Economic evaluation of cardamom (Elettaria cardamomum) agroforestry systems in Guatemala over a seven-year cycle

Cardamom (Elettaria cardamomum) is a high-value spice crop commonly cultivated as part of an agroforestry system, where shade trees are integrated into production plots. This study evaluated the farm-level financial performance of two agroforestry systems (AFS)—pine-associated cardamom (CP) and broadleaf-associated cardamom (CBL)—and compared them with cardamom grown under full-sun conditions (CS). The study included 50 sites of the municipalities/regions of Alta Verapaz and Quiché located in northern Guatemala. The data was collected through a face-to-face interview with small-scale cardamom producers and direct observation of their production sites. A discounted cash-flow analysis was conducted over a standardized 7-year production cycle using nominal U.S. dollars (USD) at 2021 farm-gate prices and a 17% discount rate. Financial indicators included net income, net present value (NPV), internal rate of return (IRR), payback period, and return on investment (ROI). Investment performance was assessed primarily using NPV and IRR (r = 17%), with payback period, net income, and ROI reported as complementary indicators. Over the 7-year cycle, CP systems showed the highest financial performance, with an average NPV of US$5,200.1 ha, IRR of 86.8%, and a payback period of 0.55 years. CBL systems showed moderate but consistent performance (NPV: US$3,476.7 ha; IRR: 63.7%; payback: 0.76 years). CS systems presented the lowest performance (NPV: US$1,398.8 ha; IRR: 39.7%; payback: 1.4 years). Since results rely on producer-reported yields and costs and were evaluated under a single discount-rate assumption, findings should be interpreted as comparative rather than precise audited estimates. To the best of our knowledge, this study represents one of the first multi-site financial assessments of dominant cardamom production configurations in Guatemala, providing evidence to inform extension and investment decisions on economically viable cardamom agroforestry designs within the scope of observed farm cash flows and the study sites assessed.