Busoga Landowners Lament Low Returns from Sugarcane Leases Compared to Food Crops

Landowners in Busoga are increasingly dissatisfied with leasing their land for sugarcane. The upfront payments seem appealing but lock them into long-term deals that yield less than growing food crops.

Landlords receive between Shs600,000 and Shs1 million per acre for six years. However, this amount pales against the repeated harvests from maize, rice, tomatoes, pumpkins, and other seasonal crops over the same period.

Sugarcane’s long growth cycle ties up the land, preventing switches to more lucrative options. Rising costs and better alternatives are making leases less attractive.

Joy Mukaire from Jinja District highlighted how fixed-rate contracts spanning four to six years prevent adapting to profitable opportunities. “Once you sign, you can’t adjust even when better chances arise,” she said.

Faizo Mukungo in Mayuge District noted families often spend lease money quickly on school fees, leaving them worse off. He receives Shs1.6 million per acre but urges prioritizing fast-maturing crops like potatoes and tomatoes.

Rose Kauda in Namayingo and Samuel Wamala in Kamuli echoed regrets, saying payments are too low while farmers profit seasonally, and land recovery is delayed.

Margaret Namusoke in Luuka added that leasing forfeits food production and short-term earnings. Hassan Ssekandi in Mayuge called it a poor decision when divided yearly.

Sugarcane farmers like Rashid Were and Prossy Namatovu countered that they face high preparation costs—up to Shs6 million per acre—and risks, benefiting idle land owners indirectly.

This mirrors President Museveni’s warnings against sugarcane for smallholders, promoting his four-acre model with coffee, fruits, dairy, and poultry instead.

Busoga dominates Uganda’s sugarcane milling at 35%, hosting factories like Kakira and Mayuge Sugar.

Source: Daily Monitor (Uganda)