Agriculture is still the dominant sector in the Ugandan economy, contributing about 42 per cent of total GDP (1998) and employing over 60 per cent of the total labor force, which comprises 80 per cent of the rural population. About 85 per cent of the population, who live in the rural areas, derive their livelihood from agriculture either directly, as smallholder subsistence farmers, or indirectly from rural off-farm activities, which in turn are driven by agriculture. Available statistics suggests that of the total employment in agriculture, forestry and fishing, 89 % were in crop farming and the rest in “other agriculture” including livestock, poultry, etc. (IHS 1992/93). But, it is likely that employment in the coffee sub-sector, which contributes about 60% of the total export earnings, may have increased following the coffee recovery and boom of the early 1990s. Agricultural production is carried out on a myriad of small farms, scattered all over the country, with a per capita land holding estimated at 1.14 hectares, but only 41 per cent of the cultivatable land is generally under cultivation. Nearly all these small holdings are rain-fed, employing family labor and hand hoe, and are characterized by low productivity. Current estimates suggest that there are about 3 million smallholder households in the rural areas, whose main economic activities include; crop farming as the predominant activity, followed by livestock keeping and fishing. But, array of economic activities such as brick-making, carpentry, tailoring, shop-keeping etc., are other alternative forms of employment available to the rural households.