Forest Harvesting Plantation Program (PPAF)

It is a financing program guided at agricultural producers with the objective of planting timber trees in agroforestry and silvopastoral systems through a credit operation adapted to the activity from the point of view of the interest rate and the respective term, whose main objective is the production of harvestable wood and the production of the four environmental services recognized by the Forest Law 7575, which seek to improve not only the rural environment, but also the country's carbon neutral objectives and the adaptation to change climate.

The PPAF recognizes agroforestry projects that incorporate the forestry component, both with agricultural crops and with livestock activities. Financing conditions according to modality in the Forest Harvesting Plantations Program.

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The PPAF consists of a financing of up to 5 million per year per project, under the following conditions

  • Financial guarantee.

  • 5% fixed rate of on balances.

  • Full amortization including final harvestable wood.

  • Term up to 10 years.

  • Annual interest payment.

The financed amount is delivered in 3 disbursements distributed as follows:

-65% for the initial preparation, establishment and maintenance of the first year.

- 20% for the maintenance of the second year

- 15% for the maintenance of the third year

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For the implementation of the pilot of this program, the Huetar Norte region was selected because it is the region that concentrates the largest number of districts in the low level of the Social Development Index. At the national level according to MIDEPLAN, the project is located in districts with a very low social development index.
Also in the cantons of Los Chiles, San Carlos and Upala, a large number of producers affiliated with UPANACIONAL are concentrated. It is intended that in the medium term the project will be extended to other regions nationwide
Geographic location of PPAF projects funded since 2013.

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To date, a total of 148133 trees have been financed, for a financed amount of ₡ 316 200 994.00 during five years of project execution. Then, figure 1 shows the data by year and by species in percentage form.

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