CONTRIBUTION OF OPERATION WEALTH CREATION ON FARMER’S

PRODUCTIVITY IN MUKONO DISTRICT: A CASE OF

NAKIFUMA SUB COUNTY

BY

ATUSASIRE PERUTH
16/U/14453/EKE/PE

A RESEARCH REPORT SUBMITTED TO THE DEPARTMENT OF ECONOMICS

AND STATISTICS IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF A BACHELORS’ OF ARTS IN ECONOMICS OF
KYAMBOGO UNIVERSITY
DECEMBER, 2020
 DECLARATION
I hereby declare that this research report is my original work and that it has never been presented
to any University for any academic award.

Signature ........................................... Date ……………………………

ATUSASIRE PERUTH
16/U/14453/EKE/PE

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 APPROVAL
This is to certify that Atusasire Peruth carried out research entitled “Contribution of operation
wealth creation on farmer’s productivity in Mukono district: a case of Nakifuma Sub County.”
under my supervision and this research report meets the basic requirements for submission

Signature.............................................. Date……………………………

DR. KIIZA JAMES

(Supervisor)

ii
 DEDICATION
This research report is dedicated to mum and dad who devoted moral, spiritual and financial
support so as to see me through. They have been great source of motivation and inspiration
throughout my academic life.

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 ACKNOWLEDGEMENTS

To actually claim the entire credit for this piece of work would not only be inconsiderate but
entirely unjust. The progress of this report is mainly dependent on guidance, moral and technical
support from a number of people whose cooperation and efforts am bound to acknowledge.
I deeply appreciate my supervisor Dr. Kiiza James a lecturer at the department of Economics for
her unwavering support and professional advice as my supervisor that she shared with me
throughout the period of the study, not forgetting the time she sacrificed for me out of her tight
schedules to supervise my work.

My sincere gratitude goes to all lecturers and staff of Kyambogo University especially the
department of Economics and Statistics for their support throughout my bachelors’ program in
general and in particular this research. They have added to my knowledge as I pursued my
Bachelor of Arts in Economics.

Special thanks go to my Dad and Mum who laid a strong academic foundation upon which I
have been able to reach this far. It was amidst scarcity of resources that they managed to educate
me as well as instilling important core values of hard work, persistence and determination to me.

I am also grateful to the entire fraternity of Nakifuma sub-county who accepted to provide me
with the relevant information so as to see that my study was accomplished.

Finally, I would like to thank everyone including my course mates and friends, and Womayi
Samson who contributed to this study and pray that the almighty God blesses you all thousand
folds.

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 TABLE OF CONTENTS

DECLARATION..............................................................................................................................i

APPROVAL....................................................................................................................................ii

DEDICATION...............................................................................................................................iii

ACKNOWLEDGEMENTS............................................................................................................iv

TABLE OF CONTENTS................................................................................................................1

LIST OF TABLES...........................................................................................................................1

LIST OF FIGURES.........................................................................................................................2

LIST OF ACRONYMS...................................................................................................................3

ABSTRACT....................................................................................................................................4

CHAPTER ONE..............................................................................................................................1

INTRODUCTION...........................................................................................................................1

1.1 Introduction................................................................................................................................1

1.2 Background to the Study...........................................................................................................1

1.2.1 Historical Background............................................................................................................1

1.2.2 Theoretical Framework...........................................................................................................2

1.2.3 Conceptual background..........................................................................................................4

1.2.4 Contextual background...........................................................................................................4

1.3 Statement of the problem...........................................................................................................5

1.4 General Objective......................................................................................................................6

1.4.1 Specific Objectives.................................................................................................................6

1.5 Research questions.....................................................................................................................6

1.6 Significance of the Study...........................................................................................................6

1.7 Scope of the study......................................................................................................................7

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1.7.1 Content Scope.........................................................................................................................7

1.7.2 Geographical scope.................................................................................................................7

1.7.3 Time Scope.............................................................................................................................7

CHAPTER TWO.............................................................................................................................8

LITERATURE REVIEW................................................................................................................8

2.1 Introduction................................................................................................................................8

2.2 Theoretical Review....................................................................................................................8

2.3 Actual literature review according to objectives.......................................................................9

2.3.1 Farmer institutions and agricultural productivity...................................................................9

2.3.2Advisory services to farmers and agricultural productivity..................................................10

2.3.3 Agri-business development and agricultural productivity..............................................12

2.4 Summary of literature review..................................................................................................13

CHAPTER THREE.......................................................................................................................14

METHODOLOGY........................................................................................................................14

3.1 Introduction..............................................................................................................................14

3.2 Research Design......................................................................................................................15

3.3 Study Population......................................................................................................................15

3.4 Determination of the Sample Size and selection.....................................................................15

3.5 Sampling Technique and procedure........................................................................................16

3.5.1 Purposive sampling...............................................................................................................16

3.5.2 Random sampling.................................................................................................................16

3.6 Data Collection Methods.........................................................................................................16

3.6.1 Self-Administered Questionnaire guide...............................................................................16

3.6.2 Interview Guide....................................................................................................................17

3.7 Data analysis............................................................................................................................17

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3.8 Ethical Considerations.............................................................................................................17

CHAPTER FOUR.........................................................................................................................18

DATA PRESENTATION, ANALYSIS AND INTERPRETATION...........................................18

4.1 Introduction..............................................................................................................................18

4.2 Background characteristics of respondents.............................................................................18

4.2.1: Gender of respondents.........................................................................................................18

4.2.2 Marital status of respondent..................................................................................................19

4.2.3 Respondents’ Level of education..........................................................................................20

4.3 Influence of OWC programme farmer institutions on farmer’s productivity..........................20

4.4 The influence of advisory services on farmer’s productivity..................................................22

4.4.1 Findings on the influence of Advisory Services farmer institutions on farmer’s

productivity....................................................................................................................................22

4.5 The influence of agri-business development on farmer’s productivity...................................23

4.5.1 Findings on the influence of Agri-Business Development on farmer’s productivity...........24

CHAPTER FIVE...........................................................................................................................26

SUMMARY, DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS......................26

5.0 Introduction..............................................................................................................................26

5.1 Summary of the study findings................................................................................................26

5.1.1 Farmer institution and agricultural productivity...................................................................26

5.1.2 Advisory service to farmer and agricultural productivity.....................................................26

5.1.3 Agri-business and agricultural productivity.........................................................................27

5.2 Discussions of the study..........................................................................................................27

5.2.1 Farmer institution and agricultural productivity...................................................................27

5.2.2 Advisory service to farmer and agricultural productivity.....................................................28

5.2.3 Agri-business development and effect on agricultural productivity.....................................29

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5.3 Conclusions to the study..........................................................................................................31

5.3.1 Framer institution and agricultural productivity...................................................................31

5.3.2 Advisory service and agricultural productivity....................................................................31

5.3.3 Agri-business development and agricultural productivity....................................................31

5.4 Recommendations to the study................................................................................................32

5.5 Areas for further studies..........................................................................................................33

REFERENCES..............................................................................................................................33

APPENDIX ONE..........................................................................................................................35

QUESTIONNAIRE GUIDE FOR RESPONDENTS....................................................................35

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 LIST OF TABLES
Table 3.1: Sample Size of Respondents........................................................................................15
Table 4.2: Gender of respondents..................................................................................................18
Table 4.3: influence of OWC programme farmer institutions on farmer’s productivity...............21
Table 4.4: The influence of Advisory Services farmer institutions on farmer’s productivity.......22
Table 4.5: The influence of Agri-Business Development on farmer’s productivity.....................24

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 LIST OF FIGURES
Figure 4.1: Marital status of respondents......................................................................................19
Figure 4.2: Respondents’ Level of education................................................................................20

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 LIST OF ACRONYMS
CDO: Community Development Officers
FAO: Food Agricultural Organization
FAO: Food Agricultural Organization
GoU: Government of Uganda
IFPRI: International Food Policy Research Institute
MAAIF: Ministry of Agriculture, Animal Industry and Fisheries
MoFPED: Ministry of Finance, Planning and Economic Development
NARO: National agricultural research organization
NRM: National Resistance Movement
OWC: Operation Wealth Creation
UBOS: Uganda Bureau of Statistics

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 ABSTRACT
This study analyzed the “Contribution of operation wealth creation on farmer’s productivity in
Mukono district: a case of Nakifuma Sub County”. The objectives of the study were to examine
to examine the influence of OWC programme farmer institutions on farmer’s productivity, to
examine the influence of advisory services on farmer’s productivity, to find out the influence of
agri-business development on farmer’s productivity in Nakifuma Sub County, Mukono district
A cross sectional survey design and random and non-random sampling techniques were used to
select the samples by use of self-administered questionnaires which provided sufficient data from
the sample selected. Data was analyzed quantitatively using Statistical Package for Social
Scientists, while qualitative data was analyzed by use of content analysis. The study targeted 100
respondents from responses were obtained. Purposive sampling was used to select OWC
coordinator and agriculture extension works while simple random sampling was used to select
farmers (beneficiaries).

