ABSTRAC In Ethiopia, land ownership belongs to the state. The Ethiopia government uses the constitution as a reference to decide on expropriation of landholding for public use. An early step in the process of providing such public use is the expropriation of appropriate land by expropriation & reallocation of urban fringe farmland through lease contract to meet the growing demand of farmland for urbanization, infrastructure development, and manufacturing. A less studied aspect in Ethiopia, in the region in general & in the study area in particular, is the status of displaced farmers’ perception on development induced farmland expropriation. The specific objectives of this study was determining farmers’ perception on development induced farmland expropriation; assessing farmers’ awareness on rural land expropriation & compensation laws, and assessing the status of displaced farmers’ perception on the development induced projects brought by farmland expropriation. In this research, both probability (systematic random sampling) and non-probability (purposive sampling) techniques were applied. Sources of secondary data included conceptual, empirical studies, perception theories analysis. Primary data sources included farmers who are displaced due to expropriation. In order to collect these data both qualitative and quantitative data collection techniques were used to collect primary sources using a questionnaire (from 72 development induced displaced farmers). Focus Group Discussion (FGD), key informant interviews (KIIs); and observation. Statistical methods such as frequency, mean, standard deviation, independent sample T-test/F test and Chi-squared test, and correlation analysis were used. The result indicates that none of the respondents felt happy with government’s plan of land expropriation; but they supported the establishment of development induced projects; and they do not know at all about the laws & regulations of land expropriation & compensation in Ethiopia in general & in Amhara Region in particular. Respondent farmers deeply felt bad that their farmland was expropriated without making them part of the project during decision making. Farmers must be considered as development actors in their respective places. Keywords: Farmers, Farmland, Development induced, Expropriation, Compensation, Perception, and Likert Scale.