The Peasant Farmers Association of Ghana (PFAG) demands that the government allocate at least 10.00% of national expenditure to agriculture in the 2027 Budget. This call aims to establish a dedicated agricultural development fund. The association warns that ongoing underinvestment and poor market access are hurting farmer incomes.
PFAG's Executive Director, Bismark Owusu Nortey, stated that Ghana's economic stability must lead to investments in food production. These investments should protect smallholder farmers from market, climate, and input cost shocks. He presented these proposals at the CSOs 2027 Budget Inputs engagement. Nortey argued that agriculture is severely underfunded despite its role in employment, rural livelihoods, and food security.
This demand for increased agricultural funding comes as Ghana navigates its broader economic recovery. The country has focused on macroeconomic stability. However, the agricultural sector, a major employer, has not seen proportional investment. PFAG estimates agriculture received only 2.00% of national expenditure in 2025. This figure is far below the 10.00% benchmark set by the Comprehensive Africa Agriculture Development Programme. The association's proposal creates a fiscal challenge for the government. It must balance expanding productive investment with maintaining budget discipline.
“Allocate at least 10% of national investment to the agricultural sector and increase allocation for effective implementation of the Feed Ghana Program,” the association stated. PFAG argues agriculture should be seen as a productive investment. Such investment can reduce food imports, strengthen rural incomes, and create jobs. It can also ease future pressure on food inflation.
The scale of the 'Feed Ghana Programme' highlights the financing gap. PFAG estimates this program needs about GHS 302 billion over four years. The government is expected to provide GHS 176.7 billion of this amount. Private investors are projected to contribute GHS 42.4 billion, with development partners adding GHS 83.1 billion. For 2026 alone, effective implementation required approximately GHS 66.7 billion. However, the actual allocation was less than GHS 2 billion.
Beyond headline allocations, PFAG also raises concerns about actual fund releases. Delayed commitment authorisations from the Ministry of Finance have slowed agricultural interventions. PFAG estimates that only about GHS 200 million of almost GHS 2 billion earmarked for capital expenditure had received procurement approval by June. “This is unacceptable and the Ministry of Finance must commit to fast-track the timely release of funds,” the association urged. Timely releases are crucial in agriculture, as spending aligns with planting and harvesting seasons. Late funds can reduce the economic value of allocations.
Market access is another critical concern for peasant farmers. PFAG's 2026 monitoring showed that over 60.00% of farmers struggled to sell their produce. Post-harvest losses reached between 30.00% and 40.00% in some areas. These losses result from seasonal gluts, inadequate storage, and weak market connections. Producers of rice, maize, soya bean, cowpea, yam, and cassava were particularly affected. Unsold produce often remained in warehouses or on farms, or was lost entirely.
PFAG warns that farmers unable to recover production costs may not finance the next season. This could turn today's surplus into tomorrow's supply shortage. The association proposes Commodity Aggregation Centres across all 16 regions. These centers would link farmers with buyers through digital platforms. They would also provide market information, finance access, insurance, and extension services. PFAG also advocates for a “Farmers First” public procurement framework. This framework would require institutions like the school feeding program and hospitals to buy directly from registered farmer groups. Purchases would be at guaranteed minimum prices announced before planting. PFAG is also pushing for immediate implementation of the rice import quota regime.