The Private Economy of Dehesas and Ranches: Case Studies

Abstract

This chapter’s objective is to measure and analyze total private income and profitability for five case study privately-owned dehesas and oak woodland ranches. The Agroforestry Accounting System is applied at the farm scale. Results are estimated for individual forestry, game, livestock, crop, and service activities, and for activities aggregated as a whole. The case study application incorporates landowner consumption of private amenities as part of the total income from the dehesa or ranch, showing that these private amenities are the most important contributor to total income, while the contribution from livestock production is low or even negative. Hunting activities show low revenues. Dehesas with a high stocking rate are significantly supported by European Union livestock subsidies, while livestock production and other activities on California ranches are more sensitive to market conditions. Both in Spain and California, real profitability is competitive with alternative non-agricultural investments when amenity consumption and increases in land value are considered. These results are relevant to understanding current and future trends in landowner motivations for land and enterprise investment, and should be considered in conservation policy development.