This thesis deals with the perceptions of agroforestry among farmers in Babati, north- central Tanzania. The focus is on which resources farmers perceive that they need to adopt agroforestry and which risks that are connected with agroforestry adoption. It is also to see how farmers perceive that the access to resources changes after agroforestry adoption and how their livelihoods change. The data has been collected through qualitative interviews with agroforestry farmers, conventional farmers and extension officers. After that the data has been analyzed through the sustainable livelihood approach and a risk perception theory. The results show that some of the obstacles or risks that farmers perceive with agroforestry adoption are high input costs, dependency on short-term benefits, competition between trees and crops and lack of education from extension services. Without financial capital and human capital in terms of knowledge there might be too many risks connected with adoption. If agroforestry however is adopted the farmers perceive that the access to firewood, timber and fruits increase which increase their incomes and therefore financial capital. They also perceive that the fruits improve food security and that the timber improves the housing. The firewood is also perceived to improve the situation for women as they do not have to walk as far to collect the firewood. Agroforestry is also perceived to provide environmental services like erosion prevention and increased soil fertility, therefore it increases natural capital. Some trees can also be used as natural pesticides. The increased soil fertility or the access to natural pesticides, however does not seem to affect the use of industrial fertilizers or pesticides. Agroforestry is also not perceived to have any effects on biodiversity or water quality. Even if agroforestry may not be a good choice for all farmers, it can for some farmers increase their ability to cope with stress and shocks like future climate change. This is because the agroforestry system can work as a buffer against increased climatic variability.