The Moderating Role of Farming Systems in Market Participation and Value Creation for Medium and Smallholder Farmers in Rural Uganda

Abstract

The study investigated the moderating role of farming systems in the association between market participation and value creation, targeting medium and smallholder farmers in Uganda, particularly in two districts in northern Uganda, Nwoya and Amuru. A sample size of 385 respondents consisting of medium and smallholder farmers involved in farm operations was calculated. The surveyed participants were selected using simple random sampling, while key informants were selected with a purposive sampling technique. Quantitative data obtained were coded and entered into SPSS version 25.0 statistical package computer software. Exploratory factor analysis was conducted to determine factor loading for the items examined. SPSS PROCESS MACRO v4.2 by Andrew F. Hayes was used to assess the moderation effect. There is a significant strong positive association of market participation and farming system with value creation (r = .861**, p < .01) and (r = .753**, p < .01), respectively. Secondly, market participation and the farming system significantly affect value creation (p<.05), and thirdly, the farming system moderated the effect of market participation on value creation. Policies and programs focusing on improving market access and market information dissemination should be implemented to benefit farmers significantly. Initiatives that promote sustainable and innovative agricultural practices should be encouraged to enhance value creation. A comprehensive approach that combines market participation and a farming system should be implemented to improve value creation. Enhancing farming systems by improving infrastructure, providing necessary support, and aligning farming practices with market demands can significantly impact the value of smallholder farmers' capabilities.