Planting Prosperity: Financial, Institutional, and Market Determinants of Agroforestry Resilience in Khyber Pakhtunkhwa, Pakistan

Abstract

This study investigates the impact of financial capital, institutional support, and market access on the livelihood resilience of smallholder agroforestry farmers in Khyber Pakhtunkhwa (KP), Pakistan. Agroforestry, integrating trees with crops and livestock, offers opportunities for income diversification, environmental conservation, and risk mitigation. Despite its potential, adoption in KP remains constrained by systemic barriers. A quantitative research design was employed, surveying 100 farmers across six districts using structured questionnaires. Descriptive statistics, correlation analysis, and multiple linear regression were applied to examine relationships among variables. Results indicate that institutional support is the strongest predictor of livelihood resilience, followed by access to financial capital and market access. Collectively, these factors account for 92.6% of variability in resilience outcomes. Findings confirm the critical role of technical training, extension services, affordable credit, and market connectivity in enhancing farmers’ adaptive capacities. Policy implications include strengthening institutional outreach, developing tailored financial instruments, and improving market infrastructure to facilitate sustainable agroforestry adoption. Future research should examine longitudinal impacts, intra-household dynamics, value chain efficiencies, and climate variability on resilience.

 Keywords:Agroforestry, Livelihood Resilience, Financial Capital, Institutional Support, Market Access, Khyber Pakhtunkhwa, Smallholder Farmers