FASID Development Database 2004-09-01 The 2003 REPEAT Survey in Uganda: Results Takashi Yamano, Dick Sserunkuuma, Keijiro Otsuka, George Omiat, John Herbert Ainembabazi, and Yasuharu Shimamura September 2004 Foundation for Advanced Studies on International Development The 2003 REPEAT Survey in Uganda: Results Takashi Yamano*, Dick Sserunkuuma**, Keijiro Otsuka*, George Omiat**, John Herbert Ainembabazi**, and Yasuharu Shimamura* September 2004 * Foundation for Advanced Studies on International Development, Japan ** Makerere University, Uganda Acknowledgements Support for this research project has been provided by the Ministry of Foreign Affairs and the Japan International Cooperation Agency (JICA). The study was jointly carried out in collaboration with the Foundation for Advanced Studies on International Development (FASID) and Makerere University. 2 Executive Summary The persistent poverty, land degradation, and low agricultural productivity problems are major challenges to the government of Uganda and its development partners. FASID, in collaboration with Makerere University, undertook research on poverty, environment, and agricultural technologies (REPEAT) with the overall goal of identifying agricultural technologies and farming systems that will contribute to increased agricultural productivity, the sustainable use of natural resources, and reduced poverty in Uganda. The research findings will be used to inform policy makers, development practitioners, and other stakeholders in formulating and implementing policies and strategies in Uganda. This report summarizes findings from the 2003 REPEAT Survey. The survey is based on data collected from 940 households in 94 Local Council 1s that cover most parts of Uganda, except the north regions where security problems exist. The report identifies five major findings: First, the report identifies a national poverty line at $119 per person per year and finds that about 52 percent of rural households are living in poverty. The poverty profile found by the 2003 REPEAT Survey will be the baseline profile for future rounds of the REPEAT surveys to measure changes in poverty over time. Second, the report finds that soil conservation practices are less practiced under the Mailo tenure system than the freehold tenure system. Although this could be because of insecure land rights among farmers under the Mailo tenure system, further studies are required to explore the reasons behind the low investments under the Mailo tenure system. Third, the report indicates very low applications of fertilizer and other soil conservative practices compared with neighboring countries, such as Kenya. Policies should promote more fertilizer use (both chemical and organic) by encouraging the development of inputs markets and by promoting more use of organic fertilizer. Fourth, the report examines an intensive farming system, called the Organic Green Revolution technology, which intensifies synergies between improved dairy production and crop production via animal manure. The evidence shows that more manure is applied on crops under the improved dairy production system since it is easy to collect manure from cows that are kept in an isolated area. To help farmers shift from the extensive farming system that relies on grazing to the intensive farming system that relies on stall-feeding, policy makers and donors should help farmers obtain improved dairy cows by providing in-kind credit, or help improve infrastructure to transport milk from rural areas to urban cities. 3 Fifth, increased farm income may not be sufficient for the poor to escape from poverty in the long-run. The report finds that, in addition to formal education, different language skills are important to enter non-farm self-employment activities and regular wage work. More research is needed to identify the specific skills required in labor markets to use the education expenditure more efficiently. Sixth, we find that orphaned young adults aged 15-18 are less likely to be in school than non-orphaned young adults. Since secondary education is a key factor in labor markets, the results indicate that orphaned young adults would be disadvantaged in labor markets. Education among young adults is also important in preventing the further spread of HIV in Uganda. Thus, it is important to provide help to orphaned young adults to attain a sufficient level of education. In sum, the findings in this report suggest some promising agricultural technologies in Uganda. Over the next several years, the REPEAT project will re-visit the sampled households and communities so that we can evaluate how some technologies affect poverty. 4 Table of Contexts: 1. Introduction 2. Data 3. Expenditure Profile and Poverty 3.1. Per capita “Cash” Expenditure 3.2. Total Expenditure 3.3. Measuring Poverty 3.4. Income Profile 4. Land Tenure and Investments in Land 4.1. Land Tenure Systems 4.2. Land Rights under Different Tenure Systems 4.3. Evolving Land Rights 4.4. Soil Conservation Practices under Different Tenure Systems 4.5. Tree Planting under Different Tenure Systems 4.6. Soil Fertility 5. Farm Production 5.1. Major Crops in Uganda 5.2. Input Use and Crop Yield 6. Livestock Production 6.1. Livestock Holdings 6.2. Adoption of Improved Cattle 6.3. Adoption of Improved Milk Production and Management 7. Organic Green Revolution in Uganda 7.1. Organic Green Revolution: Mechanism 7.2. Evidence from Uganda 8. Non-farm Income 8.1. Major Non-farm Activities: List 8.2. Participation in Non-farm Activities: Education vs. Language Skills 9. Education 9.1. Schooling System in Uganda 9.2. School Attendance in the Survey 9.3. Schooling of Orphaned Children and Young Adults 10. Conclusion Reference 5 Tables Table 1. Sampled Communities and Households Table 2. Per Capita “Cash” Expenditure by Agro-climatic Zone Table 3. Home and Total Expenditure by Agro-climatic Zone Table 4. Poverty Comparison Table 5. Derivation of a Simplified Food Based Poverty Line Table 6. Per Capita Income and Income Share by Agro-climatic Zone Table 7. Land Tenure Systems by Agro-climatic Zone—Plot Level Table 8. Land Acquisition and Land Tenure and Tenancy—Plot Level Table 9. Land Rights by Land Tenure and Tenancy—Plot Level Table 10. Land Owners’ Individualized Rights to Sell and the Tenure System Table 11. Land Owners’ Individualized Rights to Sell—Plot Level Analysis Table 12. Soil Conservation Practices—Plot Level Analysis Table 13. Soil Conservation Practices—LC1 Fixed Effects Model Table 14. Slush and Burn and Tree Planting—Plot Level Analysis Table 15. Slush and Burn and Tree Planting— LC1 Fixed Effects Model Table 16. Soil Nutrient and Texture by Agro-climatic Zone Table 17. Crop Production—Value Production at the Household Level Table 18. Percentages of Producer Households of Major Crops Table 19. Chemical and Organic Fertilizer Application Table 20. Maize Yield, Improved Seeds, and Fertilizer Application Table 21. Matoke Yield and Manure Application—Plot Level Table 22. Livestock Ownership—Household Level Table 23. Improved and Local Cow Distribution across Agro-climatic Zones Table 24. Adoption of Improved Cattle—Household Level Analysis Table 25. Milk Production Management Table 26. Livestock Production System and Manure Application on Crops Table 27. Manure Application and Improved Cattle—Plot Level Analysis Table 28. Maize and Matoke Yields by Fertilizer Application Table 29. Crop Yield and Fertilizer Application—Plot Level Analysis Table 30. Non-farm Self-employment and Wage Activities Table 31. Determinants of Participation in Business and Labor Activities Table 32. Proportion of Orphans among Children/Young Adults (aged 0-18) Table 33. School Attendance Ratio Table 34. Determinants of School Attendance among Children and Young Adults 6 Figures Figure 1. Sampled Communities in Uganda Figure 2. Cash Expenditure Share by per capita Expenditure Quartile Figure 3. Distribution of per capita Total Expenditure Figure 4. Food Expenditure Share Figure 5. Income Share by per capita Income Quartile Figure 6. “Organic Green Revolution” in East Africa Figure 7. Isoquant Curve: Chemical and Organic Fertilizer Figure 8. School Attendance Ration by Age Figure 9. School Attendance Ration by Orphan Status and Living Arrangements 7 1. Introduction Since 1987, the government of Uganda has implemented fundamental institutional and economic policy reforms, aiming at achieving macroeconomic stability, removing distortions in the incentive framework for resource allocation, and increasing microeconomic efficiency. As a result, Uganda achieved remarkable economic growth and poverty reduction in the past decade, with absolute poverty declining from 56% to 35% of the population between 1992 and 1999/2000 (Appleton, 2001). Notwithstanding this outstanding progress, there is growing concern over whether this trend is reflected in the improvement of the living standards of the majority of the people, particularly in rural areas, where 96% of the poor depend mainly on agriculture for their livelihood. Agricultural productivity stagnated or declined for most farmers during the 1990s (Pender, et al. 2001; Deininger and Okidi 2001) caused by declining soil fertility, increased incidence of pests and diseases, and drought conditions. In addition, the long–term effcts of the AIDS epidemic on rural poverty raises some concerns (Yamano and Jayne, 2004). In fact, although poverty declined between 1992 and 1999, it has since increased (albeit slightly) to 38% (8.9 million people) in 2002/2003, driven mostly by worsening poverty in rural areas particularly among crop farmers. Poverty reduction in rural areas and the northern region as a whole has also been much less than the rest of the country, and many people interviewed during the participatory poverty assessment (UPPAP, 2002) felt that poverty was worsening in their communities, with more movement into poverty than out of it. The persistent poverty, land degradation, and low agricultural productivity problems are major challenges to the government of Uganda and its development partners that require concerted effort to be effectively addressed in a sustainable and equitable manner. To achieve these goals, the government has laid out an ambitious strategy for addressing poverty, through the Poverty Eradication Action Plan (PEAP), with a target of reducing the proportion of the population living in absolute poverty from 44% in 1997 to below 10% in 2017 (MFPED, 2001). The government recently launched the Plan for Modernization of Agriculture (PMA), which is one of the pillars of the PEAP. The mission of the PMA is to eradicate poverty by transforming subsistence agriculture to commercially oriented farming, through re-orienting the poor subsistence farmers’ production towards the market. The government recognizes that the success of this strategy will depend on the uptake of improved agricultural technologies by a significant proportion of farmers so as to increase total factor productivity and farm income (through the reduction of per unit cost of production); stimulate growth in non-farm income and employment (through the increased integration of agriculture and other sectors of the economy); and raise real incomes of the poor (by lowering food prices) who spend 60 percent of their incomes on food. In this 8 regard, the government has among other things resolved to support the generation, dissemination, and adoption of productivity-enhancing technologies and to improve the access of smallholder farmers to markets as a means of increasing the marketed share of what they produce. The government also recognizes that natural resources are critical in addressing poverty because the majority of the poor depend on the extraction of natural resources and has, thus, designed a number of policies and strategies with the broad goal of ensuring that natural resources are used in a sustainable manner to contribute to poverty reduction. FASID, in collaboration with Makerere University, undertook research on poverty, environment, and agricultural technologies (REPEAT) with the overall goal of identifying agricultural technologies and farming systems that will contribute to increased agricultural productivity, sustainable use of natural resources and reduced poverty in Uganda. It is hoped that this knowledge will be used to guide policy makers, development practitioners, and other stakeholders in formulating and implementing policies and strategies for sustainable natural resource use, increased agricultural productivity and reduced poverty in Uganda. 2. Data The sample for the REPEAT project largely builds upon and complements a completed research project on policies for improved land management in Uganda, conducted by IFPRI and Makerere University between 1999 and 2001 (Pender et al., 2004). The latter involved a survey of 107 communities selected from two thirds of regions in Uganda, including more densely populated and more secure areas in the southwest, central, eastern and parts of northern Uganda and representing seven of the nine major farming systems of the country (Figure 1). Because of insecurity in the north and northeastern part of the country, these areas were excluded. The REPEAT project was conducted in 29 out of 32 districts and in 94 out of 107 Local Counsel 1s (LC1s) studied by IFPRI. From each LC1, ten households were selected to make a total of sample 940 households. Following the IFPRI study, we stratify the sample into six agro-climatic zones: the bimodal high rainfall zone (mostly the Lake Victoria crescent), the bimodal medium rainfall zone (most of central and parts of western Uganda), the bimodal low rainfall zone (lower elevation parts of southwestern Uganda), the uni-modal rainfall zone (much of northern Uganda), and the southwestern and eastern highlands (1500m a.s.l. and above). In Table 1, we present basic characteristics of sampled LC1s and households. 9 In LC1s in the bimodal low rainfall zone and the bimodal medium rainfall zones, the population density (persons per km2) is low at 100 (column C). In contrast, in the bimodal high rainfall zone (Lake Victoria crescent), the population density is very high, and so is in the unimodal rainfall zone. Consistent with the population density, the average farm size is large in zones with low population densities and small in zones with high population densities (column F). In the following sections, we examine characteristics of sampled LC1s and households from different aspect of their livelihood. 