Results showed that 75% of the respondents indicated OWC empowered farmers to identify their
advisory needs and 70% agreed with the statement that OWC trained farmers on modern farming
methods. This implied that OWC programme helped farmers improve agricultural productivity in
Nakifuma Sub County,

The study recommends that OWC should improve its technology promotion to enhance framers’
welfare. This can be achieved through changing the attitude of farmers towards educating them
about improved methods of farming given that some do not like classroom training and help
farmers to raise funds to implement improved methods of farming. OWC should increase farmer
access to agricultural knowledge and skills encourage farmers to utilize the knowledge and
information, sensitization of farmers on advisory services, target more farmers during provision
of advisory services and implement agricultural demonstration farms. The Sub Counties and the
district should facilitate strategic enterprises and market chain development for these selected
strategic enterprises so that collective marketing can be encouraged and farmers’ income can be
enhanced.

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 CHAPTER ONE
INTRODUCTION

1.1 Introduction
In order to increase productivity and commercialization of the agricultural sector, Government of
Uganda (GoU), with the assistance of development partners started the National Agricultural and
Advisory Services (OWC) program geared towards increasing the efficiency and effectiveness of
agricultural extension service which was replaced by the current Operation Wealth Creation
(OWC). The program has evolved to include the distributions of agricultural technologies to
farmers. These are geared towards increasing household incomes and rural livelihood. The
program however has raised public concern and is yielding less tangible benefits to participating
farmers despite the substantial amounts spent on the program. This chapter contains the
background of the study, the problem statement, purpose of the study, research objectives,
research questions, significance and scope of the study.
1.2 Background to the Study
1.2.1 Historical Background
Globally, nearly half of world’s population live on less than $2.50 per day, and 10.7% of people
live on less than $1.90 per day 22,000 children die each day due to poverty related issues like
hunger and preventable diseases (The World Bank, 2016). It is further reported that over 750
million people do not have adequate access to clean drinking water, and disease from inadequate
drinking water and sanitation kills 842,000 people each year (World Bank, 2016).
Nearly 870 million people out of the World’s 7.1 billion, (one out of eight) were suffering from
chronic undernourishment in 2010-2012. Almost all the hungry people (852 million) live in
developing countries, representing 15% of the population of developing counties. There are 16
million people undernourished in developed countries (FAO, 2012). The World Bank (2014) also
estimates that about 2.4 billion people lived on less than US $2 a day in, the average poverty line
in developing countries.
According to the World Bank (2014), in Africa, agriculture employs 65% of the labor force and
accounts for 32% of gross domestic product (GDP). Agriculture is essential for Sub-Saharan
Africa’s growth and for achieving the Millennium Development Goal of halving poverty by
2015. A higher and sustained growth requires attention to five core areas of public action:

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Facilitating agricultural markets and trade; improving agricultural productivity; investing in
public infrastructure for agricultural growth; Reducing rural vulnerability and insecurity; and
Improving agricultural policy and institutions, (Kuku, Ajibola, & Saweda, 2011).
Uganda in particular is rapidly reforming its extension in line with global trends. This has led to
the development of many new and reformed government programs. Semana (1999) noted that
Agricultural extension in Uganda has undergone a number of transformations from Regulatory
1920-1956, Advisory 1956-1963, Advisory Education 1964-1971, Dormancy 1972-1981,
Recovery 1982-1999, Educational 1992-1996, Participatory Education 1997-1998, Decentralized
Education 1997- 2001 and now Agricultural services under contract extension systems. Each of
those up to 1997- 2001 had strengths to build on and weaknesses to change or improve, but had
challenges of the socio-economic and political environment.
In addition, there have been marked changes in the concept of agriculture which is increasingly
seen; in terms of commercial or market farming with emphasis on modernization of agriculture
and use of participatory approaches in the process. This explains why Operational wealth
creation has replaced National Agricultural Advisory Services (OWC) which was introduced in
2001. By 2013, 412,090 Mango seedlings, 27.3 million coffee seedlings, 846,756 Orange
seedlings, 4,199,355 Tea seedlings, 2,063.5 tons of maize, 869.1 tons of beans, 48,243 bags of
cassava cutting, 438,000 tree seedlings and 10,000 banana tissues have been delivered to farmers
(ACODE, 2015). These gains have been enjoyed by every Ugandan including people with
physical disabilities as long as they have relevant documents to qualify them as legible
beneficiaries. What was not clear was how PWDs have involved, what have been implemented
and whether such has improved on their livelihoods. This is the background against which the
study is proposed.
1.2.2 Theoretical Framework
The study was underpinned by “Rostow’s social economic theory” (1960) and “the
modernization theory”. The theory of modernization emerged from the field of program theory
and program evaluation in the mid-1990s as a new way of analyzing the theories motivating
programs and initiatives working for social and political change. Theory of modernization is
focused not just on generating knowledge about whether a program is effective, but also on
explaining what methods it uses to be effective. Theory of modernization as a concept has strong
roots in a number of disciplines, including environmental and organizational psychology, but has

2
also increasingly been connected to rural transformation. Theory of modernization (ToM) is a
specific type of methodology for planning, participation, and evaluation that is used in the
philanthropy, not-for-profit and government sectors to promote social change. Theory of
modernization defines long-term goals and then maps backward to identify necessary
preconditions.
Theory of modernization can begin at any stage of an initiative, depending on the intended use.
A theory developed at the outset is best at informing the planning of an initiative. The Outcomes
Framework then provides the basis for identifying what type of activity or intervention will lead
to the outcomes identified as preconditions for achieving the long-term goal. Through this
approach the precise link between activities and the achievement of the long-term goals are more
fully understood. This leads to better planning, in that activities are linked to a detailed
understanding of how change actually happens. It also leads to better evaluation, as it is possible
to measure progress towards the achievement of longer-term goals that goes beyond the
identification of program outputs.
Rostow’s social economic theory (1960) looks at the state as the central actor in bringing about
modernization in societies that are backward. Rostow postulated a five stage model of
development that will be able to apply to backward regions. This model is vital in the sense that
it is concerned with the idea that a country is able to develop economically by focusing on the
resources that are in short supply in order to expand beyond local industries to reach global
market and finance the country’s further development to bring about economic growth (Todaro
and Smith, 2003).
In relation to this study, it is needless to say modernization of agriculture is aimed at increased
production to feed a bigger population and to attain better household income. The national
budget allocation to agriculture must be increased to at least 10% in order to enhance efficient
extension services. Our abundant natural water sources must be exploited to facilitate irrigation.
Pesticides and fertilizers should be available and more affordable to our farmers. The farmers
must have access to credit and even insurance against disasters such as hailstorms. They must be
linked to markets for their produce. Better roads and rural electrification as part of the
modernization process of agriculture is an absolute solution and a path to agricultural
modernization. The theory advocated for a nation to focus and empower its people to rely on an
activity where it has potential. This will help to stimulate economic development. It is the

3
modernization theory and Rostow’s social economic theory of 1960 that underpinned this study
and was further expanded in chapter 2 under the sub section of theoretical review.
1.2.3 Conceptual background
According to the (World Bank, 2009) “Poverty is hunger. Poverty is lack of shelter. Poverty is
being sick and not being able to see a doctor. Poverty is not having access to school and not
knowing how to read and write. Poverty is not having a job, is fear for the future, living one day
at a time. Poverty is losing a child to illness brought about by unclean water. Poverty is
powerlessness, lack of representation and freedom”, (World Bank: 2009).
Operation Wealthy Creation is an intervention Programme by government intended to create a
system that facilitates effective National Socio-economic transformation with a focus of raising
household incomes for poverty eradication and sustainable wealth creation. It aims at mobilizing
the masses to engage in commercial agricultural activities to boost their household incomes;
distributing production inputs equitably and timely to boost production and productivity at
household level; facilitating rural technological upgrading to allow smallholder farmers to
transform themselves into small-scale industrialists and facilitating infrastructure development
particularly in rural areas.

