This paper provides a description of the agricultural input market in Ghana in 2019 across six districts with high maize production and two municipal districts noted for agricultural marketing activities. Since 2017, Ghana’s agricultural policy has been heavily focused on implementation of the Planting for Food and Jobs (PFJ) program, which has rapidly scaled up the distribution of subsidized seed and fertilizer with the aim of increasing agricultural productivity and production. Agricultural input dealers play a crucial role in the PFJ program as the final node in the supply chain of seed and fertilizer for farmers. Their operations are expected to enhance the availability of and access to these agricultural inputs. Understanding the characteristics and operations of agricultural input dealers can help policymakers to formulate, implement, and reform seed and fertilizer policies. Our study shows low levels of specialization among agricultural input shops, high participation in the sector association, an increase in the entry of traders into the agricultural input market since the launch of PFJ, and a continuing concentration on fertilizer sales compared to seed sales. Major constraints that agricultural input supplier face in expanding their businesses include difficulties in obtaining financial support from the banking sector, still unreliable supplies, and, for subsidized inputs, the slow processing by government of the subsidy vouchers farmers gave them in exchange for inputs.

Ghana has a long history of intervening in food markets to balance consumers’ expectations of low and stable food prices, farmers’ demands for high farmgate prices, and traders’ demand for predictability in seasonal price patterns. However, government interventions may also alter the behavior of markets and alter incentives or risks for all market actors. The Planting for Food and Jobs (PFJ) initiative, launched in 2017, signaled a renewed commitment from government to agriculture and is Ghana’s flagship strategy for boosting smallholder production, strengthening market linkages, and developing value chains. Given this significant policy shift, we examine agricultural commodity price patterns before and after 2017 to identify potential structural shifts in price behavior in maize, tomato, and onion markets, three key sectors targeted by PFJ. Results show maize and tomato prices drop below their long-term trend under PFJ, but not onion prices. Tomato and onion prices exhibit smaller seasonal price variations. These results are indicative of a structural shift in food markets, although further analysis is required to conclusively attribute these changes to PFJ.

Growth in Ghana during the last decade has not translated into meaningful benefits for rural households who experienced an increase in poverty in recent years. This reflects, among other factors, the relatively weak performance of the agricultural sector and its general lack of competitiveness. The government has identified agriculture as the backbone of its development strategy and is committed to address the numerous challenges faced by the sector. However, it is likely to encounter fiscal constraints in a postdevelopment assistance era. It is therefore crucial to understand the trade-offs associated with alternative spending strategies. In this study we develop an economywide modeling framework for analyzing returns to public spending in support of agriculture. The model is used to evaluate the effect of compositional shifts in spending given marginal returns to different areas of investment. Our analysis focuses especially on extension services and input subsidies as two important components of the government’s agricultural development strategy. The objective of the study is to advise policymakers on which spending strategy is the most likely to contribute to government’s development goals, such as poverty reduction or economic growth. We find that a doubling of the share of agriculture in total public budget would accelerate agricultural growth to somewhere between 7.6% and 8.6% against the business-as-usual scenario of about 3.5%. The level of growth achieved depends on the types of policies that are favored. In the examples presented here, we show that an input subsidy-oriented spending strategy may yield significant benefits in the short run (1–5 years), and especially in an expansionary fiscal environment, but investments in effective extensive services are more sustainable and rewarding in the medium- to longer-run (6–10 years), especially when public resources are more constrained. These results demonstrate why short-term political goals might result in policy choices that are suboptimal from a longer-term development perspective.

Ghana’s Fertilizer Subsidy Programme (GFSP) was initiated in 2008 in response to the global food and fuel price crisis. Although initially intended to be a temporary measure that became increasingly expensive as Ghana’s macroeconomy deteriorated, farmers, civil society organizations, and politicians began to expect the subsidy on an annual basis. This paper applies the kaleidoscope model for agricultur and food security policy change to the case of GFSP. In doing so, it uses a variety of analytical tools to highlight how many of the weak outcomes of GFSP can be attributed to the nature of the broader policy process that has surrounded GFSP as well as the underlying political and institutional context in which policy making occurs in Ghana. Based on semi-structured interviews conducted with knowledgeable stakeholders spanning the government, donor, civil society, and research communities, the paper identifies the bottlenecks that need to be addressed if the program is to be more effective in the future.

Knowledge of the characteristics and size of the agricultural input sector of a country is critical for policymakers to design appropriate interventions that not only foster growth in the sector, but also support the agricultural development goals of the country. In 2009, the International Food Policy Research Institute and the International Fertilizer Development Center jointly conducted a census of agricultural input dealers in Ghana to fill a critical data gap on the nature of the country's agricultural input sector. This paper presents a detailed description of the sector's structure, market practices, and supply chain. It also assesses the sector's response to recently implemented fertilizer subsidies, and findings show that, despite the government's goal of making the subsidy program supportive of the private market, the majority of fertilizer retailers were excluded from participating.