Agroforestry on small irrigated farms may represent opportunities for solving Pakistan's wood supply problems. However, in order for such practices to be adopted small farms must realize economic benefits. An approach to determining economic benefits is illustrated in an application to a typical small irrigated farm in Punjab. The analysis first finds the most economically efficient single crop and joint poplar-wheat production possibilities then analyzes these possibilities under typical farm constraints and requirements. In the case study, the result show that applying agroforestry practices can increase overall farm production and income. Applying the economic analyses approach discussed here coupled with sound policy and extension activities should help promote the acceptance of agroforestry.