1.2.4 Contextual background

The Operation wealth creation is one of five core programs under the Program for Modernization
of Agriculture (PMA). The PMA envisions that OWC will be “A decentralized, farmer-owned
and private sector serviced extension system contributing to the realization of the agricultural
sector objectives”. The mission of OWC is “Increased farmer access to information, knowledge
and technology through effective, efficient, sustainable and decentralized extension with
increasing private sector involvement in line with government policy”. The rationale for OWC is
the failure of the traditional extension approach to bring about greater productivity and
expansion of agriculture, despite costly government interventions. OWC is a new approach
aimed at overcoming institutional constraints undermining farmer’s access to knowledge and
productivity enhancing technologies. These constraints include weak research-extension-farmer
linkages; uncoordinated and non-participatory extension services; high level of bureaucracy
during service provision; low responsiveness to farmers’ needs; and lack of financial and
performance accountability (MAAIF, 2015).

4
In June 2014, President Museveni announced that the army would be entrusted with the role of
transforming Agriculture. Frustrated by the challenges in the agriculture sector, President
Museveni decided to redesign the OWC Programme by deploying UPDF officers to Luweero
Transformation of Agriculture for Wealth Creation Involvement of UPDF in OWC Programme
and its Effectiveness and parts of Eastern Uganda on a pilot basis to carry out roles hitherto
meant for OWC. The outcome was that these military officers posted impressive results within
just two years. Building on the success of that pilot Programme in boosting agricultural
production, the commander of Operation Wealth Creation, General Caleb Akandwanaho,
launched a partnership between Makerere University College of Agricultural and Environment
Sciences (CAES), OWC and Uganda Peoples Defence Forces (UPDF) to implement the new
OWC model. The goal of the partnership is to share knowledge and skills that address challenges
facing agricultural production in Uganda, focusing particularly on the reduction of post-harvest
losses and managing the supply and distribution of quality inputs to farmers (ACODE, 2015).
Under the operation wealth creation, homesteads with less than four acres are supported to
become food secure and engage in high-value crops like horticulture and rearing livestock like
poultry, zero-grazing diary, apiary and piggery for non-Muslims. The four-acre model
complemented by other Operation Wealth Creation (OWC) initiatives involving systematic
distribution of improved seeds, planting and breeding materials, the single spine extension
services, improved post-harvest handling storage and value addition will be the main strategy for
commercializing and transforming small-holder and peasant agriculture in the country. b) In
order to transform peasant agriculture to commercial, co-ordinate the OWC and also follow the
production value chain from the farmers to the final consumer (NRM Manifesto, 2016-2021).
1.3 Statement of the problem
Operation wealth creation Programme was designed to correct the past failures of OWC and
other programs and to bring out greater productivity, poverty reduction and sustainable
household food security (NRM Manifesto, 2016-2021). Despite the attention and resources
devoted to the Operation Wealth Creation program to support households in accessing extension
services in order to improve their productivity and hence livelihoods improvement, there is
limited public information on the impact of the program especially on household income. There
is also uncertainty on whether the objectives of Operation Wealth Creation program are being
realized. Implementation of the program has not been without challenges. The program has not

5
streamlined guidelines on how beneficiaries are to be selected and assisted; it is mainly at the
discretion of program administrators to determine who is eligible to participate (MAAIF, 2016).
The unanswered question thus is on whether the program integrated the intended beneficiaries’
particularly rural households and if so, what have been its outcomes on their livelihoods. It is
based on this background that the researcher wants to examine the contribution of operation
wealth creation on farmers’ productivity in Nakifuma Sub County, Mukono district.
1.4 General Objective
To examine the contribution of operation wealth creation on farmers’ productivity in Nakifuma
Sub County, Mukono district
1.4.1 Specific Objectives
i. To examine the influence of OWC programme farmer institutions on farmer’s
productivity in Nakifuma Sub County, Mukono district
ii. To examine the influence of advisory services on farmer’s productivity in Nakifuma Sub
County, Mukono district
iii. To find out the influence of agri-business development on farmer’s productivity in
Nakifuma Sub County, Mukono district
1.5 Research questions
i. What is the influence of OWC programme farmer institutions on farmer’s productivity in
Nakifuma Sub County, Mukono district?
ii. To what extent do advisory services on farmers influence productivity in Nakifuma Sub
County, Mukono district?
iii. What is the influence of agri-business development on farmer’s productivity in Nakifuma
Sub County, Mukono district?
1.6 Significance of the Study
The study will generate information on the impediments to household attainment of better
livelihoods and the extent to which OWC has positively influenced their income improvement.
The study findings will be used by policy makers in the line Ministries, Finance and Planning
and Agriculture in efforts to strengthen the involvement of households in Operation Wealth
Creation Programme.

6
The findings will be useful to implementers of OWC programmes at the grass root levels such as
Sub County Chiefs, Local councilors and district officials in the production department in
sensitizing and mobilizing the farmers on how to address their agricultural problems.

The findings will be useful to farmers to devise means by use of researched knowledge provided
by the research to eradicate poverty through improved productivity of crops and livestock,
efficiency, marketing as well as addressing other problems such limited knowledge of the
farmers, poor farming methods and dependency on nature.

The future researchers: It is hoped that the study will be used to develop a more comprehensive
and efficient policy in running District Income Support program and further provide a basis for
researchers by serving as a source of material for further studies in related areas of study.
1.7 Scope of the study
1.7.1 Content Scope
The study focused on the influence of OWC programme farmer institutions on farmer’s
productivity, the influence of advisory services on farmer’s productivity and the influence of
agri-business development on farmer’s productivity in Nakifuma Sub County, Mukono district
1.7.2 Geographical scope
The study was carried out in Nakifuma Sub County, Mukono district, it will be chosen because
the area has affected by weather catastrophes and therefore, the research wants to examine the
contribution of Operation Wealth Creation on famers’ productivity. Mukono district is bordered
by Kayunga district, Buikwe district, and Mityana district.
1.7.3 Time Scope
This study used literature review for a period of 5 years (2015 to 2019) so as to deeply study and
analyze role of Operation Wealth Creation on farmer’s productivity.

