In Ethiopia, integrating traditional smallholder agriculture into the exchange economy is considered important for stimulating growth, economic development, food security and poverty alleviation. In spite of the policy options provided by the government, the participation of the smallholder farmers in the market economy has not been realized in meaningful terms. The aforementioned scenario is much evident around those farmers living in relatively drought-risk-prone areas. The possible implication is that the farmers' livelihood is much more threatened by environment-related risk factors beyond economic reasons. There is little evidence on the position and characteristics of the risk-prone smallholder farmers and on what factors are influencing their behavior as expressed by their decision to participate and the level of their participation in market-oriented activities. Therefore, this book seeks to draw lessons and policy implications on the existing scenario and determinants of commercial orientation among the smallholder farmers in drought-prone areas of the Central Rift Valley of Ethiopia.