Cereal farmers decry high cost of fertiliser, other inputs

Cereal farmers are battling rising production costs even as the government seeks to introduce reforms in agriculture to boost growers.

Fertiliser prices have increased sharply, with a 50-kg bag going at Sh6,000, up from Sh3,200, while a 25-kg bag of maize seeds is selling at Sh4,700.

Most farmers have expressed uncertainty investing in cereal production after the cost of farm inputs hit the roof.

“With maize prices going at Sh3,000 per a 90-kg bag, a farmer will have to sell two to raise Sh6,000 to buy one bag of fertiliser, which is not enough to plant one acre of land,” said Mr Wilson Langat from Chepkumia in Nandi County.

He said an acre of land requires at least two and half bags of fertiliser, meaning a farmer has to sell about 12 bags of maize to get the nutrients.

“It is becoming increasingly difficult to break even. The high production cost against declining market prices signals a tough economic season for maize farmers,” said Mr Eliud Kibet from Kerita farm in Uasin Gishu.

The country requires about 650,000 tonnes of fertiliser annually. The government has introduced low cost fertiliser through the e-voucher system that will be issued through registered cooperatives to facilitate small-scale farmers.

Agriculture Cabinet Secretary Peter Munya said the government would meet 70 per cent of the costs and farmers the remaining 30 per cent under the e-voucher system.

“Farmers will buy fertiliser from the National Cereals and Produce Board (NCPB) and Kenya National Trading Corporation (KNTC) using the system to cushion them from high production costs,” said Mr Munya while addressing farmers in Trans Nzoia County at the weekend.

He said the vouchers will be issued through registered cooperatives to enable small scale farmers to benefit from the scheme.

Mr Munya said the global increase in the cost of raw materials has resulted in the rise in fertiliser prices, thus hurting farmers who have to incur extra production costs.

But a majority of farmers are yet to benefit from the scheme as the government shift towards liberalising the sector.

The increase in fuel prices, diesel by Sh7.94 to sell at Sh116.31 up, from Sh97.23 a litre, is a major setback to farmers adding to high cost of land preparations and crop management.

“Diesel fuels production and the government needs to regulate the prices to safeguard us from other operating costs like maintenance of our tractors in order to make agriculture a profitable venture,” said Mr Geoffrey Kemboi from Trans Nzoia County.

It costs a farmer Sh4,500 to plough an acre of land with the production of a 90-kg bag of maize estimated at Sh1,700, making it the highest in the East African region.

As for the case of Mzee Kipruto Kirwa from Natwana village in Uasin Gishu County, he cultivates normally 30 acres of maize, producing 800 bags of but will scale down the acreage under the crop to 20 acres this year due to high production costs.

He pumps Sh6,000 per acre to plough and harrow the farm, additional Sh1,500 per acre to plant and Sh4,700 for 25-kilogram maize seed enough for two acres apart from labour costs.

“The government should subsidise the production costs for maize and wheat to enable farmers sustain production otherwise high costs of farm inputs will discourage them from investing in the sub-sector,” said Mzee Kirwa.

A study by Kenya Agriculture and Livestock Research Organisation (KALRO) indicates that farmers in Uasin Gishu and Trans Nzoia counties lose an average of 10 bags of maize per harvest due to declining soil fertility caused by continuous application of common type of fertiliser.

The declined crop production is confirmed by recent report on fertiliser extension project that indicates that maize production in the region has dropped from 30 to 20 bags as soil continues to loss its fertility.

It costs farmers between Sh1,500 and Sh2,000 to carry out sampling to determine acidity level of their soil. Kenya Plant Health and Inspectorate Service (KEPHIS) and KARI are among agricultural institutions that carry out soil analysis.

The government slashed budget allocation to agriculture in the 2019/2020 financial year to Sh59.1 billion and allocated Sh60 billion in 2021/2022, but withdrew funding for Strategic Grains Reserve and fertiliser subsidy.

“It costs me Sh1,800 per acre for top dressing, additional Sh10,000 for herbicide and pest control,” added Mzee Kirwa.

He admitted that maize production had declined from 30 bags per acre to about 20 bags due to high acidity level as soil continues to loss its fertility.

It costs farmers between Sh1,500 and Sh2,000 to carry out sampling top determine acidity level of their soil.

He petitioned the government to re-introduce Guaranteered Minimum Returns (GMR) scheme to cushion farmers from losses caused by natural calamities.

The scheme was phased out many years ago after the agriculture sector was liberalised.

Cereal farmers have petitioned the National Assembly to increase the budgetary allocation to resolve financial problems facing the sector.

The growers said that 10 per cent of the national budget should be set aside for the agriculture sector in line with the Maputo declaration to lower the high cost of production.

“What needs to be done is to remove tax on farm implements, increase the budget to the sector. We can only lower the cost of production when MPs introduce these reforms,” said Mr Kipkorir Menjo, a Kenya Farmers Association (KFA) director.

Food experts warn that poor planning by the government to adequately address challenges facing agriculture, coupled with natural calamities like prolonged drought, could plunge the country into a food crisis.

“The government needs to put in place proper policies on how to address food security instead of taking the matter lightly resulting in importation that expose farmers to unnecessary competition,” warned Mr Isaac Towett, an agricultural economist.

Tegemeo Institute, an agricultural research firm has also expressed alarm over impending food crisis attributing the predicament to increased cost of certified maize seed to farmers.

The National Cereals Produce Board (NCPB) is undertaking reforms meant to advance its role in the purchase and management of cereal produce in the liberalised economy.

The agency is shifting its role of setting up prices after the government washed its hand off the business of buying maize and wheat produce as well as farm inputs which has in the past been characterized by inefficiency and corruption.

In the radical shift, the NCPB is now buying the cereals on commercial basis-willing buyer, willing seller where prices are determined by the market forces of supply and demand.

“For a long period, the board acted as market stabilizer for cereals by setting attractive prices. It purchased the produce on behalf of the government for Strategic Food Reserve at competitive rates but the trend has since changed and it is now competing with other players in the liberalised market,” Joseph Kimote, the NCPB Managing Director.

In a raft of changes in the NCPB by CS Munya, the government opted for the Warehouse Receipt System (WRS) as an open trading platform that links buyers and sellers in a manner similar to that of the stock exchange.

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