THE POLITICAL ECONOMY OF AGRIBUSINESS FARMING SCHEMES: - IN ABE-DONGORO DISTRICT OF HORRO GUDURU WALLAGA ZONE, OROMIA, ETHIOPIA

Abstract Agribusiness farming is a fast-growing type of investment in Ethiopia. This study examined the economic and political impacts of Agribusiness farming on local livelihoods in ‘Abe-Dongoro’ district of Oromia National Regional State of Ethiopia. However, such investments have negative impacts particularly on the local communities. The data collection was done on basis of qualitative research method. Data collected through Observation, interviews, and key informant interview and focus group discussions. Besides, secondary data was also used from various sources to complement the primary data. The state agricultural farming project of the study area shows none consultation investment, unfair compensation and none participation procedures. The state unfair use of political power use in implementing land acquisition process influenced both the investors and peasant’s use of land. The effects of land grabbing by the investors restricted the accessibilities of land and natural resource use of peasants. The study found that the agribusiness project has no significant benefits to the local communities in terms of the socioeconomic and political benefits by the measures of food security, technological transfer, employment opportunity, crop production and local infrastructure development; even though, agricultural farming have a significant contribution in economic development. Moreover, the study identified the coping strategies pursued by local communities in response to the impacts of investments. Therefore, the state has to balance the interest local communities for recognition of the land and investors needs of land for agricultural investment. Finally the study examined coping strategies of local communities responds towards the agricultural investment by changing land use, sharecropping, tenant farming, changing occupation and migration.