Agroforestry is a dynamic, ecologically based natural resource management system that, through which the integration of trees/woody perennials in farm and rangelands, diversifies and sustains production for increased social, economic and environmental benefit.

Indian Res. J. Ext. Edu. 7 (2&3), May & September 2007, Socio-Economic Analysis of Agroforestry Systems in Western Uttar Pradesh

ABSTRACT : The present study is the outcome of socio-economic diagnosis of traditional as well as commercial agroforestry practices followed by farmers in western Uttar Pradesh. Tree species like Azadirachta indica, Acacia nilotica,

Dalbergia sissoo and Eucalyptus spp. were dominant species in traditional system whereas, Populus deltoides and Eucalyptus spp. were the main species of commercial agroforestry. Fuel wood (50.6 %) was major driving force for agroforestry adoption followed by additional income (24.4 %) and shade (17.5 %) in traditional agroforestry region while, additional income (71.3 %) was the major factor in commercial agroforestry region. The net return from tree produce ha-1 per annum in traditional system was Rs. 989, 541 and 440 for marginal, small and medium farmers, respectively. In commercial region, B:C ratio has been found higher (3.00) for poplar based agrisilviculture than poplar (2.84) and eucalyptus (2.68) based bund system. Although traditional agroforestry seems less promising as compared to commercial agroforestry, but it is also relevant to the farmers’ livelihood.

Some PDFs enclosed fro further reading... 

Thanks Sir. I need a specific methodology to put value even 1 yr old tree in inter cropping with  agri crops. Generally we either we put no value for initial year or put average value of 5 yr or 10 yr tree by dividing in equal yrs to get average. other crop component we can direct that yr or season yield.

http://pdf.usaid.gov/pdf_docs/Pnady584.pdf

http://www.centerforagroforestry.org/pubs/economichandbook.pdf

http://www.journalcra.com/node/2513

Basically trees have longer gestation period. In order to ascertain the price of the tree in future date, we can use discounting method. Net Present Value (NPV) is a good indicator. The best method would be calculate the price of the tree at x age (rotation age) and divide it by the years to reach that age.

Thanks Firoz and Uthappa.  Uthappa as you said generally same is done but many studies for tree they take yield of crop only in account and so the BCR/  NPV calculated on that basis. So this is only method which we practice adn yield of tree component to be included even if it is one yr by average value or discounting method.

Please go through this article.

You can follow this article: http://www.seea.org.in/vol7-2-3-2007/06.pdf

There are some forms of valuation. Here, some works that can elucidate. Article GROWTH, YIELD AND ECONOMIC ANALYSIS OF AN EUCALYPT-SOYBEAN C...

https://www.locus.ufv.br/handle/123456789/8371