Agricultural land degradation in most developing countries has become a major constraint to future economic growth and development of rural livelihoods. Thus, improving the livelihood of smallholder farmers through the sustainable agricultural land management technologies can protect and improve long-term agricultural land productivity and habitats of all organisms including, human population. This study was aimed to assess farmers’ perception on agricultural land degradation and their investments in farm land management technologies and then it’s implication for developing sustainable farmland management in Wolmera District, Central Ethiopia. To achieve this open and close-ended questionnaire were employed for 105 household heads and FGD and in-depth interview with key informants were made. Data were analyzed in both qualitative and quantitative methods. The result indicates that about 99% of farmers perceived soil erosion and fertility decline as the major environmental problem in their cultivated land and its effect on water resources (95%), loss of crop production (100%) and result in increases the requirement of fertilizer (94%). Additionally, 80% of the respondents believed that land degradation can be controlled. Accordingly, crop rotation (100%), compost (20%) and animal manure (40%) were recognized as they maintain soil fertility. While, Contour plowing, Traditional ditches, Soil bund, Check dam, Cutoff drains and Water way which accounts 96, 98, 93, 60, 52 and 96 use respectively to prevented soil erosion Causes like deforestation, steep slope, over cultivations and population growth, poor agricultural activity and overgrazing were perceived by the most farmers as the main causes of agricultural land degradation. Therefore attention should be given for such factors, during preparation of promising agricultural land management plan that considers suitability and adaptability to local environmental conditions.