Land acquisition for large-scale commercial agriculture has become a significant concern in many countries, particularly as pressure on natural resources intensifies. Since the 1990s, the liberalization of public policies has facilitated agricultural investment through land acquisition. In Ethiopia, land dispossession for commercial farms began during the imperial regime and continued under the Derg and EPRDF regimes. While some argue that this expansion benefits development and food security, others contend it leads to the devastation of local communities. This study focuses on Birr and Ayehu farms in Amhara Region, areas of significant political grievance and turmoil due to their privatization and governance issues. Existing research has not adequately investigated these specific farms, focusing instead on larger-scale studies or different case studies. This research aims to address the politics of land acquisition, the privatization process, and the impact on local livelihoods, giving voice to the dispossessed farmers.

The introduction cites several studies related to land acquisition and its impacts in Ethiopia and other countries. These studies highlight the debates surrounding the positive and negative consequences of large-scale land acquisitions for commercial agriculture, focusing on issues of food security, livelihoods, and equitable development. Araya (2013) conducted a desktop study on the effects of large-scale agricultural investment on smallholder farming, while Rahmato (2011) examined large-scale land transfers. Alamineh and Eneyew (2021) studied agricultural investment in the Amhara region, focusing on flower farms. Addisu (2016) investigated large-scale agricultural investment and its impact on local communities in Gura-Ferda district. However, these studies lacked the localized, detailed perspective offered by this case study.

This study employed a mixed methods approach, combining quantitative and qualitative data collection and analysis. The study area comprised Jabi Tehnan and Ayehu Guagusa districts, selected purposively. A simple random sample of 150 households was selected for a survey, collecting data on landholdings, impacts on livelihoods (cattle, sheep, goats, honey, agricultural production), and state-society relations. Qualitative data was gathered through interviews with 24 key informants (local communities, government officials, and scholars) and four focused group discussions. Quantitative data was analyzed using descriptive statistics, while qualitative data was analyzed thematically. Both datasets were integrated to produce a comprehensive analysis.

The study revealed that Birr and Ayehu farms began as state-owned enterprises under the Derg regime, dispossessing local farmers without compensation. Following the fall of the Derg, the EPRDF regime privatized the farms to Ethio-Agri-CEFT in 2000, a process shrouded in secrecy and lacking transparency. The farms' expansion continued after privatization, leading to further land dispossession and a significant decline in the livelihoods of surrounding communities. The survey data showed that almost all respondents agreed that the farms were initially state-owned and expanded through eviction. The farms’ expansion led to a significant reduction in farmland size for local households (average decreased from 3.69 ha to 0.55 ha over 15 years), causing food insecurity and a decline in livestock production (cattle, sheep, goats, and honey). The privatization process was characterized by neo-patrimonialism, with close ties between the ruling party and investors, leading to accusations of corruption and lack of accountability. This situation exacerbated state-society relations, culminating in violent conflicts and protests.

The findings demonstrate how neo-liberal policies, coupled with weak governance and neo-patrimonial practices, resulted in significant negative consequences for local communities. The lack of transparency and accountability in the privatization process, coupled with the aggressive expansion of the farms, undermined the livelihoods and rights of local farmers. The violent conflicts that ensued highlight the dangers of exclusionary development practices and the importance of inclusive and participatory approaches to land management. The study's findings support the arguments of scholars who criticize the negative impacts of large-scale land acquisitions on local communities.

This study highlights the devastating consequences of opaque land acquisition and privatization processes in Ethiopia. The case of Birr and Ayehu farms illustrates how neo-patrimonial practices and a lack of transparency can lead to social unrest and conflict. Ethio-Agri-CEFT should adhere to legal frameworks and incorporate inclusive development practices to ensure sustainability. Future research could investigate similar cases in other regions of Ethiopia or explore the broader implications of land governance reforms on equitable development.

The study's findings are based on data collected from a specific region and may not be generalizable to other contexts. The reliance on self-reported data from survey respondents could introduce potential biases. Furthermore, the study's timeframe may not capture the full long-term impacts of the farms’ operations.