In spite of the fact that the Ugandan National Agricultural Research System has developed and released several production-enhancing technologies over a century, yields of most major crops at the farm level have been low. Given that about 80 percent of Uganda’s labor force is employed in agriculture, the scope for sustainable poverty reduction in Uganda depends very much on improving
agricultural productivity. It is in this context, this paper examines why there has been poor adoption of production-enhancing technologies in the production of maize, which is a major crop in Uganda and what the impacts of the exiting production environment are on factor payments. This study reveals that farmers do not pay proper attention to soil fertility management, which acts as a major constraint to increase yields. The analysis also indicates the need for vibrant rental market for land to provide access to landless tenants who are found to be the economically efficient.