THE ECONOMICS OF IMPROVED PASTURE AND SILVIPASTORAL TECHNOLOGIES IN THE ATLANTIC ZONE OF COSTA-RICA

Beef cattle production on unimproved pastures in the Atlantic Zone of Costa Rica is low. A capital budgeting model was used to investigate t he financial profitability of pasture improvement using a mixture of B rachiaria brizantha and Arachis pintoi (BA system) or of B. brizantha and Erythrina berteroana (silvipastoral system). A supplementary feedi ng system on unimproved pastures was also evaluated as an alternative to increase beef production and farm income. Present values of increme ntal returns and internal rates of return on capital invested were cal culated for all 3 systems. Financial benefits of the silvipastoral sys tem were significantly lower than those of the BA system. However, non -monetary benefits of incorporating trees in pastures are difficult to value and were not considered in the financial analysis. Profitabilit y of the supplementary feeding system was lower than that of the BA sy stem, but exceeded returns from the silvipastoral system, although it may prove unsustainable in the long run. Nevertheless, supplementary f eeding constituted an attractive option on soils where the BA and/or s ilvipastoral systems are difficult to establish, and for farmers witho ut access to sufficient capital.