SUMMARY
An economic evaluation of dryland farming was undertaken to demonstrate the impact of trees on the yearly net profits of smallholding farms of eastern India. A number of scenarios were simulated incorporating the existing demand and supply of farm resources, with a view to determining optimal land-use plans. Linear programming (LP) was used for the purpose by applying a best production combination method for different farm groups, having varying resource situations. The analysis indicated scope for an integrated land-use system for small-scale farms in the humid tropics by diversifying agriculture to agroforestry. Appropriate farm forestry packages are recommended on the basis of optimal plans obtained through the LP method.