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In Ethiopia, farmers’ adoption and continued use of introduced land management technologies have not been widespread to reduce soil erosion and soil fertility depletion to an acceptable level. An important set of factors in farmers’ use of improved agricultural technologies is generally known to be their possession of livelihood assets. This study examines the influence of ownership of livelihood assets in farmers’ decisions to use cattle manure as land improvement technology, which is currently being promoted by Ethiopia’s agricultural extension system. The study was conducted in Dangila woreda (district) in the north-western highlands of Ethiopia. Data were collected from a survey of 201 rural households from April to June 2011 and in October 2012. Logistic regression modelling and Chi-square and t-tests were used to analyse data. The findings show that plot distance from residence, number of livestock owned, use of dung for fuel, maize–vegetable–fruit intercropping, land to man ratio and perception of land tenure security were important determinants of manure use among the farmers. Existing and future local development interventions should focus on these factors to improve the farmers’ capability to invest in cattle manure application and sustainable land management.