Agriculture productivity in Malawi is very low and many farmers in the country have low education levels and they are in severe poverty. This study used a Generalized Cobb Douglas function on Integrated Household Data III (IHS3)to estimate elasticity of labour in agriculture and determine the effect of education on farm labour productivity. Results showedthat maize and tobacco outputs are not very responsive to changes in quantity of labour used. It was also found that education has a positive effect on farm labour productivity. In addition, secondary school education has the largest influence on farm labour productivity. The study recommends reforms in the primary school curriculum andcompulsory primary school education. Furthermore, educated young people like university graduates should be encouraged through loans to engage in agricultural production.