Ghana’s Dry Spell: GHS 3.5 Billion Losses Incurred by 436,000 farmers

Ghana’s Dry Spell: GHS 3.5 Billion Losses Incurred by 436,000 farmers

Reports indicate that nearly 436,000 farmers have incurred losses estimated at GHS 3.5 billion due to the ongoing drought conditions in the six regions responsible for about 62% of Ghana’s grain production.

The Drought and near-drought conditions over the past two months in the regions which are mostly up north have increased the risk of crop failure, as much as 1.8 million hectares of land are at risk and farmers growing food on roughly half that area have already been impacted.

Given the severity of the situation and its potential to result in food insecurity challenges for the country, some GHS 8 billion in relief package is being put together to support farmers who have been hit hard by the protracted drought.

Among the many forms of support to farmers include the payment of 1,000 cedis ($64) per hectare.

In view of the expected GHS 8 billion relief package to farmers, Finance Minister, Dr. Mohammed Amin Adam, has formally sought parliamentary approval for the withdrawal of GHS 500 million from the Contingency Fund.

In a letter to the Finance Committee, Dr. Adam emphasized that the unforeseen nature of the crisis deemed a “force majeure,” necessitates emergency funding outside the scope of the 2024 Budget.

“The proposed interventions are unplanned expenditures, and the Government cannot fund the GHS 8.36 billion requirement solely through the reallocation of existing budget lines,” the Minister explained.

The Ministry further outlined that the requested GHS 500 million will serve as a critical supplement, alongside funds expected from Development Partners and a realignment of fiscal operations within the existing budget framework.

In response to the escalating crisis, the government has already imposed an immediate ban on the export of key grains, including maize, rice, and soybeans, a move described by the Minister for Food and Agriculture, Bryan Acheampong, as essential to safeguarding domestic food supplies.