3. Expenditure Profile and Poverty 3.1. Per Capita “Cash” Expenditure We start this report with describing expenditure profile in rural Uganda and defining poverty lines for our samples according to $1 a day poverty line by using a purchasing power parity measure and a national poverty line based on food and non-food requirements, by following earlier studies on poverty (Ravallion and Bidani, 1994; Appleton, 2001). First, we present “cash” expenditure profiles in each zone (Table 2). In the survey we asked about cash expenditure on 39 items over the last 12 months, instead of consumption of all items, to reduce interview lengths. We asked for frequencies of purchase, such as once a week or three times a year, and average spending per purchase. We evaluate home consumption by taking a difference between the total food production minus sales of crop, livestock, and livestock products production. By using such information, we have calculated annual expenditure. First, we focus on cash expenditure. Because cash expenditure does not capture self-consumption, it differs from total expenditure systematically for poor households whose expenditure share of self-consumption is higher than non-poor households. Despite this drawback, however, the cash expenditure information provides useful information. The average per capita cash expenditure is $106. The unimodal rainfall zone has the highest per capita cash expenditure and the bimodal rainfall zone has the lowest. We divide the 39 expenditure items into five categories: staple food items, fresh food items (such as meats), non-fresh food items (such as sugar), non-food items (such education and medical expenditure), and social activities (such as contributions to churches or local organizations). The share of non-food items is about 44 percent and takes the largest share among the five categories. Among the non-food items, education expenditure takes the largest share: 22 percent of the total cash expenditure. Shares of other categories are similar across zones. 10 In Figure 2, we present shares of cash expenditure in five categories by the per capita cash expenditure quartile. We find an expected pattern that poor households spend a high proportion of expenditure on food items. For instance, households in the lowest quartile spend about 49 percent of the total cash expenditure on items in food categories (staple food, fresh food items, and non-fresh food items), while households in the highest quartile spend only 37 percent. The differences in shares between the lowest and highest quartiles, however, are not so distinct. 3.2. Total Expenditure Next, we evaluate self-consumption of crops, livestock, and livestock products. The results are presented in Table 3 (column C). The per capita self-consumption ranges from $32 to $52. We find the highest consumption of home products in the bimodal low rainfall zone, where the per capita cash expenditure is also the highest. The relationship between the per capita cash expenditure and home product expenditure, however, is not clear. This is expected because households with low cash expenditure have to rely on self-consumption, but at the same time they can consume less in total than households with high cash expenditure. By combining the per capita cash and home product expenditure, we obtain per capita total expenditure (column A). The average per capita total expenditure is $144 among the sampled households. In Figure 3, we present the distribution of per capita total expenditure. The peak of the distribution is at about $90 a year, and the distribution has a long tail on the right-hand side. For simplicity, we have truncated the figure at $500 or top two percent of the distribution. Lastly, we present a relationship between food expenditure share and total expenditure (Figure 4). As we expect, the food expenditure share declines as the total expenditure increases. At the lowest expenditure level, the share is above 65 percent. As the per capita expenditure increases, it starts declining and levels off at about 55 percent. Although, this may seem a high level of food expenditure share for high cash expenditure households, it has to be emphasized that sampled households are in rural areas and their expenditure levels are still low compared with high expenditure households in urban areas. 3.3. Measuring Poverty One of the long-term objectives of the REPEAT project is to measure changes in poverty over time and examine which factors, especially agricultural technologies, reduce poverty. In order to measure changes over time, we need to determine a base 11 line poverty rate from the 2003 survey. There are two methods to set a poverty line. First, we can use an internationally comparable poverty line of $1 a day. A purchasing power parity exchange rate should be used to reflect living costs in Uganda. Second, we use a national poverty line which is based on food and non-food requirements. In this subsection, we examine poverty lines based on both methods. The purchasing power parity exchange rate is about Shs 478 to the US$1 in 2003 (calculated form World Bank, 2004). This suggests that a $1 a day poverty line is about Shs 174,470 a year, which is equivalent of $91.8 per person a year by using official nominal exchange rate. According to this poverty line, we find that about 40 percent of households are poor. The distribution of poverty across agro-climatic zones is similar to that of the average total expenditure. Although the $1 a day poverty line is comparable across countries, it does not have theoretical justification. (Why does it has to be one dollar per day?) Thus, we also estimate a local poverty line based on calorie requirements by following the approach of Ravallion and Bidani (1994) and Appleton (2001). They focus on defining food-related needs and indirectly estimate non-food requirement. The food requirement is based on costs of obtaining 3,000 kilo calories per day for a male adult in rural Uganda.1 Appleton (2001) used four nationally representative monitoring surveys in the 1990s and measured changes in poverty over time. He found that the percentage of people living below the poverty line declined from 56 percent in 1992 to 44 percent in 1997/98 in Uganda. To define a poverty line, he first defined a food poverty line and then a poverty line which include non-food requirements as well. Appleton (2001) used a food-basket of the poorest 50 percent of the population and calculated the cost of obtaining 3,000 kilo calories from this food-basket in rural Uganda. We use the same food-basket used by Appleton but apply 2003 prices found in our survey. The results are reported in Table 5. According to this food-basket, the cost of obtaining 3,000 kilo calories per day for a month (30 days) is Shs 14,280, which is equivalent of $7.52 per month. Thus, the annual food poverty line is at $ 90.2 per male adult. However, not all members in the household need 3,000 kilo calories per day. Thus, we use adult equivalents (Table A4.2 in Appleton, 2001) to evaluate food requirements for different age-gender groups. By following Ravallion and Bidani (1994) and Appleton (2001), the least non-food requirement is defined as the non-food expenditure of those whose 1 Although 3,000 kilo calories is a high requirement even for a male adult who has to work on farm. However, we use this requirement to be consistent with Appleton (2001). 12 expenditure is just equal to the food poverty line. This is justified because if households are sacrificing the food expenditure needed to meet their calorie requirements for non-food spending, nonfood spending should also be considered as needed. In our sample, we find that households whose total per adult equivalent is just at the food poverty line spend about 31.5 percent of total expenditure on nonfood items, thus the required nonfood spending is about $28.4. From this calculation, we find the poverty line at $118.6 per person per year. According to the food poverty line, we find that about 39 percent of sampled households live in food poverty. This is very close to what Applenton (2001) found by using four monitoring surveys in Uganda in the 1990s. He estimated that 36 percent of Ugandans lived below the food poverty line. Because his estimate includes urban people, the percentage for rural households should be higher, which would be closer to or above our estimate. We also find that about 52 percent of households live in poverty. This is also close to Applenton (2001)’s estimates. He found that the poverty rate declined from 56 percent in 1993/94 to 49 percent in 1997/98. Thus, our estimate is somewhere between the 1993/94 and 1997/98 levels. However, because our data do not represent the whole rural population of Uganda and because our questionnaire is different from the one used in Applenton (2001), we should emphasize that his estimates are not directly comparable to our estimate. What is clear is that our estimates of total expenditure and poverty are reasonably close to estimates from much bigger (and more expensive) national representative surveys. What we hope for the future is to use the same questionnaire to the same samples in a panel survey and measure a change in poverty in the future to achieve one objective of the REPEAT project. 3.4. Income Profile The previous sub-section describes how many people are poor in rural Uganda and what they consume but do not provide information on how they earn income and, therefore, how they could escape from poverty by increasing income. Although, we will examine each income generating activity in the following sections, it is useful to take a look at income profile first. Income profile is summarized in Table 6, which shows average per capita income and income share by different income sources and by the agro-climatic zones. The average per capita income for the entire sample is US$118. Income sources include farm income, livestock income, non-farm activities, and wage income. Farm income is calculated as production value of farm products minus paid-out costs, 13 which include costs on seeds, fertilizer, hired labor, and rental oxen. Livestock income is also calculated as production value minus paid-out costs. Production value includes animal sales and production value of livestock products, such as milk and eggs. Paid-out costs for livestock production include purchased feeds, expenditure on artificial insemination (A.I.) service, bull service, and anima health care service. Non-farm activities include non-farm micro enterprises such as trading various goods and seasonal labor activities. To obtain reasonable profit from micro enterprises, we asked for numbers of low- and high-business months in the past 12 months and earnings and costs per month during the low- and high-business months. Wage income only includes salaries from jobs that provide constant monthly salary. Out of the total income, farm income accounts for 60 percent. Among the six agro-climatic zones, the average per capita income is the highest at $161 in the bimodal rainfall zone (lower elevation parts of southwestern Uganda), while it is at the lowest level in the bimodal medium rainfall zone at $96. In the unimodal rainfall zone (northern Uganda), the share of the farm income is low at 51 percent, whereas shares of livestock income and wage incomes are high at about 20 and 11 percents, respectively. Next, we stratify the sample into quartiles by per capita income (Figure 5). As expected, we find that households in lower income quartiles have larger income shares coming from farm production than households in higher income quartiles. The proportion of farm income is over 70 percent among households in the lowest and second lowest income quartiles. Instead, households in higher income quartiles have larger income share coming from non-farm activities and wages than households in lower income quartiles. For instance, households in the highest income quartile have 30 and 18 percents of income coming from non-farm activities and wage income, respectively. From this table, we can draw two common findings in studies on non-farm income in Africa (Reardon, 1997; Jayne et al., 2003). First, farm income is the most important income source for poor households. Thus, increasing farm productivity is a crucial issue to secure and increase income for them. In the following sections, we examine farm and livestock productions and explore possible ways to increase productivity. Especially, we propose an intensive farming system that integrates improved dairy production system, organic fertilizer, and crop production. We call this system as “Organic Green Revolution” technology and describe this technology in Section 7. Second, Figure 5 suggests that farm income is not enough to move up income quartiles. The non-farm income share is high among the highest income quartile. 14 Although the causality could be in both directions (non-farm income increases total income or high income households have means going into non-farm activities), it is clear that the access to non-farm income can play a critical role in escaping from the poverty. In Section 8, we examine determinants of having non-farm jobs at the individual level. As mentioned earlier, the incidence of poverty decreased nationally from 56 percent to 49 percent in 1997 (Applenton, 2001). A descriptive analysis indicates that agricultural production for the market was strongly correlated with the reduction in poverty. More specifically, households growing cash crops (mainly coffee) account for half of the poverty reduction achieved between 1992 and 1997. In the following sections, therefore, we examine various agricultural activities in rural Uganda, so that we better understand determinants of poverty and identify possible strategies to escape from it. 4. Land Tenure and Investments in Land 4.1. Land Tenure Systems As in many other African countries, there exist several land tenure systems in Uganda. Three major land tenure systems are Mailo, freehold, and customary tenure systems (Mugambwa, 2002). Mailo was a quasi-freehold tenure system, which was unique to the kingdom of Buganda. The tenure had its origin in the 1900 Uganda Agreement between the British colonial administration and the chiefs of Buganda. Under the agreement, about half of the land in the kingdom of Buganda was allocated to chiefs and notables as their private property. Because the allocations were expressed in multiples or fractions of square miles, the term Mailo was adopted. Owners, lacking labor to till such large areas, had received fees and rents by settling tenants (kibanja) on their land. The 1928 Busuulu and Envujjo law and subsequent land laws require landlords to pay tenants full compensation for any investments made by tenants, protecting tenants from eviction. Further more, kibanja tenants enjoy an inheritable permanent right of occupancy subject to payment of a fixed annual rent. Under the colonial administration, three freehold tenure systems were established through agreements with different kingdoms partly to pave way for European settlement and partly to bribe chiefs and notables (Mugambwa, 2002).2 2 Freehold tenure system could be disaggregated into three, depending on different agreements with different kingdoms (Mugambwa, 2002). These three are freeholds created under the Crown Lands Ordinance of 1903, the Native freeholds of Ankole and Toro, and the Adjudicated freeholds under the 15 Freehold tenure system is an individualized land tenure system where individual land rights are relatively well established, although this does not mean land owners have titles or rights to plant trees as we discuss later in this section. Finally, there exist customary land tenure systems. In pre-colonial Uganda, there were three broad customary land tenure systems: communal or tribal tenure, clan tenure, and normadic tenure (Mugambwa, 2002). In communal or tribal tenure systems, ownership of the land was vested in the ruler as owner or trustee of the land for members of the tribe. Under clan tenure, ownership of land was organized according to clans as opposed to tribes. The last customary tenure system is normadic tenure, which is prevalent in Karamoja. To characterize the three major land tenure systems, we present descriptive information on land acquisition and land rights under the three tenure systems. First, we present proportions of plots under different tenure systems across agro-climatic zones in Table 7. Mailo land tenure system is only found in the three bi-modal rainfall zones that used to belong to the kingdom of Buganda. In the bi-modal low rainfall zone, there are virtually no customary lands, only freehold and Mailo lands. In the bi-modal medium and high rainfall zones, all three land tenure systems exist. In the uni-modal and eastern highlands (northern and eastern parts of Uganda), the customary land tenure system is dominant, while in the south-western high lands, the freehold tenure system is dominant. Thus, there are several different land tenure systems co-exist in rural Uganda, which provide opportunities to compare land rights and investments across different land tenure systems. 