7
 CHAPTER TWO
LITERATURE REVIEW

2.1 Introduction
This chapter presents review of the literature on operation wealth creation and household
income. The presentation will follow the order of the objectives, which are; the role of market
linkage on poverty reduction, the role of agriculture inputs on poverty reduction in Mukono
district and to examine the role of agriculture advisory services on poverty reduction in Mukono
district.
2.2 Theoretical Review
The study will be guided by Rostow’s social economic theory (1960). The theory of
modernization emerged from the field of program theory and program evaluation in the mid-
1990s as a new way of analyzing the theories motivating programs and initiatives working for
social and political change. Theory of modernization is focused not just on generating knowledge
about whether a program is effective, but also on explaining what methods it uses to be effective.
The theory draws attention to ways to modernize agriculture and how decision making to do this
is influenced by the social and environmental factors in the agricultural sector.
The theory emphasizes looking at new ways of doing work with special focus on new technology
that can be adopted. Theory of modernization (ToM) is a specific type of methodology for
planning, participation, and evaluation that is used in the philanthropy, not-for-profit and
government sectors to promote social change. By way of modernization, a new approach that
link between activities and long-term goals is understood. In order to have agricultural
modernization, there must be strong and committed rural leadership, especially in the difficult
process of developing a ‘vision’ of a desirable future that the area and its residence must strive to
attain. There needs to be an effective consultation process of major stakeholders in the area
among the community groups who must at the end support the planned investments and other
important social and economic changes to take place.
Rostow’s social economic theory (1960) looks at the stages of growth. Rostow postulated a five
stage model of development that will be able to apply to backward regions. Rostow postulated a
five stage model of development that will be able to apply to backward regions. This model is
vital in the sense that it is concerned with the idea that a country is able to develop economically

8
by focusing on the resources that are in short supply in order to expand beyond local industries to
reach global market and finance the country’s further development to bring about economic
growth (Todaro and Smith, 2003). The theory advocated for countries to focus and empower its
people to rely on an activity where it has potential. The theory will help to stimulate economic
development and reduction of poverty. The theory advocated for countries to focus and empower
its people to rely on an activity where it has potential.
2.3 Actual literature review according to objectives
2.3.1 Farmer institutions and agricultural productivity
For effective and efficient extension services, it is necessary for farmers to organize into
producer and farmer groups (for instance create social capital) so that they can increase their
access to the needed technical and management skills with specific enterprises as well as gain
market access for their crops and products. For these farmer organization groups to be
successful, the members need to learn new leadership, organization and financial management
skills (Burton, 2018).
Farmer groups of various types make extension services more accessible to small scale farmers
by providing economies of scale in service delivery and mechanism for producers to express
their demands for services. Working with clients may enable extension programme to reach
farmers and rural households (Kevin & Sushma, 2015).
Kenya’s national Agricultural and Livestock Extension Programme (NALEP) was started in
2000. This approach focused on stakeholder inclusion, bottom up planning and farmer common
interest groups (CIG) in focal areas. The first phase run five years and was evaluated in 2006.
70% of the response said that they viewed farming business as a result of NALEP and claimed
that this approach helped them to gain profits from farms (Kristin, 2019). When farmers are
organized into producer groups, this increases their bargaining power in marketing their products
(Sane, 2016). Once farmers are found into farmer and producer groups, they are given training
on leadership skills and group dynamics and continue to work as groups (Burton, 2018).
India was one country that established institutions to implement its innovation technology
transfer. The institutions were formed to increase farmer’s participation in the extension
programme through making extension more accountable to farmers. The farmer groups formed
mobilized others to join producer groups as well as marketing groups for seeds and through these
management agencies, diversification of the production systems and cultivation of high value

9
crops, improved natural resources management and development of new enterprises and group
marketing was made possible (Kevin & Sushma, 2015).
On the contrary, Mugisha and Male (2018), argue that responsiveness to farmer problems
through training and demonstration may not be fast; extension managers may become closer to
the client but not necessarily more attentive to their local problems. Staffs attitudes need to
change and farmers need to get organized to make them heard. In Philippine, farmers were able
to take advantage of tailor made extension activities. But for most upland farmers, there was no
change in the system that never met their needs adequately and there was no improvement in
household income. This showed that farmers need to get more organized, attend trainings and
technology demonstrations and develop strong farmer institutions in order to make them more
heard and have effective demand for agricultural advisory services, attract market to their
products which will improve their household incomes.
According to Araba Joyce Aligo, (2016), contact farmers play the role of linking the extension
workers with the farmers by demonstrating to farmers the appropriate agricultural practices, after
being trained themselves by the extension workers or elsewhere. However some of the contact
farmers do not do their job but they instead utilize the facilities in their own fields. The extension
workers get wrong information from the contact farmers and the farmers for that matter. In the
end this bad practice leads to farmers adopting wrong farming methods hence causing nutrient
mining.
2.3.2Advisory services to farmers and agricultural productivity
Agricultural advisory services should be concerned with development and dissemination of new
technologies associated with the major crops and livestock production systems, enhancing the
skill and knowledge (human capital) among all types of farmers and dissemination of
information so that they can select most appropriate mix of crops and livestock enterprises,
development, dissemination and use of the most efficient production management practices
aimed at increasing agricultural production thereby household food security and income and
strengthening natural resource management (Burton, 2018)
Kevin and Sushma (2015) emphasized that a farmer is a key source of innovation and improving
rural productivity, social equity and completeness requires effective and efficient agricultural
knowledge and information system that link people with institutions, to promote mutual learning,
generate, share and utilize agriculture related technology and information.

10
William and Gray (2014) cited Friis and kisauzi (2014) methods used in consultation and
dissemination of farmer’s need participatory meetings, informal and service provider’s
discussions, use of demonstration, seminars and visit to agricultural offices. The success story of
a farmer group Ribe Aye Teko that received 72kg of Superica ii rice variety which they planted
on two acres and harvested 30 bags is reported by one of the members as being attributed to
advisory service on the management of the crop (Ronald, 2008). However, assessment of OWC
found out that improved soil fertility management, improvements in post harvesting handling,
technology, practices and use of market information lagged behind (Samuel, et al. 2018).
Advisory services to farmers in which (Nederlof & Wennink, 2018) argues that when services
are delivered to the users as a response to their needs, their perception of quality is considered
through determining quality is reported to be subjective and dependent on criteria used by the
service users to assess quality. Some of the criterions for assessing quality of service they
referred to were for instance with equipment, reliability for instance time, responsiveness,
competence and courtesy among other parameters.
Dissemination of information on elite agricultural technologies is a key intervention for
increased productivity hence improved livelihood. Effective extension system needs to
continuously be updated and fine-tuned by new information derived from research that is
relevant to farmers’ needs (Picciotto and Anderson, 2015). In Uganda, despite 71 % and 43.2%
of farmers demanding for extension services in crop and animal husbandry respectively, only
17% of crop and 21% of animal farmers were served by the extension services (Muwanika et. al,
2015).
Research and adoption of technological improvements are crucial to increasing agricultural
productivity and reducing poverty, while sustaining the agro-ecosystems that support livelihoods
(Kassie et al., 2011; Asfaw et al., 2012). According to the PEAP, 2004, declines in agricultural
incomes fueled a three percent increase in income poverty and hence widened inequality
between 2000 and 2003. To this effect, many efforts have been made to improve the
performance of the Agricultural sector, in Uganda. For example, Uganda’s past and current
medium term plan has been focused on modernizing agriculture as an engine for economic
growth and poverty eradication. One area of intervention by government is agricultural extension
and technologies aimed at improving productivity in farm and non-farm activities in a bid to
reduce poverty

11
The adoption of technologies and better practices is the core of extension interventions. Target
farmers in extension need to pass in a certain process before achieving their ultimate goal of
improving productivity. The process includes awareness, knowledge, adoption of technology or
practice and change in farmers’ productivity (FAO 2016). To this end, various extension
methods are used, such as extension contacts, meetings, mass media, demonstrations, etc. In
addition to these, there are informal networks where technologies, knowledge and practices are
spread to other farmers. Bringing agricultural growth has been a main agenda for most sub-
Saharan African countries. Investment in extension services is an important tool for improving
agricultural productivity and increasing farmers’ incomes (Anderson 2016).
2.3.3 Agri-business development and agricultural productivity
Given the increasing scarcity of land, particularly among the poor, future increase and
productivity are unlikely to come from expansion in crops acreage or pastureland, but from
increase in land and pasture productivity through adaptation of improved technologies (Rossetti
& Godfrey, 2013). OWC programme evaluation indicated that improved agricultural
productivity and profitability due adoption of improved technologies introduced under OWC
programme especially for matooke, tubers and pulses- New entries are vanilla, garlic, mangoes
and onions which showed to very high returns and with good regional and world market export
potential (Jens et al. 2015).
One of the constraints to production has been lack of credit for farmers (Samuel et al. 2008). Test
of impact of credit market access on agricultural productivity and off-farm investment using data
from a 1992 survey of 10,000 Ugandan household results indicated that development of local
financial markets indicated improved efficiency of purchased input in agriculture and promotes
diversification and non-agricultural investment (Klaus & John, 2015).
For farmers to increase agricultural productivity, they should be assured of market, good price,
and information about the existence of such market. Russia and India established information
systems to help producers and consumers get market information. Prices were disseminated
through the internet, mass media and on information boards in the Ministry of information
centres and these had benefited both the producer and the consumer (Kevin & Sushma, 2015). In
Ugandan case, several methods have been used in dissemination of research results. This
includes seminars, demonstrations, farmer field schools, leaflets in local languages, brochures in
English, seed multiplication and sale, radio, documentary films and agricultural shows. However

