MJAAR

The Influence of Government Subsidies and Price Support on Agricultural Productivity: A Case Study of Balawoli Sub-County, Kamuli District, Uganda

Kawongolo Paul, Natukunda Charles


Abstract

This study examined the influence of government subsidies and price support on agricultural productivity in Balawoli Sub-County, Kamuli District, Uganda. Governments intervene in agriculture through subsidies and price support to raise productivity, incomes, and food security, yet the effectiveness of these interventions among Ugandan smallholder farmers remains under-examined. The study investigated how input subsidies, price support, access to credit, and extension linkage relate to agricultural productivity. A cross-sectional survey design with a mixed-methods approach was adopted, and data were collected from 180 respondents comprising smallholder farmers, farmer-group leaders, and agricultural extension officers using structured questionnaires and interviews. Descriptive statistics, exploratory factor analysis, Pearson correlation, and structural (path) analysis were used. Factor analysis confirmed the construct validity of the intervention dimensions, which loaded onto coherent factors and explained 68.4% of the variance. The results revealed a strong positive and significant relationship between government support and agricultural productivity (r = 0.68, p < 0.01), with the interventions jointly explaining 66.0% of the variance in productivity (R² = 0.660). Input subsidies (β = 0.33) and price support (β = 0.30) emerged as the strongest path predictors. The study concludes that government subsidies and price support significantly enhance agricultural productivity and recommends strengthening input subsidies, price support, and complementary credit and extension services.

Keywords

government subsidies price support agricultural productivity input subsidies smallholder
Metropolitan Journal of Academic and Applied Research

Cite This Article

Kawongolo Paul & Natukunda Charles (2026). The Influence of Government Subsidies and Price Support on Agricultural Productivity: A Case Study of Balawoli Sub-County, Kamuli District, Uganda. Metropolitan Journal of Academic and Applied Research, 5(8). https://journals.miu.ac.ug/pages/article.php?article_id=751

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