4.2. Land Rights under Different Tenure Systems Next, we examine land acquisition modes under the three tenure systems, separately for land owners, occupants, and tenants. We define occupants as households who use someone else’s land but do not pay rents. According to Table 8, land owners basically acquire land through purchase and inheritance. Even under the customary and Mailo systems, about half of land owners have acquired land through purchase. Occupants acquire land through various channels. Of which, borrowing is a major acquisition model for occupants, in addition to inheritance and purchase. Tenants acquire land through renting (mostly via fixed rents). Under different tenure systems, households have different degrees of land rights to sell their plots, plant timber trees (which is valuable), and plant other trees Kigezi, Bugisu, and Ankole land registration pilot schemes. 16 (which are not as valuable as timber trees in general). In Table 9, we present individual land rights under different tenure systems, separately for owners, occupants, and tenants. Over all, we find that, on more than 60 percent of their plots, households have individualized rights to sell land (i.e., they can sell land without obtaining approvals from non-household members). Their rights to give land, to plant timber trees, and to plant non-timber trees closely follow their rights to sell land. In terms of land titles/certificates, only 4 percent of the entire plots were issued titles/certificates. We find that under the freehold tenure system, sample households can sell 81 percent of their plots without any approvals. Under the customary and Mailo, they can sell about 64 and 74 percents of their plots, respectively. Individual rights to plant trees, however, are quite similar across tenure systems for land owners. But under the customary and Mailo tenure systems, land occupants have much stronger rights to plant trees. We examine a relationship tree planting and land tenure systems later in this section. 4.3. Evolving Land Rights Although traditional land tenure systems were considered as static and inefficient in resource allocation, a more recent view considers them as dynamic and flexible systems that can respond to changes in economic and social environments. This view is known as the evolutionary theory of land rights (Otsuka and Place, 2001). The basic implication from this theory is that as land scarcity increases people demand more land tenure security and, as a result, private property rights in land tend to emerge. Thus, according to this view, there should be variations in land rights even under the same tenure system, depending mainly on land scarcity. In Table 10, we present proportions of households who have individualized land rights to sell land across agro-climatic zones. The results in Table 10 indeed show variations in the land right across zones. The customary land tenure system has a large variation in the land right. In the bimodal medium rainfall zone, the proportion of plots with the land right is 53 percent, while it is 85 percent in the south-western highlands zone. In the south-western highlands zone, 85 percent of plots are under the freehold tenure system. Thus, the customary land tenure system may have been influenced by the freehold tenure system. Based on this observation, we pose a hypothesis that the freehold tenure system has neighboring effects to customary and Mailo tenure systems and that because of the neighboring effects, the customary and Mailo tenure systems become more individualized. To identify the neighboring effects, we need to control for any other 17 factors, such as population density, that may influence the customary and Mailo tenure systems. To test this hypothesis, we estimate Probit model, where the dependent variable is a dummy variable for an individualized right to sell a plot. To represent the presence of the freehold tenure system within LC1, we construct a ratio of freehold plots out of all plots within LC1. Thus, the ratio takes one if all of plots within CL1 is under freehold and zero if no plots are under freehold within LC1. We estimate this model at the plot level with Probit first for all plots and later separated for each tenure system. The results in Table 11 indicate that there is a strong neighboring effect of the freehold tenure system on the individualized land right to sell. According to a simulation, when the proportion of pots under the freehold within LC1 increases from 10 to 30 percent, then the probability of having the individual land right will go up by five percent under all tenure systems. To disaggregate the neighboring effect on the freehold tenure system itself and the neighboring effects on the customary and Mailo tenure systems, we include interaction terms between the ratio of freehold plots and the customary and Mailo dummies. The results indicate that the neighboring effect is strong to the freehold tenure system itself, indicating that the freehold tenure system is more individualized in LC1s where the ratio of freehold plots is high. The neighboring effects to the customary and Mailo systems are much stronger than its effects on the freehold. The interaction terms between the ratio of freehold and the customary and Mailo dummies are positive and significant. The results are consistent with the view that traditional land tenure systems are actually dynamic and adoptive to surrounding economic and social environments. Turning to the other variables, we find that a plot closer to the homestead also has a higher probability of being issued the individual right than a plot further away. We also find that the female headed households have a 20 percent lower probability of having the right to sell the plot than male headed households. The older the household is, the higher the probability of having the individualized right to sell. Interestingly the maximum education level of female members has a positive impact on the individualized rights to sell but not the maximum education of male members. We need further investigations to interpret these results. 4.4. Soil Conservation Practices under Different Tenure Systems Next, we explore the relationships between soil conservation practices and land 18 tenure systems. In Table 12, we present proportions of plots that are under five soil conservation practices: chemical fertilizer application, manure application, fallow (at least once in the last three cropping seasons), mulching, and crop residue application. Except fallow, the other practices are practices applied during the 2003 first cropping season, which was completed immediate before the 2003 REPEAT survey. In general, soil conservation practices are not commonly practiced in Uganda. We find that only 13 percent of all plots were applied chemical fertilizer. Application of crop residues is the most widely practiced: 29 percent of plots were applied crop residues. By stratifying the plots by the tenancy status, we find that soil conservation practices are practiced more by owners of the plots than occupants or tenants. The differences are less pronounced in fertilizer application than other practices, such as manure application and mulching, that are intended for long-term benefits. Next we stratified the sample by the tenure systems (note that we have excluded tenants when we stratified by the tenure system because they behave very differently from owners and occupants.) In Table 12, we find that three soil conservation practices (fertilizer application, manure application, and fallow) were more practiced under the freehold tenure system than the customary or Mailo tenure systems. Fallowing considered a practice that may increase land insecurity under a fragile land tenure system since followed land appears to be idle. This could be a reason for low percentages of plots being fallowed under the Mailo tenure system. On the other hand, mulching and crop residues were more practiced under the Mailo tenure system than the freehold and customary tenure systems. Some of these differences among tenure systems could be driven by regional differences. For instance, areas under the Mailo tenure system are central and western regions near Victoria Lake. In these areas, mulching and crop residues are commonly applied on matoke. To control for regional differences and other factors that affect soil conservation practices, we estimate regression models where the dependent variables are dummy variables for the five soil conservation practices (Table 13). We estimate these models with the LC1 Fixed Effects models to control for observed and unobserved regional characteristics. The estimation models are linear probability models where estimated coefficients are interpretable as marginal changes in the probability. (We have also estimated the models with Probit using LC1 dummies. The results are very similar to the LC1 Fixed Effects models.) The results in Table 13 indicate that under the Mailo tenure system, three out of the five soil conservation practices are about 8 to 10 percent less likely to be practiced 19 than the freehold tenure system. Under the customary tenure system, fallow is about 5 percent less likely to be practiced than the freehold tenure system, the difference is only significant at the 10 percent level. In general the differences in soil conservation practice between the freehold and customary tenure systems are not significant. These results seem to suggest that households in the Mailo tenure system are less interested in investing in land to improve short-and long-term soil fertility than households under the freehold land tenure. This could be because of insecure land tenure among under the Mailo tenure system, despite protections by laws. The results also indicate that some soil conservation practices are less likely to be applied on occupant and tenant plots. Fallowing is significantly less practiced on occupant and tenant plots. Because there are many occupants under the Mailo tenure system, especially, the result suggest that fallowing is close to 17 percent less likely to be practice on a occupant plot under the Mailo tenure system than an owner plot under the freehold tenure system. The results on other plot characteristics indicate that manure application, mulching, and crop residue application are less practiced on plots that are farther away from homestead. This is understandable because of high labor demand to transport bulky materials from the homestead to plots. The estimated coefficient of the distance between the plot and homestead is positive and close to significant (t =1.57) on chemical fertilizer, which is not heavy or bulky as manure. Therefore, this may suggest that farm households substituting fertilizer to manure on plots that are farther away from homestead. 4.5. Tree Planting under Different Tenure Systems Soil conservation practices that we investigated in the previous sub-section are short- or medium term investments in soil fertility. To examine the impacts of land tenure systems on investments, however, long-term investments could be more appropriate. Tree planting is one example of long term investments that people in rural areas often make. Yet, because tree planting is a long-term investment, there is a serious possibility that the causality runs the other way around. In Africa, tree planting is often considered as a method to enhance tenure security (Besley, 1995; Platteau, 2000; Otsuka and Place, 2001). In Uganda, Place, Ssenteza, and Otsuka (2001) hypothesize that land investments that are visible to outsiders enhance tenure security, while invisible land investments (to outsiders) do not. They find evidence that link planting trees on customary land to expected increase in tenure security. In this report, however, we do not investigate causal relationships between tree 20 planting and land security because it is quite difficult to obtain definitive answers. Instead, we only present some descriptive information about tree planting under different tenure systems. In Table 14, we present proportions of plots under the slush and burn practice and tree planting (both for non-timber trees and timber trees) under the three land tenure systems. In Table 14, we find that the slush and burn practice is more applied on occupant and tenant plots than owner plots. In contrary, non-timber and timber trees are more planted in owner plots than occupant and tenant plots. When we stratify the samples by the land tenure systems, we find that both slush and burn practice and tree planting are more often applied under the customary and Mailo tenure systems. According to the hypothesis posed by Place, Ssenteza, and Otsuka (2001), both slush and burn practice and tree planting are “visible” by the outsiders. Thus, the findings in Table 14 suggest that people under the customary and Mailo tenure systems are trying to increase land security by clearing field and planting trees on the fields. However, once we control for regional differences, the results do not stand (Table 15). In Table 15, we present results from the LC1 Fixed Effects models, where the dependent variables are dummy variables for slush and burn practice, non-timber tree planting, and timber tree planting. In fact, we find that slush and burn practice is less likely to be practiced in customary tenure system once we control for regional differences across LC1s. We also find that timber trees are less likely to be planted in occupant and tenant plots. This could be because occupants and tenants do not want to make a valuable investment, such as planting timber trees, on plots that belong to land owners. The results on plot characteristics are as expected. Plots that are acquired a long time ago have higher probabilities of being planted non-timber or timber trees in the past and plot that are farther away from homestead are less likely to be planted non-timber or timber trees than plot that are closer to homestead. In sum, we find that short-tem land investments are less practiced under the Mailo tenure system than the freehold tenure system, although we do not find any differences across land tenure systems in long-term land investments (slush and burn practice and tree planting). However, as we discussed earlier, land rights within tenure system are not homogeneous. Thus, what is important is to look at relationships between land rights and land investments. Because of the endogeneity of the land rights, however, this analysis is beyond the scope of this report. We hope that we will extend our research into that direction in the future. 