Agriculture extension services have been recognized as a complementary input for increasing
farm productivity. Nepal has developed wide network of agriculture extension service over the
last two decades. We examine the impact of agriculture extension service on farm productivity in
Nepalese agriculture using a switching regression model. Using a panel data set obtained from
the two waves of Nepal Living Standard Survey, we find that there is a significant difference in
the farm productivity between the farmers who receive the extensive service and those who do
not. Despite the benefits of agriculture extensive service, we identify underutilization of the
available services as one of the major problems of extension service in Nepal.