During agro-forestry system management, with or without the price risk, what is the difference of
the NPV? To what degree can it increase or decrease the total NPV of the agro-forestry? In order to
answer it, we examined year 7, the minimum age of the rotation of agro-forestry based on Eq.(13).
The total net present value is examined under two cases: (1) with timber price risk in agro-forestry
system, and (2) without timber price risk. Under price risk the result is 300,625 yuan/ha (which is total
net present value of the whole rotation, with a minimum harvest age of 7 and a maximum harvest age
15) and this result is gathered from the stochastic dynamic program. Without price uncertainty the
value is 269,499.1. Therefore, we can draw a conclusion that considering price risk can increase the
total NPV of the agro-forest system by 11.55%.