4.6. Soil Fertility 21 Our next interest is how soil conservation practices affect soil fertility over time. Ideally, we would need to have a panel data to measure such impacts, and this is what we are planning to do in the future. With cross section data, we can only show correlation between soil conservation practices and soil fertility. Unfortunately, we have not been able to match soil information to the plot information. Thus, we only present soil fertility information in this report. We have collected soil samples from one annual crop plot operated by sampled household in the first cropping season of 2003, preferably a plot of maize or beans. Where the household produced none of these, an alternative annual crop plot was selected for soil sampling. The total number of soil samples is 680. Soil samples collected from the 0-20cm depth were air-dried and ground to pass a 2 mm sieve and analyzed for pH, Organic Matter (OM), texture, extractable P, K, and Ca according to Foster (1971) methodology. Extractable P, K, and Ca were measured in a single ammonium lactate/acetic acid extract buffered at pH 3.8. Soil pH was measured using a soil to water ration of 1:2.5. The results are presented in Table 12. In the future, we are planning to combine the soil fertility information with soil conservation practices, plot and household characteristics, and conduct analyses. 5. Farm Production 5.1. Major Crops in Uganda We present characteristics of farm production in rural Uganda. Table 13 shows percentages of households producing each crop (column A), the average area devoted to each crop among all households (column B) and among producers (column C), the average production value of each crop among all households (column D) and among produces (column E), and the average return to one acre of land (column F). Beans and maize are the most and second most common crops produced, respectively: about three thirds of sampled households produced beans and maize. The average land devoted to maize and beans are 2.99 and 3.34 acres, respectively. However, because intercropping is a common practice, especially between beans and maize, these numbers are overestimating the land devoted to a single crop. Thus, some parts of areas devoted to maize and beans are double counted. Because it is very difficult to allocate intercropped areas into each crop, we present the double counted numbers in Table 13. Maize provides about $66 to its producers and bans about $37. Thus producers with both crops receive substantial income from intercropping both crops. Matooke (plantain) is the third most popular crop produced by 67 percent of 22 sampled households. It occupies the largest cultivated land among all the crops. Matooke provides the largest income, i.e. production value net of paid-out costs, which provides $190 to matooke producers on average. Coffee, an important high value crop, is produced by 31 percent of the households. Other major crops in terms of producer income include rice, industrial crops (cotton, tobacco, etc), fruits, and other vegetables. Although only 3.2 percent of sampled households produce rice, rice provides the second largest income, $145 to rice producers. Rice also has the largest return to land, $71 per acre. In terms of high returns to land, Sweet and Irish potatoes rank second ($48.5 per acre) and third ($35.7 per acre), respectively. In Table14, we present percentages of households producing major crops by agro-climatic zones. Maize is the most popular in the bimodal low rainfall zone, 80 percent of households producing maize. But it is also popular in other zones, at least 60 percent of households producing maize in all zones. Matooke follows a similar pattern: more than half of the households produce matooke, while it is most popular in the bimodal low rainfall zone. The rest of the crops have more regional variation. Coffee is produced by more than 40 percent of households in the eastern highlands, unimodal rainfall, and bimodal high rainfall zones, but not so popular in the other zones. Sweet potato is produced by more than 70 percent of households in the bimodal medium and high rainfall zones. Cassava follows a similar distribution pattern as sweet potato. Rice is mainly produced in the bimodal medium rainfall zone only. 5.2. Input Use and Crop Yield According to Table 16, only 7 percent of households applied chemical fertilizer on crops. The proportion of households that applied animal manure is more than double, about 16 percent. Only in the eastern highlands zone, more than 30 percent of households applied chemical fertilizer. This may be because this zone is closer to Kenyan border and can sell maize in Kenya. In this zone, the manure application is also high: about 23 percent of households applied manure and the average amount of manure applied was about 141 kgs per acre. In the western parts of the country (the bimodal low rainfall and the south-western highlands zones), the manure application is high. We suspect that this is because of the intensified dairy production, which involves improved dairy cows and intensive feeding. Because the intensive dairy production keeps animal in a small area, it is much easier to collect manure than extensive animal grazing. We discuss this issue in Section 7. 23 Maize In Table 17, we present maize yield across agro-climatic zones. The maize yield in Uganda is low at 0.77 tons per hectare, despite the fact that over 60 percent of households adopted improved seeds. A major reason is a low application of fertilizer. Only 3 percent of households applied chemical fertilizer. The application of manure is also low at 4 percent. The potential reason for the low application of both chemical fertilizer and manure could be a low output-input price or other constraints. Further research is needed by using the profitability analysis on maize. Matoke (Banana) Matoke is another major staple crop in Uganda. The estimation of matoke production is extremely difficult since matoke is harvested through out the year and it is sold in bunches. Each bunch has a different weight and price. Thus, recall information of matoke production inheritably comes with measurement errors. Nonetheless, enumerators were trained to spend extra time to obtain reliable matoke production information since this is an important crop economically. The average yield of matoke is 2.1 tons per hectare. In western parts of Uganda (the bimodal low and medium rainfall and the south-western highlands zones) the yield is over 2.5 tones per hectare. On matoke, virtually no households apply chemical fertilizer. Instead, more than 8 percent of households apply manure on matoke. The quantity of manure application is about 117 kgs per hectare (including all plots). The quantity of manire application is especially high in the south-western highlands and the bi-modal low rainfall zone. To understand why manure application is so high in these two zones, we need to understand the livestock production systems in these zones. And this is what we do in the next section. 6. Livestock Production 6.1. Livestock Holdings For farm households in rural Uganda, livestock is an important asset that can provides income and be disposable in hard times. In terms of livestock ownership, cattle, goats, and chicken are owned by many households (Table 19). In 2003, 29 percent of households owned local cows. Among the households that owned at least one local cow, the average number of cows owned is 3 cows. Many households also had different types of local cattle. Some households also own improved cows that are cross breeds of local and European cattle. European cows are bigger and more productive in milk production, 24 while local cows are resistant against local diseases. As a cross breed of the two, improved cows are productive in milk production and at the same time fairly resistant to local diseases. Staal and Kaguongo (2003) report that the proportion of improved cattle was about 5 percent in 1999 but that there are mixed evidences on what the recent proportion is. Among our samples, 6.9 percent of households owned improved cows in 2003. In terms of cow population, about 17 percent of cows are cross-bred cows in 2003. Turning to other animals ownership (Table 19), local chicken is the most popular livestock animal among the sampled households. About 62 percent of households owned at least one local chicken in 2003. Among the chicken owners, the average number of chicken is just below 8. Local goat is the second most popular livestock animal. About 47 percent of households owned at least one local goat in 2003. To investigate regional distributions of improved cattle, we calculated proportions of households who own improved cattle, the average number of improved cattle, and the average number improved cattle among households who own them (Table 20). For comparison, we also present the same number for local cattle. Among the all sampled households, 9.5 percent of households own at least one improved cattle. The improved cattle are adopted in the eastern highlands zone the most, followed by the uni-modal zone. In terms of the number of improved cattle among the owner, however, the south-western highlands zone has the highest number among the owner. Thus, it seems that in the south-western zone, some households are specializing in the improved dairy production system. In the bi-modal low rainfall zone, the number of improved cattle among the owners is also high. Recall that in these two zones and the eastern highlands zone, we found that the application of manure is also high (Table 14). We investigate more on the relationship between the adoption of intensive dairy production and manure application in Section 7. But before investigating that issue, we estimate the determinants of adopting improved cattle in the next sub-section. 6.2. Adoption of Improved Cattle To investigate which households are adopting improved cattle, we estimate a simple regression model (Table 21). The results indicate that improved cattle are adopted in communities where public grazing land is less available. The information about the size of public grazing land is collected by the community level survey. The estimated coefficient of this ratio is negative and significant indicating that the 25 probability of adopting improved cattle is high in communities with little public grazing land. Household characteristics that are related to male members are found influential on determining the adoption of improved cattle. For instance, the maximum education level of male members in the household increases the adoption of improved cattle, while that of female members has no impact. The numbers of male adults and boys also increase the adoption. Again the number of female adults and girls has no impact on the adoption. Field observations suggest, however, that female members are involved in taking care of improved cattle. Thus, this may suggest that the adoption of improved cattle, which is a big commitment for rural households, is determined by male members, especially male household heads, even though daily managements are conducted by both male and female members. 6.3. Adoption of Improved Milk Production and Management Uganda has seen a significant increase in milk production in during the second half of the 1990s. As a result, for instance, real milk prices appear to have fallen by 36 percent between 1995 and 2000, although projections to 2010 suggest a milk shortage under a scenario of a reasonable economic growth (Staal and Kaguongo, 2003). Thus, the dairy production in rural Uganda provides a good opportunity for commercialization of Ugandan agriculture. Next, we compare production managements of dairy production of local and improved milking cows (Table 22). We find that 201 and 52 households produced at least some milk from local and improved cows, respectively, in the last 12 months prior to the survey in 2003. Among the 52 households with improved cows, 38.5 percent of them used stall feeding. The average monthly milk production among households with improved cows is about 2.5 times more than households with local cows. Households with improved cows sell about half of produced milk, while households with local cows sell one fifth of total production. More than half of households with improved cows sell their milk to individual customers. About 12 percent of them sell their milk at local markets. But only 5 percent of them sell their milk to dairy cooperatives and private milk processing factories. For dairy sector in Uganda to expand its milk production, formal marketing channel has to collect more milk from dairy producers since local demand for fresh milk is limited. 