Smallholder farms in Uganda are a significant component of the country's agricultural sector, contributing to food security and economic development. Panel data analysis will be employed to examine the performance of smallholder farms. The model includes fixed effects for individual farms and random effects for time-invariant characteristics. A preliminary analysis suggests that input use efficiency varies significantly across farms, with some showing substantial gains in output per unit input. The study confirms the utility of panel data methods for assessing farm efficiency, revealing potential areas for improvement through targeted interventions. Recommendation is to implement training programmes focused on efficient resource utilization and market access strategies tailored to specific farming practices. The empirical specification follows Y=₀+^ X+, and inference is reported with uncertainty-aware statistical criteria.
Mugerwa et al. (Mon,) studied this question.
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