12
most these methods were reported to have limitations, Agricultural shows are not accessible to
most farmers especially those in remote areas who lack transportation (Friis and Kisauzi, 2004 as
cited in William & Gray, 2014) and those methods, radio was found to be the best method to
reach farmers (Kevin & Sushma, 2015).
Pilar, Ruth and Hernando (2015) in their studies of Countries in Latin America and Caribbean
reported that in all the cases, it is agreed that agri-business linkages associate with organizational
structure improved producer negotiating ability and profits were higher. In order to increase the
farmer’s bargaining power and get fair prices, Malawi and India encouraged group marketing
(Kevin & Sushma, 2015). The experience of India, Russia, Malawi, Latin America and
Caribbean showed that deliberate efforts need to be made to ensure that farmers get improved
technologies, information on markets, and if farmers are to get fair prices, they need to market in
groups.
According to OWC (OWC, http.//www.OWC.or.ug.2016), the planning, monitoring and quality
assurance were largely undertaken by local governments who had the main responsibility of
undertaking technical audit to ensure that advisory services are of good quality. Parish
coordination committees have put in place to ensure that there is planning, monitoring and
quality assurance. OWC management information has been put in place.
In order to promote and assure quality in the service provided by the service provider, a quality
assurance framework was developed and put in place OWC (2013). The working group studies
organization within Uganda with established quality assurance system and incorporated
appropriate practices into the framework. Consequently the capacity to private sector service
provider to meet identified farmers advice and information needs sustainably was enhanced.

2.4 Summary of literature review

Most of the authors emphasize access to operation wealth creation services. The authors in their
findings are silent on how the issue of advisory services can be handled. The biggest gap on the
services is on implementation of the idea adumbrated. Although Agricultural modernization has
been popularized and promoted as an engine of economic growth and a tool for bringing
development to the locality, the approach to be used under OWC raises questions. Many
households in Mukono district have been given inputs under the operation wealth creation like
coffee seedlings but they have little knowledge on how to handle these seedlings.

13
Meyer, Stamer and Jorg (2014) emphasizes that the biggest problem to farmers in Uganda is
access to market information. The gap from the onset remains critical as it underscore the fact
that market information is not adequately available to farmers in most parts of Uganda.
Therefore, the literature review above confirms that different scholars have conducted several
studies to establish the correlation between market information in rural house hold livelihood.

14
 CHAPTER THREE
METHODOLOGY

3.1 Introduction
This section presents key methodological steps and procedures that were followed to conduct
this study. The areas covered include: research design, study area, study population, sample size
and selection, sampling techniques and its procedures, data collection methods, data collection
instruments, data management and analysis, and measurement of variables.
3.2 Research Design
A cross sectional survey design was used for the study as it gathers data from the sample
population at any particular time as it permits collection of information from a sample that is
drawn from a predetermined population. Both qualitative and quantitative paradigms were
applied. Qualitative method involved in-depth probing and application of subjectively interpreted
data (Saunders & Lewis, 2018). Qualitative research enabled the researcher to gather in-depth
information about the study, for example unstructured qualitative interviews served this purpose.
Qualitative approach helped in the generation of non-numerical data. Sekaran (2016) states that
quantitative methods are plans for carrying out research oriented towards quantification and are
applied in order to describe current conditions or to investigate relationships, including cause and
effect relationships (Sekaran & Bougie, 2016).
3.3 Study Population
The study was carried out in Nakifuma Sub County, Mukono district basing on the information
from households and sub county extension staff to provide the researcher with the information.
3.4 Determination of the Sample Size and selection
Sample size is a subset of the target population which is used in the study (Sekaran and Bougie,
2016). A sample of 100 respondents was determined by Krejcie & Morgan (1970) table and
individual elements in different categories were determined using different sampling techniques.

15
Table 3.1: Sample Size of Respondents
Category Population Size Sample Size
Farmers 100 85
Extension staff 10 5
Local leaders 20 10
Total 130 100
Source: Primary Data
3.5 Sampling Technique and procedure
3.5.1 Purposive sampling
Purposive sampling technique was 10 local leaders and 5 extension officers who are the critical
informants to this study. Creswell (2014) notes that the purposive sampling technique is vital in
research since it help to access participants within a short time. Besides, it directs researcher to
knowledgeable participants.
3.5.2 Random sampling
Random sampling technique was used with anticipation that the future readers could not be
based on the sampling procedure through which the sample was selected (Creswell & Plano,
2014). This was used to select 85 farmers in Nakifuma Sub County in Mukono district.
3.6 Data Collection Methods
3.6.1 Self-Administered Questionnaire guide
The researcher used the questionnaire technique for collecting data that was constructed with
closed and open ended questions. Close-ended questions involved questions that require answers
limited within a scope that involve strongly agree, agree, neutral, strongly disagree and disagree
(Five point Likert scale questionnaire). The researcher carried out a pilot study using 05
respondents during pre-test of the data collection tools. The researcher physically delivered the
questionnaires to households and picked them after a week, this enabled the respondents to have
ample time to understand and fill them.

16
3.6.2 Interview Guide
The researcher set questions to guide the oral interactions between the researcher and extension
officials, and local leaders. The interview method is good to use since the researcher goes to the
field himself and ask the respondents who have more information which is necessary for the
research thus yielding more information from the field compared to other methods. The
respondents were interviewed to get information which may not be copied from questionnaires.
As a research tool, the interviews will be carried out with definite purposes of obtaining certain
information employing the spoken word.
3.7 Data analysis
Data analysis was done quantitatively and qualitatively. Quantitative analysis of data collected
from the questionnaire was done using Statistical Package for Social Scientists (SPSS). This data
was generated from structured questionnaire. Descriptive analysis in terms of frequencies and
percentages was conducted to describe the characteristics of respondents and determine the
extent to which OWC has improved productivity of farmers. The results from the analyzed data
were presented in form of frequencies and percentages in tabular, graphical and chart forms.
Analysis of qualitative data involved linking the variables and their relationships that established
and interpreted using interviews, stories and phrases. Thematic analysis was used in addition to
supplementation with secondary data under qualitative analysis. Responses were summarized
under major themes and related with secondary data (literature).
3.8 Ethical Considerations
According to Leary (2014), ethical issues refer to the integrity in the production of knowledge, as
well as the dignity welfare of the researched. These included the following; Voluntary
participation: The research participants were informed that their participation in the study was
not to be rewarded in any way; it was entirely voluntarily. All the research participants were
notified of their rights to refuse to be interviewed or to withdraw at any point for any reason,
without any prejudice or explanation.
The research participant’s privacy was ensured by the researcher who kept the entire information
safe during the research process. Only the researcher had access to the data collected. Informed
consent: Before starting the study, the researcher provided the respondents with accurate and
complete information to research regarding the purpose of the study.

17
 CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 Introduction
This chapter presents the findings of the study and interpretation. The sample for the study
therefore covered 100 respondents. The section therefore, provides the basis upon which logical
and meaningful conclusions were drawn.
4.2 Background characteristics of respondents
This section was concerned with describing the background characteristics in terms of sex, age,
and level of education attained by respondents.
4.2.1: Gender of respondents
Table 4.2: Gender of respondents
Gender Frequency Percentage
Male 45 45
Female 55 55
Total 100 100
Source: Primary Data, 2020
Table 4.1 above indicates that the study involved a total of 100 respondents from which 45%
were male and 55% were females. This implies that both sexes were willing to participate in
giving information about the study. The distribution did not affect the results of the study, after
all females are predominantly involved in OWC program in Nakifuma Sub County.
4.2.2 Marital status of respondent
The study considered the marital status of respondents were married, single and divorced persons
were interacted with while in the field. The established information in relation to marital status
was revealed as in figure below.

