The FONAFIFO Payment for Environmental Services (PSA) program
The PSA (Pago por Servicios Ambiantales) program was established under Law 7575 (Ley Forestal) in 1996 and remains the main national mechanism to compensate private landowners for conserving or restoring forest ecosystems.
The PSA offers payments under two broad categories:
- Maintenance of forest cover: protection of existing forests, water-resource conservation, and post-harvest forest protection.
- Recovery of forest cover: reforestation, natural regeneration, and agroforestry systems.
Each contract specifies the land use modality, duration, monitoring obligations, and payment schedule. Contracts typically last five to ten years, depending on the activity.
Payment levels
The payment amount varies by land use type and priority zone. Although exact annual rates are updated periodically, historical data show payments around US$35 to $40 but can go up to $64 per hectare per year for forest conservation (with higher rates for reforestation or agroforestry systems). FONAFIFO also issues carbon compensation units (UCCs), each equivalent to one tonne of CO₂, currently valued at US$7.50 per tonne in the domestic market (FONAFIFO FAQ).
Eligibility
The PSA is open to:
- Owners or possessors of private property or land in possession under Law 8640.
- Individuals, companies, cooperatives, and indigenous territories.
- Lands meeting technical and legal requirements verified by FONAFIFO.
Applicants must ensure their property is suitable for one of the program’s approved land-use modalities and located in an eligible area.
Application link
Landowners can apply directly through FONAFIFO’s official website here:
This page provides the official forms, requirements, and contact information for regional offices that process applications.
Practical steps for applying
1. Check eligibility
Confirm that your land qualifies under one of the PSA modalities (forest protection, reforestation, or agroforestry) and that it is not under conflicting land-use contracts.
2. Gather required documents
Prepare proof of land ownership or possession, cadastral maps, property registration, and your identification.
3. Contact FONAFIFO or an accredited forestry professional (regente forestal)
Regional offices and accredited professionals assist with technical evaluations and application submissions.
4. Submit your application
Complete the PSA application form (Solicitud de Ingreso PSA) available on the FONAFIFO website. Include required documentation and specify the activity and area to be enrolled.
5. Technical and legal review
FONAFIFO evaluates your property’s eligibility and environmental potential. If approved, a contract is drafted specifying payments, obligations, and duration.
6. Sign the contract
The applicant signs a formal agreement with FONAFIFO. For the duration of the contract, land use must remain consistent with the approved modality.
7. Receive payments
Payments are disbursed according to the schedule defined in the contract (usually annually).
8. Monitoring and compliance
FONAFIFO conducts periodic monitoring using field inspections and remote sensing. Failure to comply with obligations may lead to contract termination or repayment of funds.
Sources: