Smallholder farmers upcountry are facing an uncertain future.
Climate change is disrupting traditional farming methods, causing unpredictable weather patterns, soil degradation and declining yields.
However, a growing movement towards agroforestry and climate-smart practices is offering a beacon of hope. By integrating sustainable land management techniques, farmers are not only boosting their productivity, but also tapping into the lucrative carbon market. BIOECONOMY
“Agroforestry is not just about planting trees; it’s about securing our farms for the future. Shade trees have improved my coffee yields and protected my soil from erosion. By diversifying with fruit trees and timber, I have more income streams. When coffee prices fluctuate, I can still earn from avocados, mangoes, and even firewood,” says Jim Kava Aturige, a coffee farmer from Ndugu Farmers Limited in Nabinene village, Masaka district.
With the changing weather patterns, Aturige says conservation farming has been his insurance, revealing that minimum tillage and mulching have helped his soil retain moisture, even during droughts.
He adds: “Many farmers don’t realise that trees on their farms are not just assets, but potential income sources through carbon markets. We need more training to tap into these opportunities.”
Monic Mazirwe, an expert farmer from Sheema Integrated Community Development Organisation in Sheema village, Bushenyi district, says climate-smart farming is no longer a choice, it’s a necessity.
“Our traditional farming methods are failing, but integrating agro-forestry and water harvesting is helping us adapt. Smallholder farmers can no longer rely on one crop alone. I grow bananas alongside nitrogen-fixing trees, which enrich my soil and improve overall productivity,” she says.
Mazirwe says: “Carbon farming is the future, but farmers need guidance. If we get the right support, we can turn our sustainable practices into a new source of income through carbon credits.”
According to her, joining cooperatives has given the farmers bargaining power — not only for better prices, but also to access carbon credit programmes that individual farmers might struggle to navigate.
According to Racheal Wanyoike, the managing director at Solidaridad, “East Africa faces the dual challenge of low agricultural productivity and rapid population growth. At Solidaridad, we are addressing this by promoting a bioeconomy that enhances yields, builds resilience and unlocks new revenue streams for farmers.”
“Our approach integrates climate-smart agricultural practices, such as agroforestry, conservation farming, regenerative agriculture and biochar, which are increasing productivity while reducing greenhouse gas emissions,” she said.
According to Wanyoike, across Kenya, Uganda and Tanzania, 186,000 farmers have adopted agro-forestry, improving food security and restoring degraded land. She said the introduction of biochar from agricultural waste is also helping to enhance soil fertility.
Understanding bioeconomy
Alex Amanya, an agriculture consultant, explained that agro-forestry is not a new concept in East Africa, noting that many smallholder farmers have traditionally practised it, recognising its livelihood benefits. However, recent environmental and economic pressures have heightened interest in agro-forestry.
“Recurring food shortages, mounting climate change pressures and rising costs of fossil fuel-based agricultural inputs have forced farmers to produce more with fewer resources.
“Agro-forestry provides a sustainable way to intensify farming practices, while enhancing food security,” he says.
According to him, agro-forestry systems are particularly effective, because they require minimal external inputs, promote high recycling rates and integrate crops with livestock.
By managing trees alongside crops, he said farmers improve soil fertility, increase water retention and enhance biodiversity.
Integrating trees
Wanyoike said Solidaridad’s efforts in Uganda have led to the integration of trees into the farming systems of over 24,000 coffee and cereal farmers.
“We have distributed 409,345 tree seedlings across different regions in Uganda. As a result, farmers are reporting up to a 20% increase in productivity, while benefiting from diversified income sources, including carbon credits,” she adds.
Leveraging agroforestry, climate-smart practices for profitability
Sweeny Binsari, a climate and natural resources expert, notes that agroforestry provides a diversity-based approach to climate adaptation.
“Studies have shown that agro-forestry not only reverses land degradation, but also secures rural livelihoods through ecosystem and economic benefits,” Binsari states.
Mixed agro-forestry regimes, such as shade coffee and vegetable systems, increase vegetative diversity and create agronomic synergies.
These systems require lower input demands, while improving total farm efficiency.
