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This book is about a problem that matters 85 percent of the Ethiopian population that not only derive means of livelihood from subsistent agriculture but also account for 89.8 percent of the total poverty. It attempts to look at the rural poverty situation by setting both absolute and food poverty line and computing the poverty head count index (P0), poverty gap index (P1) and poverty severity index (P2). The other core area the book managed to cover is the underlying causes of rural poverty. It investigated the role of fifteen independent variables in terms of determining the probability of the units of analysis (households) to escape rural poverty. By and large, the book is beyond doubt important for researchers and development practitioners operating in the developing world in general and those of Least Developed Countries (LDCs) in particular.