| dc.description.abstract | The financial analysis of competing land use practices is so important in land allocation decisions made by farmers, since land is a scarce resource. In this study, the financial viability of three competing land uses; coffee, maize and Eucalyptus, per acre in four year period was assessed, using Net Present Value and Benefit Cost Ratio. The factors that affect the choice of the land use practices were analyzed using a multinomial logistic regression. Household interviews and Key informant interviews were conducted using a structured questionnaire and a checklist as the data collection tools. Results revealed that coffee growing was the most profitable land use practice, followed by maize and finally Eucalyptus growing. Coffee had NPV of USD 644 and a BCR of 2.2, Maize growing had NPV of USD 292 and BCR of 1.4, whereas Eucalyptus growing had NPV of USD 134 with a BCR of 1.3. Out of the six factors used in the model, five were found significantly affecting the land use practices and these were; Input prices, Disease infestation, Seasonal variability, Land shortage and Soil fertility. Input prices highly affected coffee, Seasonal variability highly affected maize growing and Land shortage highly affected Eucalyptus growing. | en_US |
