Heineken brewery has introduced malt barley contract farming scheme in the country's wheat-barley excellence zones since 2014. This study examines the impact of such contract farming on food security poverty and income of farmers in Tiyo woreda of Arsi zone. This study used 150 sample households and data were collected from primary sources through questionnaire, focus group discussion and key informants interview. The study employed propensity score matching to examine the impact of contract farming on income, poverty and food security. The results of the propensity score matching revealed that the project has a significant impact on the income of participating householders as the income received from malt barley and other crops has been significantly higher than that of the non-participants respectively. But, the project failed to impact their pre-harvesting season's food security of participants; as the increased income was not transformed into improved food consumption patterns. To preeminent project impact, the government and the sponsors in relation with other related stakeholders should further promote the scheme, provide quality and adequate inputs and timely credit services, devise mechanisms to incorporate the resource poor and distantly located households, incomes obtained to reach women, and provide after marketing monitoring, training and compulsory saving for the participant farmers.