Strategic Plan for Implementation of Planting for Food and Jobs (PFJ) Program. Ministry of Food and Agriculture

Transcription

1 Strategic Plan for Implementation of Planting for Food and Jobs (PFJ) Program Ministry of Food and Agriculture

2 Some quick facts.. Engaged in Farming Activities Portion of rural households 90% Portion of urban households 22% Sectoral share of labor force Agriculture (Including Forestry & Fisheries) 44.7% Services 40.9% Source: Ghana Living Standard Survey-6 (2014) Industries (14.4%)

3 ON-FARM YIELD AVERAGES (T/HA) YIELDS OF TOMATO & ONION (T/HA) Green revolution is long over due Rice Onion Maize 8 6 Tomato Sorghum 4 2 Chilli pepper Data source: FAOSTAT On-farm productivity of major food crops has stagnated Recent increase in production of food crops has largely come from increase in area under production

4 Yield gaps 30 Yield potential (t/ha) 25 Exploitable on-farm yield gap 20 Current yield (t/ha) Maize Rain fed Rice Source: Ghana-specific data from Sorghum Onion Tomato Chilli pepper Exploitable gap = Difference between actual on-farm average yield and 80% of experimental yield Technology adoption by farmers can reduce the yield gaps

5 FERTILIZER CONSUMPTION (KG/HA) Fertilizer uptake has fallen back to pre-subsidy program level Lower Middle Income Group Countries Fertilizer Subsidy Program introduced 30 0 Data source: World Bank Ghana Sub-Saharan Africa Despite a National Fertilizer Subsidy Program; the low fertilizer uptake partially explains lower on-fam productivity

6 SHARE OF AGRICULTURE GDP (%) GDP (CURRENT US$) 35 Growth is receding in labor-intensive and poverty-elastic Agriculture Sector 6E E E+10 3E+10 2E E+10 Data source: FAOSTAT GDP (Current US$) Agriculture, value added (% of GDP) 0 90% of farms [smallholder ( 2 Ha) farms] contributes to 80% of Ag-GDP Where should the government focus its investments on?

7 PLANTING for FOOD and JOBS

8 PFJ: More Food and More Jobs Goal: To contribute to modernization of agriculture sector that will lead to structural transformation of national economy through food security, employment opportunities and reduced poverty Objectives : i. To ensure immediate and adequate availability of the selected crops in Ghana through improved productivity and intensification of food crops, and extended support to private sector service providers ii. To provide job opportunities for the teeming unemployed youth in the agriculture and allied sectors, and

9 National Context Alignment of PFJ s objectives Ghana s vision 2020 Coordinated program of economic and social development policies ( ) envisages a transformed agriculture with forward and backward linkages to the industrial and services sectors Ghana s Shared Growth and Development Agenda II (GSGDA-II; ) underscores the importance of improving the productivity of crops and livestock; accelerating job creation; and enhancing the competitiveness of the sector to ensure its integration into the domestic and international markets Medium Term Agriculture Sector Investment Plan (METASIP) The GoG has recently validated the policy matrices for METASIP-I and II, and has further developed a roadmap for METASIP-III ( ). The PFJ will represent a flagship program under the METASIP-III

10 Regional Context Alignment of PFJ s objectives Comprehensive African Agriculture Development Program (CAADP) Under Malabo declaration, Ghana s CAADP Deliverables include provision of farm inputs, appropriate knowledge, information, and skills to smallholder farmers and create job opportunities for at least 30% of the youth in agricultural value chains for inclusive agricultural growth transformation Economic Community of West African States (ECOWAS) Regional Agricultural Investment Program (RAIP) RAIP emphasizes on the sustainable development of farms through integrated management of soil fertility, strengthening of support services provided to producers and dissemination of improved technologies

11 Global Context Alignment of PFJ s objectives Sustainable Development Goals (SDG) Ghana s SDG targets increased investments on enhancing agricultural productive capacity through enhanced agricultural research and extension services, technology development SDG-2: End hunger, achieve food security and improved nutrition through promotion of efficient and sustainable intensification and climate-proofing of agriculture SDG-8: Promotion of sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all substantially expand employment opportunities and achieve higher levels of economic productivity through a focus on high value added, labor intensive sectors such as agriculture