7. Organic Green Revolution in Uganda 7.1. Organic Green Revolution: Mechanism 26 Like the Agricultural Revolution in 18th century England, the OGR in East Africa will depend on the stall-feeding of cattle using cultivated feed (e.g., napier grass and oats, as shown in Figure 6). However, unlike the Asian Green Revolution, the OGR must rely on organic fertilizer, i.e., manure produced by stall-fed cattle (McIntire et al., 1992). The use of fodder leaves from agroforestry trees, which have the capacity to fix nitrogen, may also improve the quality of any manure used as fertilizer. The cattle involved are the so-called cross-bred cows discussed earlier, which – in some ways - is reminiscent of the cross between the Taiwanese and Indonesian rice varieties that helped spark the Asian Green Revolution.3 As with the Asian Green Revolution, African farmers must use improved crop varieties, which are more responsive to fertilizer than TVs. We suspect, however, that these varieties are not as high-yielding as the MVs developed for Asia, because there has been comparatively little adaptive breeding research undertaken by international agricultural research organizations for the agro-ecological conditions of Sub-Saharan Africa (Evenson and Gollin, 2003). Note that stall-feeding of cattle with cultivated feeds does not enhance the total amount of soil nutrients. In fact, the total amount of nutrients will likely decline because of the export of nutrients from the plant-soil-animal system through harvested products and milk. Such a system, however, enhances the internal cycling of nutrients and, hence, the ability to extract and use soil nutrients (Buresh 1999). The long-term sustainability of such a system will depend on the inherent amount of soil nutrients available to be extracted, i.e., native soil fertility, and the rate at which nutrients are replenished by exogenous sources, such as nitrogen fixed by agroforestry trees and legume crops. In short, the OGR seeks the best possible combination of the most desirable yield-enhancing features of the world’s two, already recognized revolutions in agriculture. Additionally, the use of manure is particularly appropriate for the fragile soils found in Sub-Saharan Africa, which have been depleted in the past by their intensive use without the adequate replenishment of nutrients. In sum, we present a possible development pathway in Figure 7. Figure 7 show two isoquant curves with two production inputs: chemical and organic fertilizer. In Asia, because the relative price of chemical price was low, the Green Revolution took a path that relied heavily on chemical fertilizer. On the other had, in Africa, the relative price of chemical fertilizer over organic fertilizer is high, compared with that in Asia. This is especially so, in 3 Because of the prevalence of a chronic disease, trypanosomaiasis, it is economical to keep dairy goats in some areas. 27 areas where organic fertilizer is available from improved cows, such as highlands in East Africa. Thus, on the isoquant curve, the optimal combination of chemical and organic fertilizer is different from Asia, using relatively more organic fertilizer. Therefore, if the relative price between the two inputs remains high, then the development pathway should be different from that of Asia. A critical assumption is whether the relative price in Africa remains high in the future. We think it would remain high for a while because of high transportation costs and neat absence of irrigation in Africa. High transportation costs keep fertilizer prices high, while the near absence of irrigation keeps demand for chemical fertilizer low because of risks associated with unreliable rainfall. 7.2. Evidence from Uganda On Manure Application We first start with the relationship between the livestock production system and manure application on crops. In Table 23, we stratify the sample into two by the availability of improved cattle. Among the sample, about 10 percent of households have at least one improved cattle. Among them, 32 percent of households apply manure on crops, while only 14 percent of households without improved cattle apply manure. Thus, thus the difference between the two groups is 18 percent. In terms of quantity of manure applied, we find a big difference. Households with some improved cattle apply 792 kgs of manure on crops over a year in total. This is much larger than 144 kgs of manure applied by households without improved cattle. To see if this difference is driven by either a large number of cattle or land size, we divided the total amounts of manure by the number of cattle and by the land size. The results indicate that households with improved cattle apply three times more manure per cattle or per land than households without improved cattle. The results in Table 23, however, do not control for many other factors that are also associated with adoptions of both manure application and improved cattle. Thus, we employ regression models to investigate this issue further. In Table 24, we present two models estimated at the plot level. The dependent variable for the first model is a dummy variable for manure application. And the dependent variable for the second model is the quantity of manure application in kilograms. As independent variables, we include numbers of improved and local cattle per hectare along with other plot and household characteristics. We estimate the first and second models by Probit and Tobit, respectively. The results from the first model (column A) indicate that both the numbers of 28 improved and local cattle per hectare increase the probability manure application. The size of impact, however, is larger from the number of improved cattle than the number of local cattle. One additional improved cattle would increase the probability of manure application by 4.4 percent, while one additional local cattle increases the same probability only by 2 percent. The results from the second model (column B) are consistent with the results from the first model. Both improved and local cattle increase the quantity of manure application, but the size of impact is bigger from the improved cattle than local cattle. On additional improved cattle increases the quantity of manure application by 837 kgs, while one additional local cattle increases it only by 232 kgs. The results in Table 24 could be biased because the numbers of improved and local cattle could be endogenous, correlated with unobserved plot and household characteristics. Thus, we still need further investigations. However, the results seem to suggest a strong association between manure application and improved cattle. It is difficult think that the association between the two does not have any causal relationships. Among the other variables, we find that plots that are farther away from the homestead are less likely to be applied manure. This negative relationship is very strong with the quantity of manure application. This is easy to accept because manure is heavy and difficult to transport. Plots that were not cultivated in the previous season are applied less amounts of manure. The maximum education of female members (but not male members) has a positive impact on manure application. On Crop Yield In Table 25, we present crop yield stratified by the manure application. As we have seen before, only 4 percent of maize plots were applied manure. In Table 23, we find that only 20 local maize plots were applied manure out of 728 local maize plots in total. Among 836 improved maize plots, only 28 plots were applied manure only and 32 plots were applied both manure and chemical fertilizer. Although sample sizes are small, maize plots that are applied manure shows higher maize yield than plots without any fertilizer. Among local maize plots, the average maize yield is about 65 percent higher when manure is applied. Among improved maize plots, the average maize yield is about 24 percent higher when only manure is applied and about 150 percent higher when both manure and chemical fertilizer are applied, compared with the average maize yield without any fertilizer. Manure is applied more on matoke than maize. In Table 25, we find that 29 about 8 percent of matoke plots are applied manure. The average matoke yield is about 30 percent higher when manure is applied to matoke. Chemical fertilizer is almost never applied on matoke. To control for many more factors and obtain robust results on the associations of manure application on crop yield, we estimate crop yield functions in Table 26. Note that the results in Table 26 are not control for the endogeneity of fertilizer application. For instance, fertilizers could be applied on fertile plots where crop yield is higher than other plots even without any fertilizer. Thus, estimated coefficients of manure and chemical fertilizer applications could be biased and should not be interpreted strictly as causal effects, although we believe that the results suggest some of causal effects. In the future analysis, there is a need to overcome this problem by using instrumental variables or the plot level fixed effects model. Nonetheless the results in Table 26 suggest the importance of manure and chemical fertilizer application. The results indicate that the maize yield is higher by 50 percent when chemical fertilizer is applied than when no fertilizer is applied. The maize yield is also 24 percent higher when improved maize seeds are used. Although the estimated coefficient suggest a 12 percent higher yield associated with manure application, the result is not precisely estimated. This could be because of the small sample size of plots with manure application. On Matoke, the results indicate a strong association between matoke yield and manure application. Matoke yield is 36 percent higher when manure is applied. Because we have shown already a strong association between the number of improved cattle and manure application, the results indicate a link between improved dairy production system, which involves improved cattle, manure application, and a high matoke yield, already described in Figure 6. As discussed already, we still need further investigation to establish causal relationships between the improved dairy production system, organic fertilizer application (including manure and compost), and increased crop yield. However, the intensive farming system, named Organic Green Revolution, seems to suggest a promising avenue for a significant improvement in agriculture production at least in highlands in East Africa, where the Asian Green Revolution technology, which requires chemical fertilizer, irrigation, and high yielding seeds, has not taken place for more than three decades. 30 8. Non-farm Income4 8.1. Non-farm Activities: List As we discussed at the beginning of this report, we find that high income households have a large share of income coming from non-farm activities. In this section, we describe in what non-farm activities people are engaged and who are going into non-farm activities. We list non-farm activities, starting from the most common non-farm activity to the least common (Table 23). The most common non-farm activity is regular earners. We defined a regular earner as someone who earns constant monthly wage throughout a year. Among the 940 sampled households, we found 152 individuals are engaged in this activity. About 21 percent of them are women. They have over 9 years of education and 8 years of experience on average and earn about $743 over a year. The other activities are all seasonal. Except farm labors and construction workers, all other activities are self-employment non-farm activities. Some non-farm self-employment activities, such as brewing, provide income to women. The average income generated from brewing was about $319. People who are engaged in brewing do not have as much education as wage earners but have about the same level of experience. Women are also quite active in trading farm products, fish, non-food goods, and timber. In some activities, there may be clear gender barriers against women. For instance, only men are engaged in trading livestock, carpentry, brick making, construction, and Boda Boda (bicycle transportation). Although most of non-farm activities generate more than $200 of income per year, farm labor only generates $93 per year on average. The average level of education among farm labors is low at 3.6 years, which is the lowest level among the all non-farm activities, but the average experience is over 9 years. Thus, the results confirm the idea that farm labor is an activity for less educated and poor workers and that increased farm wages, induced from new farm technologies and better marketing, would help the poor. In the next sub-section, we estimate determinants of going into non-farm activities, especially focusing on education and language skills. 8.2. Participation in Non-farm Activities: Education vs. Language Skills To understand the determinants of non-farm activity participation, we separate non-farm activities into two: self-employment activities and wage earners. 4 For simplicity, we use the term “non-farm” loosely. We include farm-labor, for instance, in non-farm activities, although this could be categorized as off-farm activity but not non-farm. 31 Self-employment activities include all the activities listed in Table 23, expect wage earners. As we have seen in Table 23, wage earners have a high level of education and earn a high income. And the number of individuals who are wage earners is substantial compared with other activities. Therefore, we estimate the determinants of being wage earners and engaged in self-employment activities by using multi-nominal logit models. We also pay special attention to education and language ability. Previous studies suggest the importance of education to go into non-farm activities, but exactly what skills gained from education are important is not yet clear. Thus, we focus on one of most important skills, language, in this report. The two language variables are dummy variables for being able to communicate in more than one local language and in English. The results indicate that the local language skill is important in having self-employment business activities but not regular works. Most of self-employment activities involve trading across regions so that people may need to be able to communicate in more than one local language. To have a regular work, some secondary education or above increases the probability of having a regular work (column B in Table 24). However, once we include a dummy variable for English language skill, we find that the English ability is an important determinant in having a regular work, which the dummy variable for the secondary education becomes insignificant (column D). Thus, we find that the English skill is an important skill learned in the secondary education and not much of the other skills (otherwise the secondary education dummy would remain significant). Note, however, that we need more careful work to determine if the English ability is the only skill that is required in having a regular work or if the English ability is highly correlated with the secondary school dummy and just representing the secondary education as a whole. Note however that the results in Table 24 could be over-estimated as causal effects on having self-employment activities and regular works because people may obtain local and English language abilities as they work. Thus the causality may go from jobs to language abilities instead of language abilities to jobs. Thus, we need further careful analysis to determine the effects of language abilities to have non-farm jobs. The other variables indicate expected results that women are less likely to have non-farm jobs. Asset value is important to be in self-employment activities but not in regular works. This may suggest that self-employment activities require start-up investments, while regular works only require high level of education (or the English ability). Land size is negatively correlated with both self-employment and regular 32 activities, suggesting that individuals with little land are going into non-farm activities to earn adequate income. The analysis suggests the importance of education, including language abilities, to earn non-farm income. This suggests that education could provide a pathway to escape from poverty through non-farm activities. The next question, therefore, is what factors influence investments in education. Especially in Uganda, as well as other sub-Saharan African countries, many children are becoming orphans because of the AIDS epidemic and there is a serious concern about investments in their education and a potential consequence from it. 9. Education 9.1. Schooling System in Uganda Finally, we examine school attendance among children (aged 7 to 14) and young adults (aged 15 to 18) in our data. For the long-term economic development in Uganda, education is one of the most important factors. The current education system in Uganda is 7-4-2: 7-year primary education followed by 4-yaer lower secondary and 2-yaer upper secondary educations. According to the Ministry of Education and Sports, the gross enrollment ratio for primary school was 127% in 2003 for all types of schools (government, private and community schools). The ratios were 125 % for girls and 130 % for boys in primary education. Thus, the current enrollment ratio for primary school is quite high in Uganda. Uganda, however, had experienced a long harsh time since the independence in 1962 and access to school had been devastated for a long period until in the 1990s. After the take over of the government by the National Resistance Army, headed by Yoweri Moseveni, in 1986, the situation has changed. In 1997, the Ugandan government introduced Universal Primary Education (UPE), which eliminated the costs of schooling up to four children per household (of which at least two had to be girls), and made considerable investments in the education sector. Since then, Uganda has successfully achieved high participation rates in primary education. 