Analyzing the level of agricultural resources allocation efficiency has a vital role towards farm income improvement. Hence, this book elucidates the study undertaken towards the analysis of existing farming systems and level of agricultural resources allocation efficiency among indigenous and settler farmers in Assosa district. Four FAs were selected randomly from each farming systems and totally 174 HHs were sampled using systematic random method. Linear Programming model was devised to examine the existing and optimal allocation ofagricultural resources. Then the optimal plan can improve the gross margin of settlers by 113% and that of the indigenous by 56%. Moreover, the optimum plan of settlers'' land is 1.88 ha for cereals, 0.29 ha for pulses, 0.14 ha for vegetables while for the indigenous; reallocating helps to put 1.88 ha for cereals, 0.57 ha for pulses, 0.25 ha for vegetables and 0.31 ha for perennials. As a result, reallocating the available land to crops such as maize, sorghum and haricot bean by the settlers and to teff, sorghum, haricot bean and onion by the indigenous farmers improves the GM.