This study applied a Monte Carlo simulation approach to assess the economic feasibility of alternative rice farming systems operating in Tanzania while considering risk analysis for decision-makers with different risk preferences to make better management decisions. The rice farming systems in this study comprise rice farms using traditional practices and those using some or all of the recommended system of rice intensification (SRI) practices. Despite climate variability, in Tanzania, it is still possible for rice farmers to increase food production and income through the application of improved technologies, particularly SRI management practices. The findings of this study have vital policy implications for Tanzania′s government as it aims to end hunger and reduce poverty by 50% in 2025 through doubling agricultural production. Considering that rice is one of the crops targeted to drive Tanzania out of hunger and poverty, the results of this study suggest the benefits of investing in improved rice farming technologies, particularly SRI principles. The application of SRI practices has demonstrated the potential to increase rice yields and income of farmers.  Rivers and nine basins suitable for rice production in Tanzania could be utilized to produce more rice.