This paper analyzes the effect of education in improving farm productivity and the production response of conventional input in Nepal cereal production, by a case study of 200 farmers of Chitwan district. A model combining Mincerian earning function and Cobb-Douglas production function is developed to estimate the percentage increase in response to unit change in education and the values of production elasticity of conventional input in paddy rice and total cereals, respectively. A significant response to conventional input is found in total cereals, and in paddy rice except labor. The effect of education in improving farm productivity is confirmed at a significant level of >1% in total cereals, and 10% in paddy rice. A return to scale is also found. These results suggest that the increase in conventional input and investment in education will substantially improve agricultural productivity, which therefore will effectively contribute to reducing poverty in the country.