In this article we illustrate how fine-grained longitudinal analyses of land holding and land use among forest peasant households in an Amazonian village can enrich our understanding of the poverty/ land cover nexus. We examine the dynamic links in shifting cultivation systems among asset poverty, land use, and land cover in a community where poverty is persistent and primary forests have been replaced over time-with community enclosure-by secondary forests (i.e., fallows), orchards, and crop land. Land cover change is assessed using aerial photographs/satellite imagery from 1965 to 2007. Household and plot level data are used to track land holding, portfolios, and use as well as land cover over the past 30 y, with particular attention to forest status (type and age). Our analyses find evidence for two important types of "land-use" poverty traps-a "subsistence crop" trap and a "short fallow" trap-and indicate that the initial conditions of land holding by forest peasants have long-term effects on future forest cover and household welfare. These findings suggest a new mechanism driving poverty traps: insufficient initial land holdings induce land use patterns that trap households in low agricultural productivity. Path dependency in the evolution of household land portfolios and land use strategies strongly influences not only the wellbeing of forest people but also the dynamics of tropical deforestation and secondary forest regrowth.poverty dynamics | land use and land cover change | path dependency | agroforestry | Peruvian Amazon A central problem in the drive for sustainability is how human welfare and land use are related to one another and influence prospects for growth without jeopardizing Earth's life support systems. Although recent research has advanced significantly our understanding of poverty dynamics and of land use/cover change, such work has proceeded essentially on separate scientific fronts and has yet to be united under the umbrella of sustainability science.The work of economists points to the existence of persistent poverty traps, whereby households, communities, regions, and even countries are caught in self-reinforcing economic equilibria that perpetuate low standards of living (1-5). In peasant farming and pastoral communities, researchers using rich microlevel panel data find that households can face dynamic asset poverty traps, unable to accumulate sufficient land and equipment (or livestock), for example, to adopt more productive agricultural systems and thereby move out of poverty (6-9). Such poverty traps reflect significant path dependency in asset accumulation, i.e., initial conditions of asset holding matter much for households' future welfare. Although the crucial roles of land holdings for peasant farmers have been emphasized and extensively studied (10, 11), the notion of "land-size" poverty traps-whereby small initial land holdings limit future prospects for peasant farmersremain little studied empirically. Moreover, the potentially important role of different land types and lan...