On-farm tree cultivation is considered an important strategy to mitigate
detrimental environmental impacts of agricultural land-use change (ALUC). In South
Africa, however, little is known about farm-level incentives and constraints that govern
ALUC decisions among small-scale farmers. To address this knowledge gap, this study
employs a mixed multinomial logit model by using a combination of revealed and stated
preference data. After correcting for endogeneity, the estimated results show that decisions
about ALUC are rationally derived and driven by clear but heterogeneous preferences and
trade-offs between crop productivity, food security and labour saving. The results further
show that the decision to plant sugarcane is constrained by landholding, whilst farmland
afforestation is negatively influenced by household size. Decisions to convert land use are
also driven by the behaviour of peer groups and agro-ecological conditions. Based on these
findings, important policy implications for sustainable land use are outlined.