AFAN Warns of Farmer Losses as Food Prices Drop, Backs Minister Edun's Plan

News in brief:

-AFAN warns that falling food prices below production cost are hurting farmers and could threaten future output.

-The association backs the Federal Government’s planned intervention to stabilise markets and protect producers.

The All Farmers Association of Nigeria (AFAN) has commended the Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edun, for announcing a planned Federal Government intervention to support farmers amid a sharp drop in food prices below production cost.

In a statement signed by its National President, Muhammed Magaji Gettado, AFAN acknowledged that the gradual decline in food prices offers relief to consumers and aligns with the Federal Government’s food security objectives.

However, the association warned that the trend has negatively affected farmers, many of whom are now compelled to sell their produce far below the cost of production, leading to significant financial losses.

Risk of Reduced Production and Farmer Exit

AFAN cautioned that if the situation is not urgently addressed, it could discourage farmers, reduce future agricultural output, and threaten the long-term sustainability of Nigeria’s agricultural sector.

The association stressed that persistent losses at the farmgate level could weaken farmer confidence and undermine the national food supply in subsequent production cycles.

Support for the Government’s Planned Intervention

AFAN welcomed the minister’s assurance that concrete measures are being developed to cushion the impact of falling prices on farmers.

It proposed that the intervention should include strategic production offtake, strengthened commodity aggregation systems, access to affordable financing, targeted input support, and expanded market stabilisation mechanisms to protect farmers from losses while maintaining a steady food supply.

According to AFAN, the proposed measures reflect the Federal Government’s commitment to balancing the interests of farmers and consumers, in line with the administration’s Renewed Hope Agenda for agricultural transformation, rural development, and economic stability.

The association said effective price stabilisation policies are essential to ensuring both food affordability and farmer profitability.

AFAN Pledges Collaboration With Government

AFAN reaffirmed its readiness to collaborate with federal and state governments, as well as relevant agencies, to ensure the effective implementation of the proposed support measures.

It emphasised that structured engagement with recognised farmer groups remains critical to delivering sustainable solutions across the agricultural value chain.

The association also urged farmers nationwide to remain resilient, assuring them that the Federal Government’s planned intervention would help stabilise the sector, restore confidence, and guarantee sustainable agricultural production.

AFAN reiterated its commitment to advocating for farmer-friendly policies and supporting government efforts to achieve food security, improved livelihoods, and a resilient agricultural economy.