Farmers’Day25: A decade of food production: GH¢6.6bn agric budget set to revolutionise sector

By Wisdom JONNY-NUEKPE

With a significant budgetary allocation of GH¢6.6billion to agricultural production in 2026—the highest for the sector in the last decade since 2016, government’s commitment to food and livestock production may take a new direction toward achieving food sufficiency in the medium term.

Agriculture sector stakeholders, including the Peasant Farmers Association of Ghana (PFAG) and the Chamber of Agribusiness Ghana (CAG), are hopeful that the actual release of funds will constitute a significant proportion of the allocated amount, to enable the implementation of key sector policies.

A trend analysis by the B&FT of budgetary allocations to the agriculture sector over the past decade shows that the 2026 allocation is the highest yet.

However, considering that government is preparing to heavily invest in other agriculture and agribusiness-related programmes across key areas including fisheries and agro-processing, B&FT findings suggest that a total of GH¢13.9billion could be invested in the sector next year.

This total investment, which feeds into other sectors such as construction and food processing, has been touted as the biggest anticipated government investment in a single year.

Undeniably, total allocation to agriculture moved from GH¢501million in 2016 to GH¢384.6million in 2017 and then to GH¢598.7million in 2018.

There was a significant increase in 2019, when GH¢1.1billion was allocated. This rose progressively to GH¢1.3billion in 2020 and again to GH¢1.5billion in 2021.

The sector saw a dip in allocation in 2022, to GH¢1.1billion, but more than doubled to GH¢2.1billion in 2023.

In 2024, a record GH¢5billion was allocated—the highest since 2016—but this declined sharply to GH¢1.5billion in 2025.

Despite the strides, these allocations—and actual spending—have remained below one percent of government’s total expenditure over the past nine years.

This situation contradicts the Malabo Declaration, which seeks to accelerate agricultural growth and transformation for shared prosperity and improved livelihoods.

The Malabo Declaration, adopted in 2014 by the African Union, aims to end hunger, boost intra-African trade, halve poverty and enhance resilience by 2025, building on the Comprehensive Africa Agriculture Development Programme (CAADP).

A key requirement mandates governments to allocate 10 percent of national budgets to agriculture and double agricultural productivity from 2014 to the end of this year. With 2025 nearly concluded, this target has not been met.

The 2026 budget introduces several initiatives aimed at improving agricultural productivity and market access.

Indeed, next year’s budget signals government’s intention to support agriculture, although the allocation constitutes only 2.18 percent of total government expenditure—far below the 10 percent Malabo target.

However, the increase to 2.18 percent—the highest in the past decade—indicates a progressive shift toward increased investment in the sector.

While acknowledging the steps taken in the 2026 budget, stakeholders argue that agriculture requires far greater commitment to achieve food security, reduce the US$3billion food import bill and improve the livelihoods of farmers nationwide.

For instance, PFAG has been advocating strengthened resource allocation, clear timelines for major agricultural projects and robust accountability mechanisms in the sector.

The association noted that with more ambitious investment and consistent implementation, the 2026 budget could set the country on the path to agricultural transformation, resilience and inclusive economic growth.

With an ambitious plan to make critical investments into poultry production and irrigation infrastructure, among others, it is expected that the sector could witness major transformation by 2028, as indicated in the Medium-Term Expenditure Framework of the Ministry of Food and Agriculture.

The 2026 agriculture sector budget summary

A wide range of projects across the Ministry of Food and Agriculture (MoFA), the Ministry of Trade and Agribusiness and the Ministry of Fisheries and Aquaculture Development are expected to revolutionise the sector, according to the budget.

These projects, which together constitute the broader agriculture sector, will amount to a total investment of GH¢13.9billion next year.

Key allocations include GH¢690million for Farmer Service Centres, GH¢828million for 1,000 kilometres of agricultural roads and GH¢200million for improving the national food buffer. A further GH¢245million is expected to be invested in poultry revitalisation under the ‘Nkokor Nketenkete’ programme, GH¢500million for the Oil Palm Development Finance Facility and GH¢1.9billion for two cashew and agro-processing plants.

Other priority programmes include GH¢6.9billion for Integrated Oil Palm Development, GH¢200million to mop up surplus food for market stabilisation, GH¢2billion for rural electrification in processing zones, GH¢100million for aquaculture development, GH¢400million for the Women Development Bank—focused on supporting women-led businesses—and GH¢245million for livestock development.

With these financial commitments, stakeholders are optimistic that key challenges affecting agricultural production in Ghana—including climate change, poor infrastructure and mechanisation, limited access to finance and inputs and inefficient market access—will be addressed to an appreciable level.

The 2026 Farmers’ Day celebrations

This year’s Farmers’ Day celebration, themed ‘Feed Ghana, Eat Ghana, Secure the Future’, highlights the importance of national food security, agricultural self-sufficiency and sustainable job creation.

With the improved allocation to the sector, the theme serves as a timely reminder of the collective responsibility to sustain food security while deepening investment in agriculture.

The post Farmers’Day25: A decade of food production: GH¢6.6bn agric budget set to revolutionise sector appeared first on The Business & Financial Times.

Read Full Story