ABSTRACT
The Arsi Administrative Region is situated south-west of Ethiopia's capital city, Addis Ababa. It covers 24,000 square kilometers and bas a population of 1.7 million. Peasant farmers comprise 90% of Arsi's population and cultivate an average of two hectares of land. The introduction of Swedish-funded integrated rural development projects has made a profound economic, social and political impact on Arsi farmers. The major crops grown in Arsi are wheat, barley, maize, sorghum, teff, beans and peas. Crop fanning is the single most important source of cash earnings for Arsi farmers - particularly wheat and barley. Peasant farmers generally keep a pair of oxen to plow, cows for milk, and a few sheep and goat for consumption. All cultivatable land in Ethiopia is managed under three types of production systems. These include smallholder farms, producer cooperatives and State Farms. The smallholder or peasant farming sector, is the dominant sector in Ethiopia's economy.
