1. 5 key budget issues for
farmers
Presented at the National CSO Budget Dialogue, 15th April 2015

2. Budget cut for the sector from UGX
501.58bn to UGX 454.1bn
• We are dismayed that the sector budget has been cut by UGX 56.7bn
and still remains at 3% total allocation to the national budget. This
unfortunate turn out of events is happening with the full knowledge
that agriculture is still the biggest employer in Uganda-66% of
country’s working population, agriculture has the biggest direct
impact on rural incomes and it still gives Uganda the best comparative
advantage over its neighbors in terms of trade.

3. Limited Access to agriculture credit
• The failure by the Agriculture Credit Facility (ACF) to deliver on its
intended purpose (provide affordable credit to farmers) has
continuously failed the sector and the small scale farmers at large.
This is not any better in the commercial banking sub sector as the
farmers are considered very high risk thus attracting a very high
interest rate averaging at 22%. The seasonality of the sector
production creates a unique need for credit that favors and allows
famers invest and mechanize production. Ultimately, access to credit
has been side lined by government because they have gone silent
about the Agriculture Bank, an institution that we are confident will
address this unique challenge.

4. Poor funding for extension at the LG
• We note with concern that the in the FY 2015/16, the LGs have had
the total allocation for Agriculture Advisory Services totally removed
to ZERO. This is in contrast to what the NAADS secretariat has been
allocated amounting to UGX 203.68bn (50% of total sector budget).
This, we reckon, will make the already poor extension service
provision at the LGs worse

5. 50% of total budget allocated to NAADS secretariat with no clear targets
for expenditure
We are concerned the NAADS has been allocated UGX 203.68bn (50%
of total sector budget) without clear targets on how the funds will be
utilized. This is amidst concerns with government’s strategy to use the
military to deliver extension services, irrespective of their expertise.