1) Agricultural productivity in Ethiopia has grown steadily in recent years, driven mainly by expansion of cultivated area and increases in traditional inputs like labor and livestock. However, growth in use of modern inputs like fertilizer and improved seeds has been slower. 2) Analysis of national and household-level data show total factor productivity has increased, but at varying rates. TFP growth was 3.7% based on national data but declined 2.6% based on household data. 3) There remains significant potential to further increase efficiency and TFP through greater use of modern inputs and improved agricultural practices. However, challenges remain around adoption rates, input availability and affordability.