Victoria Econ

IMPACT OF COTTON GROWING ON THE FINANCIAL AND ECONOMIC STATUS
OF HOUSEHOLDS: A CASE STUDY OF IKIIKI SUB COUNTY,

BUDAKA DISTRICT
BY
SUMBA VICTORIA
19/U/EKD/18541/GV
A RESEARCH REPORT SUBMITTED TO THE DEPARTMENT OF ECONOMIC AND

STATISTICS IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR
THE AWARD OF A BACHELOR OF ARTS IN ECONOMICS OF
KYAMBOGO UNIVERSITY
JUNE, 2023
DECLARATION
I SUMBA VICTORIA, declare that this report titled “cotton growing on the financial and
economic status of households: a case study of Ikiiki sub county, Budaka district.” is my original
work and that to the best of my knowledge it has never been submitted to any University or
Institution of Higher Learning for the award of a Master’s degree or any other academic award.
SIGNATURE:………………………………… DATE:…………………………………
SUMBA VICTORIA
19/U/EKD/18541/GV
i
APPROVAL
This report titled; “Cotton growing on the financial and economic status of households: a case
study of Ikiiki sub county, Budaka district.” has been authorized to be submitted for examination
with our approval as the Institute supervisors.
SIGNATURE:………………………………… DATE:…………………………………
SUPERVISOR
Mrs. Peninah
ii
DEDICATION
This research work is dedicated to my maternal relatives who unwaveringly furthered my
education. Special gratitude goes to Mum and Dad, You are dearly treasured.
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ACKNOWLEDGEMENT
My primary debt of gratitude goes to Almighty God for his grace, mercy and protection all these
years of my educational life. Glory be unto his name.
I am also profoundly grateful to my eminent supervisor Mrs Peninah for spending substantial
part of their time reading my entire manuscript, carefully pointing out errors and enthusiastically
offering many useful suggestions for improvement.
My sincere gratitude goes to all lecturers and staff of Kyambogo University especially the
department of Economics and Statistics for their support throughout my bachelors’ program in
general and in particular this research. They have added to my knowledge as I pursued my
Bachelor of Arts in Economics.
I wish to express my heartfelt thanks to staff of Ikiiki sub county, Budaka district for giving me
permission to carry out research in their enterprise.
I am also thankful to my parents, relatives and friends who in diverse ways contributed to the
success of my education. I wish them in returns abundance of love, peace, success and
prosperity.
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TABLE OF CONTENTS
DECLARATION............................................................................................................................i
APPROVAL...................................................................................................................................ii
DEDICATION..............................................................................................................................iii
ACKNOWLEDGEMENT...........................................................................................................iv
TABLE OF CONTENTS..............................................................................................................v
LIST OF TABLES......................................................................................................................viii
LIST OF ACRONYMS AND ABBREVIATIONS....................................................................ix
ABSTRACT....................................................................................................................................x
CHAPTER ONE............................................................................................................................1
INTRODUCTION.........................................................................................................................1
1.0 Introduction................................................................................................................................1
1.1 Background of the study............................................................................................................1
1.1.1 Historical background.............................................................................................................1
1.1.2 Theoretical background..........................................................................................................2
1.1.3 Conceptual background..........................................................................................................3
1.1.4 Contextual background...........................................................................................................4
1.2 Statement of the problem...........................................................................................................4
1.3 Purpose of the study...................................................................................................................5
1.3.1 Specific objectives..................................................................................................................5
1.4 Research Questions....................................................................................................................5
1.5 Hypothesis of the study.............................................................................................................6
1.6 Significance of the study...........................................................................................................6
CHAPTER TWO...........................................................................................................................7
LITERATURE REVIEW.............................................................................................................7
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2.1 Introduction................................................................................................................................7
2.2 Cotton growing on households income levels...........................................................................7
2.3 Cotton growing on households’ education level.......................................................................8
2.4 Cotton growing on food security.............................................................................................10
CHAPTER THREE.....................................................................................................................12
RESEARCH METHODOLOGY...............................................................................................12
3.1 Introduction..............................................................................................................................12
3.2 Research Design......................................................................................................................12
3.3 Target Population.....................................................................................................................12
3.4 Sample size and Sampling Techniques....................................................................................12
3.4.1 Sample size...........................................................................................................................12
3.4.2 Sampling Technique.............................................................................................................13
3.4.2.1 Simple Random Sampling.................................................................................................13
3.4.2.2 Purposive sampling............................................................................................................13
3.5 Data Collection Methods.........................................................................................................13
3.5.1 Questionnaire Survey method...............................................................................................13
3.5.2 Interviews.............................................................................................................................14
3.6 Data Quality Control................................................................................................................14
3.6.1 Validity of instruments.........................................................................................................14
3.6.2 Reliability of instruments.....................................................................................................15
3.7 Procedure of Data collection...................................................................................................16
3.8 Measurement of variables........................................................................................................16
3.9 Data Processing, analysis and presentation.............................................................................16
3.9.1 Quantitative data analysis.....................................................................................................17
3.9.2 Qualitative data analysis.......................................................................................................17
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3.10 Ethical Consideration.............................................................................................................17
CHAPTER FOUR.......................................................................................................................19
PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS.........................19
4.1 Introduction..............................................................................................................................19
4.2 Demographic characteristics of respondents...........................................................................19
4.2.1 Sex of respondents................................................................................................................19
4.2.2 Age of respondents...............................................................................................................19
4.2.3 Education level of respondents.............................................................................................20
4.3 Empirical findings according to study objectives....................................................................22
4.3.1 Cotton growing and household’s income levels in Ikiiki Sub County, Budaka District......22
4.3.2 Cotton growing and households’ education level in Ikiiki Sub County, Budaka District....24
4.3.3 Cotton growing and food security in Ikiiki Sub County, Budaka District...........................27
4.3.1 Correlation between cotton production and Food security...................................................28
CHAPTER FIVE.........................................................................................................................30
SUMMARY, DISCUSSION, CONCLUSION AND RECOMMENDATIONS.....................30
5.1 Introduction..............................................................................................................................30
5.2 Summary of the Findings.........................................................................................................30
5.2.1 Cotton production and income levels of households............................................................30
5.2.2 Cotton production and households’ education level.............................................................30
5.2.3 Cotton production and food security....................................................................................30
5.3 Discussion of the study............................................................................................................31
5.4 Conclusions..............................................................................................................................33
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5.5 Recommendations....................................................................................................................34
5.6 Area for Further Research.......................................................................................................36
REFERENCES............................................................................................................................37
APPENDIX ONE: QUESTIONNAIRE FOR COFFEE FARMERS........................................i
APPENDIX TWO: KEY INFORMANT INTERVIEW FOR TECHNICAL PERSONS.....iv
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LIST OF TABLES
Table 3.1: Sample Size determination...........................................................................................12
Table 4.2: Demographic characteristics........................................................................................17
Table 4.3: The relationship between cotton production and food security...................................19
Table 4.4: Correlation test between cotton production and food security....................................21
Table 4.5: Cotton production and income levels of households...................................................22
Table 4.6: Correlation between cotton production and Households income levels.....................23
Table 4.7: Cotton production and households’ education level...................................................24
Table 4.6: Correlation between Cotton production and households’ education level..................26
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LIST OF ACRONYMS AND ABBREVIATIONS
CDO: Community Development Officer
COREC: The Cotton Research Centre
COSA: Committee on Sustainability Assessment
FAO: Food and Agriculture Organization
FTF: Uganda Feed the Future
NAADS: National Agricultural Advisory Services
NARO: National Research Organization
PSM: Propensity Score Matching
SPSS: Statistical Package for the Social Sciences
UBOS: Uganda Bureau of Statistics
UCO: Uganda Cotton Development Authority
USAID: United States Agency for International Development
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ABSTRACT
The study focused on cotton growing on the financial and economic status of households: a case
study of Ikiiki sub county, Budaka district. The study considered the following objectives; to
determine the impact of cotton growing on household’s income levels in Ikiiki Sub County,
Budaka District, to examine the impact of cotton growing on households’ education level in
Ikiiki Sub County, Budaka District and to examine the impact of cotton growing on food security
in Ikiiki Sub County, Budaka District. The study adopted the cross sectional research design with
both qualitative and quantitative approaches used to collect and analyze data from a sample of 52
respondents. Pearson’s correlation in table 4.5 yielded r=0.069* and Sig value-=0.040 which is
less than 0.05. Hence the research hypothesis was accepted that there is a significant positive
relationship between cotton production and food security. Pearson test was run at 5% significant
level and from the findings it was observed that the coefficient was 0.783, since the P-value of
0.047 was less than 0.05 this implies that there was significant association between cotton
production and household’s income levels. Finally Pearson test was run at 5% significant level
and from the findings it was observed that the coefficient was 0.583, since the P-value of 0.027
was less than 0.05 this implies that there was significant association between cotton production
and household’s education levels. Based on the findings, cotton is given more priority than food
crops in terms of resource allocation. The food crops are cultivated in small scale with little care
so the households’ food security at margin. The study concludes that cotton production has a
significant effect on house hold income levels. Cotton production has provided employment
opportunities to people in the field of cleaning and sorting, picking, hulling and accountants thus
reducing the level of poverty rate among individuals. The study concludes that cotton production
has a significant effect on education level of households. The cotton farmers should also be
encouraged to grow more cotton in large hectares as this may help to solve the problem of food
insecurity thus poverty level reduced. Government should increase on the budget allocation on
agriculture since most of the rural people depend on agriculture as their sole economic activity.
This will improve on the welfare of rural people. Government as well as other stakeholders
working around agriculture sector, should work together to provide trainings and other
agriculture extension services that would provide farmers with adequate knowledge on good
practices and maintenance of cotton farm as well the environment in general.
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CHAPTER ONE
INTRODUCTION
1.0 Introduction
Agriculture is one of the most important economic sectors in Uganda, with significant contributions
to employment, food security, foreign exchange earnings and production of industrial raw
materials. According to the Uganda Bureau of Statistics, in 2015/16, agriculture generated 23.6% of
the country's GDP and employed over 68% of its population. Cotton is one of the traditional cash
crops grown in Uganda, used both as an export good and as a raw material for the domestic textile
and edible oil industries. The Cotton Development Organization (CDO) estimates that the cotton
value chain employs a total of 2.5 million people, directly and indirectly, in the production and
marketing of its primary products, such as textiles and garments, as well as its by-products, such as
soap, edible oil and animal feed (National Textile Policy, 2009).
1.1 Background of the study
This section presents the back ground of the study under four dimensions that’s historical,
theoretical, conceptual and contextual perspectives.
1.1.1 Historical background
Globally, nearly half of world’s population live on less than $2.50 per day, and 10.7% of people
live on less than $1.90 per day 22,000 children die each day due to poverty related issues like
hunger and preventable diseases (World Bank, 2023). It is further reported that over 750 million
people do not have adequate access to clean drinking water, and disease from inadequate drinking
water and sanitation kills 842,000 people each year (World Bank, 2023). Nearly 870 million people
out of the World’s 7.1 billion, (one out of eight) were suffering from chronic undernourishment in
2010-2012.
In Africa, agriculture employs 65% of the labor force and accounts for 32% of gross domestic
product (GDP). Agriculture is essential for Sub-Saharan Africa’s growth and for achieving the
Millennium Development Goal of halving poverty by 2015. A higher and sustained growth requires
attention to five core areas of public action: Facilitating agricultural markets and trade; improving
agricultural productivity; investing in public infrastructure for agricultural growth; Reducing rural
vulnerability and insecurity; and Improving agricultural policy and institutions, (Ahmed &
Ojangole, 2018).
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Cotton was introduced in Uganda by the British Colonial Government in 1903 as the first cash crop
(Mukiibi, 2001). By the mid 1930’s production reached 60,000 metric tons (MT) (Chell, 2013).
One of the most divisive methods used to encourage cotton production during colonial rule was the
enforcement of a poll tax, used to supply the British textile industry with cotton. Baffes (2009)
explains that the poll tax contributed to “forced labor conditions,” because cotton was the only crop
able to generate cash to pay the tax. The poll tax law was repealed prior to World War II. But the
tax remained in practice until independence, and refusal to plant cotton resulted in imprisonment.
Forced promotion of cotton during the colonial period displayed a disregard for farmers’ interests
by, and in favor of, the colonial rulers.
Although this heavy government involvement could protect farmers from sharp price declines, it
ultimately served the interests of ginneries by ensuring that farmers, dependent on government price
protections, produced cotton instead of more lucrative crops. The Lint Marketing Board (LMB), a
government body established with the passage of the Lint Marketing Board Act (1959), also took an
active role in the textile industry. According to UBOS (2021), the LMB held a “monopoly on
domestic and international trade of cotton lint and seed, with ginning and marketing functions
vested in the cooperative unions.” The LMB also took on marketing and regulation responsibilities
as time progressed (Baffes, 2009). Both the LMB and Cotton Zone Ordinance were in place until
1994, although their roles essentially evaporated with the collapse of the cotton industry during the
1970s and 1980s.
1.1.2 Theoretical background
The study was underpinned by “Rostow’s Social Economic Theory” (1960) and “the modernization
theory”. The theory of modernization emerged from the field of program theory and program
evaluation in the mid-1990s as a new way of analyzing the theories motivating programs and
initiatives working for social and political change. Theory of modernization is focused not just on
generating knowledge about whether a program is effective, but also on explaining what methods it
uses to be effective. Theory of modernization as a concept has strong roots in a number of
disciplines, including environmental and organizational psychology, but has also increasingly been
connected to rural transformation. Theory of modernization (ToM) is a specific type of
methodology for planning, participation, and evaluation that is used in the philanthropy, not-for-
profit and government sectors to promote social change. Theory of modernization defines long-term
goals and then maps backward to identify necessary preconditions.
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Theory of modernization can begin at any stage of an initiative, depending on the intended use. A
theory developed at the outset is best at informing the planning of an initiative. The Outcomes
Framework then provides the basis for identifying what type of activity or intervention will lead to
the outcomes identified as preconditions for achieving the long-term goal. Through this approach
the precise link between activities and the achievement of the long-term goals are more fully
understood. This leads to better planning, in that activities are linked to a detailed understanding of
how change actually happens. It also leads to better evaluation, as it is possible to measure progress
towards the achievement of longer-term goals that goes beyond the identification of program
outputs.
Rostow’s social economic theory (1960) looks at the state as the central actor in bringing about
modernization in societies that are backward. Rostow postulated a five stage model of development
that was able to apply to backward regions. This model is vital in the sense that it is concerned with
the idea that a country is able to develop economically by focusing on the resources that are in short
supply in order to expand beyond local industries to reach global market and finance the country’s
further development to bring about economic growth (Todaro and Smith, 2003).
In relation to this study, it is needless to say modernization of agriculture is aimed at increased

