PERFORMANCE AUDIT REPORT of the AUDITOR GENERAL on the

Transcription

1 REPUBLIC OF GHANA Our Vision To be one of the leading Supreme Audit Institutions in the world, delivering professional, excellent, and cost effective auditing services PERFORMANCE AUDIT REPORT of the AUDITOR GENERAL on the MoFA's SUPPORT TO FARMERS TO INCREASE FOOD CROP PRODUCTION

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3 TABLE OF CONTENTS Transmittal Letter i Glossary...iii List of Acronyms v Executive Summary. vi CHAPTER ONE Introduction Reasons for the audit Purpose, scope and audit questions Audit questions Methods and implementation. 3 CHAPTER TWO Description of the Audit Area Historical background Statutory mandate Objective Activities Funding Key players and stakeholders and their main activities. 7 CHAPTER THREE Findings, conclusions and recommendations Introduction Providing agricultural inputs for farmers Farmers are not adopting the improved storage facilities to store the Farm produce Performance audit report of the Auditor-General on MoFA s support to farmers to increase

4 APPENDICES 38 A Strategies to attain food security. 38 B Audit questions and assessment criteria.. 39 C Audit methodology. 41 D Organogram of MoFA in relation to 43 E MoFA comments on Audit Findings.. 44 Performance audit report of the Auditor-General on MoFA s support to farmers to increase

5 TRANSMITTAL LETTER Ref. No. AG.01/109/Vol.2/63 Office of the Auditor-General Ministries Block O P. O. Box MB 96 Accra Tel. (0302) Fax (0302) August 2013 Dear Sir, PERFORMANCE AUDIT REPORT OF THE AUDITOR-GENERAL ON MoFA S SUPPORT TO FARMERS TO INCREASE FOOD CROP PRODUCTION I have the honour to submit to you a performance audit report on MoFA s Support to Farmers to Increase Food Crop Production in accordance with my mandate under Section 187(2) of the 1992 Constitution of Ghana and Section 13(e) of the Audit Service Act which requires me to carry out performance audits. 2. The purpose of the audit was to determine whether MoFA s implementation of food security strategies in FASDEP II has resulted in 6% growth rate per annum in the prioritised food crops and whether new storage technologies introduced has reduced post-harvest losses. The audit covered the period 2007 to We found that the Ministry was able to achieve above the 6% target set under FASDEP II of the five prioritised food crops though at a decreasing rate every year: from 27% in 2007 to 9% in 2010, dipping further to 4% in With the rate of Performance audit report of the Auditor-General on MoFA s support to farmers to increase i

6 decline of, MoFA needs to remove the bottlenecks in order to achieve the targeted production of 6% by We made some recommendations to help MoFA achieve its target of increasing production of the prioritised food crops at an annual growth rate of 6% or better by I trust that this report will meet the approval of Parliament. Yours faithfully, AUDITOR-GENERAL THE RT. HON. SPEAKER OFFICE OF PARLIAMENT PARLIAMENT HOUSE ACCRA ii Performance audit report of the Auditor-General on MoFA s support to farmers to increase

7 GLOSSARY Agricultural extension It is the function of providing need and demand-based knowledge in agronomic techniques and skills to rural communities in a systematic, participatory manner, with the objective of improving their production, income, and (by implication) quality of life. Extension is essentially education and it aims to bring about positive behavioural changes among farmers. Agricultural inputs Agricultural inputs include seeds, seedlings, irrigation water, fertilizers and pesticides, land, capital, agricultural equipment etc. Food security This refers to good quality nutritious food, hygienically packaged and attractively presented, available in sufficient quantities all year round and located at the appropriate places at affordable prices. Formal Irrigation Formal irrigation is the reliant of the farmer on some form of permanent irrigation infrastructure funded by the Government. Informal Irrigation This is irrigation practised by individuals who cultivates an area of up to about 0.5ha or more by using simple structures and equipment for water storage, conveyance and distribution. The cost for acquiring the informal irrigation facility is borne by the farmer. Farmers who depend on the informal irrigation are in the majority. In most cases, manual fetching of water with watering cans and buckets is dominant, while motorised pumps and hoses are also used along the streams and reservoirs. Performance audit report of the Auditor-General on MoFA s support to farmers to increase iii

8 Large Scale Commercial Irrigation This category of irrigation falls actually under both formal and informal subsectors. Large scale commercial irrigation is formal when Government provides the head works, conveyance and primary distribution infrastructure, while the private investor provides secondary distribution and water application machinery and equipment. Large scale farmers These are farmers who cultivate land that is above eight hectares. Medium scale farmers These are farmers who cultivate land that is between four to eight hectares. Small scale farmers These are farmers who cultivate land that is less than four hectares. iv Performance audit report of the Auditor-General on MoFA s support to farmers to increase

9 LIST OF ACRONYMS AAGDS AEA AMSEC CAADP DDO FAO FASDEP FBO GIDA GoG GPRS IFAD MDGs MiDA MoFA MT NAFCO NEPAD NGO NRGP PICS RTIMP WIAD Agricultural Growth and Development Strategy Agricultural Extension Agent Agricultural Mechanisation Services Centre Comprehensive Africa Agriculture Development Programme District Development Officer Food and Agriculture Organisation Food and Agriculture Sector Development Policy Farmer Based Organisations Ghana Irrigation Development Authority Government of Ghana Growth and Poverty Reduction Strategy International Fund for Agricultural Development Millennium Development Goals Millennium Development Authority Ministry of Food and Agriculture Metric Tonne National Buffer Stock Company New Partnership for Africa s Development Non-Governmental Organisation Northern Rural Growth Programme Purdue Improved Crops Storage Roots and Tuber Improvement and Marketing Programme Women in Agricultural Development Performance audit report of the Auditor-General on MoFA s support to farmers to increase v

10 PERFORMANCE AUDIT REPORT OF THE AUDITOR-GENERAL ON MoFA S SUPPORT TO FARMERS TO INCREASE FOOD CROP PRODUCTION EXECUTIVE SUMMARY According to the Ministry of Food and Agriculture (MoFA), the country produces enough cassava and yam to meet the national demand. With maize and rice (cereals) however, Ghana produces 51% of its cereal needs. The 49% gap shows that Ghana will not be able to meet its domestic cereal need without importing to supplement the deficit. Farmers are still holding on to old methods of farming and depend on rainfall for farming. 2. To ensure farmers produced more food crops to make food available all yearround, the Ministry formulated and implemented the Food and Agriculture Sector Development Policy (FASDEP I) to modernise the agricultural sector from 2002 to MoFA, however, revised FASDEP I to reflect lessons learnt and responded to the changing needs of the sector. FASDEP II was formulated with the objective to ensure food security from 2007 to MoFA in FASDEP II set a target of 6% annual growth for food crops. 3. The audit was to determine whether MoFA s implementation of food security strategies in FASDEP II has resulted in 6% growth rate per annum in five prioritised food crops (rice, maize, cassava, yam and cowpea) and whether new storage technologies introduced to farmers have reduced post-harvest losses. 4. MoFA s implementation of FASDEP II helped farmers to increase food production yearly in absolute terms from 2007 to 2011, although in percentage terms, it declined from 27% to 4%. From 2007 to 2010, the Ministry was able to go above the 6% target but reduced to 4% in Even though the Ministry was able to vi Performance audit report of the Auditor-General on MoFA s support to farmers to increase

