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Abstract

This paper presents one of the models on determining the economic effects of production of conifer and deciduous seedlings. The model of cash flow is applied and used as dynamic method based on discount technique. Presented model allows assessment of cost-effectiveness of investments in specific conditions of production; this cost account has advantages in agricultural productions relative to traditional account. Derived results provide information on the income, costs of raising and care of plantation used for afforestation of land. Data are current and can be applied in the calculation of the required financial capital for the afforestation of land in Serbia, which lags behind the average covered with trees in the world and Europe. Afforestation of land has a wider social significance. Except the basic ecological function, has economic and recreational importance. It is realistic to expect that within the agro-economic policy of the state envisage special measures subsidies for manufacturers of conifer and deciduous seedlings. The aim of this paper is an indication of the importance of agro-economic analysis in strategic decision-making in the reforestation of land.

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