production to feed a bigger population and to attain better household income. The national budget
allocation to agriculture must be increased to at least 10% in order to enhance efficient extension
services. Our abundant natural water sources must be exploited to facilitate irrigation. Pesticides
and fertilizers should be available and more affordable to our farmers. The farmers must have
access to credit and even insurance against disasters such as hailstorms. They must be linked to
markets for their produce. Better roads and rural electrification as part of the modernization process
of agriculture is an absolute solution and a path to agricultural modernization. The theory advocated
for a nation to focus and empower its people to rely on an activity where it has potential. This will
help to stimulate economic development.
1.1.3 Conceptual background
Cotton growing: Cotton seeds are planted in spring and the plant grows into green, bushy shrubs
about one metre in height. The plants briefly grow pink and cream coloured flowers that, once
pollinated, drop off and are replaced with fruit, better known as cotton bolls. Cotton is one of the
traditional cash crops grown in Uganda, used both as an export good and as a raw material for the
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domestic textile and edible oil industries. The Cotton Development Organization (CDO) estimates
that the cotton value chain employs a total of 2.5 million people, directly and indirectly, in the
production and marketing of its primary products, such as textiles and garments, as well as its by-
products, such as soap, edible oil and animal feed.
1.1.4 Contextual background
Ikiiki Sub County is found in Budaka district which is bordered by Pallisa District to the
north, Mbale District to the east, Butaleja District to the south, and Kibuku District to the west. The
town of Budaka is approximately 36 kilometres (22 mi), by road, west of Mbale, the largest city in
the sub-region. Agricultural policy in Uganda aims at diversifying agricultural exports to reduce
dependence on cotton, to stimulate domestic agro-industrial development and to create employment
and promote rural development (Cotton Development Organization, 2020). Cotton plays a role in
export crop diversification plans. However, the government accepts that there is rapid population
growth with consequent diminishing opportunities to expand total area under cultivation. This,
therefore, necessitates emphasis on crop yield improvements.
Cotton is grown in Uganda as a rain fed crop, predominately by smallholder farmers with average
cotton field size ranging from 0.45 to 1.0 hectare. Over 80% of Uganda’s cotton is grown in the
districts of Mbale, Pallisa, Soroti, Kumi in North Eastern Uganda; Tororo, Kamuli and Iganga in
South Eastern; Apac, Lira, Nebbi in Northern, and Kasese, Hoima, Bushenyi and Masindi in
Western. In Uganda, the decline or variation in total cotton production and yield per unit area
results from a complex of bio-physical and socio-economic factors. In the last thirty years,
Uganda’s population has more than doubled (Cotton Development Organization, 2020). This has
led to shrinking of plot sizes for all crops. Land fragmentation is on the increase and farmers are
compelled to use available land for most cash and food crops. Population increase has led to
continuous cultivation. With only about 1% of the population using inorganic fertilizers, soil
fertility has declined tremendously.
1.2 Statement of the problem
Uganda registered expansion in cotton growing in 2016/17 rose by 2.8 per cent .The production
increased to 5.1 million bags in 2017/18 due to improved global markets, stability in cotton prices,
improved cotton seedlings and others (Cotton Development Organization, 2020). Ugandans
participate in cotton growing and this provides them a stable income base that positively impacts
their livelihood especially in terms of provision of education, medical care, proper housing and a
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source of income to increase their investments. Despite the efforts put in by the government of
providing extensive services like improved seedling and pesticide, agriculture grants, there is lack
of organized marketing and processing infrastructure to support value addition; and inadequate
cotton specialized extension support system to narrow the knowledge gap about recommended
agronomic practices among farmers (UBOS, 202). It is understood that the added costs of
agricultural inputs (like fertilizer), cooperative fees and middlemen further cut into what measly
profit farmers can pocket from the sale of their cotton beans leaving them in a poverty state (UBOS,
202). It is against this background that the study will examine the impact of cotton growing on the
financial and economic status of households: a case study of Ikiiki sub county, Budaka district.
1.3 Purpose of the study

