The hill farmers of Nepal are often portrayed as having been responsible for perpetrating the large-scale deforestation of their mountain home. In this study, a comparison was made of the tree cover on upland cultivated terraces (bari) in 1964 (using air photographs) and in 1988 (using on-ground survey) along a transect across two hill districts in central Nepal. Fifteen plots were identified and vegetation cover was estimated at each of four sites along the transect. The results indicate a two- to three-fold increase in tree cover on these terraces in the 24-year period. The hill farmers are actively involved in a private forestation programme which is largely independent of government activities, and has yet to be acknowledged by the government and by aid agencies involved in forestry development. We estimate that the farmers have increased the number of trees on their bari land in the two districts under study by up to 13 million during the 24-year period (equivalent to a forest area of about 6,500 ha). In addition, substantial increases in tree cover occurred on the non-cultivated patches included within the private farm lands. Precise estimates were not made of these increases but they could be as high as 17 million trees over the same period (equivalent to a forest area of 8,500 ha). The implications for planning the extension component of forestry development projects are discussed.