The paddy farmer's performance and ability to improve productivity are driven by their level of farm management practices. Knowledge on the nature and level of sustainable farm management (SFM) practiced provides opportunities for supporting the competitive advantages of paddy farmers to sustainably break away from the poverty cycle. Little attention has been given to measuring the performance and impact of SFM on the improvement of paddy farmers livelihoods in Malaysia. Without understanding SFM, it is difficult to make policies and provide targeted, impactful support to paddy farmers. This study aims to evaluate the level of Sustainable Farming Management (SFM) among paddy farmers by applying the Sustainable Farm Management Index (SFMI), in accordance with the guidelines outlined in the Rice Check (RC) by the Department of Agriculture. Additionally, it seeks to analyze the key factors and their impact on enhancing paddy yield in Malaysia's main granary areas. A set of structured questionnaire was designed to capture the eleven elements of farming practices based on the RC and was then distributed to 500 paddy farmers in Malaysia's main granary areas, namely Muda Agriculture Development Authority (MADA), Kemubu Agriculture Development Authority (KADA), and Integrated Agriculture Development Authority Barat Laut Selangor (IAD-BLS). Each practice was given a score to determine whether the guidelines were followed. The index ranges from 0 to 100, with 0 being unsustainable and 100 being highly sustainable. A multiple regression analysis was employed as well to estimate the effects of SFM adoption on farmer livelihoods. The findings show that adopting SFM has a positive and significant effect on farmers' livelihoods. The paper therefore recommends that farmers should be educated on the importance of sustainable farming practices, as this is essential for the sustainable livelihood development of the poor farmers who rely on government subsidies.