The government must expedite the establishment of an agricultural bank to address the hesitancy of financial institutions to lend to farmers due to the high risks associated with the agriculture sector.

The call was made by Members of Parliament (MPs) after the Agriculture Committee noted that most financial institutions invest less in the agricultural sector citing the high risks involved.

The MPs noted that the establishment of the Agricultural Credit Facility (ACF) in 2009 as a risk-sharing facility with the main objective of supporting the commercialization and modernization of the agricultural sector has inadequately benefited small-scale farmers who are the majority players in the sector.

“Parliament, in October 2022, resolved to establish an Agricultural Bank but little is known about the progress by government towards this resolution. With the absence of an Agricultural Bank and lack of an Agricultural Financing Policy in guiding financing mechanisms and strategies in the Agricultural sector remain the major gaps in the realization of proper agriculture sector financing,” Janet Okori-Moe, the Chairperson of the Agriculture Committee, recently noted.