11 achieve above the 6% target set for the five prioritised food crops in FASDEP II, production decreased every year from 27% in 2007 to 9% in 2010, dipping further to 4% in With the rate at which declined during the period under review, MoFA needs to remove the bottlenecks in in order to achieve its target production of 6% by We found that: i. there was late release of improved seeds and fertilizer under the Block Farm and Fertilizer Subsidy Programmes ii. MoFA had not established mechanisation service centres in all districts as planned iii. Agricultural Extension Agents were not able to deliver extension services to all farmers iv. 68% of small scale farmers surveyed did not acquire small pumping machines, and v. 41% of developed irrigable lands were not used. 6. We also found that farmers were not using the improved storage facilities developed by MoFA. MoFA developed and introduced improved storage facilities to assist farmers reduce post-harvest losses but farmers were still using their old methods of storing produce which resulted in high post-harvest losses. They claimed the facilities were expensive to construct. Recommendations 7. We made the following recommendations to MoFA to help it achieve its target of increasing production of the prioritized food crops at an annual growth rate of 6% or better by 2015: Performance audit report of the Auditor-General on MoFA s support to farmers to increase vii

12 8. To release inputs to farmers on time, we recommended that MoFA should: i. request for the programme budget from the districts by the end of the year to plan for the coming year ii. supply the seeds and fertilizer according to the different cropping calendars for each zone, and iii. start the process of establishing the implementation guidelines for the programme by the end of the year to plan for the coming year. 9. To make mechanised services available to more farmers, we recommended that MoFA should expedite the establishment of AMSECs in the remaining districts and equip the existing ones with the complete mechanisation package. 10. To improve the delivery of extension services, we recommended that MoFA should: i. equip AEAs with motorbikes to carry out their extension duties to farmers in remote areas and also release their extension allowances on time ii. pool the motorbikes in the districts where AEAs do not have individual motorbike so that all the AEAs can have access to the motorbikes in the pool, and iii. encourage farmers who do not belong to groups to join groups so that AEAs can meet them together instead of individually. 11. To increase the use of small pumping machines among farmers, we recommended that MoFA should: i. discuss with farmers to find an acceptable and flexible credit plan to enable the small scale farmers access the pumps viii Performance audit report of the Auditor-General on MoFA s support to farmers to increase

13 ii. iii. share the success stories of farmers from Hohoe and Atebubu who used small pumping machines to irrigate, and encourage farmers to form nuclear groups within the FBOs to pool their resources together to buy pumps. 12. For irrigation facilities to work to full capacity, we recommended that GIDA should: i. facilitate the completion of works at the facilities under rehabilitation ii. regularly maintain facilities that are not functioning to full capacity, and iii. rehabilitate facilities that have broken down. 13. For farmers to use the improved storage facilities, we recommended that MoFA should: iv. identify districts where farmers are not using appropriate storage facilities and introduce them to the appropriate storage technology v. re-emphasis the benefit farmers will derive from using the improved storage facilities during their training sessions vi. share the success stories of farmers in Kpando and Hohoe who have adopted the improved storage facilities, and vii. provide incentives to private businesses and NGOs to build more storage facilities in the districts. Performance audit report of the Auditor-General on MoFA s support to farmers to increase ix

14 CHAPTER ONE 1.0 INTRODUCTION 1.1 Reasons for the audit The 2009 Ghana Nutrition Profile report from Food and Agricultural Organisation (FAO) states that crops constitute 86% of the diet of Ghanaians. The major food crops that Ghanaians consume include maize, rice, cowpea, plantain, yam and cassava. According to the Ministry of Food and Agriculture (MoFA), the country produces enough cassava and yam to meet the national demand. With maize and rice (cereals) however, Ghana produces 51% of its cereal needs. The 49% gap shows that Ghana will not be able to meet its domestic cereal need by itself without importing to supplement the deficit. 2. The country however, is unable to produce more cereals to make up for the insufficiency because agriculture in Ghana is bedevilled with factors such as farmers holding on to old methods of farming and dependence on rainfall for farming. 3. To increase production of food crops, the Ministry of Food and Agriculture has undertaken interventions to ensure farmers produce more food crops to make food available all year-round in Ghana. The interventions include the formulation and implementation of the Food and Agriculture Sector Development Policy (FASDEP I). FASDEP I was to guide the implementation of strategies to modernise the agricultural sector from 2002 to MoFA, however, had to revise FASDEP I to reflect lessons learnt and respond to the changing needs of the sector. 4. FASDEP II was formulated in 2007 to tackle the challenges the Ministry faced with FASDEP I with the objective to ensure food security from 2007 to The challenges included the difficulty to modernise poor small holder Performance audit report of the Auditor-General on MoFA s support to farmers to increase 1

15 agriculture because of improper targeting of the poor within an environment where access to credit and technology are very limited. 5. MoFA in FASDEP II set a target of 6% annual growth for crops and selected five crops (rice, maize, cassava, yam and cowpea) as prioritised food crops to focus on to attain food security. An extract from FASDEP II is attached as Appendix A. To achieve this target, the Ministry was to implement the following strategies: introduce high-yielding and short duration crop varieties to increase develop appropriate irrigation facilities for different categories of farmers to ensure production throughout the year, and develop storage facilities for farmers to reduce post-harvest losses. 6. The Auditor-General, in line with section 13e of the Audit Service Act, Act 584, 2000 carried out a performance audit to find out whether MoFA s implementation of food security strategies in FASDEP II has resulted in the 6% growth rate per annum in the prioritised food crops. 1.2 Purpose, scope and audit questions Purpose and scope 7. The purpose of the audit was to find out whether MoFA s implementation of food security strategies in FASDEP II to increase production of the five prioritised food crops at an annual growth rate of 6% has yielded the required result and whether new storage technologies introduced has reduced post-harvest losses. 8. The audit covered a five-year period: 2007 to 2011 and was carried out between May and August 2012, focusing on the five food crops identified as prioritised food crops under FASDEP II and examined activities listed in FASDEP 2 Performance audit report of the Auditor-General on MoFA s support to farmers to increase

16 II that MoFA, its Directorates and sub-vented Agencies had carried out to increase production of the five food crops. This was to enable us answer the audit questions listed below, using the assessment criteria attached as Appendix B. 9. The team visited five regions and 19 districts in the Greater Accra, Volta, Brong Ahafo, Northern and Upper East regions (see Appendix C {i}). The team chose these regions and districts because they fall within five of the six ecological zones of Ghana which produce the prioritised food security crops (maize, rice, yam, cassava and cowpea). The inclusion of the Northern and Upper East regions was because the two regions form part of the three northern regions that are considered to be most food insecure Audit questions AQ Has the agricultural inputs provided to farmers by MoFA resulted in increased? AQ Has MoFA developed irrigation facilities for different categories of farmers to help them crop all year round? AQ Has the improved storage facilities introduced to farmers by MoFA helped farmers to reduce post-harvest losses? 1.3 Methods and implementation 10. The methods used in the collection of data were document review, interviews, questionnaire administration, observations and inspections Documents reviewed 11. The team reviewed documents on the activities of MoFA (see Appendix C {ii}) to gather information on the activities of MoFA and measures put in place to achieve its objectives Interviews 12. We interviewed 84 officials of MoFA to find out the activities MoFA carries out in the regions and districts to know if those activities are helping Performance audit report of the Auditor-General on MoFA s support to farmers to increase 3

