Why rising farm costs demand more than excuses

When the federal government admits that rising input costs are now the greatest threat to affordable food production, it is not a revelation; it is an indictment.

For years, farmers have warned that fertiliser prices, improved seeds, agrochemicals, transport, diesel, labour and post-harvest logistics are climbing beyond reach. Now, with food inflation biting millions of households, the government has publicly acknowledged what producers already know: that the economics of farming in Nigeria are dangerously strained.

The real disappointment is that advanced nations, from the United States to members of the European Union, still heavily subsidise agriculture. They protect their farmers, insure their crops, support research, stabilise prices and intervene during shocks. They do this not because their economies are weak, but because food security is national security. Agriculture is not treated as a sentimental sector; it is treated as strategic infrastructure. Nigeria, by contrast, appears to be stepping back at a time it should be stepping forward.

Aliyu Abdullahi, the minister of state for agriculture and food security, is correct that macroeconomic pressures (exchange rate volatility, inflation, energy costs) are pushing input prices upward. But farmers do not grow food with macroeconomic explanations; they grow food with fertiliser, seeds, irrigation and fuel.

“What we should realise is that when those costs rise, farmers scale down cultivation, they abandon high-input crops, yields drop, food prices rise, urban households suffer, and rural producers remain unprofitable. It becomes a vicious cycle where neither farmer nor consumer wins.”

What we should realise is that when those costs rise, farmers scale down cultivation, they abandon high-input crops, yields drop, food prices rise, urban households suffer, and rural producers remain unprofitable. It becomes a vicious cycle where neither farmer nor consumer wins.

Worse still, capital releases to the ministry have reportedly been delayed, slowing programme implementation. You cannot ask agriculture to drive 4.7 percent economic growth while starving it of timely capital funding. That is not reform but contradiction.

If national expenditure is projected to rise significantly while agriculture’s allocation declines, what signal does that send? Do roads matter more than food? Does bureaucracy matter more than bread?

Reduced investment in agriculture at this moment carries grave implications. The most serious issue is that food inflation will persist.

Input costs are the foundation of pricing. If fertiliser remains expensive and irrigation systems remain underfunded, food prices will not sustainably decline. Short-term imports may temporarily suppress market pressure, but they erode domestic production incentives.

Also, rural poverty will deepen, as most smallholder farmers operate on thin margins. When market prices fail to reflect production costs, farming becomes survival rather than enterprise. This discourages youth participation and accelerates rural-urban migration.

Likewise, insecurity could worsen, as economic despair in rural communities fuels instability. Agriculture is one of the largest employers in Nigeria; undermining it risks compounding already fragile security conditions in farming belts.

Similarly, dependence will grow. If local production weakens, Nigeria becomes increasingly dependent on imports. That exposes the country to global supply shocks, currency volatility and geopolitical risks. In a nation whose population is rapidly expanding, the stakes could not be higher.

Advanced nations subsidise agriculture for three core reasons:

Stability of supply, protection of farmers’ income, and strategic food independence.

They invest heavily in mechanisation, climate-smart farming, research institutions and extension services. They cushion farmers against weather shocks and price fluctuations.

Nigeria does not need to replicate its scale overnight. But it must adopt their philosophy: food systems require consistent and predictable support.

If we are serious about feeding the increasing number of mouths in our society, incremental gestures will not suffice, but structural action is required.

Targeted input subsidies, not blanket schemes: Rather than broad and leak-prone programmes, the government should implement digital, farmer-verified input subsidies. Direct vouchers for fertiliser and improved seeds can reduce costs without distorting markets, as transparent beneficiary databases are critical.

Boost domestic fertiliser and seed production: Reducing reliance on imported inputs can stabilise prices. Supporting local fertiliser blending plants, seed research institutes and private agro-processors will reduce foreign exchange exposure and create jobs.

Timely budget releases: Capital releases for irrigation, storage facilities, mechanisation centres and rural roads must be timely. Agriculture operates on seasonal cycles; delays can cost entire harvests.

Invest in technology and extension: Productivity remains below potential because knowledge transfer is weak. Extension officers should be digitised and modernised. Access to high-yield crop varieties, climate-resilient seeds and precision farming techniques can increase output without proportional cost increases.

Expand agricultural financing: Affordable credit remains elusive for smallholders, as commercial banks often consider agriculture high-risk. Government-backed risk-sharing facilities and insurance schemes can unlock lending while protecting farmers from catastrophic loss.

Strengthen value chains: Post-harvest losses significantly inflate effective food costs. Cold storage, processing hubs and logistics infrastructure can reduce waste and stabilise supply. Food affordability is not only about production but also about efficient distribution.

Youth-centred agribusiness strategy: Nigeria’s demographic surge means millions of young people will seek livelihoods. Agriculture must be repositioned as a technology-driven, profit-oriented enterprise. Mechanisation services, agritech platforms and digital marketplaces can attract educated youth back to the land.

It is understandable that macroeconomic pressures constrain ministries. But leadership is measured by priorities under pressure. If agriculture truly anchors economic recovery and food security, it must reflect in funding, policy clarity and execution speed.

Admitting that rising input costs threaten affordable food is only the first step. The next step is decisive action.

Nigeria cannot continue to lament high food prices while underinvesting in the very sector that produces food. We cannot expect farmers to absorb macroeconomic shocks indefinitely while consumers demand lower prices.

Feeding a growing nation requires more than talks but requires sustained investment, strategic subsidies, technological transformation and unwavering political will.

The question is no longer whether input costs are rising. The question is whether the government’s resolve will rise to meet the challenge, because in the end, food security is not optional; it is foundational.

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