To examine the impact of cotton growing on the financial and economic status of households: a
case study of Ikiiki sub county, Budaka district.
1.3.1 Specific objectives
i. To determine the impact of cotton growing on households income levels in Ikiiki Sub
County, Budaka District
ii. To examine the impact of cotton growing on households’ education level in Ikiiki Sub
County, Budaka District
iii. To examine the impact of cotton growing on food security in Ikiiki Sub County, Budaka
District
1.4 Research Questions
i. What is the impact of cotton growing on income levels of households in Ikiiki Sub County,
Budaka District?
ii. What is the impact of cotton growing on households’ education level in Ikiiki Sub County,
Budaka District?
iii. What is the impact of cotton growing on food security in Ikiiki Sub County, Budaka
District?
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1.5 Hypothesis of the study
H1: Cotton growing significantly affects household’s income levels in Ikiiki Sub County, Budaka
District
H2: Cotton growing significantly affects households’ education level in Ikiiki Sub County, Budaka
District
H3: Cotton growing significantly affects food security in Ikiiki Sub County, Budaka District
1.6 Significance of the study
To the academicians and future researchers, this study may furnish them with relevant information
regarding the effect of cotton growing on the livelihood of Cotton farmers as it will contribute to
the existing literature.
The study findings may help in formulation of appropriate policy tools by the policy makers that
may help in promoting cotton growing among the households at the micro level and the whole
economy at the macro level.
The Uganda investment authority used the study findings in estimating the budget required to
subsidize growing of cotton. Similarly, the Ministry of Finance, Planning and Economic
Development may base on these findings to design appropriate programmers’ aimed at uplifting the
standard of living of rural people specifically the cotton growers in the whole country since the
study may reveal the challenges they go through.
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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
The importance of this literature review is to put each prior research to understanding the research
problem and identify any gaps within the literature. This chapter presents the literature review
under the subsequent subheadings; theoretical review, the study themes respectively, and after that,
the summary of the literature review. A review of the literature was based on the study themes
while following the research objectives, namely; to determine the impact of cotton growing on
households income levels in Ikiiki Sub County, Budaka District, to examine the impact of cotton
growing on households’ education level in Ikiiki Sub County, Budaka District and to examine the
impact of cotton growing on food security in Ikiiki Sub County, Budaka District. Contributions,
weaknesses and existing gaps was identified in the literature review.
2.2 Cotton growing on households income levels
Wessels (2015) in his study of assessing of cotton growing on households’ income, found out that
income of smallholder Cotton farmers amongst others the methodologies of COSA were used.
From these sources the standard comprehensive income model will use, which was adapted to farms
with a focus on the cash available to the farmer. In this study the financial income is defined as
accounting income and does not include opportunity costs, which would be the case if income
would be defined in terms of economic profit. This methodology was chosen because economic
profit is less relevant for farmers themselves than the actual profit. In addition, the operating profit
is defined in cash terms and all non-cash items are categorized under changes in invested capital
Nibret an Ayalew (2020). This allows a clear identification of the cash available to farmers, which
is most relevant to farmers. Moreover, a cash flow profit approach is less complex, time consuming
and leaves less room for manipulation of numbers. This approach is in accordance with the
approach of the European Union to farmers’ income.
The liberalization of the Cotton sector created a gap in the monitoring of the quality of Cotton for
export. Therefore the Cotton Development Organization (CDA) a statutory body was established in
1991 to play the functions of regulation, coordination, quality assurance, and licensing and export
marketing - as well as promoting increased investment in the Cotton sub-sector. CDA was therefore
entrusted with the mandate to regulate and develop the subsector, under the auspices of MAAIF.
Cotton like other crop commodities receives extension advisory services from the National
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Agricultural Advisory Services (NAADS) and the local government extension services. The Cotton
Research Centre (COREC) under the National Research Organization (NARO) is in-charge of
Cotton research projects (CDA report 2018).
According to Nguyen and Bui Huy Khoi (2023) studied poverty trends from 1992 to 2000 in
Uganda, and reported that over the period; progress in poverty reduction in the Northern part of the
country was modest, compared to other regions. Reduction in poverty was most remarkable in the
Central and to a less extent, the Western regions, largely because of difference in Cotton growing
between regions. However the limitation in Appleton’s work of tracking changes in household
poverty comes from his direct comparison (using descriptive statistical methods) between Cotton
and non-Cotton growers without an appropriate counterfactual (control) group. In this study, an
impact evaluation of Cotton growing on poverty is undertaken by use of the propensity score
matching (PSM) method where a counterfactual is created and compared to a treatment group. He
further estimated the distributional impact of Cotton growing, an analysis which is lacking in the
Ugandan literature.
USAID (2010) reports that Cotton plays a great role in terms of revenue generation through exports
in Uganda. In relation to supporting livelihood and/or contributing to rural poverty reduction,
USAID further elaborates that; farmers sell their Cotton as soon as it is harvested in order to spend
on necessities such as - Medicare and school fees; and if better processing of Cotton is done,
Uganda has the potential of doubling its income for instance when farmers move away from home
processed Cotton and increase on processing at wet mills, for better and consistent quality. Nibret
and Ayalew, (2020) demonstrate that, poverty levels can be reduced where an individual person is
enabled to produce over 700 kilograms of clean Cotton per year. This study provides a detailed
investigation on the implications of Cotton expansion in mid-Northern Uganda to the national
economy in general, and the direct welfare impact on farming households in particular. The study
also unveils detailed information on implications of a continued investment in the Cotton growing
program in mid-North sub-region in terms of 12 export revenues to Uganda.
2.3 Cotton growing on households’ education level
The impact of Cotton growing goes beyond the expansion of business activity and consumption
levels. Indirect effects such as the empowerment of farmers and improvements in the health status
and education levels of children are often considered potential impacts of commercial Cotton
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farming. Education and training are crucial components in the success of Cotton farming, (Sharma
et al., 2016). Agriculture education curricula can greatly improve farming projects by increasing
participants’ knowledge of farm management and budgeting. Because education enables
individuals to develop farming skills, a joint venture of farming and education is more effective
than a farming program in isolation. On the other hand, commercial Cotton farming is helping to
increase entitlement of households on education through increasing capability to spend more on
education of children and most especially girls’ education, (Lorentzen, 2009).
According to Vermeulen, (2011), financial instability creates barriers to education, preventing