17 farmers to increase production. We also interviewed executives of 22 Farmer Based Organisations (FBOs) to obtain information on how they work with MoFA to ensure farmers are resourced to increase production and reduce post-harvest losses. In addition, we interviewed farmers to find out the assistance they get from MoFA and whether the assistance has helped them increase production and reduce post-harvest losses. See Appendix C (iii) for list of interviewees Questionnaires 13. We administered questionnaires to: 16 Women in Agricultural Development (WIAD) officers to gather information on how they help women farmers increase production and reduce post-harvest losses 107 Agriculture Extension Agents (AEAs) to find out if they are able to deliver extension services to help farmers increase production and reduce post-harvest losses and if farmers use the practices, and 47 farmers to find out the assistance they get from MoFA and if it has helped them increase production and reduce post-harvest losses Observation and Inspection 14. The team observed farmers on their farms and inspected storage and irrigation facilities to know the storage and irrigation facilities available to farmers and to verify information obtained from interviews and document review. We observed workers processing rice and drying maize to ascertain how these commodities were treated after harvest. See Appendix C (iv) for the list of facilities. 4 Performance audit report of the Auditor-General on MoFA s support to farmers to increase

18 CHAPTER TWO 2.0 DESCRIPTION OF THE AUDIT AREA 2.1 Historical background 15. Food crop production refers to the cultivation of plants that is consumed as food by human beings. In Ghana, food crops include rice, maize, yam, plantain, cassava and cowpea. Food crop production in Ghana is done by small scale farmers who constitute about 90% of farmers. According to FASDEP II, these small scale farmers produce 80% of food crops consumed by Ghanaians using old methods of farming and depending on rainfall to produce food. Averagely, these farmers cultivate on land which is less than four hectares in size. 16. To increase, Government launched the Accelerated Agricultural Growth and Development Strategy (AAGDS) in 2000; a comprehensive strategy that covered the whole agricultural sector. The strategy was to promote selected agricultural commodities through improving agricultural technology and access to markets. In spite of the AAGDS, there was still the need to have a development policy for the agriculture sector that will incorporate all ongoing interventions in the sector. The Food and Agriculture Sector Development Policy (FASDEP I) was developed in 2002 to manage agriculture development. The objectives of FASDEP I included availability of agricultural inputs and food security. 17. Following the end of FASDEP I, MoFA s evaluation of the policy revealed some challenges during the implementation and FASDEP II was formulated to reflect the lessons learnt and also to respond to changing needs of the Agricultural sector. FASDEP II was therefore developed to ensure food security from 2007 to Strategies in FASDEP II are in line with the national development objectives specified in the: Performance audit report of the Auditor-General on MoFA s support to farmers to increase 5

19 Growth and Poverty Reduction Strategy (GPRS II) which is to modernise agriculture to improve productivity Comprehensive Africa Agriculture Development Programme (CAADP) of the New Partnership for Africa s Development (NEPAD) which is to accelerate growth and eliminate poverty and hunger among African countries, and Millennium Development Goals (MDG) I which is to eradicate extreme poverty and hunger. 18. The Ministry of Food and Agriculture is the Ministry responsible for the development and growth of agriculture in the country. MoFA is thus responsible for the formulation of appropriate agricultural policies to ensure the increase in to make food available at all times by training and giving farmers support. 2.2 Statutory mandate 19. The Ministry of Food and Agriculture is the lead agency and focal point of the Government of Ghana for developing and executing policies and strategies for the agricultural sector within the context of a coordinated national socio-economic growth and development agenda. By means of a sector-wide approach, the Ministry s plans and programmes are developed, coordinated and implemented through policy and strategy frameworks Objective 20. One of MoFA s objectives is to improve agriculture productivity. In furtherance of this objective, MoFA has developed the Food and Agriculture Sector Development Policy (FASDEP II) which seeks to achieve, among others food security. 1 (19/9/2011) 6 Performance audit report of the Auditor-General on MoFA s support to farmers to increase

20 2.4 Activities 21. For farmers to increase, MoFA undertakes the following activities through its Regional and District Development Units, the Technical Directorates and the Ghana Irrigation Development Authority: provide agricultural inputs to farmers develop irrigation facilities for different categories of farmers, and develop storage facilities for farmers to reduce post-harvest losses. 2.5 Funding 22. Food crop production activities are funded by Government of Ghana (GoG) with the support of development partners. From 2008 to 2011, MoFA received a total amount of GH 273,089,000 as shown in Table 3 2. Development partners provided 70% of the amount. Table 1: MoFA s receipts from 2008 to 2011 (GH Million) Year/source Total GoG 1, ,764 77,925 81,721 Donor Fund 4,977 18,510 9, , ,368 Total 6,386 19,133 20, , ,089 Source: MOFA Annual Reports 2008/9/10/ Key Players and stakeholders and their main activities 23. The key players involved in are the Regional and District Agricultural Development Units, Crop Services, Agricultural Extension and Agricultural Engineering Services Directorate and Ghana Irrigation Development Authority. The key stakeholders are farmers and Development Partners. The organogram of the Ministry in relation to is attached as Appendix D. 2 The Ministry could not provide the team with the receipts for Performance audit report of the Auditor-General on MoFA s support to farmers to increase 7

21 2.6.1 Regional Agricultural Development Units 24. The Regional Agricultural Development Units supervise and provide technical backstopping in the regions. They prepare and send annual programmes and budget to the Chief Director of MoFA. They also ensure timely mobilisation, allocation and use of resources. In addition, they monitor and evaluate performance of regional and district programmes and submit reports to the Chief Director. Finally, they coordinate the activities of donors, NGOs and private sector in the regions to ensure they adhere to national regulatory policies and standards District Agricultural Development Units 25. The District Agricultural Development Units oversee the preparation of the district agricultural development plans and its incorporations into the District Assembly s plans. They also prepare annual district work programmes and budget and submit them to the Regional Director. In addition, they ensure that scheduled training programmes are implemented and technical backstopping provided. Finally, they monitor and evaluate agricultural programmes in the districts and report to the Regional Director Crop Services Directorate 26. The Crop Services Directorate of MoFA is the Technical Directorate responsible for the facilitation of the development and distribution of improved planting materials for farmers in collaboration with Research, Extension Services Providers and private sector. They also initiate, monitor and coordinate national programmes/projects in the crop sub sector. 27. In addition, they provide technical support to the Regional and District Agriculture Development Units on improved agronomic practices, efficient use and management of soil and water resources and design interventions to solve major constraints militating against the crop sub sector. 8 Performance audit report of the Auditor-General on MoFA s support to farmers to increase