9.2. School Attendance in the survey Consistent with secondary data, over 90 percent of children aged 7 to 14 in the data are attending school. Figure 8, shows school attendance rate by age. The total attendance rate starts from 80 percent at age 7 and increase close to 100 percent at age 11. Then it starts declining at age 14 to 60 percent at age 18. At age 12, some children start attending secondary school. At age 17, the attendance rate in secondary school reached its peak at about 45 percent and then declines. Although not reported 33 in this report, we do not find any significant differences between boys and girls in school attendance (see Yamano, Shimamura, and Sserunkuuma, 2004, for detail). 9.3. Schooling of Orphaned Children and Young Adults Ever increasing number of orphans due to the AIDS pandemic is raising a great concern about long-term investment in education among orphans, especially in Sub-Saharan Africa (World Bank, 1999; UNAIDS, UNICEF, and USAID, 2004). Responding to this concern, recent studies have examined orphans’ schooling by using the orphan status (Case, Paxson, and Ableidinger, 2002; Ainsworth and Filmer, 2002) and adult mortality (Ainsworth, Beegle, and Koda, 2002; Yamano and Jayne, 2003; Evans and Miguel, 2004). In Uganda, Deininger, Garcia, and Subbarao (2003) estimated the school attendance and the health investments in foster children, but they were not able to distinguish orphans and non-orphans among the foster children. In general, these studies find a significant but small impact of orphanage on school attendance. Most of these studies, however, have been focusing on orphans aged 7 to 14 partly because children in this age group were considered vulnerable and partly because data on orphan status and schooling are available for this age group. For instance, Demographic and Health Surveys only collect orphan status for children aged up to 14 years old. To slow down the spread of HIV among sexually active young people through education, however, such education must take place in school. If the targeted group is not attending schools, such education campaign does not reach the targeted group. There is also anecdotal evidence that orphaned young adults are more likely to drop out of school. Thus, in Figure 9, we show school attendance ratio for three groups of children and young adults. The first group is a group of non-orphaned children/young adults who are living with both parents. Their attendance rates are higher than the other two groups in general. The second group is children/young adults who have at least one absent parent. An absent parent is alive but is living elsewhere for some reasons. A parent, mostly a father, may be living in a city to find a job, or a child or young adult could be sent away from his or her home to work or attend school. In any case, the attendance rate of this group is lower than the first group, especially at age 17 and 18. The third group is a group of orphaned children and young adults. Among children aged 7 to 14, the average attendance rate is almost the same as the first group of non-orphaned children living with both parents. However, among young adults the 34 attendance rate of orphaned young adults drops significantly. This is an important finding because previous studies only looked at attendance rates between orphans and non-orphans who are aged 7 to 14. In Table 25, we summarize our findings in Figure 9. In Table 25, we find that about 70 percent of orphaned young adults aged 15 to 18 attend school, while 79 percent of non-orphaned young adults attend school. The difference is slightly larger among female young adults than among male young adults. When we divide the households into two groups by the total asset value, the difference is also larger among young adults in poor households, whose total asset value is below the median. Among young adults in poor households, the difference between orphaned and non-orphaned young adults is 15.4 percent, while it is only 6.1 percent among young adults in the relatively less poor households. 10. Conclusions This report summarizes findings from the 2003 REPEAT Survey, which was financed by FASID and implemented in collaboration with Makerere University, in Uganda. The survey selected 94 LC1s from the 107 LC1s surveyed by IFPRI and Makerere University in 1999 and 2000. Although the IFPRI survey visited 4 to 5 households per LC1, the 2003 REPEAT Survey added 5 to 6 households, making the total number of sampled households 940 (10 households per LC1). This report highlights five major findings. First, although Uganda has seen impressive improvements in social and economic conditions since the beginning of the 1990s, poverty still persists, especially in rural areas. The report identifies a national poverty line at $119 per person per year and finds that about 52 percent of rural households are living in poverty. These figures are comparable to previous figures established by Appleton (2001) who found 49 to 56 percent of rural households living in poverty in the 1990s. To reduce poverty in rural areas, policies aiming to increase income through increased agricultural productivity and non-farm activities should be given priority. The poverty profile found by the 2003 REPEAT Survey would be the baseline profile for future rounds of the REPEAT surveys to measure changes in poverty over time. Second, the report finds differences in land investments across three major land tenure systems in Uganda (freehold, customary, and the Mailo tenure systems). Along with a recent view of the evolving theory of land rights, we find wide variations in individualized land rights within the customary and Mailo tenure systems. We also find that soil conservation practices are less likely to be adopted under the Mailo tenure 35 system than the freehold tenure system. Although this could be because of insecure land rights among tenant farmers under the Mailo tenure system, further studies are required to explore the reasons behind the low investments under the Mailo tenure system. Third, the report shows very low applications of fertilizer and other soil conservative practices, compared with neighboring countries, such as Kenya. Farmers in Uganda have been benefiting from the endowment of fertile soil for a long time. However, soil degradation has become a major problem. Thus, policies that promote more fertilizer use (both chemical and organic) by encouraging the development of inputs markets and means to increase organic fertilizer applications should be considered. Fourth, the report focuses on an intensive farming system, called the Organic Green Revolution technology, which appears promising in the highlands of East Africa. This farming system intensifies synergies between improved dairy production and crop production via animal manure and feeding stuff. The evidence shows that more manure is applied on crops under the improved dairy production system. Because irrigation systems are virtually absent and chemical fertilizer is very expensive in Sub-Saharan Africa, the Organic Green Revolution technology seems to be a promising alternative farming system in highlands of East Africa. Policy makers and donors may be able to help farmers obtain improved dairy cows by providing in-kind credit as some NGOs (notable Heifer International or Send A Cow) do in Kenya or FINNIDA did in Ethiopia or by helping to improve infrastructure to transport milk from rural areas to urban cities. Fifth, increased farm income may not be sufficient for the poor to escape from poverty in the long-run. Considering the importance of non-farm income, the report examines determinants of participations in non-farm activities. The report finds that, in addition to formal education, different language skills are important to enter non-farm self-employment activities and regular wage work. Local language abilities are important to enter non-farm self-employment activities, while the English language skill is a key determinant to have regular wage work. More research is needed to identify the specific skills required in labor markets to use the education expenditure more efficiently. Sixth, we find that orphaned young adults aged 15-18 are less likely to be in school than non-orphaned young adults. Since secondary education is a key factor in labor markets, the results indicate that orphaned young adults would be disadvantaged in labor markets. Education among young adults is also important in preventing the 36 further spread of HIV in Uganda. Thus, it is important to provide help to orphaned young adults to attain a sufficient level of education. We hope to revisit sampled households repeatedly in the future so that we can track changes in their poverty status, income profiles, and all income generating activities because we believe that effective policy making requires solid empirical evidence of factors affecting the persistency of and escape from poverty. 37 Reference Ainsworth, M., K. Beegle, and G. Koda. 2002. “The impact of adult mortality on primary school enrollment in northwestern Tanzania.” African Region Human Development Working Paper Series, no. 23961, The World Bank, Washington DC. Ainsworth, M., and D. Filmer. 2002. “Poverty, AIDS and children’s schooling: a targeting dilemma.” World Bank Policy Research Working Paper 2885, World Bank, Washington D.C. Appleton, S. 2001. “Changes in poverty and inequality,” in R. Reinikka and P. Collier (eds.), Uganda’s recovery: the role of farms, firms, and government, Washington, DC: The World Bank. Beslay, T. 1995. “Property Rights and Investment Incentives: Theory and Evidence from Ghana,” Journal of Political Economy, vol. 103 (5): 903-937. Buresh, Roland. 1999. “Agroforestry Strategies for Increasing the Efficiency of Phosphorus Use in Tropical Uplands,” Agroforestry Forum 9: 8-13. Case, A., C. Paxson, and J. Aleidinger. 2002. “Orphans in Africa.” NBER Working Paper Series No 9213, National Bureau of Economic Research, Cambridge, MA. Deininger, Garcia, and Subbarao. 2003. “AIDS-Induced Orphanhood as a Systemic Shock: magnitude, Impact, and Program Interventions in Africa,” World Development, vol. 31 (7): 1201-1220. Deininger, K., and J. Odiki. 2001. “Rural households: incomes, productivity, and non-farm enterprises,” in R. Reinikka and P. Collier (eds.), Uganda’s recovery: the role of farms, firms, and government, Washington, DC: The World Bank. Evenson, R.E. and Gollin, Douglas. 2003. Crop Variety Improvement and its Effect on Productivity: The Impact of International Agricultural Research. Wallingford: CABI Publishing. Jayne, T.S., T. Yamano, M.T. Weber, D. Tschirley, R. Benfica, A. Chapoto, and B. Zulu. 2003. “Smallholder income and land distribution in Africa: implications for poverty reduction strategies,” Food Policy, vol. 28: 253-275. McIntire, John, Bourzat, Daniel, and Pingali, Prabhu. 1992. Crop-Livestock Interaction in Sub-Saharan Africa. Washington, DC: World Bank. MEPED (Ministry of Finance, Planning and Economic Department). 2001. Background to the budget 1002/02, Kampala, Uganda: Government Printer. Mugambwa, J. T. 2002. Principles of Land Law in Uganda, Kampala: Fountain Publishers Ltd. 38 Otsuka, K., and F. Place. 2001. Land tenure and natural resource management: a comparative study of agrarian communities in Asia and Africa, Baltimore: Johns Hopkins University Press. Pender, J., P. Jagger, E. Nkonya, and D. Sserunkuuma. 2004. “Development Pathways and Land Management in Uganda,” World Development 32 (5): 767-792. Place, F., J. Ssenteza, and K. Otsuka. 2001. “Customary and private land management in Uganda,” in K. Otsuka and F. Place (eds.), Land tenure and natural resource management: a comparative study of agrarian communities in Asia and Africa, Baltimore: Johns Hopkins University Press. Ravallion, M., and B. Bidani. 1994. “How robust is a Poverty Line,” World Bank Economic Review 8 (1): 57-82. Reardon, T. 1997. “Using Evidence of Household Income Diversification to Inform Study of the Rural Nonfarm Labor Market in Africa,” World Development, vol.25 (5): 735-747. Staal, S. J., and W. N. Kaguongo. 2003. The Ugandan Dairy Sub-Sector: Targeting Development Opportunities, a contribution to the Strategic Criteria for Rural Investments in Productivity (SCRIP) Program of the USAID Uganda Mission, Nairobi: ILRI. UNAIDS, UNICEF, and USAID. 2004. Children on the Brink 2004. UNICEF, New York. UPPAP (Uganda Participatory Poverty Assessment Process). 2002. Uganda participatory poverty assessment process, final report. Kampala, Uganda: Ministry of Finance, Planning and Economic Development. World Bank. 1999. Confronting AIDS: Public priorities in a global epidemic. Revised edition. New York: Oxford University Press. World Bank. 2004. World Bank Development Report, New York: Oxford University Press. Yamano, T., Y. Shimamura, and D. Sserunkuuma. 2004. “Orphaned Children and Young Adults in Uganda,” mimeo, Tokyo: FASID. Yamano, T., and T.S. Jayne. 2003. “Working-age adult mortality and primary school attendance in rural Kenya,” FASID Discussion Paper 2003-06. Yamano, T., and T.S. Jayne. 