FG To Boost Agric production with N634bn

The Federal Government within the next 12 months will  be spending about N634bn to expand existing production in the agricultural sector.

The plan is contained in the 
Economic Sustainability Plan of the Federal Government which has been submitted to President Muhammadu Buhari by Vice President Yemi Osinbajo.

Through the N634bn agriculture spending, the Federal Government will  be able to stimulate the establishment of new farms in 
partnership with State Governments, the private sector and individuals.

The intention is for the project to create five million jobs by focusing on increasing land under cultivation with State Governments.

This will enable the state governments to contribute between 20,000 and 100,000 
hectares from a combination of aggregated smallholder farms and utilisation of abandoned states farm settlements and
agricultural projects.

The project, according to the blueprint of government, will  cover the entire agricultural value chain, from the farm to the market.

Based on the economic agenda of the Federal Government, the N634bn will  be used to support smallholder farmers directly or through outgrower schemes with services and inputs.

This would focus on land-clearing, ploughing, provision of seeds, saplings, fertilisers, pesticides as well as extension services, storage to mitigate post-harvest losses and equipment. 

Farmers, according to the plan, will  also
be linked to low-interest input financing.

“The increased production will be purchased by private sector anchor purchasers, agro-processors,commodity exchanges and procurement for government strategic reserves. 

“In addition, any unsold produce will be 
purchased at a reserve price by relevant agencies on behalf of the Federal Government,” the document stated.

Also, to facilitate access to farms, the government said there would be extensive construction of rural roads, using locally sourced materials such as granites and rocks.

It said while about five million jobs would be created in the agricultural sector, the initiative would boost agricultural production and guarantee food security.

Specifically, the plan is targeted at addressing all issues along the value chain, including production, harvesting, storage, transporting, processing and marketing.

It will  also help to identify between 20,000 and 100,000 hectares of land per state for agricultural use and explore financing options so that smallholder farmers could access interest-free credit with a small administrative charge.

The initiative will  also involve individual farmers and agricultural cooperatives to increase agricultural labour capacity 
nationally, guarantee market and mitigate post-harvest losses for the products.

This is expected to be achieved through a combination of private sector off-takers, commodity exchanges, a government buy-back scheme, and strategic reserve purchases.

The initiative, according to the economic agenda of the Federal Government,  will be implemented by the Presidential Task Force on Food and Jobs in Agriculture.