22 2.6.4 Agricultural Extension Directorate 28. The Agricultural Extension Directorate of MoFA is the Technical Directorate responsible for the coordination of extension activities. They monitor and evaluate all extension activities under the Ministry of Food and Agriculture. They also provide technical support to the regions and districts in the planning and implementation of extension activities Agricultural Engineering Services Directorate 29. The Agricultural Engineering Services Directorate of MoFA is the Technical Directorate responsible for ensuring the availability of farm power and other engineering technologies. They provide guidance and technical support for sound and sustainable environmental practices for all categories of farmers in Ghana for agricultural production and related activities by coordinating, monitoring and evaluating the implementation of all engineering programmes, policies and projects. They also provide technical backstopping to MoFA staff in the regions and districts on agricultural engineering related issues Ghana Irrigation Development Authority 30. Ghana Irrigation Development Authority is a sub-vented agency of MoFA which develops irrigation infrastructure and related facilities and provides technical and managerial services for effective use of irrigation facilities. They also develop and disseminate adaptive irrigation technology. Finally, they monitor the use of irrigation facilities and maintain them Farmers 31. Farmers cultivate the land to produce food for the nation, thus making them the beneficiaries of programmes and projects undertaken by MoFA to increase. Performance audit report of the Auditor-General on MoFA s support to farmers to increase 9

23 2.6.8 Development Partners 32. The Development Partners support MoFA with funds to implement agricultural plans and policies. They also provide inputs to farmers and collaborate with MoFA to construct storage facilities for farmers. 2.7 Process description 33. Under each of the activities that MoFA carries out to increase food crop production, the Ministry trains farmers on good agronomic practices, irrigation technologies and post-harvest technologies. MoFA also support farmers with seeds, agro-chemicals, mechanisation services and water pumping machines. NGOs like Northern Rural Growth Project (NRGP) and Techno Serve also train and support farmers with inputs through MoFA Training 34. MoFA trains farmers on good agronomic practices, the use of agricultural inputs and the effective use of irrigation technologies to increase production. They also train them on how to reduce post-harvest losses by using appropriate storage facilities. The training is based on quarterly work plans prepared by the District Offices. The work plans contain the number of training sessions, the number of farm and home visits and the topics to be taught. 35. The training is carried out by Agriculture Extension Agents (AEAs) under the supervision of District Development Officers (DDOs) in charge of the Technical Directorates. The AEAs train the farmers one-on-one or in groups. The AEAs use demonstrations, field days, workshops, and farmers field schools to deliver the training. Some NGOs like Northern Rural Growth Project (NRGP) and Techno Serve also collaborate with MoFA to train farmers Support to farmers 36. The Ministry provide farmers with improved seeds, agro-chemicals and mechanisation services at a subsidised rate under food production interventions 10 Performance audit report of the Auditor-General on MoFA s support to farmers to increase

24 listed below to increase production. They also provide irrigation facilities and develop storage facilities for farmers. Some of the support is from MoFA directly or from NGOs and donor partners. AEAs and DDOs monitor how farmers use the support from MoFA Providing agricultural inputs for farmers Block Farm 37. The Block Farm Programme gives inputs to farmers on credit and interest free basis to use and pay back after harvesting. The objective of the programme is to motivate the youth to accept and appreciate farming as a commercial venture, thereby taking up farming as a life time vocation. In the long run, large commercial farmers are to be made from the programme. The inputs MoFA give to farmers are improved seeds, fertilizer, agro-chemicals, tractor services, and money for land preparation. 38. The money for land preparation and seeds is given to the farmers before the start of the major farming season. The fertilizer, agro-chemicals and tractor services are given to farmers during the course of the season when they have to use it. The payment for the inputs is either in cash or payment with farm produce. The District Offices pay the monies received into MoFA accounts in the regions. Farmers may sell their produce to National Buffer Stock Company (NAFCO) and recoveries from farmers are also sent to NAFCO to store. Interested farmers register with MoFA District offices through the AEAs who supply the inputs to farmers when the offices take stock of them. Farmers pay for the inputs in two ways; either with cash or with farm produce after harvest. Root and Tuber Improvement and Marketing Programme (RTIMP) 39. The Root and Tuber Improvement and Marketing Programme (RTIMP) is a MoFA and International Fund for Agricultural Development (IFAD) project which gives improved disease and pest free planting materials to farmers to produce roots and tubers like cassava and yam. The improved planting materials are Performance audit report of the Auditor-General on MoFA s support to farmers to increase 11

25 developed by the Crops Research Institute. Interested farmers register with MoFA District offices through the AEAs who supply the inputs to farmers when the offices take stock of them. The beneficiary farmers pay back to MoFA by giving them yam seed and cassava sticks to be given to other farmers. Fertilizer Subsidy 40. Under the Fertilizer Subsidy Programme, Government shortlists participating fertilizer companies to import, clear the fertilizer from the port, pay all charges and deliver allocated quantities of various types of fertilizer to designated Regional/Districts for sale to farmers by their registered sales agents. 41. Government subsidises the fertilizer on the market through the Ministry by paying almost half of the price. This is to make fertilizer affordable and accessible to help farmers apply fertilizer to their crops to increase yield. 42. The fertilizer subsidy starts every year after it is announced by the Minister at the beginning of the major farming season. After the announcement, fertilizer sales outlets sell the fertilizer to farmers at the subsidised price. Farmers purchase the fertilizer at registered sales outlets in the districts and pay with coupons that are given to them by MoFA. Agricultural Mechanisation Services Centres 43. The Ministry facilitates the establishment and operation of Agricultural Mechanisation Services Centres (AMSEC) in all districts to support the private sector to provide farmers affordable and timely access to farm power machinery. AMSECs provide tractors for effective land preparation; planters for precision planting; boom sprayers and pumps for proper crop maintenance; and combine harvesters for effective harvesting. 12 Performance audit report of the Auditor-General on MoFA s support to farmers to increase

26 44. Another goal of the AMSEC programme is to reduce the drudgery and tediousness associated with manual farming operations and to make agricultural mechanisation services readily available to majority of the rural poor farmers who cannot acquire their own machines. 45. Under the programme the Ministry facilitates the allocation of tractors and accessories, maize shellers and water pumps to interested individuals and groups. This is to enable farmers and agro-processors have widespread access to mechanisation services at affordable prices and to make them more effective and efficient in their farming and processing operations. 46. Registered companies who want to be AMSEC service providers apply to the District Offices, who forward the letter to the Regional Office who also forwards it to the Minister of Agriculture. The applications are vetted and approved and successful applicants are selected to be AMSEC service providers. The Ministry then give the company an allocation letter to inform them about the items available and what is required of the company Developing irrigation facilities for different categories of farmers 47. MoFA through the Ghana Irrigation Development Authority (GIDA) develops appropriate irrigation facilities for different categories of farmers to enable them crop all year round. The categories of irrigation facilities in Ghana are the informal ones like the small pumping machines which are used along the streams and reservoirs, formal and large scale irrigation facilities which include dugout wells and dams. 48. MoFA acquires pumps and sell to farmers at a subsidised rate to encourage farmers to buy the pumps. Farmers who buy the pumps pay for the pumps in three instalments. To buy pumps from MoFA, farmers apply through the District Offices of MoFA and are given the pumps after their applications have been approved by the District Director. Farmers who farm along the formal and large scale facilities Performance audit report of the Auditor-General on MoFA s support to farmers to increase 13

