Farm forestry decision-making strategies of the Guraghe Households, Southern-Central Highlands of Ethiopia

In this study, farm forestry decision criteria were elicited by adopting a behavioral decision-making study approach from households in ten Peasant Associations of the study district. Major decision objectives, available alternatives, constraints, and the likelihood of the chance events were elicited through a questionnaire survey, participatory observation, detailed discussion, and review of archival information. It was found that farmers generally, plant various tree and shrub species for meeting various household needs and for generating cash incomes. The goal of cash generation is for sustenance of livelihoods through fulfillment of various basic obligations and overcoming unforeseen contingencies. The three most economically important tree/shrub species were eucalypts, coffee, and t?chat. Eucalypt wood covers nearly all the construction needs and constitutes a substantial part of the fuelwood consumptions. Coffee and t?chat are vital sources of cash income and makeup an important part of daily diets. Growing of eucalypts for cash income is mainly constrained by lack of access road, low farm gate prices, high competition with food crops for soil nutrients and moisture, and shortage of land and labor. The household uses and cash values of coffee are generally, undermined by high incidence of berry disease and lack of manure. Financial benefits of t?chat are weakened by high local tax rates. The logistic regression analysis confirms that agro-ecological zone, sex of household head, number of eucalypt trees owned, and age of household head represent important explanatory variables that explain farmers readiness to expand eucalypt woodlots. The model so constructed correctly predicted 84.1 % of the households that established additional eucalypt woodlots mainly for cash generation. The total number of eucalypt trees owned by households is significantly related to the attitude of the household head towards eucalypts, wealth status, and landholding size of the household. Financial viability of eucalypt woodlots was assessed through both methods of conventional economic calculations and Chayanovian calculations. Both methods confirmed the highly lucrative markets of eucalypt poles as compared to agricultural crop production. This is mainly because of lack of access to more profitable production techniques and low productivity of agricultural crops per unit area. Otherwise, farm gate prices of eucalypt poles are far from being attractive and outperforming that of agricultural crops