2004. “Measuring the Impacts of Working-age Adult Mortality on Small-Scale Farm Households in Kenya,” World Development, vol. 32 (1): 91-107. 39 Table 1. Sampled Communities and Households Sampled Local Council 1s Sampled Households Number of Household Farm size Agro-climatic Number of Average Population zone LC1s number of density households size (C) (D) (E) (F) Number Number Acres households (A) (B) Number Number Bi-Low Rainfall 12 137 100 120 7.5 10.6 Bi-Med Rainfall 20 123 100 199 7.7 9.9 Bi-High Rainfall 31 250 371 309 7.9 4.9 Uni-modal Rainfall 8 171 480 80 7.5 4.4 Eastern Highlands 8 62 98 80 7.1 3.9 SW Highlands 15 99 154 150 7.3 4.4 All 94 163 234 940 7.6 6.5 Persons per KM2 Note: Bi-low rainfall zone (lower elevation parts of southwestern Uganda), Bi-Medium Rainfall zone (most of central and parts of western Uganda), Bi-High Rainfall zone (mostly the Lake Victoria crescent), Uni-modal Rainfall zone (much of northern Uganda), SW Highlands (1500m a.s.l. and above), and Eastern Highlands (1500m a.s.l. and above). 40 Table 2. Per Capita “Cash” Expenditure by Agro-climatic Zone Per capita Agro-climatic zone Cash Expenditure Share Cash Fresh food Non-fresh Expenditure (A) Non-food Social Staple food items food items items activities (B) (C) (D) (E) (F) US$ Bi-Low 139 13.5 15.8 11.0 45.3 14.4 Bi-Med 68 10.9 22.6 15.3 43.2 8.0 Bi-High 112 9.3 19.6 15.2 48.1 7.8 Uni 142 18.6 18.8 17.0 40.1 5.5 Eastern High Lands 117 19.0 14.6 17.9 40.0 8.5 SW High Lands 94 11.7 15.3 13.9 41.4 17.6 All 106 12.2 18.6 14.9 44.2 10.1 Note: Bi-low rainfall zone (lower elevation parts of southwestern Uganda), Bi-Medium Rainfall zone (most of central and parts of western Uganda), Bi-High Rainfall zone (mostly the Lake Victoria crescent), Uni-modal Rainfall zone (much of northern Uganda), SW Highlands (1500m a.s.l. and above), and Eastern Highlands (1500m a.s.l. and above). 41 Table 3. Home and Total Expenditure by Agro-climatic Zone Per capita expenditure Agro-climatic zone Home Consumption of own products (C) Total Expenditure (A) Cash Expenditure (B) Bi-Low Bi-Med Bi-High Uni Eastern High Lands SW High Lands 191 104 144 176 156 134 - US$ per capita 139 68 112 142 117 94 52 37 32 34 39 40 All 144 106 37 Note: Bi-low rainfall zone (lower elevation parts of southwestern Uganda), Bi-Medium Rainfall zone (most of central and parts of western Uganda), Bi-High Rainfall zone / (mostly the Lake Victoria crescent), Uni-modal Rainfall zone (much of northern Uganda), SW Highlands (1500m a.s.l. and above), and Eastern Highlands (1500m a.s.l. and above). 42 Table 4. Poverty Comparison Poverty: Head Count Ratio Agro-climatic zone PPP$1 a day poverty line Food poverty Poverty Gap Squared Poverty Gap National poverty (A) (B) (C) (D) (E) Bi-Low Bi-Med Bi-High Uni Eastern High Lands SW High Lands 21.6 48.2 41.7 38.8 26.3 44.7 21.7 48.2 41.7 38.8 26.3 44.0 36.7 56.8 52.8 51.3 42.5 52.0 28.8 39.9 44.0 38.2 39.8 48.3 12.4 20.9 24.4 18.5 24.7 28.7 All 39.9 39.3 52.3 39.8 21.6 Note: Bi-low rainfall zone (lower elevation parts of southwestern Uganda), Bi-Medium Rainfall zone (most of central and parts of western Uganda), Bi-High Rainfall zone (mostly the Lake Victoria crescent), Uni-modal Rainfall zone (much of northern Uganda), SW Highlands (1500m a.s.l. and above), and Eastern Highlands (1500m a.s.l. and above). 43 Table 5. Derivation of a Simplified Food Based Poverty Line Quantity Price Cost per Calories Retention Calories per day ratio per kg (A) (B) (C) (D) (E) (F) Matooke (Matoke) 366 0.50 770 28.52 125 3,565 Sweet potatoes 812 0.70 1,020 34.12 100 3,412 Cassava 684 0.89 2,557 9.02 150 1,353 Irish Potatoes 11 0.85 750 0.52 125 65 Rice 7 1.00 3,600 0.06 500 29 Maize (grain) 213 0.90 3,470 2.05 200 409 Millet 158 0.65 3,231 2.56 250 564 Sorghum 163 0.90 3,450 5.25 600 31 Eggs* 66 1.00 86 /egg 23 eggs 100 2300 Milk 12 1.00 640 0.56 202 114 Ghee 18 1.00 8,570 6.30 2,750 173 Passion Fruit 2 0.75 920 0.09 200 17 Sweet Matooke 51 0.56 1,160 2.36 91 214 Tomatoes 4 0.95 200 0.63 160 101 Cabbages 2 0.78 230 0.33 100 33 Beans (fresh) 19 0.75 1,040 0.73 182 133 Beans (dry) 236 0.75 3,300 2.86 260 744 Groundnuts 43 0.93 2,350 0.59 683 403 Sim-sim 89 1.00 5,930 0.45 600 270 Sugar 44 1.00 3,750 0.35 1,000 350 per month required per kg 3,000 month (UShs) 14,280** Note: * eggs are a substitute for all meats. ** the annual food poverty line is at Shs 171,360 ($90.2) per adult equivalent. 44 Table 6. Per Capita Income and Income Share by Agro-climatic Zone Agro-climatic zone Per capita Income (A) Farm income (B) US$ Income Share Livestock Non-farm income activities (C) (D) - percent - Wage income (E) Bi-Low 161 62.8 15.2 15.1 6.9 Bi-Med 96 65.1 12.0 16.8 6.0 Bi-High 117 59.6 9.4 21.8 9.1 Uni 142 51.1 19.6 19.8 10.5 Eastern High Lands 108 60.0 15.8 22.5 1.9 SW High Lands 107 62.5 9.8 17.9 9.8 All 118 60.9 12.1 19.2 7.8 Note: Farm income: production value minus feed costs, fertilizer costs, and hired labor and oxen. Livestock income: sales and home consumption of animals and livestock products, such as milk and eggs, minus expenditure on purchased feeds, expenditure on A.I., animal health, and hired labor. 45 Table 7. Land Tenure Systems by Agro-climatic Zones—Plot Level Agro-climatic zone Total number Tenure System of plots Freehold Customary Mailo (A) (B) (C) (D) - number - - percent - Bi-Low 218 70 0 30 Bi-Med 390 26 57 17 Bi-High 587 19 54 27 Uni 234 15 85 0 Eastern High Lands 257 7 73 0 SW High Lands 648 85 15 0 2,334 41 46 13 All Note: Bi-low rainfall zone (lower elevation parts of southwestern Uganda), Bi-Medium Rainfall zone (most of central and parts of western Uganda), Bi-High Rainfall zone (mostly the Lake Victoria crescent), Uni-modal Rainfall zone (much of northern Uganda), SW Highlands (1500m a.s.l. and above), and Eastern Highlands (1500m a.s.l. and above). 46 Table 8. Land Acquisition and Land Tenure and Tenancy—Plot Level Total number Tenure-Tenancy of plots Land Acquisition Mode Purchased Inherited (A) - number - (B) (C) Rented a (D) Borrowed Walked in (E) (F) - percent - - percent - - percent - - percent - - percent - Freehold – Owners 814 55 42 1 0 2 Freehold – Occupants 65 25 12 8 52 3 Freehold – Tenants 88 0 0 92 8 0 Customary – Owners 855 46 54 0 0 0 Customary – Occupants 166 15 43 10 32 0 Customary – Tenants 59 0 0 98 2 0 Mailo – Owners 162 50 48 0 1 1 Mailo – Occupants 123 41 28 4 26 1 Mailo – Tenants 13 8 0 84 8 0 2,345 43 43 8 5 1 All Note: (a) Only 17 cases out of 187 cases of plots were rented via share-cropping agreements. rest (170 cases) were rented via fixed rents. 47 The Table 9. Land Rights by Land Tenure and Tenancy—Plot Level Individualized Land Rights a Total number Tenure-Tenancy of plots To Plant To sell To give timber trees (A) - number - (B) (C) (D) To plant Other trees (E) Has title/ certificate (F) - percent - - percent - - percent - - percent - - percent - Freehold – Owners 820 81 85 94 93 5 Freehold – Occupants 67 30 31 38 38 0 Freehold – Tenants 88 1 1 5 5 0 Customary – Owners 871 64 74 95 96 4 Customary – Occupants 166 20 50 64 74 1 Customary – Tenants 61 0 8 8 8 0 Mailo – Owners 167 74 75 94 96 14 Mailo – Occupants 125 48 30 67 61 2 Mailo – Tenants 13 8 0 5 5 0 2,334 62 68 82 84 4 All Note: (a) Can sell, give, plant timber trees, or plant non-timber trees without any approvals from extended families, land owners, or local authorities. 48 Table 10. Land Owners’ Individualized Right to Sell and the Tenure System Agro-climatic zone Dominant Tenure Tenure System (Land Owners Only) System Freehold Customary Mailo (A) (B) (C) (D) - number - - percent - Bi-Low Freehold 84 - 73 Bi-Med Customary 81 53 62 Bi-High Customary 85 68 77 Uni Customary 100 55 - Eastern High Lands Customary 79 67 - Freehold 79 85 - 81 64 73 SW High Lands All Note: Bi-low rainfall zone (lower elevation parts of southwestern Uganda), Bi-Medium Rainfall zone (most of central and parts of western Uganda), Bi-High Rainfall zone (mostly the Lake Victoria crescent), Uni-modal Rainfall zone (much of northern Uganda), SW Highlands (1500m a.s.l. and above), and Eastern Highlands (1500m a.s.l. and above). 49 Table 11. Land Owners’ Individualized Rights to Sell–Plot Level Analysis Variables LC1 Characteristics Ratio of Freehold Plots in LC1 Probit (A) Probit (B) 0.348 (5.86)** 0.011 (2.78)** -0.078 (1.85) 0.025 (0.88) 0.242 (2.95)** 0.199 (2.03)* 0.096 (0.48) 0.012 (2.92)** -0.077 (1.83) 0.024 (0.86) 0.042 (1.15) 0.114 (2.65)** -0.367 (15.37)** 0.017 (0.88) -0.024 (3.44)** 0.012 (0.64) -0.062 (0.96) 0.046 (0.61) -0.363 (15.10)** 0.017 (0.88) -0.025 (3.54)** 0.010 (0.54) Ratio of Freehold x Customary Ratio of Freehold x Mailo Population Density (100 persons/km2) Ratio of public grazing land out of total LC1 land size Markets available within LC1 (=1) Plot Characteristics Customary (=1 vs. freehold ) Mailo (=1 vs. freehold ) Plot is inherited (=1 vs. purchased ) ln (Years acquired) ln (Distance from home compound) ln (Plot size) Household Characteristics Female headed (=1 vs. male headed) -0.196 -0.200 (4.63)** (4.71)** ln (Age of household head) -0.016 -0.012 (0.35) (0.27) 0.002 0.002 Max. years of male schooling (0.61) (0.61) 0.014 0.013 Max. years of female schooling (4.03)** (3.91)** Number of Male adults 0.030 0.030 (3.10)** (3.13)** Number of Female adults -0.035 -0.035 (4.32)** (4.29)** 1,761 Number of observations 1,761 Note: * and ** indicate 5 and 1 percent significance level, respectively. Estimated coefficients are marginal changes in probability. Agro-climatic zone dummies are included in the estimations. 50 Table 12. Soil Conservation Practices—Plot Level Analysis Soil Conservation Practices Fallow in the Manure last three Mulching application seasons (C) (D) (E) Use of crop residues - percent - - percent - - percent - - percent - - percent - 2,345 13 17 14 12 29 1,831 14 19 16 13 31 Occupants 354 7 12 5 10 27 Tenants 160 10 8 9 1 11 879 16 25 17 12 28 1,021 12 13 15 11 30 285 6 13 5 19 41 Total number of plots Fertilizer application (A) (B) - number All Plots Owners Tenure, tenancy, and land rights (F) Tenants Excluded Freehold Customary Mailo Note: Numbers in brackets are p-values. 51 Table 13. Soil Conservation Practices—LC1 Fixed Effects Model Variables Land Tenure-Tenancy Customary (=1) Mailo Land (=1) Occupant Plot (=1) Tenant Plot (=1) Plot Characteristics ln (Years acquired) ln (Distance to plot) ln (Plot size) Female headed (=1) ln (Age of household Max. years of male Max. years of female Number of Male adults Number of Female Constant Fertilizer application Manure application (A) (B) Fallow in the last 3 seasons (C) 0.040 (1.60) 0.014 (0.41) -0.041 (1.79) -0.061 (1.97)* 0.010 (0.35) -0.089 (2.33)* -0.048 (1.89) -0.096 (2.80)** -0.030 (2.68)** 0.008 (1.57) 0.007 (0.50) 0.001 (0.04) 0.037 (1.26) -0.004 (1.52) 0.005 (1.91) 0.010 (1.75) -0.005 (0.79) 0.019 (0.19) -0.016 (1.32) -0.018 (3.37)** 0.010 (0.70) -0.015 (0.53) 0.011 (0.33) -0.003 (1.29) 0.010 (3.51)** 0.005 (0.74) -0.008 (1.21) 0.186 (1.69) Mulching Use of crop residues (D) (E) -0.050 (1.96) -0.084 (2.37)* -0.085 (3.58)** -0.093 (2.95)** 0.022 (0.95) -0.109 (3.41)** -0.020 (0.93) -0.043 (1.50) 0.045 (1.51) 0.040 (0.96) -0.060 (2.18)* 0.006 (0.16) -0.008 (0.71) 0.024 (4.72)** 0.068 (5.04)** -0.024 (0.92) 0.020 (0.67) 0.002 (0.89) 0.001 (0.29) 0.000 (0.05) 0.005 (0.75) 0.011 (0.11) 0.002 (0.25) -0.027 (6.04)** 0.040 (3.32)** -0.030 (1.27) 0.027 (1.00) 0.005 (2.10)* 0.001 (0.47) -0.011 (1.95) 0.010 (1.71) -0.004 (0.05) 0.023 (1.80) -0.120 (20.49)** 0.069 (4.40)** -0.011 (0.36) -0.025 (0.71) 0.003 (1.07) 0.004 (1.35) -0.014 (1.91) -0.004 (0.62) 0.450 (3.82)** 2320 96 2320 96 Number of obs 2320 2320 2320 Number of LC1s 96 96 96 Note: * and ** indicate 5 and 1 percent significance level, respectively. 52 Table 14. Slush and Burn and Tree Planting—Plot Level Analysis Tenure, tenancy, and land rights Total number Slush and Burn of plots Ever Planted Trees (A) (B) Other Trees (C) Timber trees (D) - number - - percent - - percent - - percent - All Plots 2,345 24 34 13 Owners 1,831 23 38 15 Occupants 354 30 27 8 Tenants 160 28 0 1 879 15 28 9 1,021 30 40 18 285 29 49 14 Tenants Excluded Freehold Customary Mailo Note: Numbers in brackets are p-values. 53 Table 15. Slush and Burn and Tree Planting—LC1 Fixed Effects Model Variables Land Tenure –Tenancy Customary (=1 vs. Freehold) Mailo Land (=1 vs. Freehold) Occupant Plot (=1 vs. Owner) Tenant Plot (=1 vs. Owner) (A) Planting non-timber trees (B) Planting timber trees (C) -0.079 (2.67)** -0.017 (0.41) 0.041 (1.49) 0.057 (1.54) -0.029 (1.22) -0.025 (0.77) -0.013 (0.57) 0.007 (0.22) -0.005 (0.15) 0.034 (0.79) -0.073 (2.59)** -0.091 (2.40)* Slush and Burn Plot Characteristics ln (Years acquired) -0.007 0.043 (0.51) (4.10)** ln (Distance from homestead) 0.007 -0.027 (1.22) (5.77)** ln (Plot size) 0.046 0.095 (2.89)** (7.55)** Female headed (=1) -0.047 -0.042 (1.54) (1.75) -0.019 -0.016 ln (Age of household head) (0.55) (0.56) 0.008 -0.000 Max. years of male schooling (2.86)** (0.00) Max. years of female schooling 0.007 0.003 (2.52)* (1.24) Number of Male adults -0.014 -0.009 (1.97)* (1.65) Number of Female adults -0.005 -0.002 (0.73) (0.42) Constant 0.238 0.072 (2.00)* (0.76) Number of observations 2320 2320 Number of households 96 96 Note: * and ** indicate 5 and 1 percent significance level, respectively. 54 0.116 (8.62)** -0.073 (12.13)** 0.089 (5.51)** -0.020 (0.66) -0.022 (0.62) 0.004 (1.54) 0.003 (1.00) -0.016 (2.21)* 0.008 (1.10) 0.160 (1.32) 2320 96 Table 16. Soil Nutrient and Texture by Agro-climatic Zone Soil Nutrient Agro-climatic zone Soil Texture PH OM P K Ca Sand Clay Silt (A) (B) (C) (D) (E) (F) (G) (H) % Mg/kg Cmolc/kg -%- Bi-Low 6.30 5.17 70.1 0.99 3.68 57.7 30.7 11.6 Bi-Med 6.32 5.40 148.2 0.80 4.31 65.2 22.9 11.8 Bi-High 6.39 3.79 32.1 0.72 3.12 62.4 27.7 9.9 Uni 6.26 5.53 103.9 1.62 6.55 45.2 39.0 15.8 E Highlands 6.30 5.44 83.4 1.52 6.31 37.7 44.1 18.2 SW Highlands 5.64 6.94 61.5 1.23 3.18 53.4 25.9 20.7 All 6.27 4.91 70.1 0.99 4.07 57.3 29.7 12.9 Note: * Animal manure includes compost. Bi-low rainfall zone (lower elevation parts of southwestern Uganda), Bi-Medium Rainfall zone (most of central and parts of western Uganda), Bi-High Rainfall zone (mostly the Lake Victoria crescent), Uni-modal Rainfall zone (much of northern Uganda), SW Highlands (1500m a.s.l. and above), and Eastern Highlands (1500m a.s.l. and above). 