This research identifies critical determinants for interactions between farmers and extension agencies. Cross-sectional farm household-level data from three hundred household heads were collected between September 2019 and March 2020 and triangulated with data from workshops with farmers and extension agents. The data were analyzed using Spearman’s correlation coefficient, Kruskal–Wallis analysis of variance and the ordered probit model. Farmers’ socio-economic characteristics significantly affect their degree of interaction with extension agencies. Recognition of the determinants of the level of farmers’ interactions can inform policymakers about how to formulate and improve the effectiveness of extension programs, enhance information and knowledge dissemination and facilitate development in collaboration with local communities by focusing on a better interaction between farmers and extension agencies. The level of a farmer’s interactions is based on a systematic decision-making process. Although personal and demographic characteristics are important, farmers’ interaction levels require conducive institutional and household assets, groups/social capital and access to extension agents’ contexts. These contexts will differ by household, country and region. Therefore, extension agencies should create and design contextually appropriate strategies for substantial interactions with farmers for the dissemination of farm information. This research is original and valuable in identifying the factors associated with the level of farmers’ interactions with extension agencies in the Amhara region, Ethiopia. It also provides a new pathway for operationalizing farmer-oriented agricultural extension policies and strategies and to help agricultural policymakers formulate extension service programs.