Inflation, climate change take toll on Ghana’s agricultural sector

AN agriculture expert and lecturer at the University of Ghana, Susanna Egyiri, has called for immediate policy interventions to tackle the pressing challenges facing Ghana’s agricultural sector.

She explained that high inflation, funding challenges, climate change and technological issues were some major challenges that posed serious issues associated with the current farming challenges, warning that if policy interventions failed to address these challenges, farmers would be disincentivised to continue farming.

Inflation, for instance, she said had led to a sharp rise in the cost of essential farming inputs such as seeds, fertilisers and machinery, making the cost of farming inputs excessively higher for the ordinary farmer.

“Agriculture is the backbone of Ghana’s economy, and these issues cannot be ignored. It is crucial to implement coordinated measures to address food inflation, stabilise input costs, enhance access to credit and invest in climate-resilient infrastructure.

Farmers are struggling to afford basic inputs. The prices of seeds have doubled in some cases, fertilisers are almost out of reach for many and machinery costs have skyrocketed due to the depreciation of the cedi. These factors are creating barriers to productivity and profitability for farmers,” she said.

In an interview with Graphic Business, Mrs Egyiri stressed that addressing these concerns was essential for sustaining the sector’s growth and ensuring long-term food security in the country.

The call comes at a crucial time when prices of food have skyrocketed in the last year, putting a financial burden on consumers.

PFJ

Ghana’s agricultural sector has long been beckoned as a key pillar of the economy, contributing significantly to employment and national Gross Domestic Product (GDP). 

However, the sector has faced ongoing challenges that have hindered its growth. 

In recent years, these challenges have intensified, particularly with the effects of climate change and economic pressures. Food inflation, driven by the rising costs of inputs, has placed additional strain on farmers while consumers are grappling with escalating food prices.

In response to these challenges, the government launched the flagship Planting for Food and Jobs (PFJ) programme in 2017, aimed at boosting agricultural productivity. 

Despite spending an estimated GH¢2.9 billion on the first phase of PFJ by September 2023, the sector’s growth rate remains alarmingly low at just 0.7 per cent, with food inflation still surging.

Access to funding

Again, Mrs Eqyiri pointed to the lack of support or funding schemes that are dedicated to farmers to support their businesses, adding that the sector is suffering as a result of a lack of funding.

These, she said, were serious challenges and that farmers were struggling due to economic crises.

The government recently introduced the Planting for Food and Jobs (PJF II) to provide some solutions to the perennial farming shortages that hit the country. 

She warned that unless urgent measures are taken to stabilise prices and provide subsidies, many farmers may be forced to reduce production or abandon farming altogether.

Investment in climate-resilient crops

She further said the effects of climate change and weather variability have compounded the struggles of Ghanaian farmers. 

She explained that unpredictable rainfall patterns and prolonged dry spells are disrupting farming schedules and reducing crop yields.

To help farmers adapt to the changing environment, Mrs Egyiri called for enhanced investment in climate-resilient agricultural practices and technologies, saying “In recent years, we have experienced unpredictable weather conditions that make farming very difficult. 

Some regions are facing droughts, while others are dealing with floods. Farmers can no longer rely on traditional planting and harvesting cycles, and this has a ripple effect on productivity,”

Looking ahead

The incoming administration has pledged to prioritise agriculture in its manifesto. The party has committed to making significant investments in the sector should it assume office, with the goal of revitalising agriculture and agribusiness in the country.