27 form Water Users Associations (WUAs) whose executive regulate the use and operation of the facilities Developing storage facilities for farmers to reduce post-harvest losses 49. MoFA develops storage facilities for farmers to use to reduce post-harvest losses. The storage facilities available to individual farmers include the Purdue Improved Crop Storage (PICS) bags, narrow cribs and metallic silos which farmers acquire on their own through purchase or construction. MoFA with the support of private businessmen and NGOs develop storage facilities in the communities, for farmers who do not have their own storage facilities to use to store their produce at a fee. 14 Performance audit report of the Auditor-General on MoFA s support to farmers to increase

28 CHAPTER THREE 3.0 FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 3.1 Introduction 50. To increase, the Ministry of Food and Agriculture (MoFA) developed the Food and Agriculture Sector Development Policy (FASDEP II) to guide development and interventions in the agricultural sector from 2007 to One of the strategies to attain food security was to focus on the development of five staple crops (maize, rice, yam, cassava and cowpea) at the national and agro-ecological levels. 51. The audit was to find out whether MoFA s implementation of food security strategies in FASDEP II to increase production of the five prioritised food crops at an annual growth rate of 6% had yielded the required result and whether new storage technologies introduced had reduced post-harvest losses. 52. The audit team found that MoFA implemented activities to help farmers increase food production from 2007 to However, we identified the following areas that MoFA needs to improve to achieve its target of increasing production of the prioritised food crops at an annual growth rate of 6% and contribute to the attainment of food security by the year The areas were: providing agricultural inputs to farmers: o Seeds and fertilizer o irrigation facilities developing storage facilities for farmers to reduce post-harvest losses. 3.2 Providing agricultural inputs for farmers 53. MoFA supported farmers with agricultural inputs like improved seeds, agro-chemicals and mechanisation services to increase. The Ministry did this through the Block Farm Programme, Fertilizer Subsidy Programme, Roots and Tubers Improvement Marketing Programme (RTIMP) and Performance audit report of the Auditor-General on MoFA s support to farmers to increase 15

29 the provision of mechanisation services. MoFA also developed appropriate irrigation facilities for farmers to be able to cultivate all year round. Agricultural Extension Agents trained farmers on the use of the inputs and new agriculture technologies that would help the farmers to increase production through extension delivery Production of the five prioritised crops increased above the 6% target from 2007 to 2010 but went below the target in MoFA set a target in FASDEP II to increase the growth rate of five food crops at an average annual growth rate of 6% based on the achievement of 2001 to 2006 to contribute to the achievement of food security by We analysed production figures from MoFA s annual reports and Ghana Statistical Service and found that production of the five prioritised food security crops (maize, rice, cassava, yam and cowpea) increased from 16,118 million metric tonnes (MT) in 2007 to 22,921 million MT in 2011 as shown in Table 2. MoFA attributed the increase in production to the introduction of Block Farm, Fertilizer Subsidy and Roots and Tubers Improvement Marketing Programmes and mechanised services which the Ministry introduced from Table 2: Production of the five prioritised food crops from 2006 to 2011 Commodity Total Domestic Production ( 000MT) Total Domestic Production ( 000MT) Total Domestic Production ( 000MT) Total Domestic Production ( 000MT) Total Domestic Production ( 000MT) Total Domestic Production ( 000MT) Maize 1,191 1,220 1,470 1,619 1,872 1,684 Rice (milled) Cassava 9,647 10,218 11,351 12,261 13,504 14,241 Yam 1,498 4,376 4,895 5,778 5,960 6,295 Cowpea Total 12,711 16,118 18,198 20,254 22,047 22,921 Percentage 27% 13% 11% 9% 4% increase Source: Statistical Service correspondence October Performance audit report of the Auditor-General on MoFA s support to farmers to increase

30 Percentage change over previous year 56. As shown in Table 2, production of the five food crops from 2001 to increased in absolute terms from 12.7 million MT to 22.9 million MT in Yearly production of the five crops was above the targeted 6% per annum growth rate from 2007 to However, production fell below 6% between 2010 and 2011 because of a reduction in the production of maize and rice. Although yearly production increased in absolute terms from 2007 to 2011, it declined in percentage terms over the audit period as shown in Figure 1. Figure 1: Production of five prioritised food crops from 2007 to 2011 in percentages % Year Source: Audit Service analysis of Statistical Services correspondence 57. Our examination of documents and interviews with MoFA officials and farmers on why yearly production of the five food crops reduced from 2007 to 2011 showed that: i. there was late release of improved seeds and fertilizer under the Block Farm and Fertilizer Subsidy Programmes ii. MoFA had not established mechanisation service centres in all districts as planned iii. Agricultural Extension Agents were not able to deliver extension services to all farmers 3 The total production figure of 12.7 million MT for 2001 to 2006 was used as the base rate to calculate the yearly percentage increase in production. Performance audit report of the Auditor-General on MoFA s support to farmers to increase 17

31 iv. 68% of small scale farmers surveyed did not acquire small pumping machines, and v. 41% of developed irrigable lands are not used Late release of improved seeds and fertilizer under Block Farm and Fertilizer Subsidy Programmes 58. In FASDEP II, MoFA was to introduce improved varieties of seeds which were high yielding and matured in a short duration of time. The seeds were to be made available to farmers at the beginning of the farming season so that farmers could plant at the right time. They were also to make fertilizer affordable and accessible to farmers so that farmers could apply fertilizer to their crops to increase yield. MoFA supplied improved seeds to farmers under the Block Farm Programme to increase their yield and the Fertilizer Subsidy Programme to encourage farmers to use fertilizer. MoFA also facilitated the fertilizer companies to establish more outlets to sells fertilizer to make it more accessible to farmers. 59. Review of documents from MoFA and interviews with MoFA officials and farmers showed that the Ministry delayed in releasing seeds to farmers under the Block Farm Programme in The inputs delayed for approximately three to five months after the onset of the major rainy season as indicated in Table 3. Table 3: Delay in releasing seeds under Block Farm for the 2011 major season Region Forecast dates Release of seeds Period of delay GAR March June months VR March June months BAR February July months NR April July months UER April July months Source: Ghana Meteorological Agency Seasonal forecast for 2011 major season MoFA District Offices stock intake for Block Farm Programme for 2011 GAS analysis 60. For instance from Table 3, the farming season for 2011 in the Northern Region was forecasted for April but the seeds were supplied in July. According to 18 Performance audit report of the Auditor-General on MoFA s support to farmers to increase

32 the executives of the Farmer Based Organisations the team interviewed, because most farmers relied on rainfall for farming, they had to start planting immediately the rains began. And so, when the farmers did not receive the improved seeds at the beginning of the rainy season they bought seeds that were not high yielding and certified by MoFA from the open market. The use of the uncertified seeds resulted in poor yield. Those who waited for the seeds from MoFA also ended up with poor yield because they planted late and were deprived of the full benefits of the rain. 61. Our review of correspondence files from MoFA showed that the seeds were delayed because the regional offices did not request for the budget for the programme from the districts early. The records showed that request for the programme budget was written on 2 February and the districts were to send the budget to the Regional Offices by 7 February. The Schedule Officers for the programme told the team they communicated the districts requirement to the District Directors immediately the request for budget came from the regional offices and the District Directors sent it to the regional offices by the deadline of 7 February to be communicated to the national office. 62. The team also found that the release of fertilizer under the Fertilizer Subsidy Programme delayed because the Subsidy Programme did not start early. According to MoFA officials, the Programme delayed because the Ministry had to go through the process of establishing implementation guidelines for the programme every year. The process involved selecting fertilizer companies to import fertilizer for the programme. The Ministry also had to agree on the price to sell the fertilizer to the farmers with the companies and decide on the system to use to distribute the fertilizer to the farmers. 63. The officials also said the delay in the release of funds to the Ministry did not enable them access inputs in the form of credit since the fertilizer companies insisted on settlement of previous debt before the delivery of supplies. They also Performance audit report of the Auditor-General on MoFA s support to farmers to increase 19