12 PFJ s Approaches Motivate farmers to use input- and output markets and generate employment opportunities along the value chains Subsidy as a tool/incentive for motivating farmers 50% of the costs of inputs (seed and fertilizers) are subsidized Participating farmer pays the remaining half in two instalments: - o First half as down payment while collecting the inputs o Second half at the time of harvest o Farmers who do not pay dues become ineligible to participate in the PFJ program Complementary Services include: - Embedded extension services Marketing of outputs

13 Overall design of the PFJ Strategy Key role of private sector: Spearhead marketing of inputs and outputs Key role of public sector: Facilitation & Coordination of stakeholders Seed Timely access to adequate quantities of quality seeds Fertilizer Increased availability of fertilizers and its usage Structural transformation through Agriculture Adequate availability of food crops, Job Creation Increased productivity through improved adoption of Inputs Extension Services Reliable and routine technical assistance to experience the full benefits Marketing Abate price volatility and ensure repayment and linkages E- Agriculture Efficient targeting and improved governance of the outreach and impact Private input- and service providers, traders, processors Ministry of Food and Agriculture, Local Governments

14 PFJ Value chains Maize, Rice, Sorghum, Soybean, Tomato, Onion and Chilli pepper Crops are selected based on their potential contribution to: - food security smallholder farm profitability/income supply of raw material for the livestock and industrial sector reduction in food import bill job creation economic activity from various segments along the value chain -using such tools as decision matrix analyses engaging stakeholders from various administrative regions-

15 PFJ Targeting & Outreach Willingness to participate: - o Productive-poor o Resource-poor Smallholders (0.4-2 Ha) Women farmers (at least 40%) national in scope covers all the 216 districts in the country growers in urban and peri-urban areas Subsidies are limited to a maximum of 2 Ha per beneficiary

16 Mobilizing farmers Awareness through mass media, local information meetings Proven farmers who are willing to demonstrate and encourage adoption by peer farmers and farmer groups Collective farming approach o nucleus farms - the primary farm operator provides support in purchasing the inputs, marketing the outputs and repaying the costs o registered FBOs with common interest in raising farm productivity and revenues Inclusiveness of youth and women (at least 40%) through prioritization of their participation at all levels empowerment through leadership in organizing farmers promoting their participation in trading, processing, value addition and financing

17 PFJ Targeting & Outreach Beneficiaries Crop cover (Ha) Eligible districts FBOs ,350 2,000 Nucleus farmers 100 1,750 3,400 5,000 Direct Clients 200, ,000 1,000,000 1,500,000 Households 202, ,400 1,123,500 1,682,000 Crop Maize 85, , ,780 1,182,040 Rice , , ,840 Sorghum - 118, , ,320 Tomato 4,800 27,174 42,090 54,520 Onion 300 4,560 7,400 9,767 Chilli pepper 4,600 10,046 13,678 16,704 Soya bean - 78, , ,000 Total 108, ,321 1,498,068 1,961,191

18 Timing activities for efficient implementation Public Institutions Private Sector Development Partners Timeline Throughout November/ preceding year February/ implementing year Throughout April-June Activities Communicate with stakeholders on the details of the subsidy packages Populate the e-agriculture platform (list of targeted beneficiaries, information on input distribution and extension services) Details of the subsidies (such as amount, type of inputs and the list of target entities) made available Administrative and logistical operations (selection of private suppliers, negotiations on prices, quantity and type of inputs for distribution) completed Secure the quality of the distributed inputs (fertilizers and seeds) Annually review of the performance indicators

19 Pillar 1: Seed Specific Objective: Facilitate market-led production of adequate quantities of quality (certified) seeds by private enterprises and timely distribution through public and private outlets to the targeted beneficiaries Crop Maize Rice Sorghum Soya bean Tomato Chilli pepper Seed rate (Kg/Ha) Seed pack sizes OPV, 22.5 Hybrids, 25 5 Kg, 10 Kg, 20 Kg Kg, 10 Kg, 20 Kg 5 Kg, 10 Kg 5 Kg, 10 Kg, 20 Kg Expected Outputs: Increased adoption of certified seeds Increased participation of private seed companies Increased on-farm productivity Onion 50g, 100 g 50g, 100 g 1 Kg

