This study determined consumer and producer welfare gains from advances in extension and research in the maize industry of Tanzania to determine how a national taxing schedule should be determined. It was found that, for an off-farm marketable surplus of 40%, consumers and producers gain equally, while for an off-farm marketable surplus of 60%, consumers realize 75% of the welfare benefits. This suggests that consumers and producers should share equally in a revenue generating tax for funding maize research and extension programs. However, for large producers with a marketable surplus of 60% or more, their tax should decrease proportionally to the amount sold. Alternatively, if taxed equally, large-scale producers should receive some form of compensation through direct government payments. ©1999 Elsevier Science B.V. All rights reserved.