By Mulengera Reporters
Deputy Speaker Thomas Tayebwa has scheduled next week for the House to debate the Contract Farming Bill, 2023, which was introduced by Kimanya-Kabonera MP, Dr. Abed Bwanika, as a private member’s bill.
On Tuesday, Dr. Bwanika moved the motion for the Bill’s second reading. However, Tayebwa advised that legislators needed sufficient time to review and understand the report from the Committee on Agriculture before proceeding with the debate.
“On this [Contract Farming Bill], I want you to receive the report, read it, and internalize it. It is a new and extensive Bill. I also wanted the Attorney General to be present, so we will have the debate next week,” Tayebwa said.
Addressing Market Fluctuations
While defending the Bill, Dr. Bwanika, a former presidential candidate and advocate for agricultural reforms, explained that the proposed law aims to establish a legal framework that ensures fair returns for farmers, who invest significant resources in production but often earn little due to market fluctuations.
“The biggest challenge for agriculture is market instability and price fluctuations. Farmers grow crops and rear animals without a guaranteed price. Take maize, for instance—when planting, a kilogram may be UGX 1,500 or even UGX 2,000, but by harvest time, the price drops to UGX 200 or UGX 300. This volatility discourages farmers and impoverishes communities,” Bwanika stated.
He emphasized that the Bill seeks to stabilize prices and provide farmers with fair compensation for their produce. Under contract farming, farmers would enter into agreements with buyers before planting, securing pre-determined prices for their produce and eliminating exploitative middlemen.
“This Bill proposes a system where farmers and buyers agree on a price before production. For example, if a farmer is guaranteed UGX 4,000 per kilogram of maize, that price remains fixed upon harvest. This will ensure financial security for farmers,” Bwanika explained.
Key Provisions of the Bill
The Bill also addresses farm services, proposing that buyers contractually provide inputs to farmers, with costs deducted from the final sale price.
Dr. Bwanika noted that Uganda has immense agricultural potential, with 80% of its land being arable and favorable climatic conditions. He argued that if contract farming were fully embraced, agriculture’s contribution to GDP—currently at 24.03%—would significantly increase.
Under the proposed law, sponsors (buyers) may enter agreements with farmers on mutually agreed terms. Before signing, sponsors must provide farmers with critical commercial information, including:
- Production plans
- Expected quality and quantity of produce
- Farming services to be provided
- Estimated payback period (if financial support is given)
The Bill proposes that farming agreements last for a maximum of five years, with the option of renewal.
Block Farming Provisions
The Bill also introduces provisions for block farming, where multiple landowners with legally recognized land can collectively engage in farming under a structured agreement. A land unit committee—comprising landowners involved in block farming—would oversee daily operations and decision-making.
Penalties for Breach of Agreements
The Bill includes measures to address breaches of contract farming and block farming agreements. Offenders could face legal action in competent courts. If enacted, the law would impose penalties, including:
- A fine of up to 72 currency points (UGX 1,440,000)
- Imprisonment of up to three years
- Both a fine and imprisonment
If passed, the Contract Farming Bill, 2023, is expected to provide farmers with price stability, increase agricultural productivity, and enhance the sector’s contribution to Uganda’s economy-Parliament Watch. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