20 Seed Requirements Seed Class Certified Seed (tons) Basic Seed (tons) Breeder Seed (Kg) Crop/ Year Maize (OPVs) Maize (Hybrids) Rice Sorghum Tomato Onion Chilli pepper Soya bean

21 Major Activities under the pillar Seed Seeds selection Market oriented varieties selected by beneficiaries Participatory research Research on varietal improvement Climate resilient varieties Purification of available cultivars Partners Local Seed Enterprises NASTAG Research Institutions (breeder seed production) PPRSD: Inspection and Certification Distribution Haulage companies with E-way bill system Private outlets (public systems during initial stages) Mobile seed vans Complementary Services Extension services on efficient use of seed and seedlings Training for seed producers and seed users

22 Key performance indicators for activities (intermediate) under pillar 1. Seed Number of improved varieties made available on the market through PFJ implementation Quantity of certified seeds of improved varieties sold Proportion of the required quantities of certified seeds required met by registered farmers Number of registered private seed companies supplying certified seeds Stock to sale ratio of certified seeds of selected varieties under the PFJ Number of hectares planted to certified seeds of improved varieties of target crops under PFJ Number of contractors of certified seeds meeting deadlines for supply

23 Pillar 2: Fertilizer Specific Objective: Motivate farmers on the use of fertilizers by providing incentives and increased access to timely and adequate fertilizer supply through private sector participation Crop Maize Rice Sorghum Soya bean Tomato Chilli pepper NPK (bags/ Ha) Urea or Sulfate of Ammonia (bags/ Ha) Onion Bio-fertilizer Expected Outputs: Increased adoption of fertilizers Increased participation of private seed companies Increased on-farm productivity Increased job creation

24 Proposed New Subsidy Model Suppliers E-Voucher Banks MOFA E-Voucher Recommendations for selection of farmers Reimbursement Distribution Entities Input Dealer Extension Department Community Organization Best Management Practices E-Voucher Best Management Practices E-Voucher Fertilizer Supplies Farmer Source: AGRA-Ghana Office

25 Requirements Fertilizer/Year NPK 27, , , ,050 Bio-fertilizer - 11,813 24,938 26,250 Urea or Sulfate of Ammonia 13, , , ,857 Major Activities Selection of Fertilizers Support to supply chain Complementary Services Standard recommendations Local blending of micronutrients Private fertilizer companies take tender and supply through agro-dealer network at negotiated prices E-way bill system E-voucher system Weights, standards and quality measures Extension services on efficient fertilizer use (time and space) demonstrations, field days Facilitate collective buying through FBOs, nucleus farms Provisions for repayment in cash and/or kind through designated traders

26 Key performance indicators for activities (intermediate) under pillar 2. Fertilizers Number of registered private entities engaged in fertilizer imports and distribution Quantity of imported fertilizers Number of public/private retail outlets for fertilizer Average Quantity of fertilizer used per hectare of target crop Stock to sale ratio of the fertilizers in retail outlets Average payment processing time for fertilizer importers, transporters and distributors on account of improved ICT services

27 Trajectory for graduation from subsidy dependence Promote availability of superior alternatives (such as hybrid seeds and other superior varieties) outside the sphere of the program that could replace those seeds that are promoted through the program Building trust on the quality and standards of inputs Providing subsidized inputs in smaller packs (1acre/0.4 Ha) Enabling strong private participation in input supply systems Gradual reduction in subsidy component Exit subsidy once about 30% of the farmers start adopting certified seeds and fertilizers.

