The project commenced on 1 January 2005, with the official signing of the documents on April 7, 2005 in Manila. A project launch was held at Leyte State University on February 11, 2005 which was attended by Australian and Filipino Project staff, and representatives from Leyte State University and the Department of Environment and Natural Resources. This was followed by a two day project planning workshop. The workshop was attended by 29 participants including researchers from The University of Queensland, Southern Cross University an Leyte State University. The DENR Regional Director along with two Regional Technical Directors and the forestry manager from PCARD also attended. At this workshop, detailed research plans were presented by the lead Filipino and Australian researchers and critically discussed. At the workshop, the DENR Regional Director agreed to second two DENR staff full-time to the project. These staff are to based in the ACIAR office at Leyte State University. A comprehensive planning workshop proceedings with some 231 pages has been subsequently produced and distributed. Copies are available from the project leaders on request.

During the year significant progress has been made towards the project objectives. The first objective of the project is to assist DENR to overcome policy implementation constraints to tree registration and log transport. During 2005 we worked closely with DENR staff to identify key constraints and how to overcome them. As part of this process we held one policy workshop and two action research workshops involving DENR and ACIAR staff. From these workshops, teams of researchers and DENR were formed to address a number of specific issues which were identified as being critical to achieving Objective 1. Significantly, a primer on tree registration, harvesting, transport and marketing policies in private lands has been developed and validated during a series of further workshops and meeting involving DENR staff, including meeting. The primer has now been officially endorsed by DENR Region 8 Executive Director. Distribution of the Primer commenced in January 2006. The second objective of the project is to assist tree growers to satisfy market requirements and improve productivity. An extension program is being developed and trialled which aims to test mechanisms to improve the silvicultural skills of farmers. As part of this program, the use of 'bus tours' taking smallholder treefarmers to demonstration sites in order to delivery key information about silviculture has been developed. During 2005, two pilot tours were undertaken and their effectiveness is currently being assessed. In addition, a pilot program involving cost effective ways of linking buyers and sellers of timber has been commenced. A key part of Objective 2 is to identify the market requirements for timber and a number of interrelated activities have been commenced in this area. A timber enterprise survey has been finalised and interviews have commenced. In addition, a detailed assessment of the current timber resource on Leyte is being conducted by field teams measuring both timber quantity and log quality from existing tree farms. As part of Objective 3 we are identifying and promoting livelihood systems and policies which incorporate forestry and which recognise the socio-economic circumstances of smallholders. During 2005 we designed a socio-economic survey to collect the necessary data. The questionnaire we developed will be administered to all treefarmers who have their tree farms measured as part of activities conducted as part of Objective 2.

During the year significant progress has been made towards the project objectives. The first objective of the project is to assist DENR to overcome policy implementation constraints to tree registration and log transport. During 2006 we worked closely with DENR staff to identify key constraints and how to overcome them. We set up a School of the Air radio program on tree farming policies with active participation of Department of Environment and Natural Resources personnel, municipal mayors, councillors and municipal agricultural officers. Further policy and action research workshops were held during the year with key stakeholders to discuss issues with various policy impediments and to identify strategies to overcome these impediments. One result of these workshops was the finalisation of the "Primer on Tree Registration, Harvesting, Transport and Marketing in Private Lands". The primer has now been reproduced in three languages (English, Waray-Waray, Cebuano). The primer has been widely distributed on Leyte and to key institutions and government departments elsewhere in the Philippines. The World Agroforestry Centre (formerly ICRAF) has provided funding to reproduce additional copies.

