Cultivated and settlement areas were studied in a small area (14 km2) inSouth Wollo, Ethiopia, by aerial photos, satellite images, field observationsand interviews. Areas for cultivation/rural settlement decreased afew per cent between 1958 and 2013. Cultivated land per householdslowly decreased in 1958–2003 but in 2003–2013 the annual decreasewas 3–4 times higher. New farm buildings are often built on cultivatedland, and abandoned buildings areas return to cultivation. Rainwaterharvesting ponds have increased the areas with perennial crops thatare important as a source of income. Tin roofed buildings are signs ofimproved livelihood. Very small farm size and rain-dependent agriculturecombined with climate variability make food security vulnerable. Landuseinventories including remote sensing and local knowledge would bea valuable approach to assess livelihood needs. Further, it should involvedecision makers at different levels, but local agricultural extension officersmay play a central role.