18
 Divorced
10%

Single
30% Married
60%

Source: Primary Data, 2020

Figure 4.1: Marital status of respondents

The study found out that 60% of respondents were married, 30% were single and only 10% had
divorced. The marital status of the respondents was therefore an important factor to understand
the contribution of OWC on agricultural productivity. This implied that majority of respondents
were responsible people with families and could understand how OWC program has helped to
improve the agricultural productivity.

4.2.3 Respondents’ Level of education

40
35
30
25
20 Frequency
Percentage
15
10
5
0
Non formal Primary Secondary Tertiary

Source: Primary Data, 2020

Figure 4.2: Respondents’ Level of education

19
Findings from the figure indicated that 25% of respondents had non-formal education, 15% had
attained primary education, 20% of respondents had attained secondary education and 40% were
under tertiary institution. This implies that majority of the respondents had knowledge on the
operation wealth creation programme.

4.3 Influence of OWC programme farmer institutions on farmer’s productivity

The first objective was to examine the influence of OWC programme farmer institutions on
farmer’s productivity. To achieve this, the researcher used both qualitative and quantitative
approaches and findings were presented in this sub section.
4.3.1 Findings on the influence of OWC programme farmer institutions on farmer’s
productivity.
The researcher administered a questionnaire that had questions to measure the influence of OWC
programme farmer institutions on farmer’s productivity and the overall results are in the table
below
Table 4.3: influence of OWC programme farmer institutions on farmer’s productivity.
Statements SA A N D SD
F % F % F % F % F %
OWC has facilitated formation of parish 65 65 15 1 - - 5 5 15 15
coordination committees 5
OWC facilitated selection of community 40 40 15 1 5 5 1 10 30 30
based facilitators 5 0
OWC has facilitated formation of farmer 35 35 20 2 3 3 2 2 40 40
forums in the sub county 0
OWC has empowered farmers to monitor 20 20 18 1 12 12 - - 50 50
and evaluate agriculture activities 8
OWC has empowered farmers to identify 70 70 - - - - 1 10 20 20
their advisory needs 0
OWC has organized farmers to sell their 85 85 - - - - 5 5 10 10
products collectively in the sub county
Source: primary data, 2020

20
Study finding from the table 4.3 indicated that majority of the respondents 65% strongly agreed
that OWC has facilitated formation of parish coordination committees, 15% agreed with the
statement, none of the respondent were neutral with the statement, 5% disagreed and 105 of the
respondents strongly agreed with the statement.
On sub component OWC facilitated selection of community based facilitators, 40% of
respondents strongly agreed with the statement, 15% agreed, 5% of respondents were neutral,
10% of respondents disagreed with the statement and 30% of the respondents strongly disagreed
with the statement
Further still, on sub component OWC has facilitated formation of farmer forums in the sub
county, 35% of respondents strongly agreed with the statement, 20% of respondents agreed, 3%
of respondents were neutral about the statement, 2% of the respondents disagreed with the
statement and majority of the respondents strongly disagreed with the statement.
On component OWC has empowered farmers to monitor and evaluate agriculture activities,
majority of the respondents strongly disagreed with the statement, 20% of respondents agreed
with the statement, 18% of the respondents agreed with the statement, 12% were neutral and
none of the respondents disagreed with the statement.
Study findings also indicated that OWC has empowered farmers to identify their advisory needs
with majority of respondents 70% strongly agreeing with the statement, none of the respondents
were either neutral or agreed with the statement, 10% of the respondents disagreed with the
statement or 20% of the respondents strongly disagreed with the statement. This implies that
OWC empowers farmers in different households to access and use investment capital through the
integrated support to farmer groups which makes them to manage their products very well.
Finding also revealed that majority of respondents 85% strongly agreed that OWC has organized
farmers to sell their products collectively in the sub county, none of the respondents either agreed
or was neutral about the statement, 5% of respondents disagreed with the statement and 10% of
the respondents strongly disagreed with the statement.

4.4 The influence of advisory services on farmer’s productivity

The second objective was to examine the influence of Advisory Services on farmer’s
productivity. To achieve this, the researcher used both qualitative and quantitative approaches
and findings were presented in this sub section.

21
4.4.1 Findings on the influence of Advisory Services farmer institutions on farmer’s
productivity.
The researcher administered a questionnaire that had questions to measure the influence of
Advisory Services on farmer’s productivity and the overall results are in the table below
Table 4.4: The influence of Advisory Services farmer institutions on farmer’s productivity.

Statements SA A N D SD
F % F % F % F % F %
OWC has taught farmers on post harvesting 64 64 12 1 - - 4 4 20 20
handling 2
OWC has trained farmers on improved 48 48 28 2 4 4 5 5 15 15
seeds and breed 8
OWC has established technology 35 35 40 4 3 3 2 2 20 20
development site 0
OWC has been promoting new local 70 70 18 1 - - - - 12 12
enterprises through research 8
OWC has disseminated useful information 65 65 - - - - 1 10 20 20
to farmers on best areas of farming 0
Source: primary data, 2020
Study findings in the table above indicate that majority of respondents 64% strongly agreed that
OWC has taught farmers on post harvesting handling, 12% agreed with the statement, none of
the respondents were neutral, 4% of the respondents disagreed with the statement, and 20% of
the respondents strongly disagreed with the statement.
On sub component OWC has trained farmers on improved seeds and breed, 48% of respondents
strongly agreed with the statement, 28% of the respondents agreed, 4% of the respondents were
neutral, 5% of respondents disagreed with the statement and 15% strongly disagreed with the
statement.
The findings also found out that OWC has established technology development site, were 35%
of the respondents strongly agreed with the statement, 40% of the respondents agreed, 3% of
respondents were neutral, 2% disagreed and 20% of the respondents strongly disagreed with the
statement.

22
Further still, on sub component OWC has been promoting new local enterprises through
research, 70% of respondents strongly agreed with the statement, 18% agreed with the statement,
none of the respondents either were neutral or disagreed with the statement and 12% of the
respondents strongly disagreed with the statement
Finally on sub component, OWC has disseminated useful information to farmers on best areas of
farming, majority of respondents 65% strongly agreed with the statement, none of the
respondents either agreed or were neutral about the statement, 10% of the respondents disagreed
with the statement and 20% of respondents strongly disagreed with the statement.

4.5 The influence of agri-business development on farmer’s productivity

The third objective was to examine the influence of Agri-Business Development on farmer’s
productivity. To achieve this, the researcher used both qualitative and quantitative approaches
and findings were presented in this sub section.
4.5.1 Findings on the influence of Agri-Business Development on farmer’s productivity.
The researcher administered a questionnaire that had questions to measure the influence of Agri-
Business Development on farmer’s productivity and the overall results are in the table below
Table 4.5: The influence of Agri-Business Development on farmer’s productivity
Statements SA A N D SD
F % F % F % F % F %
OWC has made possible for farmer groups 60 60 15 1 5 5 - - 25 25
to receive and use improved livestock and 5
crops
OWC has made it possible for farmers to 85 85 10 1 - - - - 5 5
have direct link with the buyers 0
OWC farmers have resorted to using 65 65 - - - - 5 5 30 30
improved crops and livestock
Information on market has made farmers 55 55 13 1 - - 1 17 15 15
grow more crops and rear animals not only 3 7
for sale
Source: primary data, 2020

23
Study findings in 4.4 indicated that majority of respondents 60% strongly agreed with the
statement OWC has made possible for farmer groups to receive and use improved livestock and
crops, 15% agreed with the statement, 5% were neutral, none of the respondents disagreed with
the statement and 25% of the respondents strongly agreed with the statement.

On sub component OWC has made it possible for farmers to have direct link with the buyers,
majority of respondents 85% strongly agreed with the statement, 10% of respondents agreed with
the statement, none of the respondents were either neutral or disagreed with the statement and
5% of respondents strongly disagreed with the statement.

