The profitabilities of three land use systems in the humid zone of sou
thwest Nigeria are compared using a capital budgeting procedure combin
ing on-station and on-farm experimental data. The systems are: non-all
ey farming with fallow; alley farming with fallow; and continuous alle
y farming. The results indicate that: continuous alley cropping is mor
e profitable than non-alley or alley cropping with fallow; short fallo
wing in alley cropping reduces the rate of mining soil fertility and t
hus helps preserve future productivity; alley farming with small rumin
ants enhances the profitability of alley systems and increases their a
dvantage over the non-alley system; and alley systems remain profitabl
e even when terminal clearing costs are internalized in the current pr
oject cycle.