The paper examines factors affecting the adoption of improved seeds and inorganic fertilizers,considering adoptions of both technologies as a joint decision. Bivariate probit models were appliedto control for plot level, socio-economic, and regional characteristics, and the test for joint decisionis consistent with the study’s assumptions. The results show significant effects on adoptiondecisions for farm technologies from four variables: the factor markets for credit and for labour,agricultural extension services, and soil quality. Proximity to road transport and access to marketsalso increase the adoption rate of improved seeds and inorganic fertilizers. Positive effects wereassociated with the increasing age and education of household heads. Adoption rates appear higherin male-headed than in female-headed households. The results from Tobit models were alsoconsistent with the bivariate probit. Well-functioning factor markets and well-developedinfrastructure emerge as the precondition for agricultural-led growth in Nepal