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Ethiopia’s inability to feed its population and thus its continued dependence on foreign donations of food to sustain millions of its citizens is a dilemma that triggers a broad economic and sociological debate. The problem of Ethiopian agriculture cannot be primarily explained by natural endowments. By any measure, Ethiopia is well endowed at least in part with a fertile soil, abundant water resources and good climatic conditions until recently. What needs careful analysis is why Ethiopian farmers continue to practice essentially the same farming methods with very little technical or management improvement for so long.