We assessed the impacts of crop raiding by wild mammals on the livelihoods of smallholding farmers in south-western Ethiopia. Data were generated through participatory field mapping, interviews and focus groups. The results indicated that wild mammals, mainly olive baboons Papio anubis and bush pigs Potamochoerus larvatus, were raiding most crops cultivated in villages close to forests. In addition to the loss of crops, farmers incurred indirect costs in having to guard and cultivate plots far from their residences, sometimes at the expense of their children's schooling. Raiding also undermined farmers’ willingness to invest in modern agricultural technologies. Various coping strategies, including guarding crops and adapting existing local institutions, were insufficient to reduce raiding and its indirect impacts on household economies to tolerable levels, and were undermined by existing policies and government institutions. It is essential to recognize wild mammal pests as a critical ecosystem disservice to farmers, and to identify ways to mitigate their direct and indirect costs, to facilitate local agricultural development and livelihood security, and integrate wildlife conservation and local development more fully in agriculture–forest mosaic landscapes.