33 said transportation to cart fertilizer and inputs to the farming communities was also a major challenge since most of the farming communities were in remote areas which had bad roads. The long distances from the ports and fertilizer depots did not attract more companies to engage in the supply of fertilizer. 64. The delays meant farmers who wanted to use fertilizer before MoFA announced the subsidised price had to buy at higher prices on the open market. According to the executives of the FBOs the team interviewed, there is a time for applying fertilizer in the life span of a crop, so if the announcement and start of fertilizer subsidy is later than the beginning of the major farming season, farmers are not able to apply fertilizer at the right time which affects their yield. For the years under review, the months the fertilizer subsidy started is shown in Table 4. Table 4: Month fertilizer subsidy started from 2008 to 2011 Year Beginning of major farming season Month of announcement Period of delay 2008 February-April July 5 months 2009 February-April April 1 month 2010 February-April July 5 months 2011 February-April May 3 month Source: Interview of MoFA officials 65. For example in 2011, the major season was forecasted to start from February to April in all the regions visited but the fertilizer subsidy was announced and subsequently released in May, three months after the start of the season. 66. When the inputs did not get to farmers on time, the farmers planted at the time when the farming season was almost over and they did not get enough water for their crops to mature well which negatively affected their yield. The low yield affected the recovery of the cost of inputs supplied to farmers under the Block Farm Programme. For instance in Ga East District in the Greater Accra Region, in 2011 MoFA was able to recover GH 14, (73.27%) out of the total cost of inputs supplied of GH 19, Also, in Hohoe District in the Volta Region 20 Performance audit report of the Auditor-General on MoFA s support to farmers to increase

34 MoFA recovered GH 25, (56.64%) out of the total cost of inputs supplied amounting to GH 44, Nationwide, recoveries for 2009 was GH 9, representing 33% of the disbursed amount of GH 29, In 2010 the recovery increased to GH 9,173,865.00, constituting 63% of the GH 14,642, disbursed. 4 Even though recovery rate has improved, MoFA is not able to make a full recovery. 68. The delay in the release of inputs to the five regions the team visited which were major producers of maize and rice contributed to the decline in production of maize and rice between 2010 and Conclusion 69. The delay in supplying seeds and fertilizer to farmers under the Block Farm and Fertilizer Subsidy Programmes negates MoFA s efforts to help farmers to plant and apply fertilizer at the right time which results in poor yield. The poor yield affects the ability of farmers to pay for the cost of inputs supplied under the Block Farm Programme which affects the stocking up of strategic food stock for the country. Recommendations 70. For MoFA to release inputs to farmers on time, we recommend that they should: i. request for the programme budget from the districts by the end of the year to plan for the coming year ii. supply the seeds and fertilizer according to the different cropping calendars for each zone, and iii. start the process of establishing the implementation guidelines for the programme by the end of the year to plan for the coming year. 4 MoFA 2011 Annual Report (page 35) Performance audit report of the Auditor-General on MoFA s support to farmers to increase 21

35 MoFA s response 71. MoFA accepted our recommendations and indicated in their response to our finding that they are addressing the issues. This according to MoFA has resulted in the early announcement of the subsidy on seeds and fertilizer in The subsidy was announced on 16 April 2013 (within the major farming season). MoFA said transportation of fertilizer to the hinterland depends on the condition of the feeder roads which is within the purview of the Department of Feeder Roads (DFR). The poor nature of the roads is a disincentive for the distribution of fertilizer by the private suppliers. However, MoFA has taken steps to make the supply of fertilizer to the hinterlands more attractive to suppliers MoFA has not established mechanisation service centres in all districts as planned 72. MoFA was to facilitate the establishment of Agricultural Mechanisation Services Centres (AMSECs) in all 170 districts of Ghana as at This was to enable farmers to have access to farm power machinery such as tractors for effective land preparation; planters for precision planting, boom sprayers and pumps for proper crop maintenance and combine harvesters for effective harvesting. The AMSECs were also to increase the low number of tractor to farmer ratio as well as reduce the drudgery and tediousness associated with manual farming operations. 73. As at 2011, MoFA had facilitated the establishment of 89 AMSECs countrywide. Nine out of the 19 districts the team visited had no Agricultural Mechanisation Services Centres. Records from the Agricultural Mechanisation Services Directorate of MoFA showed the regions the team visited should have 86 AMSECs but they had 39 as shown in the Table Performance audit report of the Auditor-General on MoFA s support to farmers to increase

36 Table 5: Number of AMSECs needed and the numbers established in the regions visited Region AMSECs needed AMSECs established Additional AMSECs needed GAR UER NR BAR VR Total Source: GAS analysis of MoFA Regional Directorate Report on AMSEC 74. From Table 5, Brong Ahafo should have 22 AMSECs but as at 2011, they had 11 and the Volta Region had six instead of 25. The team also found that some service providers in the regions that had AMSECs, had moved from their operational areas to areas where business was considered to be more lucrative. Records from the Brong Ahafo Agricultural Mechanisation Services Directorate showed two out of the 11 service providers in the region had moved out of the region which had reduced the number of AMSECs and farmers were not able to access them at the time they needed the facility. Because of the few AMSECs, operators render service on a first come first serve basis. So if a farmer does not contact the service operator early, he or she might not get the service. 75. We noted that though AMSECs are to provide farmers with a complete mechanisation package which includes harrows, planters, sprayers, combine harvester, shellers and dryers, they provide only land preparation because they are not fully equipped. MoFA s inability to establish AMSECs in all 170 districts and equip the existing ones had resulted in farmers relying on hoes, cutlasses and bullocks for preparing and clearing the land which did not help them to increase the acreage of land they cultivated to produce more food crops. Conclusion 76. MoFA has not established AMSECs in all the districts as planned and the existing ones were not fully equipped to provide complete mechanised services. Performance audit report of the Auditor-General on MoFA s support to farmers to increase 23

37 Farmers were therefore, still relying on hoes, cutlasses and bullocks for preparing and clearing the land which did not help them increase the acreage they cultivated. Recommendations 77. To make mechanised services available to more farmers, we recommended that MoFA should expedite the establishment of AMSECs in the remaining districts and equip the existing ones with the complete mechanisation package. MoFA s response 78. MoFA accepted our recommendations Agricultural Extension Agents are not able to deliver extension services to all farmers 79. In FASDEP II, Agriculture Extension Agents (AEAs) were to reach all farmers in the farming communities in the districts which had been grouped into zones with the extension services to help farmers adopt new technologies to help them increase. For the AEAs to reach all farmers who were widely spread out in their zones to deliver extension services, MoFA was required to provide a means of transport and allowances to AEAs. 80. We found that MoFA had provided motorbikes to AEAs to use as a means of transport because farmers and farms were situated in areas that could not be readily accessed by public transport. In spite of the provision of motor bikes, most AEAs were not able to reach all farmers in their zones to deliver extension services. When the audit team asked the AEAs whether they were resourced to carry out their duties, 74 out of the 107 AEAs surveyed said they had no motorbikes to carry out extension services. The AEAs told the audit team the lack of motor bikes made them visit only farms and homes that they could reach either on foot or with public transport. 24 Performance audit report of the Auditor-General on MoFA s support to farmers to increase

