The main aims of the Department during the year were: -(i) To ensure adequate supplies of the foodstuffs which can be efficiently produced under local conditions.(ii) To conserve the soil and water and other natural resources.(iii) To increase production and improve the quality of cash crops to enable farmers to enjoy a better standard of living and to increase the general revenue of the country.(iv) To improve the quality and productivity of livestock and to integrate animals into the farming system where appropriate to the development of sound systems of farming. 2. Uganda is blessed with fertile soils, well-distributed rainfall and an abundance of good cultivable land. However, there are also problems, notable among which are lack of adequate capital for development, inefficient utilisationof labour and managerial ability and the marketing of crops other than cotton and coffee.3. The year saw further expansion and emphasis in the programme to encourage farmers to turn from subsistence to commercial farming and to give the Progressive or Emergent Farmer "the tools with which to do the job"in addition to advise in management. Under the Agricultural Equipment Subsidy Scheme, Progressive Farmers were enabled to purchase at subsidised prices equipment which was selected with a view to helping them to plough, plant and weed their crops quickly and efficiently with the use of oxen, in addition to a large range of equipment designed to help in the enclosure of land and the processing of produce and the control of pests and diseases of cash crops. In addition the Progressive Farmers' Loan Scheme continued tohelp farmers to buy the necessary equipment to farm their land properly, increase their profits and improve their standard of living.