ABSTRACT: This study was conducted in Bahi District in order to assess status of paddy farming and factors affecting its production among smallholder producers. Interview, observation, focus group discussion and documentary review were used to collect data from a sample of 120 respondents. Descriptive statistics were used to analyse farm size under paddy, types of paddy farming, paddy yields, tools and/or machineries and type of household labour used in paddy production. Whereas Pearson correlation analysis was used to depicts relationship between paddy yields and farm size used in paddy production, education and age of farmer. A Multiple linear regression was used to analyse factors affecting paddy production in study area. Findings revealed that most (87.7%) farmers depend on irrigation scheme while 13.3% practicing rain-fed paddy farming. Average land used for paddy production was 2.75 acres with an average production of 3631 Kg per acre. Oxen were used by majority (54.9%) of farmers as a main tool for cultivation while adults labour is commonly used (45.4%) in production processes. Extension services, use of pesticides, land and labour significantly (P<0.05) influenced paddy production. It was concluded that smallholder paddy producers do not utilize agricultural inputs effectively while extension services are insufficiently provided. Also failure of farmers to get ample land impairs paddy productivity. Since Bahi wet land depends heavily on River Bubu, it is recommended that catchment areas for that river should be well protected. In addition smallholder paddy producers should be emphasised to adopt modern production techniques while government should provide transport facilities to extension staff for efficient transfer of production technologies.