38 81. The 33 who had motorbikes complained about the regular breakdown of their motorbikes whilst on duty as in the case of AEAs at Ga East and Kpando. The AEAs also said they did not get adequate allowances and what they got was also delayed which affects extension delivery services. According to MoFA District Directors, the allowances for AEAs are delayed because funds are not released to the offices on time. 82. Table 6 below shows the number of AEAs in four districts, the number of farming communities they were able to cover and the number of motorbikes they had in the fourth quarter of Table 6: AEAs in four districts and the number of communities they covered in the Districts fourth quarter of 2011 No. of AEAs required No of AEAs at post No. of motorbikes Communities to cover Communities covered Diff. btn communities to cover and communities covered Kpando Kintampo Karaga Kassena- Nankana East Source: MoFA District M & E reports for From Table 6, it is only Kassena-Nankana East in the Upper East Region where the AEAs were able to cover all the farming communities. The District needed 32 AEAs to cover 97 communities but there were 11 AEAs at post. The 11 AEAs had a motorbike each and were able to cover all the 97 communities during the period. Meanwhile, Kintampo in the Brong Ahafo Region needed 15 AEAs to cover 83 communities but they had ten AEAs who had five motorbikes. The AEAs were able to cover 41 communities out of the 83, leaving 42 communities without extension services during the period. Performance audit report of the Auditor-General on MoFA s support to farmers to increase 25

39 84. We also found that MoFA had recognised the challenge they had in reaching all farming communities with extension services. To tackle this challenge, they were encouraging farmers to form farmer based groups so that they could train them in groups at locations that could be easily accessed by AEAs and farmers. They were also using other approaches like collaborating with some private FM stations to disseminate extension information to farmers, the use of audio-visual aids and mobile phone base aids (E-extension approaches) to complement extension service delivery to farmers. The AEAs are therefore not able to cover all the farms in their respective zones depriving some farmers of the benefit of extension services. Conclusion 85. AEAs are unable to reach all farmers in their respective zones to deliver extension services to them. Availability of motorbikes helps AEAs to expand their coverage in delivering extension services as in the case of Kassena-Nankana East compared to the other three districts in Table 6. Although the Districts did not have the number of AEAs required, they were able to cover the communities because each AEA had a motorbike to enhance mobility. Recommendations 86. To improve the delivery of extension services, we recommend that MoFA should: i. equip AEAs with motorbikes to carry out their extension duties to farmers in remote areas and also release their extension allowances on time ii. pool the motorbikes in the districts where AEAs do not have individual motorbike so that all the AEAs can have access to the motorbikes in the pool, and iii. encourage farmers who do not belong to groups to join groups so that AEAs can meet them together instead of individually. 26 Performance audit report of the Auditor-General on MoFA s support to farmers to increase

40 MoFA s response 87. MoFA accepted our recommendations % of small scale farmers surveyed did not acquire small pumping machines 88. According to FASDEP II, MoFA through Ghana Irrigation Development Authority (GIDA) is expected to promote the use of small pumping machines along perennial water bodies by small scale farmers to ensure production of food throughout the year. The team found that MoFA had introduced and acquired small pumping machines to sell to farmers along perennial water bodies in the districts we visited. The regional offices sold the pumping machines to farmers at a subsidised price of GH and GH 5, for 6.5 and 17 horse power respectively. Interested farmers paid half the price of the pumping machine and they were given the machines to use. Farmers paid the balance in instalments through an agreement with the regional offices. 89. Thirty-two out of the 47 farmers the team surveyed said they did not own pumping machines. According to the farmers, the credit plan which required an initial deposit of half the price of the pumping machine was not flexible for the small scale farmer. The other 15 said they owned small pumping machines and used them for vegetable farming in the minor season. The executives of the Farmer Based Organizations confirmed that their group members could not afford the initial deposit. 90. Interviews with MoFA officials showed that, though the regional offices had the pumping machines in stock, small scale farmers did not buy the pumps to use on their farms. The Brong Ahafo regional office, for instance, received 100 pumping machines on 25 January 2010 and as at 31 December 2011 they had sold 40 pumping machines as shown in Table 7. According to the officials, the farmers who bought the pumping machines were mostly medium and large scale farmers. Performance audit report of the Auditor-General on MoFA s support to farmers to increase 27

41 Table 7: Details of pumping machines received and sold by the Brong Ahafo regional office from 2010 to 2011 Capacity Price (GH ) No. received No. sold 6.5 horse power horse power 5, Total Source: MoFA Regional Directorate, Sunyani 91. The team visited two farmers in the Atebubu and Hohoe districts in the Brong Ahafo and Volta Regions respectively who used small pumping machines to irrigate their farms. According to these farmers the use of the pumping machines helped them to irrigate their farms to crop all year round. The farmers interviewed told us that their inability to access the small pumping machines made them unable to irrigate their farms to produce food throughout the year which led to them idling around during the minor season. Forty-seven individual farmers and 22 executives of the Farmer Based Organisations interviewed said they depended on the rains for cropping maize, rice or yam in the major farming season. Conclusion 92. MoFA had introduced and acquired small pumping machines to sell to small scale farmers at a subsidised price but 68% of the 47 farmers surveyed had not bought the pumps because, according to them, the credit plan for payment of the pumps was not flexible. The farmers were still depending on rain for farming which limited them to farming only during the major season. The inability of the farmers to farm during the minor season meant they could not crop all year round which affected food security at the family, community and district levels. Recommendations 93. To increase the use of small pumping machines among farmers, we recommend that MoFA should: i. discuss with farmers to find an acceptable and flexible credit plan to enable the small scale farmers access the pumps 28 Performance audit report of the Auditor-General on MoFA s support to farmers to increase

42 ii. iii. share the success stories of farmers from Hohoe and Atebubu who used small pumping machines to irrigate, and encourage farmers to form nuclear groups within the FBOs to pool their resources together to buy pumps. MoFA s response 94. MoFA accepted our recommendations and said the credit plan for the pumping machines will be taken up at the ministerial level to make it flexible for farmers to buy. This will ensure the pumps do not lie idle for long periods which will defeat the purpose of introducing the machines % of developed irrigable land not used 95. In FASDEP II, GIDA was to enhance production potential of existing irrigation facilities by raising productivity of irrigation water from 30% to 80% from 2007 to This was to enable farmers who farmed along the facilities to have access to irrigation water to be able to cultivate all year round. 96. The regions visited had 14 irrigation facilities with a total developed irrigable land of 7,517 hectares. The current operating capacity at the time of the audit was 4,437 hectares (59%). The unused capacity of the facilities was 3,080 (41%). Details of the irrigation facilities in the regions the team visited are provided in Table 8. Performance audit report of the Auditor-General on MoFA s support to farmers to increase 29

