Climate change is a large and challenging collective action problem facing the world today. This seminar review impacts of climate change on r yield of major cereal crops. Literatures have indicated that climate change would likely have positive impact in the highland agro-ecology in the short run. However, in the long run climate change will have negative impact in all agro-ecology. Negative impacts will be high in low land agro-ecology. Failure to prepare for climate variability can seriously affect the livelihood of smallholder farmers. Ethiopia by enacting Climate-Resilient Green Economy strategy and National Adaptation Plan aims to minimize the impacts of CC. Despite the existing adaptation and mitigation strategies negative impacts of climate change on agriculture especially on cereal crop production is continued. Thus, both private and public investment on adaptation strategies should be expanded more. Studies regarding the impacts of climate change on labour productivity, labour market, its distributional (which section society mostly by climate change?) and why the existing adaptation strategies are not successful? are not well studied, as most literature are focused on impact of climate change on yield, its adaptation and mitigation strategies.