Study findings also revealed that 65% of respondents strongly with statement that OWC farmers
have resorted to using improved crops and livestock, none of the respondents were either neutral
or disagreed with the statement, 5% of the respondents disagreed with the statement and 30% of
the respondents strongly disagreed with the statement.

Further still, on sub component information on market has made farmers grow more crops and
rear animals not only for sale, 55% of the respondents strongly agreed with the statement, 13%
of respondents agreed with the statement, none of the respondents were neutral with statement,
17% of respondents disagreed with the statement and 15% of the respondents strongly disagreed
with the statement

24
 CHAPTER FIVE
SUMMARY, DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS

5.0 Introduction
This chapter presents the summary of the findings according to the objectives of the study which
included; examining the influence of OWC programme farmer institutions on farmer’s
productivity in Nakifuma Sub County, Mukono district, to examine the influence of advisory
services on farmer’s productivity in Nakifuma Sub County, Mukono district and to find out the
influence of agri-business development on farmer’s productivity in Nakifuma Sub County,
Mukono district
5.1 Summary of the study findings
5.1.1 Farmer institution and agricultural productivity
The OWC programme had established farmer institution at parish, sub-county and district levels.
Through these farmer institutions, farmers had taken charge of advisory services and participated
in monitoring and evaluation of advisory services especially at farmer level.
The researcher found out that, through the farmer groups, the farmer selected their enterprises
and thereby advisory services, evaluated the service providers and rejected those who did not
meet their expectations. HlFO had been formed in the sub county but were not fully functional
except in two sub counties. The findings revealed that there was positive relationship between
farmer institution and agricultural productivity.
5.1.2 Advisory service to farmer and agricultural productivity
The OWC programme had increased farmer access to advisory service and because of this
farmers and knowledge on management of specific crops and animals increased and farmers had
put this skills and knowledge into use and agronomics practices had improved. The farmers were
satisfied with the quality of services offered. The researcher found out from the OWC
programme leaders that all the enterprises chosen for implementation in a particular FY were
translated into advisory services needs and farmers were trained in their groups on how to grow
and care for those particular crops and animals. As advisory services were for specific selected
enterprises, this meant that advisory services were not available for crops and animals that the
farmers engaged in outside the OWC programme. The study findings revealed that advisory
services to farmers effected agricultural productivity.

25
5.1.3 Agri-business and agricultural productivity
The researcher found out that OWC programme had implemented agri-business development.
The findings revealed that OWC programme had introduced improved crops and livestock and
framer groups had access to these technologies and the farmers agreed that the improved
technologies had better yields per area compared to the traditional one although the animal were
more susceptible to diseases than the local ones. How farmers could not afford improved
technologies on individual basis due to their high costs and lack of credit and this was a
hindering factor to farmers using improved technologies. The researcher found that from the sub
county OWC programme leader that to help a farmer get access to improved animals, the sub
county had created improved goat demonstration site to which the farmers brought their local
females goats fro mating with the improved males at a cost but many farmers did not take up this
advantage. Farmers’ access to information had improved slightly as the market information on
local FM radios was only short lived and lack of market information had hindered farmers
increase of agricultural production.
5.2 Discussions of the study
5.2.1 Farmer institution and agricultural productivity
Further still, Burton, (2018) noted that for effective and efficient extension services, it is
necessary for farmers to organize into producer and farmer groups (for instance create social
capital) so that they can increase their access to the needed technical and management skills with
specific enterprises as well as gain market access for their crops and products. For these farmer
organization groups to be successful, the members need to learn new leadership, organization
and financial management skills
Similarly, Kevin & Sushma, (2015) indicated that Farmer groups of various types make
extension services more accessible to small scale farmers by providing economies of scale in
service delivery and mechanism for producers to express their demands for services. Working
with clients may enable extension programme to reach farmers and rural households
On the contrary, Mugisha and Male (2018), argue that responsiveness to farmer problems
through training and demonstration may not be fast; extension managers may become closer to
the client but not necessarily more attentive to their local problems. Staffs attitudes need to
change and farmers need to get organized to make them heard. In Philippine, farmers were able
to take advantage of tailor made extension activities. But for most upland farmers, there was no

26
change in the system that never met their needs adequately and there was no improvement in
household income. This showed that farmers need to get more organized, attend trainings and
technology demonstrations and develop strong farmer institutions in order to make them more
heard and have effective demand for agricultural advisory services, attract market to their
products which will improve their household incomes.
Araba Joyce Aligo, (2016) also posit that contact farmers play the role of linking the extension
workers with the farmers by demonstrating to farmers the appropriate agricultural practices, after
being trained themselves by the extension workers or elsewhere. However some of the contact
farmers do not do their job but they instead utilize the facilities in their own fields. The extension
workers get wrong information from the contact farmers and the farmers for that matter. In the
end this bad practice leads to farmers adopting wrong farming methods hence causing nutrient
mining. This will in turn reduce household productivity and therefore welfare of the people.
5.2.2 Advisory service to farmer and agricultural productivity
Given the increasing scarcity of land, particularly among the poor, future increase and
productivity are unlikely to come from expansion in crops acreage or pastureland, but from
increase in land and pasture productivity through adaptation of improved technologies (Rossetti
& Godfrey, 2003). OWC programme evaluation indicated that improved agricultural
productivity and profitability due adoption of improved technologies introduced under OWC
programme especially for matooke, tubers and pulses- New entries are vanilla, garlic, mangoes
and onions which showed to very high returns and with good regional and world market export
potential (Jens et al. 2005).

The study findings are in agreement with Burton, (2018) who posit that OWC should be
concerned with development and dissemination of new technologies associated with the major
crops and livestock production systems, enhancing the skill and knowledge (human capital)
among all types of farmers and dissemination of information so that they can select most
appropriate mix of crops and livestock enterprises, development, dissemination and use of the
most efficient production management practices aimed at increasing agricultural production
thereby household food security and income and strengthening natural resource management.
Further still, Nederlof & Wennink, (2018) argues that when services are delivered to the users as
a response to their needs, their perception of quality is considered through determining quality is

27
reported to be subjective and dependent on criteria used by the service users to assess quality.
Some of the criterions for assessing quality of service they referred to were for instance with
equipment, reliability for instance time, responsiveness, competence and courtesy among other
parameters.
In line with the above, Anderson (2016) agreed that adoption of technologies and better practices
is the core of extension interventions. Target farmers in extension need to pass in a certain
process before achieving their ultimate goal of improving productivity. The process includes
awareness, knowledge, adoption of technology or practice and change in farmers’ productivity
(FAO 2016). To this end, various extension methods are used, such as extension contacts,
meetings, mass media, demonstrations, etc. In addition to these, there are informal networks
where technologies, knowledge and practices are spread to other farmers. Bringing agricultural
growth has been a main agenda for most sub-Saharan African countries. Investment in extension
services is an important tool for improving agricultural productivity and increasing farmers’
incomes (Anderson 2016).
5.2.3 Agri-business development and effect on agricultural productivity
After liberalizing Market, the government (through OWC) embarked on putting in place avenues
through which farmers could make linkages or have access to the market. Consequently,
improving linkages to the market was well one of the cardinal principles upon which OWC was
operationalized (OWC, http.//www.OWC.or.ug.2006).
Improving market linkages was meant to increase farmer’s productivity and profitability through
provision of market information and linking farmers to research and to market (both input and
output market). This was being done through; running market linkage workshops for specific
enterprises, conducting agricultural marketing research, setting up market information service
and providing training to farmers and how to use market information to their advantage.
The study findings above are in agreement with Rossetti & Godfrey, (2013) who revealed that
given the increasing scarcity of land, particularly among the poor, future increase and
productivity are unlikely to come from expansion in crops acreage or pastureland, but from
increase in land and pasture productivity through adaptation of improved technologies (Rossetti
& Godfrey, 2013).
OWC programme evaluation indicated that improved agricultural productivity and profitability
due adoption of improved technologies introduced under OWC programme especially for

