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This study assessed changes in forest cover in a mountain watershed in central Nepal between 1976 and 2000 by comparing classified satellite images coupled by GIS analyses, and examined the association of forest change with major physiographic, economic, and local forest governance parameters. The results showed an increase in forested area (forest plus shrublands) by 7.6% during 1976-2000. Forest dynamism (changes including improvement, deterioration, gain, and loss) was highest in low-elevation, south-facing and less-steep slopes that were closer to roads. Proportionately the highest net improvement and gain to forested area also took place in those locations. Forest degradation occurred at twice the rate of improvement in high elevation areas (> 2300 m). Forests located in urban and semiurban areas (i.e., a market-oriented economy) experienced a proportionately higher amount of net improvement and gain than forests in rural areas (i.e., a subsistence economy). Among the three governance arrangements, proportionately the highest net improvement and gain took place in semigovernment forests (forested area legally under the forest department but with de facto control and claim of ownership by local communities and/or municipality) followed by formalized community forests (including leasehold). Government forests, which were mostly found in the southern high mountains and had virtually open access, remained relatively stable during the study period. Over 50% of the watershed forests have not come under community-based management despite favorable policy and more than two decades of government intervention with continuous donor support. The findings indicate that the present "one size fits all" approach of community forest handover policy in Nepal needs rethinking to accommodate biophysical and socioeconomic variations across the country.

Risk is an inherent part of agricultural production, so farmers often use management strategies to reduce the adverse impacts associated with their activities. Although the use of multiple risk management strategies is common practice in farming, literature on the simultaneous adoption of multiple risk management tools is limited. This study was designed to investigate the impact of various factors on farmers' decisions to adopt on-farm and off-farm diversification and the potential for simultaneous adoption using bivariate and multinomial probit models. The results suggest that the decisions to adopt both on-farm and off-farm diversification are correlated, and adopting one risk management strategy may make it more likely that the other will be adopted simultaneously. Moreover, farm and farm household characteristics, farmers' risk perceptions and their risk attitudes are important factors that shape their risk management adoption decisions.