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In the past decade, to improve crop production and productivity, Ethiopia has embarked on an ambitious irrigation farming expansion program and has introduced new large- and small-scale irrigation initiatives. However, in Ethiopia, poverty remains a challenge, and crop productivity per unit area of land is very low. Literature on the technical efficiency (TE) of large-scale and small-scale irrigation user farmers as compared to the non-user farmers in Ethiopia is also limited. Investigating smallholder farmers’ technical efficiency (TE) level and its principal determinants is very important to increase crop production and productivity and to improve smallholder farmers’ livelihood and food security. Using 1026 household-level cross-section data, this study adopts a technology flexible stochastic frontier approach to examine agricultural TE of large-scale irrigation users, small-scale irrigation users and non-user farmers in Ethiopia. The results indicate that, due to poor extension services and old-style agronomic practices, the mean TE of farmers is very low (44.33%), implying that there is a wider room for increasing crop production in the study areas through increasing the TE of smallholder farmers without additional investment in novel agricultural technologies. Results also show that large-scale irrigation user farmers (21.05%) are less technically efficient than small-scale irrigation user farmers (60.29%). However, improving irrigation infrastructure shifts the frontier up and has a positive impact on smallholder farmers’ output.

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In Ethiopia, urban expansion happens at high rates and results in land expropriations often at the cost of agriculture and forests. The process of urban expansion does not include assessment of ecosystem services (ES). This has been causing unintended environmental problems. This study aims to uncover ES of three most important land use types (cropland, agroforestry, and grassland) that are threatened by land expropriation for urban expansion in Bahir Dar City. The study applied a participatory approach using community perception and expert judgments (N = 108). Respondents were asked to locate their perceptions on the use of 35 different ES, and then to evaluate the potential of the land use. Respondents were shown to have the ability to differentiate between ES and land use in terms of their potential to deliver ES. The results show that agroforestry is expected to have a high relevant potential to deliver 31% of all ES, but cropland 20% and grassland 14%. Food, fodder, timber, firewood, fresh water, energy, compost, climate regulation, erosion prevention, and water purification and treatment were identified as the ten most important services. It is not only the provisioning services that are being supplied by the land use types which are expropriated for urbanization, but also regulating, supporting and cultural services. To ensure sustainable urban land development, we suggest the consideration of the use of ES and the potential of the land use to supply ES when making land use decisions, including land expropriation for urban expansion.