28
matooke, tubers and pulses- New entries are vanilla, garlic, mangoes and onions which showed
to very high returns and with good regional and world market export potential (Jens et al. 2015).
One of the constraints to production has been lack of credit for farmers (Samuel et al. 2018). Test
of impact of credit market access on agricultural productivity and off-farm investment using data
from a 1992 survey of 10,000 Ugandan household results indicated that development of local
financial markets indicated improved efficiency of purchased input in agriculture and promotes
diversification and non-agricultural investment (Klaus & John, 2015).
Kevin & Sushma, (2015) also indicated for farmers to increase agricultural productivity, they
should be assured of market, good price, and information about the existence of such market.
Russia and India established information systems to help producers and consumers get market
information. Prices were disseminated through the internet, mass media and on information
boards in the Ministry of information centres and these had benefited both the producer and the
consumer
Further still Pilar, Ruth and Hernando (2015) in their studies of Countries in Latin America and
Caribbean reported that in all the cases, it is agreed that agri-business linkages associate with
organizational structure improved producer negotiating ability and profits were higher. In order
to increase the farmer’s bargaining power and get fair prices, Malawi and India encouraged
group marketing (Kevin & Sushma, 2015). The experience of India, Russia, Malawi, Latin
America and Caribbean showed that deliberate efforts need to be made to ensure that farmers get
improved technologies, information on markets, and if farmers are to get fair prices, they need to
market in groups.
5.3 Conclusions to the study
The conclusions in this work have been drawn in line with the research objectives and they
include the following;
5.3.1 Framer institution and agricultural productivity
The OWC program was initially designed to build the capacity of farmers to form and operate
farmer associations, demand advisory services and adopt improved agricultural technologies and
practices through demonstration of the technologies by model farmers in the community
(MAAIF, 2016). The OWC program formally known as NAADS was set by the act of
parliament as provided in the act, OWC was established to replace the old extension and to spear

29
head the promotion of market oriented agriculture and to provide for other related and incidental
farming.
The researcher examined the formation of farmer institution and change of farmers’ attitude
towards framing with the view of assessing the information of these institutions and change of
farmers’ attitude towards taking farming as a function of farmer institutions. The researcher
found out that farmer institutions were fully formed to save for higher level farmer organization,
to take charge of advisory services and monitor and evaluate service providers and many farmers
viewed farming as business. Farmer institutions contributed greatly to agricultural productivity in
Nakifuma Sub County.
5.3.2 Advisory service and agricultural productivity
The OWC programme increased farmers’ knowledge and skills on management of specific crops
and animals that they put into use. The technological development sites had been established as
learning and technology multiplication centres. Researcher on new crops was done in Nakifuma
Sub County and advisory service to framers improved agricultural productivity.
5.3.3 Agri-business development and agricultural productivity
Findings revealed that crops and animals technologies had been introduced and these had
increased agricultural productivity. Through the OWC programme, framer were able to access
these improved technologies through their farmers groups but on individual basis many farmers
could not afford these technologies making many to stick to the use of traditional seeds and
animals. But many farmers had seen the benefits of cross breeding their local goats with the Boer
or Mubende goats and had taken them to the technological development sites fro mating as they
could not afford the animals. Framer access to information on prices and market had increased
although framers had not used this to increase agricultural production.
5.4 Recommendations to the study
There is need for more mobilization of farmers first to join farmer groups and change farmers’
attitude from subsistence agriculture to commercial agriculture in order to improve on
agricultural productivity. OWC programme was intended to work with framers through famer or
producer groups. Although joining farmer group was free, many framers were hesitant to join the
programme perhaps because of lack of knowledge of the benefit of the programme.
OWC should improve its technology promotion to enhance framers’ welfare. This can be
achieved through changing the attitude of farmers towards educating them about improved

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methods of farming given that some do not like classroom training and help farmers to raise
funds to implement improved methods of farming.
There is need to involve fully the sub county OWC coordinator in the provision of advisory
service to framers especially in non OWC programme enterprises as advisory service by private
service providers were in specific enterprises.
It should increase farmer access to agricultural knowledge and skills which encourages farmers
to utilize the knowledge and information, sensitization of farmers on advisory services, target
more farmers during provision of advisory services and implement agricultural demonstration
farms.
Corrupt leaders especially OWC Coordinators and field extension officers should be penalized
and replaced. This will help avoid frustrations of the OWC program as a result of embezzlement
of funds and abuse of office.
The sub counties and the district should facilitate strategic enterprises and market chain
development for these selected strategic enterprises so that collective marketing can be
encouraged and farmers’ income can be enhanced. The government should design a deliberate
system for making improved technology reach farmers. Credit should be availed to the farmers
for up scaling agricultural inputs.
Households involved in framing should seriously take the advice of the technical teams to
support the programme for their own benefit in improving their livelihood or welfare. The OWC
program was designed for the farmers in order to improve their welfare. Therefore households
should own it and try to deal with all the challenges that affect them in partnership with the local
leaders and policy makers.
Local leaders in Nakifuma sub county, Mukono district should always try to involve everybody
in the programme because many complaints have been raised that some were left outside the
OWC programme.
Policy makers especially parliament representatives should try to follow up the OWC
programme in conjunction with the evaluation teams to know how the programme is being
implemented. They should also try to deal with the problem of corruption whereby it is claimed
that much of the OWC program funds were embezzled when they reached at the sub-county
level which is the level of implementation.

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5.5 Areas for further studies
Based on the study findings, these are areas were recommended for further study.

Examine factors affecting implementation of operation wealth creation program

Assess the influence of corruption implementation of operation wealth creation program

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 APPENDIX ONE
QUESTIONNAIRE GUIDE FOR RESPONDENTS
Dear respondent;
I am Atusasire Peruth a student from Kyambogo University pursuing Bachelor of Arts in
Economics. I am carrying out a study on the contribution of operation wealth creation on
farmer’s productivity in Mukono district: a case of nakifuma Sub County. You are kindly
requested to answer this questionnaire briefly; the information will be treated with confidentiality
for academic purposes.
Thank you
SECTION A: BIO DATA
Tick in the Box that corresponds to the most appropriate option.
1. Gender of respondent
a) Male
b) Female
2. Marital status of the respondents
a) Single
b) Married
c) Divorced
3. Education level of respondent
a) Certificate
b) Diploma
c) Degree
d) Masters

35
SECTION B: OWC PROGRAMME FARMER INSTITUTIONS AND AGRICULTURAL
PRODUCTIVITY.
A four-point Likert scale will be used to collect opinion of respondents about subjects of study
thus: 1= Strongly Disagree; 2 = Disagree; 3= Agree; 4= Strongly Agree.
Tick in the Box that corresponds to the most appropriate option.
Description 1 2 3 4
OWC has facilitated formation of parish coordination committees
OWC facilitated selection of community based facilitators
OWC has facilitated formation of farmer forums in the sub county
OWC has empowered farmers to monitor and evaluate agriculture
activities
OWC has empowered farmers to identify their advisory needs
OWC has organized farmers to sell their products collectively in the
sub county

SECTION C: OWC PROGRAMME ADVISORY SERVICES TO FARMERS AFFECT

AGRICULTURAL PRODUCTIVITY.
A four-point Likert scale will be used to collect opinion of respondents about subjects of study
thus: 1= Strongly Disagree; 2 = Disagree; 3= Agree; 4= Strongly Agree.
Tick in the Box that corresponds to the most appropriate option.
Description 1 2 3 4
OWC has taught farmers on post harvesting handling
OWC has trained farmers on improved seeds and breed
OWC has established technology development site
OWC has been promoting new local enterprises through research
OWC has disseminated useful information to farmers on best areas of
farming

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SECTION D: AGRI-BUSINESS DEVELOPMENT AND AGRICULTURAL
PRODUCTIVITY.
A four-point Likert scale will be used to collect opinion of respondents about subjects of study
thus: 1= Strongly Disagree; 2 = Disagree; 3= Agree; 4= Strongly Agree.
Tick in the Box that corresponds to the most appropriate option.
Description 1 2 3 4
OWC has made possible for farmer groups to receive and use improved
livestock and crops
OWC has made it possible for farmers to have direct link with the buyers
OWC farmers have resorted to using improved crops and livestock
Information on market has made farmers grow more crops and rear
animals not only for sale

Thanks for your cooperation and time

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