Professional Documents
Culture Documents
Agriculture Policy Revision-Team Leaders-06-Aug
Agriculture Policy Revision-Team Leaders-06-Aug
Rationale
Existing policy
Next steps
Rationale
• Progress vs. expectations: food security, raw material, export, global average
The case for • Market system were not developed in areas where we had surplus, e.g. maize & vegetables
strategy • Labour productivity was not taken into consideration
• Limited contribution to trade balance: challenging to increase investment on agriculture
reform
• Structural shift could not be achieved: unemployment /under-employment & inflation
or policy • Driven by policies, practices/implementation and limited resources (e.g. finance)
revision • Changes are required to improve polices and practices to meet expectations, accelerate
economic growth, be better competitor in the global economy on a sustainable basis
Public extension lacks Cash culture /informality enable illicit trade; Middle men
Cooperatives mandated incentive to meet farmer capture margin, minimize farm gate prices
Technology registration to distribute inputs needs
has conflict of interest without performance
accountability Low and ineffective FX regime / overvaluation incentivizes under-pricing of
Breeders right protection private /commercial farms exports
Public research unable to
charge services fees Biotic and abiotic
Ag Water Mgt problems (soil) Cooperatives lack robust governance and management
Finance Cumbersome export
Water as critical input for
bureaucracy
agriculture, management,
fees, Traditional banking lacks Reliance on manual
incentive to lend to Poor logistics and warehouse infrastructure
Administrative
labor; absence of
Absence of O&M , & cost agriculture ; Rural MFIs lack mechanization services
recovery framework for capacity; Absence of Bureaucratic process limit private sector and cooperatives from
irrigation and water use agriculture specific insurance being profitable
products
Infrastructure & Limited incentive, investment and infrastructure
investment Poor design and project execution ; eg Irrigation , quarantine; Poor logistics , warehouse, quarantine , irrigation infrastructure
Limited investment on
Investment
Implementation Capacity Weak capacity and institutional set up to coordinate the value chain for inclusive and sustainable agriculture
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• Components of the revised ARD policies &
strategies
• Sustain a rapid and inclusive economic growth ፤ የተረጋጋ የማክሮ ኢኮኖሚን በማስፈን ኢኮኖሚያዊና ማህበራዊ
ቱሩፋቱን ለህብረተሰቡ የሚያበረክት፣ የግለስቦች የኑሮ ደረጃ በተጨባጭ የሚያሻሽል ፣ ድህነትን በሁለም መገለጫ የሚቀንስ፤ የዋጋ
Agricultural development ንረትን እና የሥራ አጥነት መቀነስ ፣ ጥራት ያለው የስራ እድል መፍጠር (decent job) ፤ የኢኮኖሚ መዋቅራዊ ለውጥ ፣ መካከለኛ
policy and strategies in the ገቢ ያለው ሀገር ግንባት
1 context of Ethiopia's overall • Build productive and competitive economy/improving the balance of trade ( Enhanced
development agricultural commodities export and import substitution)
• Food and nutrition security and food sovereignty
• Build resilient green economy
The desired future of agriculture sector Pillars of the revised agricultural policies
• Science, technology, innovation-based agriculture
1. Land
(crop and livestock ) and commercial oriented
• Labor shift from agriculture to industry 2. Technologies and Inputs
• Mechanized and precise agriculture 3. Finance
• Water centered agricultural development
Agricultural development 4. Irrigation and water use
2 policies and strategies • Balanced use of labor & capital in agriculture
• Geographies/production systems based agricultural 5. Output market and value addition
development: shaping agroecology by technology
6. infrastructure and investment
• Inclusive and sustainable agriculture development
7. Private sector participation
• Wise engagement public and private sector (including
COOPs) in agricultural development 8. Implementation capacity
From To
From To
• Strengthening the agricultural labor force • Land
• Proper land use
• Technologies and Inputs
• Improving on rural finance
• Preparing area compatible development • Finance
packages
• Irrigation and water use
• Expansion of rural infrastructure
• Working towards market-led agricultural • Output market and value addition
development
• infrastructure and investment
• Promoting private sector participation
• Private sector participation
• Strengthening non-agricultural rural
development activities • Implementation capacity
8
1 Reform Agenda: Land
Existing provisions Shortcomings New direction/departure
• Absence of land use policy and land use • Integrated land use plan & independent
plan administration of land to ensure allocation of
1. Proper Utilization of
Agricultural Land • Dichotomy b/n urban and rural land land to agricultural, industrial and other
administration hindering integrated land purposes according to land type,
use plan and rural-urban linkage environmental protection, national
development priorities, etc
• Strengthen farmers’ land use rights including
Limited Inheritance, gifting, transfer,
2. Rural land law _ accessing capital using their land as collateral and
