In Central America, deforestation is an on-going problem. In addition to being stressed by demand for fuel wood, Central American forests are also vulnerable to destruction because of weak forest legislation and law enforcement and few incentives for reforestation.

A new kind of conservation organization, the Forest Replacement Association (FRA), is addressing this problem. FRAs are made up of small industrial wood consumers, such as brickmakers, and rural farmers.

In Nicaragua, TWP and our partner PROLEÑA has established three FRAs since 2000 as an alternative to stop deforestation and to create an incentive for reforestation for small farmers. In this system, farmers and wood consumers in a local area form a partnership to create a FRA. With help from PROLEÑA they set up the tree nursery infrastructure, in which the consumer industry finances the seedling production, as well as the technical assistance to oversee the nursery operation and to train and assist farmers in reforestation techniques and maintenance.
Each member farmer has free access to seedlings, and also a guarantee from the local industry that they will buy the wood when it is harvested. Farmers have total ownership of the land they dedicate to growing trees, and furthermore have no obligation to sell the wood to the industry, but can either keep it or sell to the highest bidder.

The FRA approach allows farmers to diversify their land use, and have a cash crop that can weather difficult conditions in times of natural disasters, while reducing pressure on the surrounding natural forests. FRAs are a win-win solution for wood consumers and wood producers, as well as for the local and regional forest environment.