A beneficiary farmer of the Micro-Scale Irrigation Programme irrigating tomatoes. Irrigation uptake remains low in Uganda/MAAIF Photo
The Micro-Scale Irrigation Programme under the Uganda Intergovernmental Fiscal Transfer (UgIFT) Program that is implemented by Ministry of Agriculture Animal Industry and Fisheries (MAAIF) is mainly benefiting the already existing commercial farmers.
This revelation is contained in the Auditor General’s report for 2023/2024 that was recently presented to Parliament.
The Government of Uganda, with World Bank support, implements the UgIFT program to enhance local government service delivery. Initially focused on Education and Health, UgIFT was expanded in 2020 through additional financing of US$300 million to include Water, Environment, and Micro-Irrigation, integrating refugee services into local government systems. Originally set to end in FY 2023/24, it was restructured and extended to December 2025.
The micro-scale irrigation intervention under the UgIFT Program aims to support farmers in purchasing and using micro-scale irrigation technology. During the value for money audit on the UgIFT Program, Edward Akol, the Auditor General, focused on the installation and utilisation of irrigation technology for smallholder farmers practicing agriculture on 2.5 acres with a co-payment system of funding. Importantly, farmers contribute 25% of the total cost while Government contributes 75%.
The audit also assessed factors that are causing the observed impact of the program. This involved evaluating the performance of the district local governments in implementing support activities such as sensitization and training of farmers, establishment of demonstration farms and farmer field schools, farm visits and other post-installation support.
The audit assessed the implementation of UgIFT programme interventions in the Agricultural sector across beneficiary districts over the period FY 2020/21 to 2023/24, capturing both Phase 1 and Phase 2 of the program.
Key Findings
According to the report, the micro-scale irrigation intervention has had a positive impact on the value earned by farmers per acre of land for the farmers that received irrigation equipment under the UgIFT program compared to the farmers that expressed interest but have not yet received irrigation equipment between FY 2020/21 and FY 2023/24.
“Of the 5,580 planned installations as per the revised plan, 3,142 (56.31%) have been completed, 187 of the 318 demonstration farms have been set up and only 40 of the intended 1,425 Farmer Field Schools have been set up. In Financial Year 2022/23, the 40 Phase 1 Districts achieved 825 micro scale irrigation equipment installations against 2,783 target installations with a total 177 expenditure of Shs24.92bn,” Auditor General’s report reads in part.
It adds: “Out of the 825 micro scale irrigation equipment installations against the total spent of Shs24.92bn, the average unit cost of setting up the irrigation equipment was calculated to be Shs30.2m for an average of 2.5 acres. I noted that the average unit cost of the irrigation equipment varies among districts. This variation was attributed to district-specific challenges in availability of suppliers of similar irrigation systems and the nature of irrigation systems designs.”
Akol noted from the payment schedule to the contractors under micro scale irrigation project that a total of Shs13.55bn had been spent on payment of VAT to contractors, contrary to the provision in the VAT Act which provides that VAT on donor funded projects is deemed to have been paid by the Government.
“Since the average cost of reaching one beneficiary farmer was Shs30.2m, the opportunity cost of the VAT paid is that 448 potential beneficiaries were deprived of the opportunity to benefit from the installation of irrigation equipment because districts had to pay the aforementioned VAT on a project where VAT was deemed to be paid. I noted that 199 out of the 344 beneficiary farmers (57.85%) owned less than 12.5 acres of farmland implying that the remaining 145 farmers (42.15%) owned more than 12.5 acres of farmland and these farmers were already engaged in commercial farming before receiving the system,” the report says.
Additionally, the report says, the uptake by female farmers is low at 19% due to the lack of land and financial capacity to co fund the program.
According to the report, the farmer attendance of farmer field schools and demonstration farms is low at 17.4% and 43% respectively and as a result, farmers who did not attend achieved lower yields and revenues as they were not well trained and sensitized on the choice of irrigation system, how to operate and maintain it as well as other effective agronomic practices.
“I noted that only 42% of the interviewed beneficiary farmers had received training from the demonstration sites before acquiring the irrigation equipment while 57% received irrigation equipment without prior training on its use at a demonstration farm. Consequently, 70% of the farmers who admitted to never attending the trainings faced challenges with functionality and usage of their systems,” Akol says in his report.
The Auditor General advises the Accounting Officer of MAAIF to prioritise the provision of farmer training on demonstration farms to ensure the enhancement of good agronomical practices and review the program to ensure that it targets the actual intended beneficiaries who are smallholder farmers to support them to transition from subsistence farming to commercial agriculture and to ensure that future co-payment programs have detailed assessments regarding affordability by intended beneficiaries prior to the roll out of the program.
He also advises that MAAIF expedites the establishment of Farmer Field Schools and Demonstration Farms in each of the beneficiary District Local Governments to facilitate training and knowledge sharing in irrigation technologies and agronomical practices and support the District Local Governments in creating linkages with the suppliers of irrigation equipment to ensure that they are easily accessible to the beneficiary farmers for timely maintenance and repairs farmers.
