PFAG Warns 2026 Agriculture Allocation Remains Inadequate Despite Sector Gains
The Peasant Farmers Association of Ghana (PFAG) has cautioned that the GHS 7.8 billion allocation to the agriculture sector in the 2026 Budget remains insufficient to deliver the level of transformation required to sustain growth and improve food security.
Presenting its post-budget analysis, the Association acknowledged improvements in sector allocation compared to last year but stressed that the amount representing just 2.18% of total government expenditure falls far below the investment levels needed to modernise agriculture and address long-standing structural weaknesses.
According to PFAG, the allocation does not align with the sector’s strategic importance to employment, industrialisation, currency stability and food inflation management. The group maintained that underfunding agriculture continues to undermine performance in other productive sectors, weakening overall macroeconomic outcomes.
The concerns come at a time when national GDP performance shows renewed momentum. Ghana recorded 6.3% GDP growth in the first half of 2025, up from 5.1% during the same period in 2024, driven largely by agriculture, services and construction—a shift from 2024 when growth was led predominantly by the mining and quarrying sector.
Despite agriculture’s declining share of GDP over the decades from 41% in 2005 to 19% in 2024, recent data suggests a rebound. The sector’s contribution to GDP rose to 24.8% as of the second quarter of 2025, showing signs of recovery as growth-supporting policies begin to take effect.
Agriculture remains one of the most critical pillars of the economy, employing about 38.3% of Ghana’s population, with rural communities and women dominating both production and value chain activities. PFAG emphasised that the sector’s health directly influences domestic industry sustainability, food price stability, and the strength of the cedi.
The Association reiterated that chronic underinvestment continues to hinder productivity and resilience, stressing the need for stronger public funding commitments to achieve meaningful transformation.
