PFAG Identifies Critical Gaps in 2026 Budget, Warns of Agriculture Sector Vulnerability Without Development Fund
The Peasant Farmers Association of Ghana (PFAG) has identified significant gaps in the 2026 Budget Statement which, in its view, weaken the country’s ability to build a resilient and competitive agricultural sector despite the government’s renewed emphasis on food systems transformation.
In its Post-Budget Analysis on the implications of the 2026 fiscal plan for agricultural development, the Association acknowledged improvements in resource allocation and welcomed initiatives such as the Feed Ghana Programme, increased funding for the National Food Buffer Stock Company, investments in Farmer Service Centres, and the directive requiring schools to procure food locally. PFAG said these interventions, if fully implemented, could boost productivity, reduce post-harvest losses and enhance market access for smallholder farmers.
However, the Association maintained that the budget leaves critical structural issues unaddressed. PFAG stressed that the absence of an Agricultural Development Fund remains a major policy omission, arguing that Ghana’s farmers continue to face recurrent shocks from climate stress and pest invasions to diseases and significant post-harvest losses yet mitigation efforts remain “knee-jerk and ad-hoc.” The Association warned that without a predictable funding mechanism, the sector remains exposed to avoidable disruptions that could derail gains made in recent years.
PFAG also expressed concern over stalled progress in pastoral development, highlighting persistent conflicts between herdsmen and food crop farmers in several communities. It cited abandoned initiatives such as the cattle ranches at Wawase and Amankwa and the slow implementation of the Ghana Cattle Ranching and Transhumance Committee’s framework for establishing grazing corridors. These corridors, PFAG noted, have the potential to generate revenue and regulate transhumance activities, but lack of investment and legislative clarity has halted progress.
Despite agriculture employing 38.3% of Ghana’s population and playing a decisive role in food security and industry sustainability, PFAG insists the sector remains underfunded. The Association reiterated that the GHS 7.8bn allocation equivalent to 2.18% of total government expenditure falls far below the 10% Maputo Declaration target and is inadequate to drive the level of transformation required.
The Association further noted slow movement on irrigation expansion, tax waivers on inputs, mechanisation, and decentralised agricultural financing through the District Assemblies Common Fund. According to PFAG, closing these gaps is essential for a sector whose performance has direct implications for inflation, currency stability and overall macroeconomic health.
With Ghana’s agriculture share of GDP rising to 24.8% as of Q2 2025, after years of decline, PFAG argued that bold, targeted investment is necessary to sustain the recovery. The Association called for stronger resource allocation, legislative backing for local food procurement, accelerated irrigation and mechanisation programmes, and transparent management of sector interventions.
According to the PFAG, a more ambitious and coordinated investment effort could position the 2026 Budget as the foundation for inclusive growth, food sovereignty and long-term resilience while safeguarding the livelihoods of millions of farmers across the country.