28 Pillar 3: Extension Services Specific Objective: Augment the outreach and the impacts of the PFJ program through increased frequency and the quality of extension services on various technical and non-technical services and markets Embedding Extension Agents Human capacity gap will be addressed by recruiting 1400 (4,000-2,600) new AEAs 858 already recruited Training all (existing and new) AEAs Expected Outputs: Incremental adoption of the facilitated inputs Increased on-farm productivity Improved sustainability in farming Increased job creation

29 Pillar 3: Extension Services Major Activities Recruit and embed agriculture extension agents in close proximity to production areas under the PFJ program Mobilize individual farmers and farmer groups through nucleus farms, farmer based organizations through awareness creation Transfer technologies on efficient input usage, good agronomic practices, postharvest handling, storage and marketing through regular and recurrent training and visits Promote e-registration and e-validation of the beneficiaries and repayment of balance on subsidized inputs

30 Key performance indicators for activities (intermediate) under pillar 3. Extension Services Changes in Extension Agent/Farmer ratio Changes in Number of farmers who have received extension services through the PFJ program Number of farmer groups trained Farmers satisfaction with extension services Proportion of farmers using certified seeds Proportion of area under cultivation covered by certified seeds of improved varieties under the PFJ Number of farmers that applied new technical and management practices as result of agricultural extension services Proportion of registered farmers under PFJ using fertilizer for target crops Proportion of PFJ registered farmers adopting integrated soil fertility management techniques

31 Pillar 4: Marketing of Produce Specific Objective: promote the roles of private sector in trading, storage and marketing of farm outputs and facilitate forward and backward linkages between the producers and commodity chain actors Average yield (t/ha) Expected additional production (tons) Crop Current Projected Maize ,427 1,915,912 3,732,007 3,913,616 Rice , , , ,727 Sorghum , , ,832 Tomato , , , ,042 Onion ,370 36,026 73,421 77,161 Chilli pepper ,900 65, , ,576 Soya bean n/a 5-212, , ,500 Expected Outputs: Translation of higher production to higher real farm incomes Increased job creation in farm and off-farm sectors

32 Pillar 4: Marketing of Produce Major Activities Engage private aggregators in collecting the farm outputs and balance payments from the farmers Construct new and rehabilitate old warehouses in high production areas and lease to private operators for collection, quality enhancement, storage and value addition of produces Establish linkages between farmer groups, private aggregators and public food procurement programs and food- and feed enterprises Monitor and attenuate volatility in prices of input and outputs caused by unfair market practices Promote job creation opportunities along the input supply and commodity chains in agriculture and allied sectors

33 Key performance indicators for activities (intermediate) under pillar 4. Marketing of Produce Proportion of farmers output of target crops sold Percent share of local produce of selected crops in national food market Value of incremental sales (collected at farm-level) attributed to PFJ implementation Value of new private sector investment in the agriculture sector or food chain leveraged by PFJ implementation Number of functional storage warehouses in operational areas as a result of PFJ Percent share of local produce in national animal feed markets Volume of maize/soybean sourced by Private Enterprises from aggregators, nucleus farmers and FBOs for animal feed Number of marketing agreements between private food aggregators and public food programs Volume of selected grains sourced by public food programs

34 Facilitate forward contract agreements between producers and buyers with appropriate clauses De-risking price volatility Engage NAFCO's role via national stockpiles and buffer stock facilities with clearly redefined policies that will alleviate current challenges Promote o horizontal diversification of PFJ program into alternative crops o value addition of the outputs, o partnerships and joint ventures with various commodity chain actors, and o financial risk management tools (insurance products, forward options and futures contracts)

35 Promotion of input use Job creation pathways Expansion of Farming Activities Labor Marketing of Produce Services (Extension, ICT, Transporta tion, etc.) Supply chain activities Demand for nonfarm goods & services importation local blending local production of certified seeds financial services farm mechanizati on services storage services trading/retail ing and distribution services transportatio n services e- registration and data processing services rural banking services public- and private extension services export marketing value addition processing of raw materials trading of commodities

36 Job creation potential Value chain activity Total Input Supply Chain (Seeds, Fertilizers) 4,536 5,443 6,532 7,838 24,349 Task requiring employment Production No. 471,713 of jobs 566, , ,120 2,532,155 Seed and fertilizer suppliers Postharvest handling and processing 378, , , ,867 2,031,224 Fertilizer distributed (60,066MT) Marketing of Outputs 4,968 12,013 5,962 7,154 8,585 26,668 Seeds distributed (3,050MT) E-Agriculture 3, ,666 5,599 6,718 20,871 Each outlet employs 2 persons (5x2x216) 2,160 Total 863,500 1,036,200 1,243,440 1,492,128 4,635,268 Input Distribution by District Assemblies 1,080 Production (Due to the expansion of acreage; 231,126 ha) Labors (3 extra workers/ha) 3x231,126 persons 693,378 Each tractor will need 2 operators (963x2) 1,926 Post-Harvest- processing Each machine will need 2operators (5x2x216) 2,160 Marketing- Aggregators 5,400 Warehouse for storage 2,160 Milling services for rice 43,200 Agric Extension Agents (Agric College Graduates) Employed 1,200 National Service (University Graduates) Employed 2,160 E-Agriculture Registration (3 persons/district) 3x Data processing (1 person/district) 1x Total jobs created 768,311

