforestry, Eucalyptus tree with rice (69.05% adoption rate) is predominant, while homestead/orchard system agroforestry favors mango tree intercropped with potato (73.33%). Financial and investment analyses using Benefit–Cost Ratio (BCR), Net Present Value (NPV), and Internal Rate of Return (IRR) prove that agroforestry is a more favorable alternative for farmers considering adoption, as it provides superior BCR, NPV, and IRR. For example, litchi-based agroforestry systems with vegetables like brinjal (eggplant), potato, and chilies offer higher NPVs (19.00, 19.73, and 18.46, respectively) and IRRs (54.45, 68.00, and 47.19, respectively) compared to monocropping where NPV was 14.38. A binary logistic model reveals that larger farm sizes, younger respondents, higher education levels, training experiences, more frequent extension visits, and improved market access positively influence agroforestry adoption. The study also identifies key challenges for farmers using the Problem Facing Index (PFI). The most significant obstacles include lack of training facilities (PFI-894), shortage of skilled labor (PFI-687), and insufficient technical expertise (PFI-647). Therefore, to promote wider adoption, targeted training programs that address the identified challenges are crucial. It will empower farmers to reap the tangible benefits of agroforestry as a sustainable and climate-smart agricultural practice.