The national forest inventory (1999) indicated that there was an annual loss of 1.3 and 2.3% of forest from Terai and Hills (Nepal), respectively, over a 12-year period during 1978/79 to 1990/91. In addition, most of the best fodder species have become rare in the natural forest. Planting of fodder trees on farms is an important strategy to ensure a dependable supply of fodder to compensate the increasing demand. Considering the fact that fodder is an important element of the farming system and that farm owners raising livestock are those with the highest demand for fodder trees, it can be concluded that the future of fodder trees in Nepal is on-farm plantation.