- 2026 Mid-Year Budget: PFAG Questions Whether Feed Ghana Funds Are Reaching Farmers
PFAG warns that delayed spending, weak markets and rising input costs threaten government’s Feed Ghana ambitions
Ghana’s improving macroeconomic indicators are yet to translate into stronger incomes for smallholder farmers, with the Peasant Farmers Association of Ghana (PFAG) warning that delayed government spending, weak market systems and rising production costs are undermining efforts to transform agriculture into a major driver of growth.
The warning comes ahead of the 2026 Mid-Year Budget Review, where PFAG is pushing government to move beyond announcing agricultural allocations and focus on whether funds are actually reaching farmers, infrastructure projects are being completed and markets are working effectively.
For Ghana’s agriculture sector, the central question is no longer only how much money is allocated in the national budget, but how effectively those resources move from government balance sheets to the farms where production decisions are made.
“The mid-year budget provides an opportunity to correct the gaps in the 2026 Budget by directing more resources to areas that will improve productivity and protect the livelihoods of smallholder farmers,” Bismark Owusu Nortey, Acting Executive Director of PFAG, said.
The concern highlights a broader challenge facing Ghana’s economic recovery: the disconnect between macroeconomic stability and household-level economic improvement.
While inflation has moderated, the exchange rate has stabilised compared with previous periods of volatility and investor confidence has gradually improved, farmers argue that production costs remain elevated, limiting their ability to expand cultivation and benefit from improved economic conditions.
PFAG’s argument centres on what it describes as a mismatch between agriculture’s economic contribution and government spending priorities.
The association noted that agriculture contributes more than 21.00% of Ghana’s Gross Domestic Product and remains one of the largest sources of employment, yet received less than 3.00% of total government expenditure in the 2026 Budget.
For farmers, the issue is not simply the size of the allocation but whether spending is aligned with the structural problems preventing agricultural transformation.
Ghana has historically struggled with low productivity, fragmented markets, inadequate storage facilities, limited irrigation infrastructure and weak connections between farmers and consumers.
PFAG believes the Mid-Year Budget Review provides government with an opportunity to redirect resources towards interventions that can directly address these constraints.
Despite improvements in the wider economy, PFAG says farmers continue to face significant cost pressures.
The association pointed to higher fertiliser prices and increased machinery costs as examples of how global and domestic economic pressures continue to affect agricultural production.
According to PFAG, the average price of a 50-kilogramme bag of NPK fertiliser has increased from GH¢420 to GH¢460, while tractor services have risen from GH¢350 to GH¢400.
These increases have implications beyond individual farmers. Higher production costs ultimately affect food prices, farm profitability and Ghana’s ability to reduce dependence on imported food products.
PFAG also criticised delays in reviewing the Tax Exemptions Act to provide relief for agricultural inputs and machinery, arguing that taxes and import duties continue to increase the cost of production.
One of the biggest structural weaknesses identified by PFAG is Ghana’s agricultural market system.
The association argues that many farmers are not necessarily failing because they cannot produce, but because they lack reliable markets to sell their output at profitable prices.
PFAG warned that imported food products are becoming increasingly competitive against locally produced staples, leaving some farmers with unsold rice, maize, cassava and other crops.
When farmers cannot recover their production costs after harvest, they enter the next farming season with reduced capacity to purchase inputs, hire machinery or expand production.
PFAG also estimates post-harvest losses remain between 30.00% and 40.00%, driven by inadequate storage facilities, poor feeder roads and weak market linkages.
The result is a paradox: Ghana can experience periods of strong domestic production while farmers remain financially vulnerable because value is lost between harvest and consumption.
PFAG acknowledged government’s Feed Ghana Programme and several interventions, including fertiliser distribution through farmer organisations, the Nkoko Nkitinkiti poultry initiative and the construction of Farmer Service Centres.
The association said the direct distribution of fertiliser through organised farmer groups represented an improvement in how agricultural support reaches beneficiaries.
Nortey disclosed that PFAG received an allocation of 40,000 bags of fertiliser, describing the approach as a positive shift from previous delivery models.
However, he warned that implementation delays remain a major concern.
Of the planned 50 Farmer Service Centres, only 12 were reportedly under construction despite significant budget allocations.
PFAG also noted that while fertiliser distribution had commenced, certified seeds and other critical agricultural inputs had not yet been fully supplied.
This raises a key policy question: whether Ghana’s agricultural challenge is primarily a financing problem or an execution problem.
The association’s strongest criticism relates to delayed releases of capital expenditure funds.
PFAG said nearly GH¢2 billion had been allocated for Feed Ghana projects, including Farmer Service Centres and irrigation infrastructure, but only about GH¢200 million approximately 10.00% of the allocation had received procurement approval by June 2026.
For PFAG, increasing allocations without improving execution risks repeating a familiar cycle where budgets contain ambitious agricultural programmes but implementation falls behind.
“Funding commitments must translate into actual projects on the ground,” is the central message from the farmers’ group.
The association is urging the Ministry of Finance to accelerate commitment authorisations and releases in the second half of the year to ensure agricultural interventions are delivered within the farming calendar.
Beyond immediate budget releases, PFAG is advocating structural reforms.
The association wants government to establish Commodity Aggregation Centres across all 16 regions, linked to digital trading platforms that connect farmers directly with buyers while improving access to finance, insurance and extension services.
It has also proposed a “Farmers First” procurement policy requiring public institutions, including schools, hospitals, prisons and the School Feeding Programme, to purchase food directly from registered farmer groups at guaranteed minimum prices announced before planting.
The proposal is designed to reduce market uncertainty and give farmers greater confidence when making production decisions.
PFAG is also calling for an Agricultural Investment Fund, modelled on the Ghana Education Trust Fund (GETFund), to provide long-term financing for agricultural infrastructure.