children from attending school; these barriers include the costs of transportation, schoolbooks, and
uniforms, as well as lost hours of child labor that would contribute to family income. Commercial
Cotton farming initiatives therefore indirectly support education by providing families with income
stability, enabling them to afford schooling. Financially secure households are better equipped to
keep children in school than are their financially unstable counterparts. Therefore increased
economic income (a potential result of commercial Cotton farming) results in higher expenditures
on schooling hence improving the ability of farmers and their dependents to compete favorably in
different aspects.
Research from Uganda suggests that participation in commercial Cotton farming programs
correlates with increased investment in children’s education. However, there is also evidence
suggesting that commercial Cotton farming projects may actually exacerbate educational inequities
in such a way that while one household may experience an increased demand for schooling, another
family whose farm size has increased due to newly-acquired loans for Cotton planting may have a
greater need for child labor, (National Tea and Cotton Development Board (NTCDB). (2020).
Cotton farming increases households’ incomes which are in turn invested in their education and that
of their children. Education serves as an important instrument for gender-based development and
poverty reduction. It increases overall social welfare by improving life expectancy, lowering crime
rates, and promoting social cohesion. Investment in education is critical for breaking the cycle of
poverty and equalizing wealth distribution, which in turn reinforces social stability. Education
provides awareness, confidence and knowledge to the farmers that help them to decide about their
lives and the lives of their dependents. With increased education, households have greater access to
9
resources, enhanced opportunity for employment, and improved abilities to make informed
decisions about health, marriage, and parenting (World Bank 2023).
2.4 Cotton growing on food security
According to the World Food Summit organized in Rome 1996, Food security has been defined as
access by all people, at all times, to adequate food for an active, healthy life (Nguyen & Bui Huy
Khoi (2023). According to Wairegi et al (2018), Food security is defined as when all people, at all
times, have physical, social and economic access to sufficient, safe and nutritious food that meets
their dietary needs and food preferences for an active and healthy life. This widely accepted
definition points out the categorical dimensions of food security as food availability, food access,
utilization and stability.
In addition to research that examines food security in Cotton communities, some studies have
focused on strategies to improve food security in regions where Cotton is grown (although not
necessarily with Cotton farmers). Examples of this are discussions of household seasonal food
insecurity in Ethiopia (Khanal et al., 2023), crop/livestock modeling in the Ethiopian Highlands
(Amede, 2008) and fruit cultivation in Kerala, India (Chandrashekara, 2009), among others.
Researchers have also addressed the causes and consequences of poverty in Cotton communities
without an explicit focus on food security including more general discussions around strategies to
improve farm income in Mesoamerica (Kilian et al, 2006); increasing agricultural sustainability in
developing countries (Pretty et al, 2003); Cotton and household poverty in Uganda (Seaman et al,
2004); and implications of Fair Trade (Khanal et al., 2023), among many others. These studies
provide important context, but there is still a need to specifically consider the complexities and
unique circumstances of Cotton producers who are food insecure. Without this, proposed
interventions risk missing the mark.
Fisher and Lewin, (2014) state that cooperatives play a critical role in both food security and value
addition to Cotton. Four perspectives emerge from the findings of various articles Vuthy et al
2016): first, by means of pooling supply purchases and sales, Cotton cooperatives can help to
decrease price risks and enhance bargaining power and market access of members. Members may
earn a better income that guarantees more and diverse food purchases. Second, cooperatives
enhance the dissemination of improved technologies such as inputs and improved agricultural
practices which could maximize potential food production. Third, cooperatives can serve as
information and awareness creation platforms, which could promote knowledge on livelihood
10
diversification strategies. Finally, cooperatives may ease access to a variety of funds held by
stakeholders outside the direct Cotton value chain, such as government subsidies, donor funds, and
research and development. At the same time, food security and other welfare impacts of
cooperatives depend on their ability to deliver good quality services and to put a comprehensive and
well-organized governance systems in place that enable them to deal with various internal and
external challenges in their operation.
The study indicates that commercialization has a great impact on the level of food security
(Sapkota, 2020). As an example, argued that “commercialization has direct effect on household's
earnings degree which likely results in a rise in food and non-meals expenditure”. This hypothesis
is straightforwardly associated with the famous Engel’s law which suggests the inverse relationship
between the proportion of food intake expenditure and overall earnings. Based on this law, family
are likely to spend more on food things as their earnings level grows up, however with a
diminishing budget share allocated to food. In addition, it is argued that better admittance for meals
relies upon on earnings increase; especially to utmost African smallholders where agriculture is the
main source of earnings. This implies that improving level of market participation can have a huge
impact on the status of farmers’ food security. Moreover, in a study it is noted that “smallholders
with high degree of market engagements have higher ability of enjoying better requirements of
welfare”.
11
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction.
This chapter comprises of research design, target population, sampling size and sampling
techniques, data source, data collection tools, data validity and reliability, data processing, analysis
and presentation, the limitation of the study and the ethical consideration.
3.2 Research Design
A research design is the overall plan for connecting the conceptual research problems to the
pertinent (and achievable) empirical research (Sileyew, 2020). The study used the cross-sectional
survey design. While using the cross-sectional design, the researcher applied both qualitative and
quantitative approaches to collect detailed facts (Bhandari, 2023). Both quantitative and qualitative
approaches were utilized in this study to enable triangulation (Žukauskas et al., 2018). This study
applied the qualitative approach in obtaining in depth information from the respondents concerning
their perceptions and opinions on the research variables.
3.3 Target Population
Target population refers to a universal set of all members of real or hypothetical set of people,
events or subjects from which an investigator wishes to generate his result (Mugenda & Mugenda,
2003). The study population included the households, local leaders and Community Development
Officer who are mainly involved in cotton growing in the district.
3.4 Sample size and Sampling Techniques
3.4.1 Sample size
The sample size was determined using the Krejcie and Morgan Table of 1970. Table 3.1 shows
sample size selection and the sampling frame.
Table 3.1: Sample Size determination
Category of Respondents Target population Sample Size Technique
Cotton farmers 100 80 Simple random sampling
Local leaders 10 10 Purposive sampling
Community development 05 05 Purposive sampling
officers
Total 115 95
Source: Primary data (2023)
12
3.4.2 Sampling Technique
Sampling is a technique (procedure or device) employed by a researcher to systematically select a
relatively smaller number of representative items or individuals (a subset) from a pre-defined
population to serve as subjects (data source) for observation or experimentation as per objectives of
his or her study (Thomas, 2020). The study used simple random sampling and purposive sampling.
3.4.2.1 Simple Random Sampling
Simple random sampling is the sampling design where each member of the population has an equal
chance of being selected as subject (Etikan, 2017). One of the best things about simple random
sampling is the ease of assembling the sample. It is also considered as a fair way of selecting a
sample from a given population since every member is given equal opportunities of being selected
(Majid, 2018). The researcher used this method because it eliminates bias as members of the sample
are selected randomly hence facilitates generalization of the study findings. This technique was
used to sample out cotton farmers.
3.4.2.2 Purposive sampling
Purposive sampling be used and this is the sampling design based on the judgment of the researcher
as to who provided the best information to succeed for the objectives study. The study used on
those people with the same opinion to have the required information and willing of sharing it (Rahi,
2017). One of the advantages of purposive sampling is its convenience and cost effectiveness
(Buchanan, 2017). The researcher used purposive sampling because it saves time as one only
focuses on respondents that are believed to have the information required about the study variables.
This technique was used to sample community development officers, and Local leaders.
3.5 Data Collection Methods
3.5.1 Questionnaire Survey method
Questionnaires are a list of questions either open-ended or close-ended for which the respondents
give answers (Muhammad & Kabir, 2018). The study used a self-administered structured
questionnaire as the question for collecting data, as a means of creating measures for the study; the
questionnaires were structured towards an investigation of the research topic as well as the
objectives. The first part consisted of demographic profile of the respondents which was designed
in a close ended format. This tool was used because it is quicker compared to other data collection
methods and it minimized costs. This method was used to select cotton farmers.
13
3.5.2 Interviews
According to Denscombe (2018), Interviews are a method of data collection that involves two or
more people exchanging information, through a series of questions and answers. The questions are
designed by a researcher, to elicit information from interview participants on a specific topic or set
of topics (Virginia Polytechnic Institute and State University, 2017). The interview method of
collecting data involves presentation of oral-verbal qualitative and replies in terms of oral-verbal
responses. Interviews were used to supplement information provided from questionnaires. The
quality of the information obtained through these methods is largely dependent on the interviewer’s
skills and personality. This method was used to interview community development officers and
Local leaders.
3.6 Data Quality Control
The researcher pre-tested the data collection instruments in order to approve their reliability and
validity as per the acceptable standards for this study.
3.6.1 Validity of instruments
According to Chetwynd (2023) validity is the accuracy or extent of which the scores from a
measure represent the variable they are intended to measure. Content validity is the degree to which
a test or assessment instrument evaluates all aspects of the topic, construct, or behavior that it is
designed to measure. This process compared the test against its goals and the theoretical properties
of the construct. The researcher will systematically determine whether each item contributes, and
that no aspect is overlooked. Face validity is a simple method of assessing whether a test measures
what the researchers intended. Face validity is the most basic test of validity that researchers may
apply before they use more rigorous and robust tests of validity (Bhandari, 2023). To assess face
validity, the researcher asked other people to review the measurement technique and items and
gauge their suitability for measuring the study variable of interest. According to Chetwynd (2023)
any content validity index (CVI) that is greater than 0.7 means that the instrument is valid for
research purposes. The researcher employed the following formula for validity test.
CVI = Number of items regarded relevant
Total number of items
14
Table 3.2: Results of the Content Validity of Instruments
Variables Content Validity Number of valid Total Number of

Index items items
Income levels 0.8 6 05
Households’ education 0.871 6 05
level
Food security 0.85 7 05
Table 3.3 above revealed validity results for the questionnaire as an instrument for conditional
transfers was 0.800, for local revenue was 0.871, for unconditional transfers was 0.850 and for the
dependent variable (educational service delivery) was 0.745.
3.6.2 Reliability of instruments

Reliability refers to the likelihood of getting the same results over and over again if a measure was
repeated in the same circumstances (Chetwynd, 2023). Reliability ensures that measures are free
from error so that they gave same results when repeated measurements were made under constant
conditions. The instruments were pre-tested by selection of a few staff members who reviewed and
improve it, to ensure reliability before it was really applied in the study (Yusoff, 2023). The
researcher personally administered the questionnaires to the participants and was available for
consultations and explanations while the participants fill in the data. The researcher will check the
questionnaires to ensure that all the questions are answered appropriately. The pre-test contributed
to the credibility, dependability and trustworthiness of the questionnaires. The findings from the test
were coded in the SPSS, a computer package to test for reliability at the Cronbach’s alpha
coefficient so as to assess the internal consistency above 0.70 (Amirrudin, 2021).
Table 3.3: Results of the Cronbach Alpha reliability test for the questionnaire
Variables Content Validity Index Number of items
Income levels 0.799 05
Households’ education level 0.806 05
Food security 0.867 05
15
Table 3.4 revealed validity results for the questionnaire as an instrument for conditional transfers
was 0.799, for local revenue was 0.806, for unconditional transfers was 0.867 and for the dependent
variable (educational service delivery) was 0.799.
3.7 Procedure of Data collection

