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A Comparative Financial Analysis of Eucalyptus Globulus, and Annual Crops Production in Bassona Werna District, North Shewa Zone, Ethiopia

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dc.contributor.author Hailemariyam Fisseha
dc.date.accessioned 2026-07-08T05:50:56Z
dc.date.available 2026-07-08T05:50:56Z
dc.date.issued 2025-02
dc.identifier.uri http://ir.bdu.edu.et/handle/123456789/16936
dc.description.abstract This study investigates the financial profitability of two competing land use choices: Annual crops and Eucalyptus globulus production systems in the Bassona Werana district of the North Shewa zone, Amhara region. The Bassona Werana district is characterized by a dynamic interplay between crop cultivation and forest management, both of which are vital for supporting local livelihoods and ensuring environmental sustainability. The primary objective of this study is to assess the economic viability of these systems using both quantitative and qualitative methods. A mixed research methods approach was applied, first selecting the district purposively, followed by a multi-stage sampling technique. Finally, random sampling was used to select 188 households for household surveys, focus group discussions (FGDs), and key informant interviews (KIIs). The financial analysis, using Net Present Value (NPV) and Equal Annual Equivalent (EAE), reveals that Eucalyptus globulus is the most profitable system, with a total EAE of 376,356.10 ETB/ha/year followed by Annual crops (95,287.68 ETB/ha/year). Despite its lower profitability, Annual crops remain the largest contributor to household income, accounting for (49% ) of total average earnings followed by livestock production (33%) , Eucalyptus globulus (8%), Acacia decurrens (6%), and non-farm activities (4%). Sensitivity analysis indicates that Eucalyptus globulus is highly affected by interest rate changes, whereas Annual crops are more sensitive to production input prices. Econometric analysis identifies key factors influencing land use decisions, including pest and disease prevalence, total farm size, and extension services. This study highlights the need for policies that balance short-term and long-term financial gains, improve access to credit, and strengthen extension services to enhance farm profitability. en_US
dc.language.iso en en_US
dc.subject Agroforestry en_US
dc.title A Comparative Financial Analysis of Eucalyptus Globulus, and Annual Crops Production in Bassona Werna District, North Shewa Zone, Ethiopia en_US
dc.type Thesis en_US


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