Factors affecting the profitability of small scale farmers in Uganda: Case Study of LII sub county, Nwoya district

Abstract

This study was conducted to assess the factors affecting the profitability of small scale farmers investigate in Lii Sub County, Nwoya District. The researcher used a cross-sectional design and primary data which was collected using questionnaires. The target population consisted of residents, specifically small scale farmers in Lii Sub County and the researcher used convenience sampling method to select the sample consisting of a total of 90 participants. The survey questionnaire consisted of four sections for the demographic, environmental, socioeconomic and profitability factors affecting small scale farming. The demographic factors considered for this study were gender, age-group, marital status, level of education, farming experience, household size and activity carried out. It was also shown that there was a moderate positive relationship between environmental factors and profitability (r =0.528, p=0.000<0.05) as well as a strong positive relationship between socioeconomic factors and profitability of small scale farmers (r =-0.638, p=0.000<0.05) at 95% confidence interval. The coefficient of determination, calculated under the linear regression, indicated that 73.3% of the variation in profitability of small scale farmers is predictable by respondents’ demographic characteristics as well as environmental and socioeconomic factors. The most significant/influential predictors were the household size, environmental factors and socioeconomic factors. The study therefore makes key recommendations for the key architects behind the promotion of the adoption of sustainable farming practices to improve on the aspects of farmer characteristics, environmental factors and socioeconomic factors in determining the profitability of small scale farmers and the development of the agricultural sector as a whole. Keywords: Agricultural Sector, Profitability, Socioeconomic Factors, Environmental Factors