This article provides a micro-level foundation for the analysis of crop diversification decisions in a semi-subsistence banana farming community in Uganda. A two-crop agricultural household model is developed to show that credit rationing and crop price movements influence vanilla adoption...

Transaction costs and poor asset endowments appear to be major impediments to small scale agricultural development in Uganda. Reasons for the lack of commercialisation of agriculture, and the barriers to increasing the value of banana crop sales and banana production are the focus of this paper....