Abstract: The primary objective of this study is to measure and evaluate the production efficiency of groundnut crop in Gezira Scheme, to investigate the main tenant-specific factors behind tenants’ technical inefficiency in the Gezira scheme. Both primary and secondary data were used for the study purposes .Stochastic frontier production function was estimated using a sample of 150 tenants were collected during season 2011/2012 in the Gezira Scheme. The results show that an average of technical efficiency of 65% for groundnut production is found, implying that scope to increase groundnut yield through the better use of the tenants available resources are exist. Age farmers, education years, sowing date, farm income, irrigation numbers and total labour is the major factors that are associated with changes in groundnut yield. The experience farmers and family size are the appeared to be the most important socio-economic factors determining farmers’ efficiencies in groundnut production in Gezira scheme. The results also showed that 94% of groundnut output deviation from normal is due to differences in farmers’ level of technical efficiencies as opposite to the conventional random variability. The study recommended improving technical efficiency for groundnut production in the Gezira Scheme.