Conversion of tropical forests into agricultural lands is increasing at a rapid pace. Smallholders are responsible for most of the world’s agricultural production, and thus are important land-use decision-makers and land-use change actors. In agro-forest frontiers, land-use changes are dynamic and short-term, and highly influenced by different social-ecological factors. We employed the Photovoice methodology to assess how the perceptions of 20 smallholder families about what they most value in their daily lives, influence farm land-use decisions in two villages in southern Mexico. Results indicate that what farmers perceive as the most valued in their daily lives are the household (including family and food) and the farm. Similar perceptions sometimes result in similar farm land-use composition (land-use type and proportion) decisions (agriculture, reforestation), but sometimes not (pasture, forest). Positive and negative perceptions about oil palm highly influence whether this land-use is adopted or not. In contrast, positive perceptions about rubber do not always translate in this crop being planted. We conclude that perceptions play an important role in smallholder land-use decisions. However, perceptions are influenced and operate along other factors at multiple levels, including survival motivations, culture, economic considerations, markets, farm size, institutional programs, local ecological knowledge, ecosystem services, and risk assessment. We suggest that smallholder perceptions should be taken into account as part of the set of social-ecological factors driving land-use decisions. Involving farmers in the co-design of land-use policies, planning, and rural development initiatives that address their perceptions, values, and livelihood needs will improve the effectiveness of such policies.