In Ethiopia, rice is a recently introduced crop which is considered as the “Millennium crop” expected to hugely contribute food security. This paper seeks to measure the technical, allocative, and economic efficiency of rain-fed rice production and identify the factors that affect the efficiency of farmers in Fogera Districts of the Amhara Region. For the study, cross-sectional data were collected from a survey of 230 smallholder rice producers. The study used stochastic frontier production(SFA) and cost function to investigate the variations in the efficiency level of rice producers. The result indicated that the TE was higher as compared with the EE and AE. The average TE ranges between 24% and 93% with a mean of 70%. However, the mean of EE was 24.40 % and the AE 37.30%. Therefore, reduction of cost of production (such as improved input supply systems), warehouse facilities to keep produce and prevent the immediate sale of a product, introducing of a contract marketing system would improve the economic efficiency of the rice farming. Intervention on education and training on female-headed households, reducing family dependency, training of older farmers’ were vital to increase the EE of rice production.Similarly, improving the farmer’s education level to boost knowledge about new rice technology applications, and frequent training of farmers would enhance the TE of farmers in the study area.