Business News of Wednesday, 9 December 2020

Source: businessghana.com

Private investment needed in agricultural mechanisation - Review

The report noted public private ppartnerships was yet to be strengthened The report noted public private ppartnerships was yet to be strengthened

A review of agricultural mechanisation policies and ordinances in Ghana has recommended the nurturing of a policy environment that encourages private-sector-led development of agricultural mechanisation.

It noted public-private partnerships was yet to be strengthened to deliver the needed agricultural mechanisation support and private financing was based on market rates.

Presenting the findings of the analysis at a policy dialogue in Accra, a Research Scientist, Dr Adams Abdulai, said the nature and extent of state involvement should be well structured since mechanisation was an important complement to agriculture intensification and reduced drudgery and post-harvest grain losses.

“Specific agricultural mechanisation policy is needed for effective modernisation and commercialisation of agriculture. Extend the mechanisation view to include small farm implements that meet the expectations of smallholder farmers and promote their structural inclusion,” he said.

Dr Abdaulai added, “Increase investments/budgetary allocations for post-production infrastructure and ensure mainstreaming at the various metropolitan, municipal and district assemblies (MMDAs).”

The review

The Science and Technology Policy Research Institute of the Council for Scientific and Industrial Research (CSIR-STEPRI), under the Africa Research in Sustainable Intensification for the Next Generation (Africa RISING), project conducted the study to investigate the extent to which mechanisation is promoted and implemented in agricultural development ordinances and policies in Ghana at the community, district, and national levels.

Mechanisation in Ghana

According to the review, government’s involvement in agricultural mechanisation is seen in the high subsidies provided for farm machinery, especially tractors.

The demand among smallholder Ghanaian farmers for mechanised farming is growing in Ghana and labour constraints imposed by increasing farm sizes and existing labour is playing a catalytic role in the drive towards agricultural mechanisation.

Also, the emergence of rental services has made agricultural mechanization common among smallholder farmers, especially in the northern cereal-producing areas of Ghana.

Gaps in policies

The review identified mechanisation policies have largely focused on tractor services at the expense of small farm implements.

Post-production infrastructure (processing) has received little attention in the available policies and programs implemented.

Also, there is poor implementation of target credit support schemes on mechanisation and although policies are generally gender neutral, in terms of implementation, males dominate the mechanisation space in relation to access and ownership.

Challenges

Agricultural mechanization did not follow a holistic approach while various stakeholders outside the agricultural sector are not much deeply involved in a coordinated manner.

Economic and social development policies to drive growth in the agricultural sector have focussed on the narrow view of mechanisation: providing tractor services for on-farm activities to reduce drudgery and increase production.

“The general consensus is that agricultural mechanisation is only profitable for financially viable crops. Agricultural mechanisation is not profitable without subsidies,” it stated.

Agric devt

The Director at the CSIR-STEPRI, Dr Mrs Wilhelmina Quaye, said access to appropriate support services for mechanisation was a critical developmental issue in agric sector.

Therefore, she said government’s commitment to transform the sector to catalyse industrial transformation could not be achieved without mechanisation.

“There cannot be any modernisation of the agric sector without critical attention to mechanisation. There is the need to change the narrative that agric production in Ghana is predominantly done by smallholders using traditional methods of farming,” she said.

Conclusion

It outlines some policy areas that need to be strongly delivered. These include; collaboration with the private sector to build capacity, and companies to produce and/or assemble appropriate agricultural machinery, tools and equipment locally; and promote small-scale multipurpose machinery along the value chain, including farm-level storage facilities, appropriate agro-processing machinery/equipment and intermediate means of transport.

“Improve mechanisation in animal husbandry especially, intensify the use of animal traction through the establishment of animal traction centres.”

“Promote local assemblage of tractors and encourage adaptation and local fabrication of processing equipment and develop human capacity in agricultural machinery management, operations and maintenance with the public and private sectors,” it stated.