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Despite claims that plantations both enhance and undermine the quality, valuation and protection of natural forests, plantation forestry continues to expand worldwide. In Paraguay, changes in environmental policy, extension practices, and public perception of eucalypts (Eucalyptus spp.) have promoted a boom in plantation production of these species over the last 20 years. Smallholders, faced with the dilemma of accelerating environmental degradation juxtaposed with persistent economic need, have widely adopted eucalypt forestry due to the quick growth, low establishment cost and high commercial value of eucalypt plantations. The consequences of this recent, rapid change for smallholder land management remain uncharacterized. Mixed methods analysis of a multiple-case study of 45 families was employed to describe the evolving ecological context of small-scale eucalypt forestry in Eastern Paraguay. This study suggests that eucalypts play a complex, potentially sustainable role in the study area. Producers have integrated agroforestry into eucalypt management and report replacing crop and cattle production with eucalypts in the mosaic of regional land-use. Eucalypts are also integral to participants’ views on reforestation of deforested land and fit ambiguously into their concepts of reforestation and species’ nativeness. Understanding the evolving role of eucalypts in Eastern Paraguay is of critical importance to policymakers and foresters promoting sustainable management.
