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This study investigates farmers' preferences and willingness to pay for cropland attributes in Bahir Dar, northwest Ethiopia. A choice experiment is used to elicit farmers' preferences between different land use attributes, including a monetary attribute. The study was conducted in the croplands that are threatened by land expropriation for urban expansion. A survey was undertaken with 144 farmers in four rural kebeles surrounding the city (Addis Alem, Weramit, Wereb and Zenzelima). In the survey, respondents were provided with hypothetical land purchasing decisions, with three alternatives (i.e., two hypothetical parcels and an opt-out option). A choice experiment was undertaken to measure farmers' interest in different types of croplands, which varies with respect to irrigability, number of trees per ha, soil erosion resistance and water holding capacity of the cropland. Estimation of two mixed logit models was carried out. The estimation results show that, although the farmers did not show strong preferences for each attribute of the cropland, many farmers in the area showed interest in the proposed alternative croplands. Farmers show more interest for the land that is irrigable, gentle slope and with medium water holding capacity. The results also indicate that farmers assign highest marginal willingness to pay (MWTP) (79.01 ETB per square meter) for irrigated land, followed by medium water holding capacity with MWTP of 52.13 ETB per square meter. We believe that the results of this study would help land use policy and decision makers in the study area to consider the various attributes of cropland in land use planning, including land expropriation programs, which assures the sustainability of ecosystem services. • We use discrete choice experiments to elicit farmers land use preferences. • We examine the effect of land use attributes on farmers' preferences. • We find farmers to have different land use preferences. • We estimated the marginal willingness to pay for land use attributes. • We find the highest marginal willingness to pay for irrigability. [ABSTRACT FROM AUTHOR]

• Between 2007/08 and 2016/17 Bahir Dar city has expropriated 1500 ha of land. • The government is not compensating the market value of the lost property. • The farmers received on average 37 per cent of the market value of their property. • The rate of compensation does not depend on the type of land use changes. • The land expropriations do not give enough money to restore the farmers livelihoods. In Ethiopia, the demand for land for urbanisation is primarily met by converting rural land through expropriation. However, land expropriations are adversely affecting the previous land users by reducing the amount of production and their sources of income. In Bahir Dar, one of the fastest-growing cities in Ethiopia, approximately 300 landholdings are expropriated each year, on average, for urban expansion. This paper assesses the land expropriations to examine whether they offer economically appropriate compensation for the previous land users. Land expropriations for urbanisation between 2007/2008 and 2016/2017 were analysed based on data on land expropriation and its compensation payment obtained from the Bahir Dar City Land Administration and Management Office. Data were analysed using an exponential growth model and a stochastic budgeting technique in which Monte Carlo simulations are performed. Between 2007/2008 and 2016/2017, more than 1500 ha of land were included in the city's boundary through expropriation from 2900 landholders. The affected farmers received compensation that represents only 37 per cent of the value of current crop yields and its growth. The current compensation scheme ignores the impact of inflation on the prices of crops and assumes constant yields. It also excludes the value of crop residuals. We propose a workable discounted compensation framework that considers crop price and yield growths. This will make the compensation scheme more appropriate and make the affected farmers better off. [ABSTRACT FROM AUTHOR]

This paper analyzes the impact of urban land-use changes on farmers' livelihood around the city of Bahir Dar (Ethiopia). Rapid urban expansion in and around the city has resulted in massive land-use changes in its urban fringes, with land expropriation programs affecting communities' livelihood and the environment. A survey was conducted in three urbanizing villages near Bahir Dar, focusing on 150 farmers who were land-expropriated and 180 farmers who were non-land-expropriated. Regression models and propensity matching scoring are applied to examine the livelihood differences of farmers in terms of farm income, off-farm income, primary expenditure type, and perception of urban expansion benefits to farmers. The results reveal that land expropriation in the area has led to (a) a shift to off-farm income for land expropriated farmers; (b) an increase in their household expenditure on staple foods compared to other expenditure types, including farm inputs; and (c) diverging perceptions on whether and how city expansion benefits farmers in the neighboring villages. Our findings provide insight into the need for tighter and impactful policy actions to ensure the sustainability of urbanization through accommodating expropriated farmers' livelihood changes and protecting natural resources in the area. • Most land-use changes in the area have had a substantial impact on the livelihood of neighboring communities. • Land expropriated farmers are shifting their main income earning source towards off-farm activities due to the expropriation. • Non-expropriated farmers are likely incurring much farm input cost as the expropriated farmers are for consumable foods. • Farmers are likely to be more dissatisfied with expropriation programs after experiencing them personally. [ABSTRACT FROM AUTHOR]

