Long-term watershed management in Ethiopia was evaluated in various agro-ecologies starting in the 1980s. Our research was carried out to investigate the effects of long-term watershed management on soil macronutrient status and crop production in the Maybar subwatershed terrace positioning system, which has a long-term data set on various aspects, such as hydroclimatology, agriculture, and social studies. Crop yield data were collected from 40 fixed plots of that data set, and soil samples were collected by topo-sequencing of the catchment from the cultivation field based on different terrace position plot arrangements. The results showed higher crop yield and production of biomass in the upper section or deposition zone of soil and water conservation structure than below the structure or loss zone, but did not vary significantly from the annual production potential. The annual production of cereals was marginally decreased, but not pulse crops, reducing the wheat harvest production from the middle to the loss zone (23.8%) rather than the deposition zone to middle portion of the terrace (8.0%). In comparison, to increase the slope position of the terrace, the redaction percentage of pulse crops (field pea and lentil) is greater, because in the first terrace location (upper to middle) and in the second terrace, the output capacity of field pea was reduced by 22.4%. The condition of soil fertility between the 2 consecutive systems for soil and water protection differed from the upper to the lower land positions. Improvement in soil chemical and physical properties relatively increased toward the upper land position. Soil organic matter, available phosphorus, bulk density, and soil moisture content were significantly affected by soil and water conservation structures ( P ⩽ .05). Long-term terrace growth typically has a positive effect on improvements in onsite soil resources and the capacity for crop production. It therefore has a beneficial impact on onsite natural resources, such as enhancing soil macronutrients and increasing productivity in crop yields.