Abstract
The interaction of agricultural land cover area between land use systems and level of household income was identified. The annual cropland area was significantly higher than the natural pastureland and perennial cropland. The difference in household income earned was not significant between the annual crop and livestock. Such a difference however is not surprising because smallholder land system is a dual asset, and farm components are interrelated to and interdependent upon each other. In one season directly and simultaneously, the diversified forms of agricultural land provide food and feed that reduce the direct allocation of land for grazing. Nonetheless, decisions made in the household on the land use allocation for farm enterprise is neither random nor optional but are through behavioural adaptation of the system in changing condition, emerging opportunity and its ability to maximize choice and utility in the household. The study set up was initiated from the characterization of smallholder mixed crop-livestock systems divided into different agro-ecological zones for land use in South-western Ethiopia. Agricultural productivity in a smallholder system is chiefly an aggregate effect of interaction between elements and component, specialization and diversity in a farming system mainly found in food production biomass base. Several challenges, however, limit various positive significant balance reflected in the food and non-food production biomass base, as well as non-farm activities. Key words: Agricultural productivity performance, agro-ecology, crop-livestock, draught animal power, soil distribution, system interaction.  
Highlights
Afterwards, decisions can be made to the smallholder and their natural environment (Notenbaert et al, 2009), for investments in agriculture to have a sustainable impact on food security and poverty reduction
Tittonell (2014) summarized that desirable shifts in farming systems can only be stimulated by working on both ends simultaneously to deal with the Matryoshka effect or with interactions that are presumably panarchical; the knowledge base for the ecological intensification of smallholder landscapes, policy and market developments can be approached through agroecology stratification; whereas thresholds in specific variables that may point to the existence of possible tipping points are rather elusive and largely site specific in East African agroecosystems.The objectives of this study are : (1) To estimate land use land cover of smallholder enterprise at farm level as well as the level of communal biomass share in the household
Teff, wheat and groundnut/peanut were significantly higher in agricultural land area than the others, but test statistics was not significant (χ2=6.18, p=0.10, df=3, n=25) for land use between the major dominant annual crops
Summary
Crop-livestock systems coexist and are managed together in many different production systems in similar environment, as this combination can provide a useful scheme for the description and analysis. The smallholder farm plot provides subsistence but income for family, obtained from the land organized in a dual system. Smallholder farmer is, a result of the precarious nature of peasant agricultural production and is modelled by forces, which constrain and strengthen their position within the family. They attempt to increase food production and improve farm efficiency by selecting farm enterprises, flexible in the land use efficiency over seasons and relative turnover in ecology, marketing condition, competence, price, and labour requirement. A means of system interaction, output delivery, and mechanization as well as joint production socially for land, labour, seed, and oxen between the wealth groups have enhanced their ability and capability
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