The researcher obtained an introductory letter from the Kyambogo University introducing her to the
study area to conduct the study. Before collecting data from the respondents, they was assured of
the confidentiality and guaranteed that data collected was only for academic purposes.
Appointments were made with the selected respondents to allow them select their own convenient
time of participating in the study. While administering the questionnaires and interviews, the
researcher noted down the major points. Thereafter, data was coded, analysed, and the report
written. For the questionnaires, these were distributed to the respondents to enable the participant in
the study fill at their convenient time. Follow ups to respondents was made after the agreed time
period to find out when the questionnaires can be returned by the respondents.
3.8 Measurement of variables
According to IvyPanda (2020), measurement variable is an unknown attribute that measures a
particular entity and can take one or more values. A nominal variable is a type of variable that is
used to name, label or categorize particular attributes that are being measured. A nominal variable is
one of the 2 types of categorical variables and is the simplest among all the measurement variables.
Some examples of nominal variables include gender, Name, phone, among others (Bhandari, 2023).
An ordinal variable is a type of measurement variable that takes values with an order or rank. They
are built upon nominal scales by assigning numbers to objects to reflect a rank or ordering on an
attribute. The five point Likert type scale (1- strongly disagree, 2-disagree, 3-not sure, 4- agree and
5-Strongly agree) was used to measure the independent variable and the dependent variable. The
choice of this scale of measurement is that each point on the scale carries a numerical score which
is used to measure the respondent’s attitude and it is the most frequently used summated scale in the
study of social attitude. The nominal and ordinal measurement levels were utilized to compute
study variables with undisputable order. The Likert scale was used in data collection to measure
sentiments and respondents’ perception as per the formulated variables. Ordinal and Nominal types
of measurements was used to measure variables on the scale of 1-5, represented by strongly
disagree, disagree, not sure, agree and strongly agree.
16
3.9 Data Processing, analysis and presentation
According to Mugenda & Mugenda (2008), data analysis is the process of bringing order, structure
and meaning to the mass of information collected.
3.9.1 Quantitative data analysis
Data was processed by editing, coding, entering, and then presented in comprehensive tables
showing the responses of each category of variables. Quantitative data analysis involved use of both
descriptive and inferential statistics in the Statistical Package for Social Scientists (SPSS).
Descriptive statistics will entail determination of measures of central tendency such as mean,
standard deviation; frequency distributions; and percentages. Inferential statistics included
correlation analysis using a correlation coefficient in order to answer the research questions (Marsh
et al, 2020).
3.9.2 Qualitative data analysis
Qualitative data analysis involved both thematic and content analysis, and, was based on how the
findings will relate to the research questions. Content analysis was used to edit qualitative data and
reorganize it into meaningful shorter sentences. Thematic analysis was used to organize data into
themes and codes were identified (Marsh et al, 2020). After data collection, information of same
category was assembled together and their similarity with the quantitative data created, after which
a report was written.
3.10 Ethical Consideration
According to Fleming (2018), ethical issues refer to the integrity in the production of knowledge, as
well as the dignity welfare of the researched.
Confidentiality and privacy: It refers to the obligation of an individual or organization to safeguard

entrusted information. The research participant’s privacy was assured by the researcher, who kept
all the information safely locked up during the research process.
To ensure privacy, the respondents were informed that indeed their names were not required, that
they have the right to leave questions unanswered for which they do not wish to offer the requisite
information.
Informed consent: The research sought informed consent before conducting the data collection
process. The requirements of informed consent for research are that the respondents or subject must
17
be competent to understand and decide, receives a full disclosure, comprehends the disclosure, acts
voluntarily, and consents to the proposed action which this study will adhere to.
Plagiarism: is presenting someone else's work or ideas as your own, with or without their consent
by incorporating it into your work without full acknowledgement. All published and unpublished
material, whether in manuscript, printed or electronic form, is covered under this definition. This
was minimized by paraphrasing, citing, quoting, citing quotes, citing own material, and referencing.
Voluntary participation: The research participants were informed that their participation in the study
was not to be rewarded in anyway; it was entirely on voluntary basis. All the research participants
were informed of their rights to refuse to be interviewed, or to withdraw at any point for any reason,
without any prejudice or explanation.
18
CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS
4.1 Introduction
This chapter presents; analysis of data and interpretation of results obtained from respondents who
completed copies of the questionnaire and the key informants who were interviewed and the
different documents reviewed for secondary data. The chapter is presented in different sections
which bring out study responses on cotton growing on the financial and economic status of
households: a case study of Ikiiki sub county, Budaka district. Statistical Package for Social
Sciences (SPSS version 25) was used as tools for data analysis and management. In accordance
with the research objectives established and specified in the first chapter of this research, the results
produced are presented in a comprehensive manner.
4.2 Demographic characteristics of respondents
An orderly presentation and interpretation of the demographic profile of the report sample is very
important because it enables the researcher to obtain the overall mental and physical picture of the
sample (McCombes, 2020). Thus, the demographic characteristics (education level, sex, among
others) for the 54 respondents were examined, presented and used later in the report to make
systematic conclusions.
4.2.1 Sex of respondents
Category Frequency Percentage

Male 34 62
Female 20 38
Total 54 100
Source: primary data (2023)
From the table 4.2 above, the findings showed that 62% of the respondents were males, while 38%
of the respondents were females. According to School (2006), agricultural activity significantly
varies according to gender, with men more likely than women to be engaged in these activities.
4.2.2 Age of respondents
The study looked at age distribution of the respondents by using frequency distribution. The results
obtained on the item are presented in Figure 4.1
19
Figure 4.1: Age of respondents
>20
4%
20-35
20%
Above 50
41%
35-50
35%

The study showed that 41% were aged above 50 years, followed by 35% were in aged between 35-
50 years, 20% of the respondents were aged between 20-35 years and finally 04% were in aged
bracket of 20 years. This implies that the predominance of elderly farmer may be as a result of
cotton farms being long term investments that may require keeping individual capital and delays of
profits as a future investment plan.
4.2.3 Education level of respondents
Findings on the distribution of participants by education level are presented in Figure 4.2.
Figure 4.2: Education level of respondents
20
Chart Title
45
40
35
30
25 Series1
20
15
10
5
0
Non formal Primary Secondary Tertiary

The study revealed that 41% of the respondents had attained secondary level as the highest level of
education, followed by 31% had attained primary level, 18% had attained certificate, whereas 16%
had attained tertiary education, and 09% had attained non formal education as the highest level of
education. This implies that most of the respondents involved in cotton production had attained at
least as their highest level of education thus they were in position to provide reliable information.
Thus, education level has influence on cotton production since it is something yet to be established.
4.2.4 Marital status
The study looked at marital status of the respondents by using frequency distribution. The results
obtained on the item are presented in Figure 4.3
Figure 4.3: Marital status of respondents
21
70
60
50
40
30
20
10
0
Single Married Divorced Widowed
Source, Primary Data, (2023)

From the findings, the study showed that 61% of the respondents were married, followed by 22%
were single, 09% of the respondents had divorced and finally 07% minority of the respondents were
widowed. This implies that married respondents participated more in the researcher’s study and
these had other responsibilities apart from involving in cotton production and among the
responsibilities include taking care of their families.
4.2.5 Period spent in cotton production

The study looked at period spent in cotton production of the respondents by using frequency
distribution.
The results obtained on the item are presented in table 4.4
Table 4.4: Period spent in cotton production
Category Frequency Percentage
Less than 1 year 14 26
1-5 years 16 29
Above 6 years 24 44
Total 54 100
22
Source, Primary Data, (2023)
The study revealed that 44% of the respondents had been in cotton production a period above 6
years, followed by 29% had spent a period of 1-5 years, while 26% of the respondents had spent
less than a year in cotton production. This is implying that majority of farmers have been in cotton
production for a long time which has reduced on the poverty levels.
4.3 Empirical findings according to study objectives
4.3.1 Cotton growing and household’s income levels in Ikiiki Sub County, Budaka District
The items on cotton production were structured basing on the objective of the study. Items were
measured on a five-point Likert scale where code 1 = Strongly Disagree, 2 = Disagree, 3 = Not
sure, 4 = Agree and 5 = Strongly Agree. (5) Items statistically tabulated and presented in the table
below consist of frequencies and percentages according to the responses collected.
Table 4.5: Findings on income levels of households
Items SD D N A SA Mean Std. Dev

Cotton production increases 04% 09% 00% 13% 74% 4.26 5.64
households’ access to income (02) (05) (00) (07) (40)
which improves their
livelihood
Cotton farming improves the 22% 11% 07% 37% 22% 3.18 1.43
quality of life of rural families (12) (6) (04) (20) (12)
farmer’s chances of access to (08) (07) (03) (30) (06)
agriculture credit
Cotton production creates 17% 09% 13% 35% 26% 3.89 4.27
employment creation which (9) (5) (07) (19) (14)
helps people to raise income
households’ access to income (08) (23) (04) (07) (12)
which reduces poverty levels
Source: Primary Data, (2023)
23
With respect to whether cotton production increases households’ access to income which improves
their livelihood, 04% strongly disagreed, 09% disagreed, 00% not sure, 13% agreed and 74%
strongly agreed. The mean = 4.26 which corresponded to agreed indicated that majority of the
respondents agreed that cotton production increases households’ access to income which improves
their livelihood and 1.43 standard deviation indicated those respondents who deviated from the
response. This implies that cotton production helps households to meet their needs.
Responses to the question as to whether cotton farming improves the quality of life of rural
families, 22% strongly disagreed, 11% disagreed, 07% were not sure, 37% agreed and 22% strongly
agreed. The mean = 3.18 indicated that cotton farming improves the quality of life of rural families.
The standard deviation was 1.43 showing those who deviated from the responses. This implies that
cotton production has domestically reduced poverty levels among households.
As to whether cotton production increases farmer’s chances of access to agriculture credit, the
respondent’s responses indicated that 15% strongly disagreed, 13% disagreed, 06% were not sure,
56% agreed, 11% strongly agreed. The mean = 3.89 indicated that the majority of the respondents
agreed that they receive Shopping Vouchers during the festive season.
Responses to the question as to whether cotton production creates employment creation which helps
people to raise income, 17% strongly disagreed, 09% disagreed, 13% not sure, 35% agreed and
26% strongly agreed. The mean = 3.89 indicated that the majority of the respondents agreed that
cotton production creates employment creation which helps people to raise income.
With respect to whether cotton production increases households’ access to income which reduces
poverty levels 15% strongly disagreed, 43% disagreed 07% were not sure, 13% agreed and 22%
strongly agreed with the statement. The mean = 2.17 indicated that the majority of the respondents
disagreed with the statement.
Table 4.6: Correlation between cotton production and Households income levels
* Correlation is significant at the 0.05 level (2-tailed). Source, Primary data, (2023)
Cotton Households Income
Production Levels
Cotton Production Pearson Correlation 1 .783(*)
Sig. (2-tailed) .047
N 54 54
Households income Pearson Correlation 24
.783(*) 1
levels Sig. (2-tailed) .047
N 54 54
Pearson test was run at 5% significant level and from the findings it was observed that the
coefficient was 0.783, since the P-value of 0.047 was less than 0.05 this implies that there was
significant association between cotton production and household’s income levels.
4.3.2 Cotton growing and households’ education level in Ikiiki Sub County, Budaka District
The items on Cotton production were structured basing on the objective of the study. Items were
Table 4.7: Findings on households’ education level

