One of the strategies adopted by the government to increase productivity and subsequently farmers 'income is to encourage the commercial cultivation of paddy on a relatively large area (estate-type). This study investigates and evaluates the effectiveness of this strategy in the KADA II Pilot Project. The primary data used in this study was collected by interviewing the project participants. Factor analysis was used to evaluate the effectiveness of the project in meeting its objectives. Though the project has not achieved its initial targets, the farmers are of the opinion that the project has been effective in raising their income and in creating an awareness among them to use new innovations in their farming activities.