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\hypersetup{pdftitle={Economic Comparison of Planting and Processing of \textit{Jatropha Curcas} and \textit{Elaeis Guineensis} with Special Regard to Environment\permil{}a Case Study of North Sumatra Province, Indonesia},pdfauthor={Vladimir Verner, David Herák, Klementina Jílková, Jan Banout, Petra Chaloupkova, Zbynek Polesny, Bohdan Lojka, Satya Simanjuntak},pdfsubject={Tropentag 2010: Abstract},pdfkeywords={Cost-benefit analysis, Elaeis guineensis, environment, Indonesia, jatropha curcas, northern Sumatra, rural extension, small-holders},pdfpagemode=None,colorlinks=true}
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\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 14-16, 2010, Zurich}}\\[1ex] \Large{``World Food System  ---\\A Contribution from Europe''\\[2ex]}}
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\Large{\textbf{Economic Comparison of Planting and Processing of \textit{Jatropha Curcas} and \textit{Elaeis Guineensis} with Special Regard to Environment\permil{}a Case Study of North Sumatra Province, Indonesia\footnote{\textbf{Contact Address:} Vladimir Verner, Czech University of Life Sciences Prague, Institute of Tropics and Subtropics, Prague, Czech Republic, \mbox{e-mail}: \email{vernerv@its.czu.cz}}\\[0.8ex]}}
\normalsize{\textsc{Vladimir Verner$^{1}$, David Herák$^{1}$, Klementina Jílková$^{1}$, Jan Banout$^{1}$, Petra Chaloupkova$^{1}$, Zbynek Polesny$^{1}$, Bohdan Lojka$^{1}$, Satya Simanjuntak$^{2}$}}
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\begin{itemize*}
\item[]{\small{\textit{$^{1}$Czech University of Life Sciences Prague, Institute of Tropics and Subtropics, Czech Republic}}}
\item[]{\small{\textit{$^{2}$University UNITA, Faculty of Economy, Indonesia}}}
\end{itemize*}
\index[author]{Verner, Vladimir}
\index[author]{Herák, David}
\index[author]{Jílková, Klementina}
\index[author]{Banout, Jan}
\index[author]{Chaloupkova, Petra}
\index[author]{Polesny, Zbynek}
\index[author]{Lojka, Bohdan}
\index[author]{Simanjuntak, Satya}
\begin{center}
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\textbf{Abstract}
\begin{abstract}
\normalsize{
The most important oil"=bearing crops, cultivated on Sumatra Island, Indonesia, \textit{Jatropha curcas} and \textit{Elaeis guineensis}, are compared using economic analysis and farmer's attitude investigation. Oil palm is a traditional cash"=crop cultivated in the region of South-Eastern Asia, covering vast areas with good"=quality soils, and, together with the increasing demand for biofuels, it strongly contributes to recent fast rain forest clearing and biodiversity decrease. Instead of high initial costs, the main difficulty for the farmers, in the case of starting oil palm cultivation, low access to appropriate land is crucial. On the contrary, Jatropha cultivation is profitable on marginal lands that remain usually unused and are very harmful to any kind of degradation process, e.g. soil erosion. Those are the reasons why the potential of both economic and environmental benefits of Jatropha cultivation remains hidden within study area. Jatropha cultivation practices are very simple, based on family labour inputs and hand"=tools. Underdeveloped market chain causing prevailing low purchasing prices of seeds (approximately 0.06 USD.kg$^{-1}$) and high initial expenses on seedlings (135 USD.ha$^{-1}$) are the biggest problem for the farmers to start growing Jatropha. Using cost"=benefit analysis tools, three scenarios were developed in order to judge the economic potential of \textit{Jatropha curcas} planting for local farmers: \textbf{(1)}~standard model with existing prices of both inputs and final outputs (seeds), \textbf{(2)}~economic performance in case of increase of purchasing price of the seeds from 500 to 1,000 IDR, and, \textbf{(3)}~the possible role of development activities based on supporting the farmers with free"=of-charge seedlings. Results show that market chain development and consequent increase of purchasing price would lead to shortening of payback period from ten years to four years and internal rate of return (IRR) will increase from \mbox{2.69\,\%} to \mbox{8.35\,\%}, comparing to scenario one. In the case of supporting farmers with initial costs via providing them with seedlings, the payback period will be eight years with IRR=\mbox{7.72\,\%}. Both activities will increase the probability of adoption of Jatropha by local farmers and would contribute to both improving their living standard and environment conservation efforts.}

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\noindent \textbf{Keywords:} Cost"=benefit analysis, \textit{Elaeis guineensis}, environment, Indonesia, \textit{jatropha curcas}, northern Sumatra, rural extension, small"=holders
\index[key]{Cost"=benefit analysis}
\index[key]{Elaeis guineensis@\textit{Elaeis guineensis}}
\index[key]{Environment}
\index[key]{Indonesia}
\index[key]{Jatropha curcas@\textit{Jatropha curcas}}
\index[key]{Northern Sumatra}
\index[key]{Rural!extension}
\index[key]{Small"=holders}
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