Finance Minister Dr Cassiel Ato Forson has unveiled an ambitious agricultural transformation agenda in the 2026 budget, allocating significant resources to mechanization, improved seeds, irrigation infrastructure, and agribusiness credit lines targeting youth and women farmers.
Presenting the budget to Parliament on Thursday, November 13, Dr Forson announced that government will provide over 4,000 pieces of farm machinery to farmers in 50 districts to support agricultural mechanization. The equipment includes heavy duty combine harvesters, tractors with varied implements, rice mills and other primary and secondary processing machinery.
The Agriculture for Economic Transformation Agenda (AETA) aims to modernize cocoa farming and boost agricultural productivity across key value chains including cocoa, rice, maize, poultry, and aquaculture. Government expects to revive cocoa farming through improved support systems, targeting 5.6% growth in 2025 and 8.3% in 2026 after a 22.4% decline in 2024.
Government will establish farmer service centres nationwide to provide technical assistance, inputs, and market linkages. The centres will offer extension services, help farmers access affordable financing, and connect producers directly to markets under the Ghana Commodity Exchange system.
The budget includes subsidies for improved seeds and fertilizers to increase agricultural yields and food security. Government aims to expand the availability and use of quality certified seeds by incentivizing private enterprises to produce adequate domestic quantities and facilitate timely distribution at subsidized prices through public and private outlets.
Farmers will receive support for organic and inorganic fertilizers at reduced rates to boost soil fertility and crop productivity. The fertilizer support programme aims to increase application rates from current levels while ensuring timely procurement, transport and distribution to farmers across all regions.
Expansion of mechanisation centres and warehouse facilities forms a critical part of the agricultural modernization strategy. As of September 2022, 65 out of 80 planned warehouses had been fully completed and became operational. The remaining 15 reached advanced stages of completion, adding 80,000 metric tonnes to national grain storage capacity.
The warehouse infrastructure will promote the Ghana Commodity Exchange, enhance food security, and provide capacity to leverage opportunities under the African Continental Free Trade Area (AfCFTA) for agricultural commodity trade. The facilities will significantly reduce post harvest losses that currently reach about 18% of annual maize production.
New agribusiness credit lines for youth and women will enhance access to affordable financing for agricultural enterprises. The government is implementing interest rate subsidies for agribusinesses in selected value chains including rice, soybean, tomato, and poultry under the CARES Obaatanpa Programme.
President Mahama has directed all schools from basic to secondary levels to purchase rice, maize, chicken, and eggs produced in Ghana only. The directive affects thousands of educational institutions including primary schools, junior high schools and senior high schools participating in the Free SHS Programme.
Five key governmental and educational agencies have been tasked with oversight and enforcement of the local sourcing policy. The National Food Buffer Stock Company (NAFBC), as the national food aggregator and storage facility, will play a central role in facilitating bulk purchases and distributing locally produced rice and maize to schools.
The policy serves as a crucial form of non cash subsidy and market intervention for Ghanaian farmers, providing stability for four key commodities. The programme will directly benefit local rice, maize, poultry and egg producers by guaranteeing government as a consistent bulk purchaser.
Government is implementing irrigation projects to support year round farming. Key initiatives include rehabilitation of the Vea Irrigation Scheme, commencement of work at the Pwalugu Irrigation Project, and certification of 15 Water Users Associations. At full completion, the Vea scheme will produce 6,750 metric tonnes of rice annually with an estimated value of GH¢3 billion.
The Tamne economic enclave is expected to generate GH¢192 million from 4,800 metric tonnes of onions produced annually. The irrigation projects will facilitate year round agricultural production for export and agro industry, create employment, and reduce rural urban migration by making farming more profitable.
Government has secured over 60,000 hectares of land for establishment of agricultural zones through collaboration with traditional rulers. The land allocation strategy aims to enable large scale commercial farming operations, creating opportunities for mechanized agriculture and modern farming techniques.
An Assembly Plant has been established in the Ashanti Region for tractors, backhoe loaders, and local fabrication of agricultural implements under a US$24.984 million Indian Government EXIM loan agreement. Four enterprises including Kambung Cooperative, Denko Agri Company Limited, Indofarms Ghana Limited and others will benefit from the facility.
Capacity building for machinery operators will continue to ensure effective handling of agricultural equipment. Mechanisation Training Centres and irrigation schemes will work together to ensure farmers can effectively use modern equipment and maximize returns from improved farming techniques.
The poultry sector receives special attention with government supporting 140 poultry farmers in Ashanti, Bono, Eastern and Greater Accra regions with 900 metric tonnes of feed and vaccines at subsidized rates. The Broiler Project targets distribution of 900,000 Day Old Chicks to boost domestic poultry production.
Rural women and youth will receive sustainable alternative livelihood opportunities through the Rearing for Food and Jobs module. Beneficiaries receive 120 capacity poultry battery cages to house birds they supply, empowering them economically while promoting improved household nutrition.
The comprehensive agricultural modernization agenda represents a shift from subsidy based policies to sustainable financing models that provide farmers with complete packages of inputs and services. The strategy aims to transform Ghanaian agriculture from small scale subsistence farming to commercially viable operations that can compete regionally under AfCFTA.
Government investment in irrigation, mechanization, improved seeds, and market infrastructure addresses the full agricultural value chain from production through processing to marketing. The approach recognizes that agricultural transformation requires more than fertilizer subsidies, demanding integrated support for modern seed varieties, mechanization, extension services, storage facilities and market access.
