The Peasant Farmers Association of Ghana (PFAG) has described the 2026 Budget Statement and Economic Policy as an improvement over previous years but says it still fails to provide the level of investment needed to fully transform Ghana’s agricultural sector.
The assessment follows the presentation of the 2026 budget by the Minister of Finance, Dr. Cassiel Ato Forson, under the theme “Resetting for Growth, Jobs and Economic Transformation.”
According to PFAG, the budget signals the government’s intention to support agriculture but allocates only 2.18 percent of total government expenditure to the sector—far below the 10 percent target in the Maputo Declaration.
The Association says this level of funding is inadequate to drive the significant reforms needed to address rising food imports, recurring gluts, climate-related shocks, and structural challenges affecting farmers.
Ahead of the budget reading, PFAG submitted proposals calling for increased investments in irrigation, Farmer Service Centres, agricultural roads, storage facilities, an agricultural development fund, and stronger policies to promote local food consumption.
The group also urged government to waive taxes on agricultural inputs, support the Women’s Bank to reduce borrowing costs for farmers, and strengthen measures against smuggling.
Sector Performance and Recent Gains
The Association’s analysis notes positive macroeconomic indicators for 2025, with agriculture contributing to a GDP growth rate of 6.3 percent in the first half of the year. Food inflation dropped sharply from 27.8 percent in January to 9.5 percent in October, supported by favourable weather conditions and interventions under the Feed Ghana Programme.
Sub-sector growth also improved, with crops expanding by 6.2 percent, livestock by 5.8 percent, and fishing by 7.7 percent. Cocoa showed a modest recovery from severe declines in 2024 but remains vulnerable due to climate change, illegal mining, and pests. PFAG warns that without urgent government attention, the cocoa industry could face deeper challenges.
Budget Allocations and Interventions
The 2026 budget introduces several initiatives aimed at improving agricultural productivity and market access. These include:
* GH¢828 million for 1,000 km of agricultural enclave roads
* GH¢200 million to the National Food Buffer Stock Company to mop up excess produce
* GH¢690 million to begin operationalizing Farmer Service Centres
* Investments in fertilizer, seeds, agrochemicals, warehouses, agro-processing plants, and irrigation projects
* A US$500 million Oil Palm Development Finance Window
Government also announced measures to promote all-year vegetable production, expand irrigation under the Irrigation for Wealth Creation Initiative, and support agro-industrial value chains.
However, PFAG points out several concerns, including the slow pace of NAFCO operations; the limited GH¢105 million allocation for irrigation; delays in establishing Farmer Service Centres; and the absence of new major irrigation facilities. The group also notes inconsistency between the stated allocation to NAFCO and the figures captured in the budget.
Key Gaps Identified
PFAG highlights several critical areas the budget failed to address:
* Absence of an Agricultural Development Fund to cushion farmers against shocks
* Lack of investment in pastoral development and stalled cattle ranching and transhumance initiatives
* Limited agricultural financing at the district level under the District Assemblies Common Fund
* Slow progress on tax waivers for agricultural inputs, which could reduce production costs by up to 20 percent
Conclusion and Recommendations
While acknowledging the steps taken in the 2026 budget, PFAG insists that agriculture requires far greater commitment to achieve food security, reduce the US$3 billion food import bill, and improve the livelihoods of farmers nationwide. The Association calls for strengthened resource allocation, legal backing for local food procurement in schools and public institutions, clear timelines for major agricultural projects, and robust accountability mechanisms.
PFAG says that with more ambitious investment and consistent implementation, the 2026 budget could set Ghana on the path to agricultural transformation, resilience, and inclusive economic growth.