The 2015 Agricultural Finance Year Book, published by the Bank of Uganda, the Economic Policy Research Centre, and the Ministry of Agriculture, Animal Industry and Fisheries, is the eighth edition. This volume analyzes the impact of fiscal policy on the agricultural sector, reports the results of research on recent innovations in provision of rural finance and support for smallholder farmers, and examines how farmers can mitigate risks.
The section in which the practice of pre-selling coffee by Ugandan growers is analyzed concluded that: “Farmers bear immense costs due to the practice of preselling coffee to middlemen.” Recommendations on how to reduce the costs described include better and faster access to finances to address needs for cash, and “urgent need of… training in the area of financial literacy” so among other subjects farmers can better understand how the costs of pre-selling compare to the costs of loans. Also highlighted in the conclusions is training on the benefits of savings and a long-term outlook on investment.
To read the report: https://www.giz.de/en/downloads/giz2016-en-agricultural-finance-yearbook.pdf