This paper anticipated some of the factors leading to the boom-and-bust cycle in small-scale eucalyptus plantations in India. In Western Uttar Pradesh land owners growing eucalyptus as a cash crop tended to have larger land holdings of higher agricultural potential, more agricultural assets, higher caste status and greater dependence on non-cash incomes than those who chose not to grow eucalyptus. These differences were explained by the long-term investments in land, labour and capital needed for eucalyptus production, which were more affordable for those with surplus incomes and good credit status. However, even among these farmers, eucalyptus production appeared to be already on the decline, probably