European Journal of Agriculture and Forestry Research Vol.2, No.1, pp.18-30, March 2014 Published by European Centre for Research Training and Development UK (www.ea-journals.org) 18 DETERMINANTS OF NET RETURNS TO AGRO FORESTRY IN THE HUMID RAIN FOREST BELT OF NIGERIA. Obasi, P. C.; Okparadim, G. I. and Henri-Ukoha, A. Department of Agricultural Economics, Federal University of Technology, Owerri P. M. B. 1526, Owerri, Nigeria ABSTRACT: The study analyzed the determinants of net returns to agro forestry in the humid rainforest belt of Nigeria. The multi-stage random sampling technique was used in selecting the sample. The sample size comprised 120 agro forestry practitioners who were selected from the list provided by the staff of the Imo state Agricultural Development Programme (ADP). The results of the ordinary least squares multiple regression analysis showed that farm size, years of farming experience, tree crop density, educational attainment, extension contact, type of soil fertility replacement materials used, and farmers age are the major determinants of net returns to agro forestry practice in the state. It was suggested that co-operative farming and communal system of land use could significantly enhance participation in agro forestry in Imo State, Nigeria. KEYWORDS: Determinants, Net Returns, Agro Forestry, Humid Rainforest, Nigeria INTRODUCTION Agricultural production till date remains the mainstay of the Nigerian economy. Over the years the sector has witnessed tremendous decline in its contribution to national development. This is evident in the high incidence of poverty among the rural populace. The reason for this widespread poverty in Sub Saharan Africa including Nigeria is the destruction of the natural forest leading to environmental degradation and reduced productivity. Besides, small farmers usually farm on degraded lands with complex and diverse farming systems (Owese, 2009). Consequently, population pressures, deforestation and bush burning, farming and other forms of land use (Ekwebalam and Onyenwotu, 1989) are the bane of Nigerian Agriculture. Regrettably, the recent global economic crisis has made it increasingly difficult for families to generate enough resources required for sustainable economic growth without exerting much pressure on natural resources to generate more income and produce more food for household consumption (Akinyemi et al., 2009). The forest area of Nigeria has diminished from above 60 million hectares in the 1990’s to the current value of about 9.6 million hectares (NEST, 2004). Loss of forest biodiversity can result from fragmentation, overharvesting of plant and animal species and intensification of arable farmlands. For instance, the land devoted to food crops alone rose from 7.6million hectares in 1970 to 35.5 million hectares in 1995 (Agboola, 1987; FORMECU, 1995). The implication is that more forest lands are subjected to ever increasing pressure by subsistence farmers and herders. This quest for maximum food production for the masses has exerted a negative impact on some of the forest cover through bush clearing and burning. Agro forestry as a concept is the deliberate incorporation of trees and woody species of plants into other types of agricultural activities (Rahman et al, 2011). It is a concept of combining crops, animals and trees