Globally, it has been estimated that there are about 570 million farms worldwide, out of the 8 billion population of people in the world. This implies that about 7.43 billion (Seven billion, four hundred and thirty million) people are without farms and depend on the 570 million farms for survival. In Ghana, approximately 7.3 million individuals are into farming, and as of 2022, the total estimated population of Ghana according to the Ghana Statistical Service was about 32 million. This also depicts that 24.7 million representing 77.2% of Ghanaians depend on the 7.3 million farmers for survival. Hence, for the 7.3 million people representing 22.8% to feed the rest of the Ghanaian population and even the global population, there must be effective and efficient policies.
Over the years, various policies such as the National Seed Policy, Fertilizer Subsidy Programme (FSP) and Planting for Food and Jobs Programme (PFJ) among others, have been formulated to promote farming and agriculture in Ghana. These state interventions are programmed for vote buying. In 2017, the share of value added by the agricultural sector to the gross domestic product (GDP) was 19.56%, while in 2018, the value declined to 18.14%. In 2019, it declined again to 17.3%. This could be associated with the global economic shock as a result of COVID-19 and other economic crises. However, in 2020 and 2021, there has been an increase to 18.85%, and 19.66% respectively, but in 2022 experienced a slight decrease to 19.57%. See the figure below.
Share of value added by the agricultural sector to the GDP
Source: Statista, 2017-2022.
The planting for food and Job phase I which was launched in 2017, could not meet its target with a budget of over GH¢3.3 billion. Specifically, the goal of the project was to modernize the agriculture sector of the economy to improve food security, create employment opportunities, and reduce poverty. However, over 850,000 Ghanaians have been pushed down into poverty as of 2022, making it difficult to defend the positive impact of the policy.
Now, the Government through the Ministry of Food and Agriculture launched the PFJ phase 2 in August 2023, which has been designed as a bold, innovative, and comprehensive approach to tackle head-on the hurdles on our food security journey. The budgeted allocation for the phase 2 as of August was GH¢1 billion. According to the ministry, the underpinning model, which is the Input Credit System, will solve several critical challenges namely: Access to credit; Quality of agro-inputs; unstructured markets of agricultural produce; and Low mechanization, among others. Also, it has been established that there is already a guaranteed market for credit off-takers.
Nevertheless, "Phase I" appeared to be an illusion to the intended tenets. Therefore, if all things are equal, it can be predicted that phase 2 will likewise fail to fulfil its objectives. This trajectory creates a notion that the PFJ phase 2 is meant to win votes in the 2024 elections to break the ‘8’. Breaking the ‘8’ is a political campaign slogan used to refer to staying in power beyond the 2 terms, which is equal to 8 years of governance in Ghana.
It is imperative to know the pivotal role of farmers in sustaining both national and global populations, and the need to develop long-term national policies to help them become more effective and efficient. Yes! Ghana has implemented initiatives like the National Seed Policy, Fertilizer Subsidy Programme, and Planting for Food and Jobs Programme (PFJ) among others, but the actual impact has been inconsistent. Accordingly, the failure of PFJ Phase I to meet its tenets such as overcoming food deficits, reducing importation of basic food commodities, and increasing exportation, coupled with the current increase in unemployment and poverty rates, raise concerns about the efficacy of these policies.
To address these challenges and ensure the success of farmers and agricultural initiatives, the following policies need to be taken into consideration:
There should be a transparent monitoring and evaluation mechanism: For any policy to achieve its goals, there is a need to implement a robust monitoring and evaluation system. This equally should be adopted for agricultural policies to track progress, identify bottlenecks, and ensure accountability. If assessments are conducted regularly on a monthly and quarterly basis, it will help promptly fine-tune strategies and address shortcomings.
The financial oversight of the policy must be strengthened: The governance of the policy should enhance financial management and oversight of agricultural programmes to prevent misallocation of resources. This includes thorough audits and transparent reporting to build public trust and confidence in government initiatives.
Also, investment in agricultural research and extension services should be paramount throughout the stages of allocation of resources to research and extension services to promote sustainable and innovative farming practices. This will empower farmers with the knowledge and tools needed to enhance productivity and adapt to evolving challenges.
Additionally, when formulating policies, the community and relevant stakeholders should be allowed to participate. This will foster collaboration between the government, farmers, and local communities in policy formulation and implementation. This inclusive approach ensures that policies align with the diverse needs of farmers and address specific challenges at the grassroots level.
All these strategic policy remedies emphasize the importance of a comprehensive, accountable, and community-driven approach to agricultural policies, aiming not only to boost food production but also to improve the livelihoods of farmers and contribute to broader economic development.
Notwithstanding, all these can be achieved when all policies are solely guided by a long-term national developmental plan for Farmers and Agriculture, rather than politicizing policies for votes. This national development plan for agriculture should be driven by free-market strategies. One of the key approaches is when the government prioritizes minimizing state interventions and regulation in agricultural value chains and encourages the development of agricultural infrastructure, such as transportation networks and market facilities, through public-private partnerships or incentives to private investors. The government for example must end the fertilizer distribution without resurfacing it for vote buying.
The operationalization of a free-market approach to agricultural policies in Ghana not only fosters economic growth and prosperity but also upholds the principles of freedom and liberty by allowing individuals to pursue their interests and make voluntary transactions without undue government interference.
Author:
Stephen Dansu, Head of Research, ILAPI
