Abstract:
Expansion o f Acacia decurrens plantation on the acidic highlands o f Awi -one. Ethiopia and its
economical benefit for the society was undertaken in Fagita-Lekoma district in 2014 15. Land use
change from cropland to Eucalyptus in mid altitude and Acacia decurrens in the high altitude areas
o f north western Amhara. Ethiopia has been increasing in alarming rates. Hence, the main objectives
o f the study were to assess major motives o f farmers behind the expansion o f Acacia decurrens
plantation at the expense of annual crop production and to evaluate the economic benefit o f Acacia
decurrens versus animal food crops production. A multi-stage purposive and random sampling
technique was employed to collect cross-sectional survey data from farmers, traders and experts at
four kebeles o f Fagita-Lekoma district o f Awi zone. Ethiopia. The study employed descriptive
statistics as well as Cost-Benefit Analysis (CBA). Benefit-Cost ratio (B/C). Net Present Value (NPV)
and Internal Rale o f Return (IRR) to compare annual crops and Acacia decurrens plantation. The
results of the study indicated that tef (35%). potato (22%). barley (15%) and wheat (I3%>) were the
most dominant crops grown by sample households. Acacia decurrens plantation was introduced as a
public forest plantation by Derg regime and expanded as private plantation for charcoal making
since 2009 and reached 4.0H3 hectares in 2014. Experts and traders were eye-openers for Acacia
decurrens plantation innovation for charcoal making purpose. High economic benefit, source oj
firewood and fencing, improving soil fertility and decreasing run-off. tolerance to natural hazards
compared to annual crops and sources o f employment were found to be the major motives behind the
expansion o f Acacia decurrens plantation while sharing of grazing land, requirement of high initial
capital and competition o f fertile land with annual crops were major problems. The result of the Cost-
Benefit Analysis indicated that farmers gain net profit o f 6.594 and 4.882 Eth. Birr from the
production of one hectare o f te f and bread wheat crops per annum, respectively. On the other hand,
farmers could gain a non-discounted net profit o f 62.854.5 Eth. Birr from the production o f one
hectare o f Acacia decurrens plantation after waiting 4 or 5 years. Crop production generates a net
present value o f 5.430.54 Birr/ha with Cost-Benefit ratio of f.09 while Acacia decurrens plantation
generates a net present value of26.682.6S with Cost-Benefit ratio of 1.53 and IRR o f 58%. Therefore,
farmers are fetching attractive economic benefit and conserving their soils from Acacia decurrens plantation. Hence, acacia plantation is a more attractive business than annual c rop production like
te f and wheat. Further study on the human health, soil properties and environmental aspects o f
Acacia decurrem plantation as well as marketing and value chain aspects is recommended.