“In Uganda, combining tree crops with staple crops and vegetables has increased yields by up to 50% in coffee systems and profitability by 20%,” Binsari explains. Despite the adaptation and profitability benefits, the mitigation potential of agroforestry is still evolving.
Traditionally, carbon sequestration has not been a primary driver for smallholder farmers. However, the emergence of carbon farming initiatives is changing this.
“Carbon farming initiatives such as biochar application, enhanced rock weathering, and agro-forestry provide some of the best opportunities to sequester carbon on a large scale,” Binsari adds.
Challenges, solutions in accessing the $2b voluntary carbon market
One of the major barriers to smallholder farmers benefiting from the voluntary carbon market is exclusion from international carbon markets and the lack of transparent value chains.
Amanya highlights that for years, farmers lacked awareness of carbon markets and how they function. To address this, Wanyoike said they have been working with the Acorn platform to create more equitable carbon market opportunities.
“Traditionally, farmers received only about 40% of the proceeds from carbon credits. Through our partnerships, we have increased this share to 80%, significantly boosting farmers’ incomes and encouraging sustainable practices,” Wanyoike says.
Another key challenge is land fragmentation.
Small landholdings limit the number of carbon removal units that can be generated.
However, land consolidation within households is proving to be a viable solution, according to Amanya, who also noted that “By pooling land resources, farmers can increase their participation in carbon markets and maximize their benefits.”
Recognition
Solidaridad’s work in sustainable agriculture recently earned them the RSB Transition Leaders Award. Wanyoike describes the award as a significant milestone.
“This recognition highlights the innovative ways farmers are leading climate action. It provides a platform to amplify their voices, attract partners, and influence policy for sustainable agriculture.”
She said the award also strengthens Solidaridad’s ability to scale up successful practices like mixed agro-forestry and biochar production.
“It opens doors to new resources and partnerships that directly support farmer-led initiatives. Ultimately, this award is about empowering farmers to take charge of their future while contributing to global climate solutions,” Wanyoike noted.
As Ugandans embrace climate[1]smart agriculture, Aturige said smallholder farmers stand at the forefront of a revolution that blends tradition with innovation.
“With continued support and investment, they can build a resilient and profitable future while playing a critical role in global climate action,” Aturige stressed.
Just transition for smallholder farmers
A just transition for smallholder farmers requires secure land rights, accessible financing and income protection.
Sweeny Binsari, a climate and natural resources expert, stresses that securing land rights is essential to accelerating adaptation practices and unlocking carbon market opportunities.
“Promulgating regulations under the Land Act to provide affirmative action for smallholder farmers will be crucial in expanding agro-forestry initiatives,” he explains.
Furthermore, prioritising financing for climate-smart agriculture will ensure farmers can implement these practices effectively.
“A CSA approach that sustainably increases productivity, food security and climate resilience is critical for East Africa’s future,” Binsari adds.
Recognising farmers’ vulnerability, Solidaridad advocates income protection through micro insurance, weather index insurance and other financial safety nets.
“We recommend making these insurance options available independently, not just as loan add-ons,” Racheal Wanyoike, the managing director at Solidaridad, says.
Overcoming barriers to sustainable agriculture
Despite its potential, sustainable agriculture still faces numerous hurdles. Limited access to land and credit remains a major challenge, particularly for marginalised groups, such as women, youth and vulnerable populations.
Racheal Wanyoike, the managing director at Solidaridad, emphasized the need for gender social inclusion initiatives that aim to bridge this gap.
“Our approach ensures at least 40% women and 10% youth participation in our projects. We analyse challenges and design tailored interventions to promote equal opportunities,” she says.
Another issue is the lack of clear government policies on carbon farming. Kenya recently established a regulatory framework in mid-2024, but Uganda’s policy is still under development.
“We are working to register existing carbon projects and ensure future projects align with emerging regulations,” Wanyoike adds.
Financing remains another obstacle, as climate-smart agriculture practices can be labour-intensive and expensive.
Wanyoike said this issue is being addressed through its Economic and Social Empowerment model and Village Savings and Loan Association methodology, which increases farmers’ access to credit.
