Farmers have continued to engage in Agricultural production (farming activities) despite loses realized. This could be due to the non-farm activities that they could be carrying out. This study was conducted to determine the efficiency and sustainability of non-farming activities on agriculture and livelihood on rural households in Kalagala sub county, Luwero district. A total of 61 respondents (30 males and 31 female) were interviewed using a structured questionnaire. The results indicated that the farmers in Kalagala sub county carry out non-farm activities; with retail shops (36.1%) as the major non-farm activity. The income from non-farm activities per month was mostly between 100,000 to 500,000 Uganda shillings (77.1%). This income was spent in various ways, including provision of basic needs (26.1%) and further investment into non-farming activities (22.7%). Majority of the respondents (63.9%) said they would not invest into agricultural activities. However, the Chi-square test of association indicated that this response was significantly related (P ≤ 0.1) to education level, source of livelihood and factors influencing participation in non-farming activity. Majority of the respondents (56%) indicated that non-farm activities facilitate farm activities. The Chi-square test of association indicated that this response was significantly related to access to credit (χ2 = 11.980; P = 0.035). Respondents with limited access to credit indicated non-farm activities facilitate farm activities while those with access to credit did not agree to the above. In conclusion, participation in non-farm activities, that is influenced by education level, source of livelihood and factors influencing participation, therefore has an important contribution towards increasing the absolute income of farmers. This is basically through enhancing agricultural production; and thus income diversification which is crucial for sustaining rural livelihoods. In addition, there is an important linkage between farm and non-farm activities among rural households. As a recommendation, education access and access to credit should be availed to the farming communities if non-farm activities is to enhance farming activities and livelihoods of the concerned personnel.

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