Revisiting agricultural input and farm support subsidies in Africa: The case of Ghana’s mechanization, fertilizer, block farms, and marketing programs

Use of agricultural input and farm support subsidies in Africa has returned strongly to the development agenda, particularly following the recent high food and input prices crisis. Many of the donors who opposed them in the past and subsequently put pressure to discontinue them due to their high cost and distortionary effect on the domestic economy are now providing aid in the form of farm support and agricultural subsidies. In Ghana, for example, the country of study in this paper, the government has since 2007 introduced four major subsidy and support programs on fertilizer, mechanization, block farms, and marketing. All four have some characteristics similar to those of many of the government-run programs that were introduced and then abandoned in the past. Therefore, a key question that arises is how the structure and policies of these current programs account for any of the general lessons and controversies experienced in the past and, in the process, achieve their intended goals in a more effective and economically viable manner. To answer this question in the Ghana case, our study assesses all four government programs concerning their (1) consistency in achieving the goals and objectives of the agricultural-sector development plan, (2) resources expended, (3) outputs and outcomes achieved, and (4) economic viability. To evaluate the progress of program implementation and achievements, we compare the values of several indicators associated with the situation prior to introducing the programs in 2007/08 to any changes that occurred after their introduction. o evaluate the progress of program implementation and achievements, we compare the values of several indicators associated with the situation prior to introducing the programs in 2007/08 to any changes that occurred after their introduction.