The study examines production efficiency of farmers under National Fadama-II Project in Oyo State Nigeria. Primary data were collected from two hundred and sixty-four farmers using multistage sampling technique. The analytical framework used for the study include: descriptive, infrastructure index, gross margin and stochastic frontier production function. Average infrastructural index in the area was 0.42. The gross margin for IDV was ₦445, 968.30 while for IUV for under-developed in Fadama villages is ₦357, 805.00. Gross margin was higher for Fadama II farmers than non Fadama-II farmers in IDV. The mean technical efficiency was 0.69 and 0.59 for Fadama and non-Fadama farmers respectively. The result showed that technical inefficiency of female Fadama-II farmers reduced by 0.19% while that of non-Fadama II farmers by 1.23%. Similarly, extension contact, marital status and infrastructural status reduced technical inefficiency of Fadama-II farmers by 2.8%, 0.3% and 2.6% respectively. Presence of infrastructure of Fadama-II project has imparted on efficiency of resource use among the beneficiary. There is therefore need to improve on Community Driven Development programme like Fadama-II and on coming Fadama-III project or any developmental project, so as to further impart more technical and economic knowledge to farmers.