The recognition of commercial agricultural investment led to the expansion of large-scale farms through eviction of farmers during the Derg and Ethiopian People Revolutionary Democratic Front (EPRDF) regimes. But anti-dispossession voices and investment driven violence have frequently occurred in post-Derg Ethiopia. This study thus attempts to uncover the political-economy of land acquisition and privatization of Birr and Ayehu farms. The necessary data for the study were collected through interview, questionnaire, focused group discussion and document review. The data collected through questionnaire was analyzed using descriptive statistics and the qualitative data was analyzed thematically. The findings of the study indicated that the farms were began during the Derg regime as public enterprises, and later privatized to Ethio-Agri-CEFT in a neo-patrimonial modality with a gigantic trend of land acquisition, legal distortion and violation of landholding rights. This poor and neo-patrimonial operation of farms jeopardized local livelihoods, created land use change and evoked stiff public grievance, political upheaval and polarized state–society relations. This indicated that the expansion of farms have brought lopsided development to party affiliated investors by dismantling local livelihoods. Ethio Agri-CEFT thus should respect legal frameworks and adopt inclusive developmental practices for its sustainability and success.
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