37 Pillar 5: E-Agriculture Specific Objective: to improve targeting, communication and coordination of the implementation of the PFJ program through appropriate ICT tools Eligible districts FBOs ,350 2,000 Nucleus farmers 100 1,750 3,400 5,000 Direct Clients 200, , ,500,000 Estimated number of households 202, ,400 1,123,500 1,682,000 Expected Outputs: Improved targeting of beneficiaries Improved Communication with beneficiaries Improved coordination of the program implementation

38 Pillar 5: E-Agriculture Major Activities Establish a database containing e-profiles of targeted beneficiaries, private value chain actors and supporters Put in place a supply chain management system for the program to transmit and track the orders and movement of the inputs and outputs Improve communication (including advisory/ emergency responses) and coordination of the various activities of the program through efficient ICT tools

39 Key performance indicators for activities (intermediate) under pillar 5. E-Agriculture Percentage of number of PFJ beneficiaries registered and validated through electronic means Proportion of private service providers receiving order for goods and services via ICT system Number of e-way bills cleared electronically Average payment processing time for seed producers, fertilizer importers, transporters and distributors Frequency and number of ICT based communiques amongst implementers

40 Estimated Costs ( ) Total (2017- Total ( ) in GH 2020) in USD Seed 34,392, ,720, ,152, ,796, ,062, ,404,889 Fertilizer 52,356, ,638, ,419, ,903,525 1,842,504, ,544,561 Extension Services 47,016,600 76,908,400 76,908,400 76,908, ,741,800 60,378,652 Marketing of Produce 470,120 7,863, , , ,741,800 2,210,400 E-Agriculture 4,370,000 6,210,000 10,580,000 15,180,000 28,980,000 6,3000,000 Total in GH 149,832, ,422,313 1,059,114,020 1,257,842,381 3,335,031, ,538,502 Total in USD 32,572, ,309, ,242, ,443, ,538,502 Sources of Funding: - Government s annual budget allocation Leveraging on existing investments from public programs, development partners and private investors Mobilizing bilateral, multilateral and private resources to fill the remaining gaps

41 Coordination of implementation National Technical Committee (Special Advisor, Technical Advisor, Policy Advisor, Directors of DCS, DAES, AESD, PPBD, PPRSD, MED, HRDMD, DAES, YIAP) Chair: Dep. Minister, Crops (MOFA) Regional Technical Committee (Regional Director (MOFA), Regional Economic Planning Officer, Farmers' Representative) Chair: Regional Minister District Technical Committee (MOFA District Director, District Planning officer, Agric-sub-committee Chairman, Farmers Representative) Chair: M/M/DEC

42 Pathways of change through PFJ program Seed Adequate and timely supply and usage of certified seeds Increased on-farm productivity and job creation along the value chains Promote profitability and sustainability in smallholder production Fertilizer Private sector led supply of fertilizers Extension Services Embedded service provision on technical knowledge on good agricultural practices Output Marketing Linkages between producers and private commodity chain actors E-Agriculture Deployment of ICT tools in targeting beneficiaries and coordination $ $ $ $ $ Input suppliers Farmers Local traders (aggregation) Local Processors Wholesalers/Industries/Exporters Food consumers and Brands Outputs Increased availability, accessibility and use of quality seeds and fertilizers Increased access to technical and non-technical services Improved marketability, value addition Efficient targeting, communication, coordination Outcomes Increased on-farm productivity Enhanced proximity services Improved storage and marketing Increased job opportunities Impact Modernization of agriculture sector that will lead to structural transformation

43 Thank you