Cotton production helps to 07% 11% 00% 33% 48% 3.48 1.76
provide families with income (04) (06) (00) (18) (26)
stability thus enabling them to
afford schooling
Cotton production help has helped 40% 31% 9% 5% 12% 3.38 1.42
families provide for the better (22) (17) (05) (03) (07)
future of their children
Cotton plantation helps to reduce 11% 7% 5% 44% 31% 1.13 2.03
financial instability that create (06) (04) (03) (24) (17)
barriers to education, preventing
children from attending school;
these barriers include the costs of
transportation, schoolbooks, and
uniforms, as well as lost hours of
child labour that would contribute
to family income.
Cotton plantation helps to 07% 5% 00% 38% 46% 2.22 1.23
increase households entitlement to (04) (03) (00) (21) (25)
education through increasing
capacity to spend more on
25
education
Cotton farming increases 11% 8% 18% 31% 38% 2.14 1.45
households’ incomes which are in (6) (00) (10) (17) (21)
turn invested in their education
and that of their children
With respect to whether cotton production helps to provide families with income stability thus
enabling them to afford schooling, 48% strongly agreed, 33% agreed, 00% not sure, 11% disagreed
and 07% strongly disagreed. The mean=3.48 indicated that majority of the respondents agreed that
cotton production helps to provide families with income stability thus enabling them to afford
schooling. The standard deviation was 1.76. This implies that some cotton production helps to
provide families with income stability thus enabling them to afford schooling.
Responses to the statement as whether cotton production help has helped families provide for the
better future of their children, 40.7% strongly disagreed, 31.4% disagreed, 9.2% were not sure,
5.5% agreed and 12.9% strongly agreed. The mean = 2.58 indicated that the majority of the
respondents disagreed with statement.
Responses to the statement as to whether Cotton plantation helps to reduce financial instability that
create barriers to education, preventing children from attending school; these barriers include the
costs of transportation, schoolbooks, and uniforms, as well as lost hours of child labor that would
contribute to family income, 31.4% strongly agreed, 44.4% agreed, 5.5% were not sure, 07%
disagreed and 11% strongly disagreed. The mean = 3.82 indicated that the majority of the
respondents agreed with the statement. This implies that Cotton plantation helps to reduce financial
instability that create barriers to education, preventing children from attending school; these barriers
include the costs of transportation, schoolbooks, and uniforms, as well as lost hours of child labor
that would contribute to family income.
As to whether cotton plantation helps to increase households entitlement to education through

increasing capacity to spend more on education, 46.2% strongly agreed 38.8% agreed, 00% not
sure, 5.5% disagreed, 07% disagreed. The mean = 3.52 indicated that the majority of the
26
respondents disagreed with the statement. The standard deviation was 1.23 showing deviating
responses from the statement.
With respect to whether cotton farming increases households’ incomes which are in turn invested in
their education and that of their children, 38.8% strongly agreed, 31.8% agreed, 18.5% not sure,
8.2% disagreed 11% strongly disagreed. The mean = 2.14 which corresponded that majority of the
respondents agreed that Cotton farming increases households’ incomes which are in turn invested
in their education and that of their children. The standard deviation was 1.23 showing deviating
responses from the statement.
Table 4.8: Correlation between Cotton production and households’ education level
* Correlation is significant at the 0.05 level (2-tailed). Source, Primary data, (2023)
Cotton Households Income
Production Levels
Cotton Production Pearson Correlation 1 .583(*)
Sig. (2-tailed) .027
N 54 54
Households Pearson Correlation .583(*) 1
education levels Sig. (2-tailed) .027
N 54 54
significant association between cotton production and household’s education levels.
4.3.3 Cotton growing and food security in Ikiiki Sub County, Budaka District
The items on cotton production were structured basing on the objective of the study. Items were
Table 4.9: Findings on food security
Cotton farming leaves 52% 09% 20% 07% 09% 2.24 1.24
farmers with no alternative (28) (05) (11) (04) (05)
27
land for cultivation of food
crops
There exhaustion of the soil 11% 09% 15% 39% 26% 3.63 1.17
fertility from continuous (6) (5) (8) (21) (14) 1
Cotton production which
affects cultivation of food
crops
Continuous Cotton 15% 22% 11% 19% 52% 2.15 .854
production at the expense of (08) (12) (06) (10) (28)
subsistence farming creates
more demand and less supply
of food crops
Limited time to cultivate food 26% 21 00% 07% 46% 3.80 1.65
crops since the farmers are (14) (11) (00) (04) (25)
fully involved in Cotton
growing
Income from cotton is 67% 15% 06% 13% 07% 1.79 1.20
inadequate for buying food (35) (08) (03) (07) (04)
As to whether cotton farming leaves farmers with no alternative land for cultivation of food crops,
respondents’ responses indicated that cumulatively, 52% strongly disagreed, 09% disagreed, 11%
were not sure 07% agreed and 09% strongly agreed. The mean = 2.24 indicated that majority of the
respondents disagreed that cotton farming leaves farmers with no alternative land for cultivation of
food crops. The standard deviation was 1.24 indicating that those respondents had deviating
responses.
Relatedly, respondents had this to say on whether there is exhaustion of the soil fertility from
continuous cotton production which a, 11% strongly disagreed, 09% disagreed, 08% not sure, 39%
agreed and 26% strongly agreed. The mean = 3.63 indicated that exhaustion of the soil fertility from
continuous cotton production affect cultivation of food crops. The standard deviation was 1.17
indicating those who had deviating responses.
28
With respect to whether continuous cotton production at the expense of subsistence farming creates
more demand and less supply of food crops, 52% strongly agreed, 19% agreed, 11% not sure, 22%
disagreed, and 15% strongly disagreed. The mean = 4.15 which indicates that majority of the
respondents strongly agreed with the statement that continuous cotton production at the expense of
subsistence farming creates more demand and less supply of food crops.
As to whether there is limited time to cultivate food crops since the farmers are fully involved in
Cotton growing, 26% strongly disagreed, 21% disagreed, 00% not sure, 07% agreed and 46%
strongly agreed. The mean = 3.80 meant that respondents agreed that there is limited time to
cultivate food crops since the farmers are fully involved in cotton growing. The standard deviation
was 1.65 explaining deviating responses.
With respect to whether income from cotton is inadequate for buying food, 67% strongly disagreed,
15% disagreed, 06% were not sure, 13% agreed, 07% strongly agreed. The mean = 1.7 which
corresponded to strongly disagreed indicated that majority of the respondents disagreed with the
statement income from cotton is inadequate for buying food. This implies that majority of the
households had access to food thus cotton production provides income that helps to purchase other
food items.
4.3.1 Correlation between cotton production and Food security
In order to establish the nature of the relationship between cotton productions and food security, the
study runs the correlation test as shown below;
Table 4.10: Correlation test between cotton production and food security
Cotton production Food security
Cotton production Correlation 1.000 .069

