Free Access | 2024-04-12

Are farmers’ incomes in Uganda adequate to contribute to social insurance schemes?

Authors/Editors: Brian Sserunjogi (PhD) ,  Swaibu Mbowa (PhD) ,  Hildah Namuleme ,  Joab Wamani

Abstract:

This brief examines whether on-farm agricultural income in Uganda is adequate for farmers to contribute to a social insurance scheme. The evidence reveals that the total net income for agricultural year 2019/20 from crop and livestock on-farm enterprises was UGX 5.5 trillion. Banana farmers retained the highest income, followed by Coffee, Maize and Sugarcane farmers. Despite the large aggregate on-farm net income, average annual household income (UGX 782,914.3) retained remains small and is highly unstable between seasons. Second, the agricultural income retained increases with the scale of operation (land size and number of cows). Small farmers operating on less than 3 acres retain lower incomes than their counterparts operating on land sizes above 3 acres. Third, farmers between the ages of 31-64 years earn relatively larger incomes than those between the ages of 18-31 years and those above 64 years This evidence has implications on the design of contributory social insurance schemes for farmers, given the differences in income size, timing and composition.