Large scale agriculture uses agricultural machinery to mechanize the practices of agriculture. It isrnone of the leading causes for the loss of forest and wildlife in many countries including ourrncountry, Ethiopia. Information on forest cover change that occurred from 1986 to 2006 in Digarndistrict( Woyessa Dimtu, Bekiltu Gudina and Melka Beti Jirma kebeles) was compared with thernpresent time using Geographic information system (GIS). The objective of this study was torninvestigate the impact of large scale agriculture on forest cover change by using the satellite imagernof the study area and other data collecting methods such as household’s interview, KI, FGD andrnobservation (survey) to detect its effect on wildlife. The study employed both qualitative andrnquantitative data as well as primary and secondary data sources to collect necessary information.rnThe information providers were purposively selected from sample ‘kebeles’ based on their agernand experiences, that is, to get a detail and accurate information elders and experts who have livedrnin the area for many years and who know more how and when the Hanger- Didessa state farm hadrnestablished were selected. The state farm covered a large area, that is, about four districts such asrnSasiga, Diga, Arjo and Guto Gida. For this study Diga was selected because of its socio economicrncharacteristics, deforested (degraded) area, local loss of larger mammals and forest cover changesrnobserved in the district. Descriptive research method was used to assess community’s knowledge,rnperception, skill and feeling about the impact of LSA on forest and wildlife in the area. Land coverrnchange analysis for 1986 to 2006 showed that the land cover of the study area is classified asrngrazing, wood, agricultural, settlement and degraded lands. The result of the analysis showed thatrnagriculture, settlement and degraded lands increased from 19.68% to 32.72%, 12.12% to 26.85%rnand 2.76% to 4.72% respectively in an expense of decrease in grass (grazing) and woodlands.rnTherefore, LSA is the major cause for the loss of forest and wildlife in the study area.rnKey words/phrases: Large Scale Agriculture, Didessa State Farm, Forest, Wildlife,rnDeforestation and Monoculture.