Agriculture has grown to become a key player in Ghana’s economy, contributing significantly to the nation’s foreign exchange revenues and employment. In 2024, agriculture remains a major employer, particularly in rural areas.
Research in 2023 by the Africa Development Bank (AfDB) showed that the sector accounted for an estimated 75% of the rural population’s employment as of February 2023.
In rural areas, agriculture remains a predominant source of income, as data from UDS International Journal of Development in 2019 indicates that 52% of households in Ghana operate a farm, with the vast majority of rural households in Ghana, often over 80% relying on agriculture as their main livelihood.
Data from Trading Economics in 2022 indicated that approximately 39.74% of Ghana’s total employment was in the agricultural sector.
44.1% of women in Ghana were employed in agriculture, forestry, and fishing in 2021. The shared skill of the workforce in Ghana is highest in the agriculture sector at 78.78%.
These data attest to and contribute to the importance of agriculture in the country.
The market size of Agriculture in Ghana is projected at a value of $3.40 billion as of 2024, with an expected growth rate of 2.56% annually reaching $3.87 billion by 2029.
When it comes to the average farm size in Ghana, it’s about 2.56 hectares, with a medium size of 1.56 hectares for smaller farms. Maximum farms can reach up to 30.76 hectares.
In the first quarter of 2024, the contribution of agriculture in terms of monetary value, was recorded at approximately GHC 10,848.60 million, which is a decrease from GHC11,619.42 million in the fourth quarter of 2023.
The sector is rocked with a number of challenges, with notable facts that modern farming techniques when introduced and carried out properly, coupled with facilities and access to finance will help grow the agricultural sector, beginning from smallholder farmers to the largest.
Some of these challenges include climate change and unpredictable weather patterns erratic rainfall and prolonged dry seasons, which have disrupted traditional farming cycles, leading to reduced crop yields and increased food insecurity. Extreme weather events, such as floods and droughts, further exacerbate these issues, damaging crops and infrastructure.
Currently, the northern sector is experiencing severe droughts, leading to the ban on the export of grains until November. The situation has contributed to the sharp increase of food items like maize and beans, also affecting poultry farmers who have less feed for their birds.
Inadequate infrastructure, poor road networks, non-accessible irrigation, and insufficient storage facilities are also hindering the efficient production, transportation, and marketing of agricultural products. Farmers often struggle to get their produce to market, leading to post-harvest losses.
Smallholder farmers, who make up the majority of Ghana’s agricultural workforce, face difficulties in accessing credit and financing. High interest rates, stringent loan conditions, and a lack of collateral prevent many from investing in modern farming techniques or expanding their operations.
The adoption of modern agricultural technologies, such as precision farming, improved seed varieties, and mechanization, remains low. This limits productivity and efficiency, keeping yields below potential levels.
When it comes to market access and price volatility, farmers often struggle to access profitable markets due to inadequate infrastructure, limited market information, and price fluctuations. This volatility can make it difficult for farmers to plan and sustain their livelihoods.
The agricultural sector, though profitable with access to the market and modern skills, is often unattractive to the younger generation due to its perceived low profitability and hard work. Consequently, the farming population is aging, which could lead to a decline in productivity over time.
While the government has introduced several initiatives to support agriculture, such as the Planting for Food and Jobs program, implementation challenges and bureaucratic delays limit its effectiveness.
The destruction of Ghana’s land due to illegal mining activities (galamsey) contributes to soil degradation, reducing land productivity and threatening the long-term viability of agriculture in Ghana.
Addressing these challenges will however require coordinated efforts between the government, private sector, stakeholders, and international partners to promote the sustainability of agricultural practices, improve infrastructure, and ensure farmers have the resources they need to thrive.
