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Managerial practices for farming-system intensification have received increased focus in research-and-development (R&D) initiatives. These technologies are proven to close the yield gaps in researcher-managed field trials and are recommended for farmer’s adoption. However, not all farmers have the technical, financial, and social capital to adopt and benefit from these recommended technologies. Is the current level of productivity enhancement achieved by smallholder system intensification sufficient to sustain rural livelihoods? To this end, the study assessed the impacts of hybrid maize (Zea mays L.) adoption on productivity and livelihoods in the mid-hill region of Nepal. Smallholders in the study region face severe shortages of labor, improved cultivars, and inorganic fertilizers, resulting in very low yields and profitability. We find that maize hybrid adoption increased crop productivity by 109%, making the crop profitable for smallholders and enhancing the per capita food expenditure by 20%. Nevertheless, these benefits were unevenly distributed: relatively small farms (≤0.3 ha) achieved greater gains in productivity and livelihood per land unit from hybrid maize adoption, but only larger farms (>0.3 ha) enjoyed the aggregate livelihood benefits of the technology. System intensification gains economic relevance because of the severe scarcity of resources, whereas the resource scarcity itself determines the economic relevance of system intensification, presenting a paradox. Increasing market access to material inputs did not significantly alter the observed patterns. More studies are required on the relationship between farm size and the livelihood impacts of sustainable intensification to facilitate R&D targeting and ensure inclusive development.

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