Mortgaging use right, minimum holding develop the land with investors on contractual
public land ownership size, redistribution, rental markets, basis
and farmers have the recognition of pastoral communal land • Enhance land transfer and rental market
right to use land, but holdings, land registration and surveying, • Disincentivize unsustainable land use and land
not as leverage for unsustainable land use & management management
capital practice • Evidence based rural land compensation
• Smallholder land fragmentation, difficult
• Legal framework and implementation
for mechanization and technology use, no
3. Smallholder farmers mechanism for voluntary SHF land consolidation
legal framework for consolidation
• Large scale agriculture in lowland areas towards medium and large scale highly
intensification
• Assumes rural labor will be sufficient & productive farmers
interested in agriculture
4. Urban land lease Urban land lease policy and law does not • Urban land lease policy and law that
policy and law adequately take agriculture into account promotes urban agriculture 9
1 Reform Agenda: Land (2/2)
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2 Reform Agenda: Technology and Inputs…
13
2 Reform Agenda: Technology and Inputs…
17
5 Reform Agenda: Output Marketing (1/2)
Existing provision Shortcomings New direction/departure
1. Grading • Grading system is not binding • Transparent , traceable and
Agricultural competitive wholesale and retail
• Markets and marketing systems are not yet agriculture marketing system that
Produce
efficient to encourage farmers/producers rewards quality, accesses capital and
uses modern / digital technology
• Government to lead and encourage private
2. Market
players who provide information; but lacks legal • Expand or develop platforms for market information
information
framework and incentive mechanisms for non-cash crops
• In practice, limited to few cash crops via ECX
• Government to set up coops with the consent of • Develop cooperative policy to promote
3. Strengthening farmers; however consent is not enough, need − Professional cooperative management
Cooperatives proactive demand by farmers − Incentives to attract, retain and reward coop
• Government to provide accreditation, support managers and employees
and audit; but coverage is low and − Expand coverage and assure quality of inspection,
accreditation / audit findings not accepted by accreditation and audit including authorization of
financial institutions external audit
• Blurred line between regulation, support and − Refocus on existing coops performance rather
political interference than establishing new coops
• Coops face pressure to export irrespective of − Establish and guide federations to focus on
profitability or farmers’ benefits advocacy and capacity building.
− Legal framework to prevent inappropriate political
/ state interference 18
5 Reform Agenda: Output Marketing (2/2)
Expansion of rural
infrastructure through
public investment and • Limited coverage
• Public private partnership to expand, operate
manual construction and manage Agricultural service infrastructure
• Inefficient operation and management of
the existing infrastructure (export quarantines)
21
Reform Agenda: Export competitiveness and
7 import substitution
Existing provision Shortcomings New direction/departure
• Less competitive and sustainable supply • Intervention and incentive mechanism for
Agricultural led export of quality agricultural produce; limited competitiveness and diversified agricultural
economy incentive and coordination mechanism export
• Sustain supply using production calendar
23
9 Reform Agenda: Private Sector Participation
Technical lead ???
• Linkage between private • Less effective private sector investment • Clear legal framework & institutional
investors and smallholders implementation mechanism for responsible
• Policy discusses out grower agricultural investment that is fair and
arrangement in detail but in practice it predictable, balances the rights of farmers
continues to be risky e.g. farmer default and investors
Food insecurity
Accountable coordination mechanism
Ato Zena Habtewold Wro Sintayehu Demisie
HR transformation
Nutrition
Ato Kasahun
Wro Alemtsehay Sergawi
Immediate
• Produce their respective content/section to the revision of the ARD Policies and
deliverable
Strategies
(first draft by
31 August)
• Once the specific reform agenda are approved, produce reform documents such as
analytical reports, policy/legal texts and submit same to the Core Reform Team
Medium/long • Revise reform documents based on feedback from the Advisory Team/ Core Reform
term Team/MoA Senior Leadership, and other relevant institutions
deliverables
• Submit a final reform documents integrating feedback from the Advisory Team/ Core
Reform Team/MoA Senior Leadership, and other relevant institutions
27
• Next steps
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Process being followed
HGER/PDC
Monthly review Consultation with Review
Review and
and
Technical Committee
by PDC subsectors & regions sign-off
lead by HE Ato Sani sign-off the
the
framework
framework
Owner MoA
Leadership