43 Region Upper East Region Table 8: Details of irrigation facilities in the regions the team visited Northern Region Brong Ahafo Region Volta Region Name of facility Type of Facility Current state of the facility Potential capacity (Ha) Developed Capacity (Ha) Current capacity in use (Ha) Diff. btwn developed and current capacity in use (Ha) Tono Gravity % 3,840 2, ,245 rehabilitated. Still in use. Vea Gravity Not rehabilitated but still in use. 1, Bontanga Gravity Rehabilitated Golinga Gravity Rehabilitated Libga Gravity Working Subinja Pump and Under sprinkler rehabilitation Tanoso Pump and Under sprinkler rehabilitation Kpando- Torkor Pump and sprinkler Working but has submerged pump house and inadequate pipes Working Aveyime Pump and gravity Afife Gravity Working Greater Ashiaman Gravity Working Accra Weija Pump and Working 1, Region sprinkler Dawhenya Pump and Working gravity Kpong 5 Gravity Working 3,452 1,865 1, Total 13,206 7,517 4,437 3,080 capacity Source: GIDA fourth quarter report, As shown in Table 8, three out of the 14 irrigation facilities in the regions visited were working to full capacity. The rest were working under capacity because they had not been maintained over the years although the Auditor- General s report on Management of Irrigation Projects in Ghana published in 2009 recommended that GIDA maintains irrigation facilities regularly to avoid major rehabilitation which may be costly. At the Kpong Irrigation Facility for 5 1,400 ha of the potential capacity for Kpong is used by a private company to cultivate banana. 30 Performance audit report of the Auditor-General on MoFA s support to farmers to increase

44 instance, farmers were using 1,701 hectares out of the 1,865 hectares of developed irrigable land available for farming. 98. We inspected three irrigation facilities in the regions visited observed that one of the two pump houses at the Kpando-Torkor Irrigation Facility was submerged in the water due to flooding. At the Vea Irrigation Facility the irrigable area was almost closed up due to silting. At the Tono Irrigation Facility, the facility was under rehabilitation with 245 hectares out of the 2,490 hectares in use because the laterite canals, main drains and roads had not been completed. 99. Management of the irrigation facilities that the team inspected told us that the irrigation facilities were not working to full capacity because of lack of maintenance. For instance, Management of Vea Irrigation Facility told the team that though funds for rehabilitation of the facility was allotted in the 2010 budget, nothing has been released for work to start as at May The facilities operating under capacity had reduced the irrigable land from 1,865 hectares to 1,701 hectares and 2,490 hectares to 245 at Kpong and Tono respectively. From the audit team s estimation, if the Tono Irrigation Facility was operating at full capacity, the expected production could have been 13,695 metric tonnes of paddy rice on the average 6 but the expected production now is 1, metric tonnes. Similarly, Kpong Irrigation Facility could have produced 10, metric tonnes of paddy rice but the expected production now is 9, metric tonnes. Conclusion 101. Irrigation facilities in the districts visited were not working to full capacity because GIDA had not rehabilitated most of them over the years. Farmers who farmed along the facilities were not able to farm all year round to increase food crop production because they could not depend on the facilities. 6 Estimation is based on an average production of 5.5 metric tonnes of paddy rice per hectare Performance audit report of the Auditor-General on MoFA s support to farmers to increase 31

45 Recommendations 102. For irrigation facilities to work to full capacity, we recommend that GIDA should: i. facilitate the completion of works at the facilities under rehabilitation ii. regularly maintain facilities that are not functioning to full capacity, and iii. rehabilitate facilities that have broken down. MoFA s response 103. MoFA accepted our recommendations and indicated that the current area cropped as at 2013 is 6,315 ha, representing 75.1% of area developed. The unused capacity of 24.9% (2,096 ha) represent areas due for rehabilitation, areas above command 7 and areas developed into roads, canals, etc. According to MoFA, the facilities that were under rehabilitation during the audit (Bontanga and Golinga) have been completed and handed over to farmers. Other facilities like Vea, Kpando-Torkor, Dawhenya and Ashiaman are due for rehabilitation. Rehabilitation works is on-going on other schemes like Tono. The other seven have all been rehabilitated and are fully operational. 3.3 Farmers are not adopting the improved storage facilities to store their farm produce 104. In FASDEP II, MoFA was to develop storage facilities for individual farmers and the community. For the individual farmers, MoFA was required to transfer the technology and practices on the use of the storage facilities to farmers through training, workshops and demonstrations on the field. The farmers were expected to adopt these technologies and practices to store their farm produce in order to reduce losses. In the community, MoFA was required to liaise with 7 Areas on gravity system irrigation schemes where irrigation water cannot reach unless pumping machines are used to pump the water. 32 Performance audit report of the Auditor-General on MoFA s support to farmers to increase

46 private partners to develop storage facilities for use by farmers who could not afford to construct their own storage facilities We found that MoFA had developed improved storage facilities to assist individual farmers reduce post-harvest losses. They introduced the improved storage facilities to farmers through training, workshops and demonstrations. Some of the improved storage facilities included Metallic Silos and Purdue Improved Crops Storage Bags (PICS) also called Triple Bags for storing grains and Narrow Cribs for storing grains and yam Samples of the improved storage facilities are shown in Pictures 1 and 2. Picture 1 show metallic silos which were constructed to have an opening at the top so that de-husked or shelled grains could be poured into them to store for more than a year. Picture 2 shows a narrow crib which stores about 30 mini bags of maize. Pictures of improved storage facilities introduced to farmers by MoFA Picture 1. Samples of Metallic Silos at Bolgatanga Regional office. Source: Audit Service and MoFA (2012) Picture 2. Maize stored in a Narrow Crib at Hohoe in the Volta Region 107. Even though MoFA had introduced improved storage facilities in some districts, and transferred the know-how to farmers, responses from farmers revealed that they were not using the improved storage facilities to store their produce. Rather, farmers were using the old storage methods such as storing in Performance audit report of the Auditor-General on MoFA s support to farmers to increase 33

47 rooms, gallons, on verandas and platforms which resulted in the loss of farm produce caused by pest and rodents infestation and heat From the analysis derived from the responses to the questions on the percentages of produce farmers lose after harvest. We noted that at the regional level Upper East and Northern had an average post harvest loses of 30% each. Brong Ahafo Region had 40% and Volta Region had 20%. At the district level, Tano South in the Brong Ahafo Region had the highest post-harvest loss ranging between 30% and 50% and Hohoe in the Volta Region had the lowest of losses of 5%. These losses came about because the farmers could not afford to use the improved storage facilities. Pictures of old storage methods used by farmers to store grains Picture 3. Maize stored in sacks and gallons on a veranda in Ho in the Volta Region Picture 4. Maize being stored on platform in Adidome in the Volta Region Source: MoFA (2012) 109. Pictures 3 and 4 show the old methods used by farmers to store grains in the Volta Region. Picture 3 shows sacks and gallons which were used by a farmer for storing grains. Picture 4 shows farmers arranging maize on a platform which they will later cover with tarpaulin. MoFA officials told the audit team that storing 34 Performance audit report of the Auditor-General on MoFA s support to farmers to increase