Coefficient
Sig. (2-tailed) . .040
N 54 54
Food security Correlation .069 1.000
Coefficient
Sig. (2-tailed) .040 .
N 54 54
*. Correlation is significant at the 0.05 level (2-tailed).
29
Pearson’s correlation in table 4.5 yielded r=0.069* and Sig value-=0.040 which is less than 0.05.
Hence the research hypothesis was accepted that there is a significant positive relationship between
cotton production and food security. This means that respondents believed that food security is a
factor influenced by the level of cotton production. It can be concluded that there was a significant
positive correlation between cotton production and food security at 69% positive correlation.
CHAPTER FIVE
SUMMARY, DISCUSSION, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
The chapter presents summary of the findings, discussion, conclusion and recommendations. The
chapter is presented in different sections which bring out study responses on the cotton growing on
the financial and economic status of households: a case study of Ikiiki sub county, Budaka district..
30
5.2 Summary of the Findings
From the findings, the study showed that 60% of the respondents were males, while 40% of the
respondents were females implying that males participated more in the study. And most of the
respondents were aged above 46 years followed by those in between the age of 31-45 years
implying that elderly involved in cotton production. The findings revealed that 38% of the
respondents had attained secondary level as the highest level of education. Thus, they were in
position to provide reliable information. The study showed that married respondents participated
more in the researcher’s study represented by 58%. The study revealed that 40% of the respondents
had been in cotton production for over a period of above 6 years with cotton farms at coverage of 2-
4 acres of land growing mostly Arabica cotton represented by 88%. From the findings, the study
showed that most of the respondents produce above 100kgs per season.
5.2.1 Cotton production and income levels of households
significant association between cotton production and household’s income levels.
5.2.2 Cotton production and households’ education level

significant association between cotton production and household’s education levels.
5.2.3 Cotton production and food security
Pearson’s correlation in table 4.5 yielded r=0.069* and Sig value-=0.040 which is less than 0.05.
Hence the research hypothesis was accepted that there is a significant positive relationship between
cotton production and food security. This means that respondents believed that food security is a
factor influenced by the level of cotton production. It can be concluded that there was a significant
positive correlation between cotton production and food security at 69% positive correlation.
5.3 Discussion of the study
The study findings above agrees with Wessels (2015) who found out that income of smallholder
cotton farmers amongst others the methodologies of COSA was used. From these sources the
standard comprehensive income model was used, which was adapted to farms with a focus on the
cash available to the farmer. In this study the financial income is defined as accounting income and
31
does not include opportunity costs, which would be the case if income would be defined in terms of
economic profit.
Nguyen & Bui Huy Khoi., (2023) used the Difference-In-Difference (DID) method to examine
changes in income and poverty among smallholder cotton farmers in Rwanda from USAID
supported cotton interventions. The study takes farmers linked to cotton washing stations as a
‘treatment group’, and those not linked as the ‘comparison group’. The DID results revealed that
the USAID supported cotton interventions increased average smallholder income by US$1,776
between 2000 and 2010. It was also reported that there were statistically significant differences in
income growth rates between the treatment and comparison groups over the 2000-2010 period.
Incomes of the treatment group grew by 27% faster than that of the comparison between 2000 and
2005. While over the extended period 2000 -2010, the treatment group’s incomes grew by 82%
faster than the comparison group’s incomes.
According to Nibret & Ayalew, (2020), around 125 million people depend on cotton for their
livelihoods worldwide through the generated income, and provision of the much needed rural
employment for both men and women in the labour intensive production and harvesting processes.
In Ethiopia, nearly a fifth of the population, depend on cotton for their livelihood. In Uganda, about
a million smallholder farming households produce cotton , and the cotton sub-sector value chain
activities is a source of income for around 2.5 million people or 8% of the population. However,
Nibret & Ayalew, (2020) warns that the importance of cotton to poverty among households can be
reduced in situations of a drastic fall in cotton prices like the 1999-2004 cotton crisis when the
price of Arabica plummet to 45 cents a pound (a 30-year lowest price). This had devastating social,
economic, and political consequences for countries throughout Africa, Asia and Latin America.
Export earnings fell from around $10bn to $6bn, reducing rural incomes and trapping cotton
farmers and their families into poverty (Nibret & Ayalew, (2020). Hundreds of thousands of cotton
farmers were forced out of business, many abandoning their farms in search for work in cities or
migrating to neighboring countries, along with thousands of landless plantation workers.

Study findings also concur with Sharma et al., (2016) who revealed that the impact of Cotton
growing goes beyond the expansion of business activity and consumption levels. Indirect effects
such as the empowerment of farmers and improvements in the health status and education levels of
32
children are often considered potential impacts of commercial Cotton farming. Education and
training are crucial components in the success of Cotton farming, (Sharma et al., 2016). Further
still, Lorentzen, (2009) indicated that agriculture education curricula can greatly improve farming
projects by increasing participants’ knowledge of farm management and budgeting. Because
education enables individuals to develop farming skills, a joint venture of farming and education is
more effective than a farming program in isolation. On the other hand, commercial Cotton farming
is helping to increase entitlement of households on education through increasing capability to spend
more on education of children and most especially girls’ education.
The study findings are in agreement with World Bank (2023) that indicated that cotton farming
increases households’ incomes which are in turn invested in their education and that of their
children. Education serves as an important instrument for gender-based development and poverty
reduction. It increases overall social welfare by improving life expectancy, lowering crime rates,
and promoting social cohesion. Investment in education is critical for breaking the cycle of poverty
and equalizing wealth distribution, which in turn reinforces social stability. Education provides
awareness, confidence and knowledge to the farmers that help them to decide about their lives and
the lives of their dependents. With increased education, households have greater access to
resources, enhanced opportunity for employment, and improved abilities to make informed
decisions about health, marriage, and parenting

The study findings above are in agreement with Fisher and Lewin, (2014), who states that
cooperatives play a critical role in both food security and value addition to cotton. Four perspectives
emerge from the findings of various articles Vuthy et al 2016): first, by means of pooling supply
purchases and sales, cotton cooperatives can help to decrease price risks and enhance bargaining
power and market access of members. Members may earn a better income that guarantees more and
diverse food purchases. Second, cooperatives enhance the dissemination of improved technologies
such as inputs and improved agricultural practices which could maximize potential food production.
Third, cooperatives can serve as information and awareness creation platforms, which could
promote knowledge on livelihood diversification strategies. Finally, cooperatives may ease access
to a variety of funds held by stakeholders outside the direct cotton value chain, such as government
subsidies, donor funds, and research and development. At the same time, food security and other
33
welfare impacts of cooperatives depend on their ability to deliver good quality services and to put a
comprehensive and well-organized governance systems in place that enable them to deal with
various internal and external challenges in their operation.
Study findings above are in agreement with Khanal et al., (2023) who posit that cotton production
and food security is complex. The impact of agricultural sector liberalization on food security in
Uganda found that agricultural liberalization increased the fraction of world’s cotton price passed to
farmers. Sapkota, (2020) contend that cotton can raise farm incomes unless gains at the farm level
are siphoned off by domestic traders and exporters through reduced farm gate prices. However,
Mbowa et al (2013), show that about 70% of the international cotton value margins are retained at
farm level. On the other hand, Sapkota, (2020) mentions that it is not only prices that are critical for
increasing cotton production, but access to adequate land and security of tenure. Under conditions
of land tenure impasse, farmers cannot increase acreage, even if they intend to, and they cannot
plant trees. This study also explores the extent to which land tenure.
5.4 Conclusions
The study concludes that cotton production has a significant effect on house hold income levels.
Cotton production has provided employment opportunities to people in the field of cleaning and
sorting, picking, hulling and accountants thus reducing the level of poverty rate among individuals
The contribution of cotton growing on employment and peoples income includes; Parents have
been in position to pay school fees, Jobs have been created to people when employed to work in
cotton gardens, Cotton has become the sole source of income to different households which has
improved on their general welfare and that the production of cotton has enabled establishment of
small scale factories which have acted as source of employment to people especially the youth.

The study concludes that cotton production has a significant effect on education level of
households. Cotton farmers not only depend on cotton production alone for their livelihood but
also other economic activities like trading, tea production, banana and other businesses and its
noted that cotton as a core business gave way to these other opportunities which avails more jobs.
34
Based on the findings, cotton is given more priority than food crops in terms of resource allocation
i.e. Most of their land, time and labor are mainly dedicated to cultivation of cotton. The food crops
are cultivated in small scale with little care so the households’ food security at margin. In the long-
term cotton production may impact on food security among farmers in Kasese district if price of
cotton beans increase. This creates a need to motivate farmers to attend their food crop plantations.
Though farmers are growing diversity of crops such as maize, sweet Potato, Irish potato, cassava,
beans, groundnut but the harvest is too low to meet food need of big families. There is need to find
out ratio of foods produced by the household that are sold to that is consumed in a home as well as
finding out if the money from the sale of cotton beans is used to buy foods to ascertain a complete
assessment of food security.
The study shows that the average number of meals accessed were 2 times per day. The study thus
concludes that cotton production has a significant effect on food security. Majority of the
households had access to food thus cotton production provides income that helps to purchase other
food items. Further conclude that cotton production enhances food security being a fact that on
average households has access to meals 2-3 times away.
5.5 Recommendations
Based on the findings the following recommendations were made;
The cotton farmers should not only participate in cotton production but also other economic
activities as this may provide more income to them hence improving on the livelihood of the
farmers and also, they should be sensitized on the importance of carrying out different economic
activities.
The Government through the ministry of trade should widen the market by creating international
markets for farmers in Uganda for as this will improve on the prices of Ugandan cotton and the
incomes of the rural people which will give farmers ability to pay school fees for their children.

The cotton farmers should not only participate in cotton production but also other economic
activities as this may provide more income to them hence improving on the livelihood of the
35
farmers and also, they should be sensitized on the importance of carrying out different economic
activities.
The cotton producers also adopt cotton production technology in order to increase their production
and productivity. When farmers use technology for cotton production their income and livelihood
can be improved. The concerned body may be agricultural office can give some knowhow about
how to use and use of technological advancement.
Government as well as other stakeholders working around agriculture sector, should work together
to provide trainings and other agriculture extension services that would provide farmers with
adequate knowledge on good practices and maintenance of cotton farm as well the environment in
general.
Empowering Households with information and education: Creating and expanding awareness
among the population and policy makers about climate variability, its impact on their livelihood,
causes and consequences by providing reliable and up to-to-date information to take appropriate
adaptive measures.

