Over the past three years, the Ugandan government has made significant investments in the agricultural sector, unlocking billions of shillings in interest-free loans for coffee, poultry, and piggery farmers.

However, concerns have remained with the broader impact on farm productivity, household incomes, and the growing threat of climate change.

A detailed review of loan disbursements under the Parish Development Model (PDM)—Uganda’s main agricultural funding programme—shows that by the end of June 2025, piggery farmers had received Ush348.3 billion ($98.7 million), while coffee producers were granted Ush333.2 billion ($94 million), according to the latest government figures.

In comparison, more money went to specific farming groups such as goat farmers who received Ush297 billion (($84 million), Maize growers were allocated Ush247.9 billion (($70.2 million) and beef cattle breeders got Ush134 billion ($37.9 million).

Each parish, the lowest administrative level in Uganda, is allocated Ush100 million ($28,333) annually for PDM lending, with individual households eligible for Ush1 million (($283) to invest in approved agricultural projects. These loans are interest-free.

Despite the scale of funding, key questions remain unanswered as to whether PDM lending improved productivity among coffee, poultry, and pig farmers or whether it has had an effect on household incomes. Authorities may also now start dealing with the impact of climate change on these farming activities.

“Production of coffee, pigs, and poultry is rising, but still below optimal levels,” said Patrick Ocailap, Deputy Finance PS.“We’re investing in agricultural research, irrigation, and quality standards. Over three million households have received Ush1 million each, and we’re continuing. Climate change is a concern, but we’re addressing it through drought-resistant seeds and better soil management.”

However, not everyone is convinced of the programme’s effectiveness. Joseph Bugabo, a farmer from Sembabule District, expressed scepticism: “The president used to visit communities and offer support—goats, chickens, coffee seedlings—and those people are doing well now. But the PDM programme feels pointless. People spend Ush300,000 ($85)–Ush400,000 ($113) to obtain Ush1 million ($283), and then waste it on alcohol.“Some form Saccos, get the money, drink it away, and disappear when they can’t repay. Only those who had organised farms beforehand seem to benefit.

”By the end of the 2024/25 financial year, youth aged 18–30 made up 27.1 percent of PDM beneficiaries, while those over 60 accounted for 12.48 percent. Loan processing times have improved dramatically—from 3–4 weeks in 2022 to under 48 hours today.“There’s growing interest in coffee farming, even among large-scale producers,” said Deus Nuwagaba, Deputy Executive Director of NUCAFFE Uganda.

“PDM funds have helped farmers improve their gardens and encouraged patience through access to affordable credit. Local banks like Post Bank, Housing Finance Bank, and Pride Bank have also supported this. Organic manure and water conservation are key strategies for tackling climate change.”

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