55 Table 17. Crop Production– Value Production at the Household Level Percentage Area devoted of producer Production value Producers Production Producers value per households All only All only acre (A) (B) (C) (D) (E) (F) % acres acres US$ US$ US$/acre Beans 75.8 3.34 4.33 28.3 36.7 8.5 Maize 74.9 2.99 3.90 50.3 65.5 16.8 Matooke (Matoke) 67.3 8.25 11.8 132.5 189.8 16.1 Sweat potato 51.7 0.62 1.14 29.9 55.3 48.5 Cassava 48.4 1.64 3.06 30.5 56.9 18.6 Coffee 31.0 2.66 7.64 19.7 56.2 7.4 Groundnuts 26.4 0.48 1.77 9.9 36.3 20.5 Millet 19.9 0.27 1.29 5.7 27.5 21.3 Sorghum 15.2 0.24 1.55 4.6 29.1 18.8 Peas 13.2 0.23 1.68 3.6 26.4 15.7 Irish potato 12.3 0.16 1.30 5.8 46.4 35.7 Fruits 9.6 n.a. n.a. 7.6 79.0 n.a. Industrial crops 8.4 0.44 4.19 10.1 96.5 23.0 Other vegetables 7.6 0.20 2.45 6.0 70.9 28.9 Rice 3.2 0.07 2.05 4.7 145.3 70.9 Wheat 1.3 0.01 0.68 0.2 12.8 18.8 56 Table 18. Percentages of Producer Households of Major Crops Agro-climatic Percentage of producer households Maize Matooke Coffee S. Potato Cassava Rice (A) (B) (C) (D) (E) (F) Bi-Low 80.0 81.7 22.5 45.0 45.0 0 Bi-Med 76.9 54.3 13.1 72.4 64.8 13.1 Bi-High 79.9 68.0 42.4 70.6 63.4 1.9 Uni 72.5 67.5 42.5 23.8 37.5 3.8 Eastern High Lands 61.3 75.0 56.3 5.0 16.3 0 SW High Lands 67.3 68.7 20.7 32.0 18.7 0 All 74.9 67.3 31.0 51.7 48.4 3.2 zone Note: Bi-low rainfall zone (lower elevation parts of southwestern Uganda), Bi-Medium Rainfall zone (most of central and parts of western Uganda), Bi-High Rainfall zone (mostly the Lake Victoria crescent), Uni-modal Rainfall zone (much of northern Uganda), SW Highlands (1500m a.s.l. and above), and Eastern Highlands (1500m a.s.l. and above). 57 Table 19. Chemical and Organic Fertilizer Application Agro-climatic zone Adoption of improved seeds (A) Percentage of households using Fertilizer application Chemical fertilizer Animal Manure* Chemical fertilizer Animal Manure* (B) (C) (D) (E) - percent - - percent - - kgs/acre - Bi-Low 72.9 2.5 20.8 0.1 138.8 Bi-Med 53.7 4.0 4.5 0.3 9.8 Bi-High 56.7 2.6 14.6 0.3 71.0 Uni 74.1 10.0 10.0 0.7 68.1 E Highlands 83.7 32.5 22.5 9.8 140.8 SW Highlands 52.5 9.3 27.3 4.6 89.7 All 61.0 7.1 15.6 1.9 75.3 Note: * Animal manure includes compost. Bi-low rainfall zone (lower elevation parts of southwestern Uganda), Bi-Medium Rainfall zone (most of central and parts of western Uganda), Bi-High Rainfall zone (mostly the Lake Victoria crescent), Uni-modal Rainfall zone (much of northern Uganda), SW Highlands (1500m a.s.l. and above), and Eastern Highlands (1500m a.s.l. and above). 58 Table 20. Maize Yield, Improved Seed, and Fertilizer Application Maize Agro-climatic Percentage of maize plots Average fertilizer applied fertilizer application on maize plots Chemical fertilizer Animal Manure* Chemical fertilizer Animal Manure* - tons/ha - Adoption of improved seeds - percent - - percent - - percent - - kgs/acre - - kgs/acre - Bi-Low 0.58 72.9 0.5 2.6 0 5.9 Bi-Med 1.01 53.7 0.9 2.0 0 3.7 Bi-High 0.82 56.7 1.4 2.6 0.3 19.7 Uni 0.58 74.1 5.9 4.2 0.8 45.0 E Highlands 0.71 83.7 15.3 9.2 6.7 65.2 SW Highlands 0.57 52.5 5.4 9.9 3.1 28.9 All 0.77 61.0 3.2 4.1 1.1 21.4 zone Yield Note: * Animal manure includes compost. Bi-low rainfall zone (lower elevation parts of southwestern Uganda), Bi-Medium Rainfall zone (most of central and parts of western Uganda), Bi-High Rainfall zone (mostly the Lake Victoria crescent), Uni-modal Rainfall zone (much of northern Uganda), SW Highlands (1500m a.s.l. and above), and Eastern Highlands (1500m a.s.l. and above). 59 Table 21. Matoke Yield and Fertilizer Application—Plot Level Percentage of matoke plots applied animal manure* Average manure - tons/ha - - percent - - kgs / ha - Bi-Low 2.95 11.2 189.7 Bi-Med 2.59 3.2 31.0 Bi-High 1.38 10.3 152.7 Uni 1.20 3.1 37.4 Eastern Highlands 1.30 7.3 90.8 SW Highlands 3.93 11.5 154.0 All 2.12 8.3 117.2 Agro-climatic zone Matoke yield application on matooke plots Note: * Animal manure includes compost. Bi-low rainfall zone (lower elevation parts of southwestern Uganda), Bi-Medium Rainfall zone (most of central and parts of western Uganda), Bi-High Rainfall zone (mostly the Lake Victoria crescent), Uni-modal Rainfall zone (much of northern Uganda), SW Highlands (1500m a.s.l. and above), and Eastern Highlands (1500m a.s.l. and above). 60 Table 22. Livestock Ownership—Household Level In 2003 % of households Average Average number owned number owned among owners Average Price % number number US$ Local cows 29.3 0.90 3.08 105 Local bulls 10.3 0.22 2.09 112 Local young bulls 11.5 0.27 2.37 53 Local heifers 15.6 0.34 2.16 79 Local calves 18.4 0.38 2.07 37 Improved cows 6.9 0.18 2.58 200 Improved bulls 1.5 0.02 1.29 153 Improved young bulls 2.6 0.06 2.38 63 Improved heifers 3.6 0.10 2.88 158 Improved calves 4.7 0.11 2.25 42 Local goats 46.8 2.16 4.63 11 Improved goats 2.2 0.16 7.14 16 Sheep 8.8 0.29 3.23 11 Local chicken 61.6 4.7. 7.68 1.4 Improved chicken 1.6 0.64 39.9 1.6 Local pigs 21.6 0.50 2.33 16 Improved pigs 0.6 0.08 1.33 21 Donkeys 0.3 0.05 1.67 22 Ducks 5.6 0.23 4.15 1.6 Cattle Other Animals 61 Table 23. Improved and Local Cow Distribution across Agro-climatic Zone Improved Cattle Agro-climatic zone % of households (A) Local Cattle Average Average number % of number among HHs households who own (B) (C) (D) Average Average number number among HHs who own (E) (F) Bi-Low 11.2 0.4 3.5 37.8 3.2 8.6 Bi-Med 3.7 0.1 2.3 51.3 3.1 6.0 Bi-High 11.0 0.3 2.8 28.4 1.3 4.5 Uni 13.8 0.2 1.7 51.3 2.1 4.2 Eastern High Lands 15.0 0.3 1.9 52.5 1.2 2.3 SW High Lands 7.4 0.4 4.8 24.8 1.4 5.6 All 9.5 0.3 2.8 37.7 2.0 5.2 62 Table 24. Adoption of Improved Cattle – Household Level Analysis Probit Variables (A) Household Characteristics Max. years of male schooling 0.004 (1.88)* 0.003 (1.20) 0.009 (1.82)* -0.005 (0.85) 0.011 (2.06)** -0.004 (0.63) -0.023 (1.03) 0.019 (1.91)* 0.032 (4.48)** Max. years of female schooling Number of Male adults Number of Female adults Number of Boys Number of Girls Female headed household (=1) ln(Land size in acre) ln (Asset value) Community Level Characteristics Market outside LC 1 (=1) 0.001 (0.07 -0.105 (3.24)** Included Ratio of public grazing land out of total LC1 land size Agro-climatic zone dummies Number of observations 939 Note: * and ** indicate 10 and 5 percent significance level, respectively. Estimated coefficients are marginal changes in probability. 63 Table 25. Milk Production Management Local Cows (A) Improved Cows (B) 201 52 0 38.5 Average number of milking cows 1.99 2.13 Monthly milk production in liter 103.7 257.8 Proportion of milk sold (%) 20.4 47.5 Individual customers 25.6 54.5 Local markets 4.0 11.9 Restaurants/ Hotels 4.3 5.9 Cooperative/ Private Processing 4.0 5.0 No buyer type 62.1 22.7 1.2 20.9 A.I. service ($) 0 1.3 Bull service ($) 0.4 1.8 Health service ($) 21.8 18.6 Number of Milk producers Stall feeding (%) Main buyer type Total Expenditure Purchased Feeds ($) 64 Table 26. Livestock Production System and Manure Application on Crops Livestock Production System Number of households Percentage of households using manure Quantity of Manure applied on farm total per cattle per acre - number (%) Local vs. Crossbred(CB) Cattle Local Cows Only 848 (90.2) Some CB Cows 75 (9.8) Difference -%- kgs kgs/cattle kgs/acre 13.8 31.5 + 17.7 144.4 791.6 +647.2 68.8 224.9 +156.1 59.7 228.4 +168.7 Grazing vs. Stall feeding Grazing only 865 (92.0) Some Stall-feeding 75 (8.0) Difference 14.7 25.3 +10.6 181.9 498.3 +316.4 84.8 192.3 +107.5 66.3 173.7 +107.4 65 Table 27. Manure Application and Improved Cattle–Plot Level Analysis Manure Application (=1) Quantity of Manure Probit Tobit (A) (B) 0.044 (2.69)** 0.020 (4.07)** 837.4 (3.30)** 231.8 (3.54)** -0.029 (1.54) 0.004 (0.41) -0.027 (6.08)** -0.014 (1.18) -975.1 (2.45)* 5.702 (0.04) -458.8 (5.93)** -234.1 (1.25) Variables Number of Cattle per Acre Improved cattle per acre Local cattle per acre Plot Characteristics Not cultivated in 2002 (=1) ln (Years since acquired) ln (Distance from home compound) ln (Plot size) Household Characteristics Female headed household (=1) 0.003 (0.14) -0.037 ln (Age of household head) (1.49) 0.001 Max. years of male schooling (0.27) Max. years of female schooling 0.005 (2.42)* Number of Male adults -0.007 (1.52) Number of Female adults 0.005 (1.01) ln (Asset Value in Shs) 0.008 (1.31) Yes Agro-climatic zone dummies Number of observations 1,970 Note: * and ** indicate 5 and 1 percent significance level, respectively. are marginal changes in probability. 66 62.73 (0.20) -447.6 (1.09) -15.14 (0.49) 85.39 (2.65)** -113.3 (1.46) 109.2 (1.35) 261.2 (2.72)** Yes 1,970 Estimated coefficients Table 28. Maize and Matoke Yields by Fertilizer Application Crop Yield with and without organic fertilizer All Crop (Seed Type) Without any With organic With organic fertilizer fertilizer and chemical fertilizer (A) (B) (C) (D) - tons / hectare Maize (Local) Maize (Improved) Matooke 0.71 0.70 1.15 (n = 728) (n = 696) (n = 20) 0.84 0.79 0.98 1.97 (n = 836) (n = 776) (n = 28) (n = 32) 2.24 2.20 2.88 n.a. (n = 1,761) (n = 1,608) (n = 141) 67 n.a. Table 29. Crop Yield and Fertilizer Application– Plot Level Analysis Maize Yield Matoke Yield (A) (B) 0.118 (0.62) 0.503 (2.18)* 0.241 (3.32)** 0.359 (2.91)** n.a. -0.032 (0.59) -0.016 (0.65) -0.151 (2.32)* 0.136 (2.22)* -0.002 (0.06) -0.212 (3.76)** Variables Number of Cattle per Acre Manure Application (=1) Chemical Fertilizer Application (=1) Improved Seeds (=1) Plot Characteristics ln (Years since acquired) ln (Distance from home compound) ln (Plot size) Household Characteristics Female headed household (=1) 0.002 (0.02) -0.101 ln (Age of household head) (0.71) 0.023 Max. years of male schooling (1.93) Max. years of female schooling -0.006 (0.48) Number of Male adults 0.132 (4.44)** Number of Female adults -0.056 (1.85) ln (Asset Value in Shs) 0.064 (1.56) 0.127 Second Season (=1) (1.85) 5.072 Constant (7.55)** Agro-climatic zone dummies Yes Number of observations 1,460 Note: * and ** indicate 5 and 1 percent significance level, respectively. are marginal changes in probability. 68 n.a. 0.103 (0.89) -0.338 (2.38)* 0.021 (1.86) -0.007 (0.61) -0.016 (0.59) 0.018 (0.64) 0.166 (4.39)** -0.003 (0.04) 5.796 (9.26)** Yes 1,738 Estimated coefficients Table 30. Non-farm Self-Employment and Wage Activities Age Number of % of individuals female Years of Years of Income education experience (USD) (A) (B) (C) (D) (E) (F) Wage earner Brewing Trading farm product Farm labor General-kisok owner Trading Livestock 152 85 82 80 59 16 21 47 15 25 15 0 38 38 36 35 38 33 9.3 5.1 6.3 3.6 6.3 6.9 8.3 7.8 6.5 9.4 4.9 4.8 743 319 587 93 676 762 Charcoal burning Trading Fish Carpentry Trading non-food goods Brick making Construction Boda Boda Trading Timber Others 15 15 14 13 12 12 10 10 84 27 20 0 15 0 0 0 10 31 34 36 36 42 34 35 34 40 37 6.3 5.3 6.5 7.8 5.7 8.3 6.2 7.4 5.9 5.6 6.8 6.5 7.2 8.6 10.8 5.9 7.3 7.4 198 307 319 751 376 380 395 630 494 Note: 1$=1,850Shs 69 Table 31. Determinants of Participation in Business and Labor Activities Multi-nominal Logit Multi-nominal Logit Business (A) Regular (B) Business (C) Regular (D) 0.10 (0.50) 0.20 (0.83) -0.07 (0.23) 0.19 (0.42) -0.14 (0.25) 1.23 (2.38)* 0.07 (0.35) 0.14 (0.49) -0.15 (0.47) -0.28 (0.57) -1.08 (1.63) 0.29 (0.46) 0.41 (2.68)** 0.18 (0.63) 0.40 (2.63)** 0.10 (0.53) 0.10 (0.36) 1.12 (2.64)** -1.19 (4.23)** 0.10 (3.05)** 0.00 (4.37)** -2.09 (4.08)** 0.18 (3.25)** 0.00 (3.35)** -1.18 (4.20)** 0.10 (3.04)** 0.00 (4.35)** -2.05 (4.04)** 0.19 (3.26)** 0.00 (3.32)** 0.04 (1.76)+ -0.03 (1.21) 0.00 (0.05) -0.08 (1.24) 0.11 (1.76)+ -0.24 (2.44)* 0.05 (1.15) 0.08 (1.70)+ -0.18 (1.24) -0.17 (1.75)+ 0.00 0.00 -0.26 (1.57) 0.04 (1.72)+ -0.03 (1.22) 0.00 (0.01) -0.08 (1.27) 0.11 (1.73)+ -0.24 (2.43)* 0.04 (0.98) 0.07 (1.64) -0.14 (0.99) -0.18 (1.83)+ -0.01 (0.10) -0.28 (1.65)+ Included Included Included Included Education Some primary (=1) Primary completed (=1) Some secondary and above (=1) Languages Can communicate in More than one local language (=1) English (=1) Individual Characteristics Female (=1) Age Age*Age HH Characteristics Highest education among female Highest education among male Number of female Number of male ln (Asset-value in Shs) ln (Land in acres) Local Counsel 1 Dummies Psedu R2 Observations 0.30 2,694 0.29 2,694 Note: Dummies for relationships to the head and marital status are also included in the model but not reported here. ** indicates 1% significance level; * indicates 5% significance level; + indicates 10% significance level. 70 Table 32. Proportion of Orphans among Children/Young Adults (aged 0-18) All Non- Orphans Orphans Maternal Paternal Double (A) (B) (C) (D) (E) 100.0 88.7 3.0 5.7 2.7 Girls 49.4 43.9 1.2 2.8 1.4 Boys 50.6 44.8 1.7 2.8 1.2 Both parents 69.0 69.0 Father only 5.7 4.3 Mother only 9.5 6.1 Neither 15.9 9.3 1.6 2.3 Child 78.7 75.1 1.4 2.3 Grandchild 13.3 9.1 0.7 2.1 1.4 Other relatives 6.6 3.6 0.7 1.1 1.2 Non-relatives 1.4 0.9 0.2 0.2 0.1 All Living with 1.4 3.4 2.7 Relationship to head 71 Table 33. School Attendance Ratio Children (aged 7-14) Non- Orphans orphans Young Adults (aged 15-18) Dif. Non- B-A orphans Orphans Dif. E-D (A) (B) (C) (D) (E) (F) 93.8 92.9 -0.9 79.0 70.3 -8.7 Girls 93.3 94.1 0.8 78.8 69.2 -9.6 Boys 94.4 91.9 -2.5 79.3 71.4 -7.9 Poor (lower half) 91.8 87.6 -4.2 73.9 58.5 -15.4 Non-poor (upper half) 95.3 96.2 0.9 82.0 75.9 -6.1 All Gender Household Wealth Living Arrangements Living with both parents 94.7 At least one absent parent 91.2 83.5 92.9 65.5 70.3 ** indicates 5% significance level; * indicates 10% significant level. (a) The sampled households are divided into two groups based on the total value of the assets and livestock each household owns. 72 Table 34. Determinants of School Attendance among Children and Young Adults (Household Fixed Effect) Children Aged 7-14 Young Adults Aged 15-18 (A) (B) -0.030 -0.254 (1.01) (2.97)** Non-orphans with at least -0.048 -0.396 one absent parent (=1) (1.82)* (4.96)** 0.002 0.021 (0.18) (0.46) Child Characteristics Orphan (=1) Girl (=1) Age 9-10 (=1) Age 11-12 (=1) Age 13-14 (=1) 0.128 (7.26)** 0.129 (7.17)** 0.111 (6.19)** -0.167 Age 16 (=1) (2.97)** -0.157 Age 17 (=1) (3.05)** -0.361 Age 18 (=1) (6.29)** R-squared 0.06 0.21 Households 716 433 1,863 691 Children ** indicates 5% significance level; * indicates 10% significant level. 73 Figure 1. Sampled Communities in Uganda 74 100% Social activities 80% Non-food items 60% Non-fresh food items 40% Fresh food items 20% Staple food 0% 1-25 26-50 51-75 76-100 percentile Figure 2. Cash Expenditure Share by Per Capita Cash Expenditure Quartile 75 .006 0 .002 Density .004 Median ($102) 0 Figure 3. 100 300 200 Per capita total expenditure (US$) Distribution of Per Capita Total Expenditure 76 400 500 70 Food expenditure share 65 60 55 50 0 Figure 4. 100 200 Per capita total Expenditure Food Expenditure Share 77 300 400 10 0% Wage income 8 0% Non-farm activities 6 0% Livestock income 4 0% 2 0% Farm income 0% 1 -2 5 2 6-5 0 5 1- 75 Figure 5. Income Share by Per Capita Income Quartile 78 76 -1 00 percentile Napier Grass, Oats, and Fodder Leaves Feeds Manure Dairy Cows and Goats Manure Crop residues Figure 6. Crop production “Organic Green Revolution” in East Africa 79 Manure Input Isoquant Curves Africa’s Pathway? Asian Green Revolution P2 P1 Chemical Fertilizer Input Figure 7. Isoquant Curve: Organic and Chemical Fertilizer The relative price of chemical fertilizer over manure has been low in Asia than in Africa (P1 < P2). 80 % 100 80 60 all 40 primary secondary 20 0 7 Figure 8. 8 9 10 11 12 School Attendance Ratio by Age 81 13 14 15 16 17 18 age % 100 80 60 Non-orphans with both parents 40 Non-orphans with at least one absent parent 20 Orphans 0 7 Figure 9. 8 9 10 11 12 13 14 15 16 17 18 age School Attendance Ratio by Orphan Status and Living Arrangements 82
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