Ethiopian agriculture is characterized by low productivity which has contributed to the persistence of food insecurity and poverty in the country. Reports indicate that several yield-increasing technologies are available but have not yet been adequately utilized. This chapter assesses the potential impact of yield-increasing crop technologies on productivity and poverty based on the data collected from two districts in Ethiopia. We focus on the use of improved seeds, together with appropriate agronomic packages such as chemical fertilizers and row planting technique. Results suggest that the resulting monetary gains would be enough to lift the “better-off” poor households out of poverty, but they would not be enough to lift up the ultra-poor out of poverty, implying that other livelihood strategies are desirable for improving the well-being of the latter.