The cotton farmers should also be encouraged to grow more cotton in large hectares as this may
help to solve the problem of food insecurity thus poverty level reduced.
The researcher recommends that the Government should increase on the budget allocation on
agriculture since most of the rural people depend on agriculture as their sole economic activity. This
will improve on the welfare of rural people.
The Government should provide improved cotton seed varieties to the cotton farmers in an attempt
to improve the quality of cotton so that Uganda’s cotton can compete favorably with other countries
selling cotton in the world market.
The government must be providing high volume of fertilizer or increase access of fertilizer to the
farmer in order to improve production and productivity of the cotton production. When production
and productivity increase there is a direct impact on income and livelihood of the household heads
of cotton producers.
36
The local government can create a connection between the cotton producer and financial institutions
to increase access of credit to cotton producer. When there is high access of credit the farmer can
buy different inputs like fertilizer, pesticides and technology which increase cotton production and
income of cotton producers.
5.6 Area for Further Research

The researcher recommends that further research should be conducted on;
The contribution of cotton growing on Uganda’s Gross Domestic Product
The impact of cotton growing on industrial growth in Uganda
Factors influencing cotton growing in Uganda
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41
APPENDICES
APPENDIX ONE: QUESTIONNAIRE FOR COFFEE FARMERS
Dear respondent, I am SUMBA VICTORIA 19/U/EKD/18541/GV a third year student pursuing
a Bachelor of Arts in Economics Degree of Kyambogo University. I am carrying out a study whose
main objective is to examine the effect of Cotton growing on the financial and economic status of
households: a case study of Ikiiki sub county, Budaka district. You have been selected as a key
informant for the study and the information you will give will be treated with utmost confidentiality
and used purely for academic purpose. I kindly request you to spare some of your valuable time to
answer these questions.
SECTION A: DEMOGRAPHIC CHARACTERISTICS
1. Gender
a) Male b) Female
2. Age Bracket
a) Below 20 years b) 20-35 years c) 35-50 years
d) Above 50 years
3 Marital Statuses
a) Single b) Married c) Divorced d) Widow
4. Level of education
a) non formal b) Primary c) Secondary
d) Tertiary
5. How long have you been in Coffee farming business?

a) Less than 1 years b) 1-5 years c) Above 6 years
SECTION B: THE EFFECT OF COFFEE PRODUCTION ON FOOD SECURITY IN
IKIIKI SUB COUNTY, BUDAKA DISTRICT.
Does Coffee production have any influence on household food security in Ikiiki sub county,
Budaka district?
a) Yes b) No
i
If yes, please indicate the extent to which you agree with the following statements as some of the
ways through which Coffee production impact on household food security by stating; 1 for Strongly
Agree, 2 for Agree, 3 for not sure 4 for Disagree and 5 for Strongly Disagree.
Statements Remarks
1 2 3 4 5
Coffee farming leaves farmers with no alternative land for
cultivation of food crops
Exhaustion of the soil fertility from continuous Coffee
production which affects cultivation of food crops
Continuous Coffee production at the expense of subsistence
farming creates more demand and less supply of food crops
Limited time to cultivate food crops since the farmers are
fully involved in Coffee growing
Income from Coffee is inadequate for buying food
SECTION C: THE EFFECT OF COFFEE PRODUCTION ON INCOME LEVELS OF

HOUSEHOLDS IN IKIIKI SUB COUNTY, BUDAKA DISTRICT.
If yes, please indicate the extent to which you agree with the following statements as some of the
ways through which Coffee production impact on household income by stating; 1 for Strongly
Agree, 2 for Agree, 3 for not sure 4 for Disagree and 5 for Strongly Disagree.
Statement Remarks
1 2 3 4 5
Coffee production increases households’ access to income
which improves their livelihood
Coffee farming improves the quality of life of rural families
Coffee production increases farmer’s chances of access to

agriculture credit
Coffee production creates employment creation which helps
people to raise income
ii
Coffee production increases households’ access to income
which reduces poverty levels
SECTION D: THE IMPACT OF COFFEE PRODUCTION ON HOUSEHOLDS’

EDUCATION LEVEL IN IKIIKI SUB COUNTY, BUDAKA DISTRICT.
Regarding the effect of Coffee production on households’ education, Please indicate the extent to
which you agree with the following statements by stating; 1 for Strongly Agree, 2 for Agree, 3 for
not sure 4 for Disagree and 5 for Strongly Disagree
Statement Remarks
1 2 3 4 5
Coffee production helps to provide families with income
stability thus enabling them to afford schooling
Coffee production help has helped families provide for the
better future of their children
Coffee plantation helps to reduce financial instability that
create barriers to education, preventing children from
attending school; these barriers include the costs of
transportation, schoolbooks, and uniforms, as well as lost
hours of child labour that would contribute to family income.
Helps to increase households entitlement to education
through increasing capacity to spend more on education
Coffee farming increases households’ incomes which are in
turn invested in their education and that of their children
Thank you very much for your time and cooperation
iii
APPENDIX TWO: KEY INFORMANT INTERVIEW FOR TECHNICAL PERSONS
I am SUMBA VICTORIA 19/U/EKD/18541/GV a third year student pursuing a Bachelor of Arts
in Economics Degree of Kyambogo University. I am carrying out a study whose main objective is
to examine the effect of cotton growing on the financial and economic status of households: a
case study of Ikiiki sub county, Budaka district.. You have been selected as a key informant for
the study and the information you will give will be treated with utmost confidentiality and used
purely for academic purpose. I kindly request you to spare some of your valuable time to answer
these questions.
1. What is your Gender?
2. What is your Age Bracket?
3. Indicate the other effects of Coffee production on households’ education in Kabarole district
4. Indicate other ways through which Coffee production affect households’ income in Busoro
Sub County Kabarole district.
5. Identify other ways through which Coffee production impact on household food security in
Kabarole district
Thank you very much for your time and cooperation
iv

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IMPACT OF COTTON GROWING ON THE FINANCIAL AND ECONOMIC STATUS

OF HOUSEHOLDS: A CASE STUDY OF IKIIKI SUB COUNTY,

A RESEARCH REPORT SUBMITTED TO THE DEPARTMENT OF ECONOMIC AND

LIST OF ACRONYMS AND ABBREVIATIONS....................................................................ix

1.1 Background of the study............................................................................................................1

1.1.1 Historical background.............................................................................................................1

1.1.2 Theoretical background..........................................................................................................2

1.1.3 Conceptual background..........................................................................................................3

1.1.4 Contextual background...........................................................................................................4

1.2 Statement of the problem...........................................................................................................4

1.3 Purpose of the study...................................................................................................................5

1.3.1 Specific objectives..................................................................................................................5

1.4 Research Questions....................................................................................................................5

1.5 Hypothesis of the study.............................................................................................................6

1.6 Significance of the study...........................................................................................................6

2.2 Cotton growing on households income levels...........................................................................7

2.3 Cotton growing on households’ education level.......................................................................8

2.4 Cotton growing on food security.............................................................................................10

3.2 Research Design......................................................................................................................12

3.3 Target Population.....................................................................................................................12

3.4 Sample size and Sampling Techniques....................................................................................12

3.4.1 Sample size...........................................................................................................................12

3.4.2 Sampling Technique.............................................................................................................13

3.4.2.1 Simple Random Sampling.................................................................................................13

3.4.2.2 Purposive sampling............................................................................................................13

3.5 Data Collection Methods.........................................................................................................13

3.5.1 Questionnaire Survey method...............................................................................................13

3.6 Data Quality Control................................................................................................................14

3.6.1 Validity of instruments.........................................................................................................14

3.6.2 Reliability of instruments.....................................................................................................15

3.7 Procedure of Data collection...................................................................................................16

3.8 Measurement of variables........................................................................................................16

3.9 Data Processing, analysis and presentation.............................................................................16

3.9.1 Quantitative data analysis.....................................................................................................17

3.9.2 Qualitative data analysis.......................................................................................................17

PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS.........................19

4.2 Demographic characteristics of respondents...........................................................................19

4.2.1 Sex of respondents................................................................................................................19

4.2.2 Age of respondents...............................................................................................................19

4.2.3 Education level of respondents.............................................................................................20

4.3 Empirical findings according to study objectives....................................................................22

4.3.1 Correlation between cotton production and Food security...................................................28

SUMMARY, DISCUSSION, CONCLUSION AND RECOMMENDATIONS.....................30

5.2 Summary of the Findings.........................................................................................................30

5.2.1 Cotton production and income levels of households............................................................30

5.2.2 Cotton production and households’ education level.............................................................30

5.2.3 Cotton production and food security....................................................................................30

5.3 Discussion of the study............................................................................................................31

5.3.1 Cotton production and income levels of households............................................................31

5.2.2 Cotton production and households’ education level.............................................................32

5.2.3 Cotton production and food security....................................................................................32

5.3.2 Cotton production and households’ education level.............................................................34

5.3.3 Cotton production and food security....................................................................................34

5.5.1 Cotton production and income levels of households............................................................34

5.5.2 Cotton production and households’ education level.............................................................35

5.5.3 Cotton production and food security....................................................................................35

5.6 Area for Further Research.......................................................................................................36

APPENDIX ONE: QUESTIONNAIRE FOR COFFEE FARMERS........................................i

APPENDIX TWO: KEY INFORMANT INTERVIEW FOR TECHNICAL PERSONS.....iv

In relation to this study, it is needless to say modernization of agriculture is aimed at increased