Farming with Trees: How Agroforestry Builds Climate Resilience across Asia and the Pacific

The Asian Development Bank report shows that agroforestry—combining trees with crops and livestock—can restore degraded landscapes, protect farmers from climate shocks, and strengthen food security across Asia and the Pacific. Drawing on case studies from Cambodia, Bangladesh, and the Philippines, it finds that scaling agroforestry requires short-term farmer support, better finance, stronger markets, and clear land policies to unlock its long-term climate and livelihood benefits.

Produced by the Asian Development Bank and authored by Richard McNally, Chris Dickinson, and Sugar Gonzales, with research support from institutions such as the World Agroforestry Centre (ICRAF), the Food and Agriculture Organization of the United Nations, national research agencies, and local partners, Investing in Agroforestry: A Strategy for Building Climate Resilience addresses a growing crisis across Asia and the Pacific. Forest loss, soil degradation, and climate change are weakening rural landscapes that millions depend on for food and income. Rising temperatures, erratic rainfall, floods, droughts, and landslides are hitting farmers hardest, especially poor and Indigenous communities in upland and watershed areas. The report argues that restoring these landscapes is no longer optional, and agroforestry offers one of the most practical ways forward.

What Agroforestry Does Differently

Agroforestry means farming with trees. It brings trees, crops, and sometimes livestock together on the same land. The report shows how this approach improves soil health, holds moisture in the ground, reduces erosion, and protects crops from heat and extreme weather. Trees create shade and wind protection, while their roots stabilize land and improve water flow. At the same time, agroforestry produces a range of products, including food, fruit, timber, fuelwood, and non-timber goods, providing farmers with more than one source of income. The paper highlights that agroforestry is not new; it has been practiced for generations across Asia, but is now gaining recognition as a climate-smart solution backed by science and policy, including the Intergovernmental Panel on Climate Change.

Lessons from Cambodia, Bangladesh, and the Philippines

The report draws on detailed case studies from three climate-vulnerable landscapes. In Cambodia’s Sangker River basin, deforestation and upland farming have increased erosion and flooding downstream. Studies showed that converting parts of farmland to agroforestry and restoring forest corridors could reduce sediment loss, stabilize water flows, and raise farm incomes over time. In Bangladesh’s Chittagong Hill Tracts, where land is scarce and climate risks are severe, agroforestry systems such as homestead gardens and multistory fruit farms were found to improve food security, store far more carbon than monocultures, and generate strong returns when short-term crops were combined with longer-term trees. In the Philippines’ Manupali watershed, agroforestry helped farmers shift away from erosion-prone vegetable farming toward tree-based systems that protect water sources critical for irrigation and hydropower, while still maintaining livelihoods.

Why Farmers Struggle to Adopt It

Despite its benefits, agroforestry is not spreading fast enough. The report identifies several common obstacles. Trees take time to grow, and many farmers cannot afford to wait years for returns. Access to credit is limited because most loans are designed for short-term crops, not long-term systems. Extension services often promote monoculture farming and lack the skills to support agroforestry. Markets for agroforestry products are weak, with poor storage, transport, and processing facilities. Land and tree ownership is often unclear, discouraging long-term investment. Women face added barriers due to unequal access to land, finance, and training. As a result, many farmers remain locked into risky and degrading practices even when better options exist.

What Needs to Change to Scale It Up

The report concludes that agroforestry can only succeed at scale if policies, finance, and markets work together. Farmers need early support, such as short-term crops, income bridges, or cash transfers, while trees mature. Financial institutions must offer loans with longer repayment periods and lower risk, supported by development banks. Governments need clear land and tree tenure rules and stronger coordination between agriculture and forestry agencies. Value chains must be built so agroforestry products reach reliable buyers, including companies seeking climate-resilient and deforestation-free supply chains. Carbon and ecosystem service payments can help reward farmers for the wider environmental benefits they provide. With the right support, the report argues, agroforestry can restore degraded landscapes, strengthen rural incomes, and become a cornerstone of climate resilience across Asia and the Pacific.