• A causal link exists among irrigation water, the use of modern farm inputs, and crop revenue. • Irrigation water positively affects both crop revenue and the use of modern farm inputs. • Dam-driven irrigation water has both direct and indirect effects on crop revenue. • Around 27 percent of the total effects of availability of dam-driven irrigation water on crop revenue is indirect. • Indirect effect of irrigation water on crop revenue is mediated by the use of modern farm inputs. Development of a clear understanding of the relationship between the availability of dam-driven irrigation water and crop revenue is important in poverty reduction and food security process. As a result, large research efforts are devoted to understanding the relationship between the availability of irrigation water and crop revenue. However, earlier studies do have several limitations. For example, without considering its indirect effect, prior studies focused solely on the direct effect of availability of irrigation water on crop revue. In this study, using a structural equation model analysis, the direct and indirect effect of availability of dam-driven irrigation water on crop revenue is decomposed and quantified specifically for the Koga irrigation scheme, located in the Mecha district of Amhara region in Ethiopia. A primary data set was collected from a randomly selected sample of 450 households in the Koga irrigation scheme. More than half of the households (254) are supported by the Koga Dam irrigation water during the dry season, and the other 196 households depended only on rainfall. The results of the study showed that, in addition to its direct effect, the availability of irrigation water indirectly affected crop revenue through receptivity of the farmers to use modern farm inputs. Around 27 percent of the total effect of dam-driven irrigation water on crop revenue was mediated by farmers' receptivity to use yield-enhancing modern farm inputs. The results of this study suggested that the availability of irrigation water is essential to improve both crop revenue and receptivity of the farmers to use modern farm inputs. This finding also drives a strategic framework that the receptivity of the farmers to use modern farm inputs is crucial for utilizing the positive effects of irrigation water availability on crop revenue. [ABSTRACT FROM AUTHOR]

• Irrigation water positively affects crop revenue, the type of crops produced and the preparedness and ability of the farmers to use improved farm inputs. • Farmers with access to irrigation water have a higher income, more livestock assets and resources and better food, housing, and cloths than the farmers without access to irrigation water. • Small-scale irrigation water has both direct and indirect effects on crop revenue and the indirect effect is higher than the direct effect. • The indirect effect of irrigation water on crop revenue is mediated by both the type of crops produced and the preparedness and ability of the farmers to use of improved farm inputs. • In Fogera small scale irrigation scheme, challenges related to agricultural output and input market were the most severe problems, followed by crop diseases. The relationship between irrigation water availability and crop revenue is multifaceted. However, most of the previous studies focused only on the direct effect of irrigation water on crop revenue or considered that the indirect effect passes only through the farmers' improved farm inputs usage. Nevertheless, unlike previous studies, this study argues that a one-sided argument that irrigation water directly causes high crop revenue or indirectly affects crop revenue only via the farmers' improved farm inputs usage is incomplete, as irrigation water not only directly contributes to crop revenue but also indirectly conduces to crop revenue via both the type of crops produced and the farmers' improved farm inputs usage. Considering the previous studies' limitations, this study investigates pathways how small-scale irrigation water affects crop revenue and identifies challenges of small-scale irrigation farming in Fogera district, Ethiopia. Results endorsed that irrigation water has both direct and indirect effects on crop revenue. The indirect effect is 67 percent of the total effect and it is mediated by both the type of crops produced and farmers' improved farm inputs usage. The result also indicated that irrigation user farmers have a higher income, more livestock assets and resources and better food, housing, and cloths than the non-users. Moreover, challenges related to agricultural output and input market were identified as the most severe problem followed by crop disease. The findings of our study suggest that to utilize the benefits of irrigation water properly, it is crucial to encourage farmers to use more improved farm inputs and to shift from staple to cash crop production. Moreover, farmers are frequently exposed to cheating by illegal brokers in the output market, therefore it is also important to increase farmers' accessibility to output and input markets, the quality of improved farm inputs, and the bargaining power of farmers with market information. [ABSTRACT FROM AUTHOR]