The second objective of the project is to assist tree growers to satisfy market requirements and improve productivity. An extension program has been developed and trialled which aims to test mechanisms to improve the silvicultural skills of farmers. As part of this program, the use of 'bus tours' taking smallholder treefarmers to demonstration sites in order to delivery key information about silviculture has been developed. During 2006, two further pilot tours were undertaken and their effectiveness is currently being assessed. In addition, a pilot program involving cost effective ways of linking buyers and sellers of timber was ran throughout the year and a follow-up assessment will be undertaken in 2007. A key part of Objective 2 is to identify the market requirements for timber and a number of interrelated activities have been conducted in this area. During the year 51 owners of timber enterprises were interviewed from Leyte, Cebu and Samar. The survey has provided a wealth of information which is currently being analysed. In addition, a detailed assessment of the current timber resource on Leyte was largely completed by field teams measuring both timber quantity and log quality from existing tree farms. Data has been collected on 5,664 trees from 532 plots established on 119 tree farms. Analysis of this data has commenced. As part of Objective 3 we are identifying and promoting livelihood systems and policies which incorporate forestry and which recognise the socio-economic circumstances of smallholders. During 2006 we conducted a socio-economic survey to collect the necessary data. The questionnaire was administered to all treefarmers who have their tree farms measured as part of activities conducted as part of Objective 2. This data is currently being analysed.

The foci of activities in the third year of the project have been to evaluate the effectiveness of the pilot schemes established in the first two years; undertake analysis of data from surveys of smallholder tree farmers and timber processors; and to further develop and distribute outputs from the project such growth and financial models, and extension materials.
During the year project researchers were active in disseminating outputs from the first two years of the project. A School-on-air Radio Program on Tree Farming Policies was presented and a CD version subsequently prepared and distributed. Extension materials (e.g. primer on tree registration, harvesting approval and log transport; booklet on tree growing; manual on tree nursery establishment) were widely distributed to smallholders, local governments and DENR staff in Leyte, Southern Leyte and Northern Samar. Various training activities were also undertaken including to 80 farmers in Claveria and Misamis Oriental through the ACIAR CATP Program. Presentation of project-related research outputs were also made in two important national forums - the National Agroforestry Congress and National Forestry Education Conference.
Much effort was placed in the analysis of several large data sets that have been collected as part of project activities and the preparation of journal articles and conference papers. A large number of publications have been prepared and published since January 2007, including both journal articles (18) and conference papers (23). Many of the conference papers are also in the process of being further developed and refined and will be submitted to refereed journals. The publications arising from the project during 2007 and the first part of 2008 are listed below. It is worth noting that of the 18 journal articles published, 6 were co-authored by Australian and Filipino researchers and a further 5 were authored solely by Filipino researchers. There is a similar pattern with conference publications with 16 of the 23 conference papers having at least one Australian and one Filipino author. This highlights the significant efforts placed in developing the capacity of Filipino researchers.
A highlight of the activities in 2007 was the involvement of the research team in the organisation of the IUFRO 3.08 Small-scale Forestry conference. The theme of the conference was "Improving the Triple Bottom Line Returns from Small-scale Forestry". This theme was very closely aligned to the focus of the research being undertaken as part of ASEM/2003/052. The conference attracted about 90 delegates from some 20 countries. The conference provided an excellent opportunity to showcase the research being undertaken as part of the project and to obtain critical and constructive feedback from many highly respected international scientists. Project researchers and staff presented 21 papers, of which 15 involved at least one Australian and one Filipino author. Filipino collaborators presented 13 of the 21 papers. Participation in the conference also served to focus the efforts of project researchers in writing up project results into formal conference papers covering almost all of the research undertaken through the project. Many of these conference papers are currently being refined into journal papers.
A key part of the project has been to develop the research skills of Filipino collaborators. In the initial phases of the project the focus was on developing the ability of local researchers to design and implement research projects. In the third year we have focussed our efforts on developing the data analysis, presentation and writing skills of Filipino collaborators. To this end, we have produced many jointly authored publications and the Filipino members of the research group played a prominent role in presenting papers at the IUFRO 3.08 conference.
At the end of 2007, a project extension of one year was granted. This project extension will be used to complete the analysis of the extensive data sets that have been compiled and to prepare further journal articles. In addition, we will undertake some further research into how smallholder tree farmers may be able to access developing carbon markets - which are emerging as a potentially important means of improving financial returns from tree farms.