Abstract: Crop yields in Rwanda remain as low as 40-50 percent of their potential owing to subsistence farming practiced by more than 70% of the population. This study examined the impact of adoption of modern agriculture on poverty reduction among KOBAKU cooperative members in Nyagatare District, Rwanda in a period of 2013-2018. The specific objectives were; to identify determinants of farmer’s decision to adopt modern agriculture, to compare farmers’ household income and consumption expenditure, and to determine the relationship between the farmer’s adoption of modern agriculture and their households’ poverty reduction.