Dr. Olufemi Oladunni, Chief Executive, Agricultural and Rural Management Training Institute (ARMTI), has drawn attention to the increasing financial and operational pressure smallholder farmers are currently facing across the country.
According to him, these challenges are affecting food production levels, with many farmers unable to complete harvests due to a shortage of labour and rising input costs.
He described how many older farmers are beginning farming activities but are unable to see them through, largely because of difficulties in hiring workers for tasks like weeding.
“You find some of them starting the process, but they can’t finish,” he explained. “Everywhere, the issue is the same. There are just not enough workers, and those available now cost much more to hire.”
Fertiliser prices, for instance, have more than doubled in the last two years, and there are similar increases in the cost of fuel and pesticides. These rising expenses are further stretching farmers who already struggle with labour availability. In the past, many farms relied on seasonal workers from neighbouring countries like Benin and Togo. These workers were typically housed on the farms and received non-cash rewards at the end of the season, often a motorcycle. But this model has become harder to sustain.
Dr. Oladunni said that the traditional approach of compensating workers with accommodation, meals and an end-of-season asset is no longer viable.
The cost of providing such incentives has gone up significantly. In addition, the value of these rewards has dropped due to inflation and exchange rate fluctuations.
“Farmers can’t keep up with these expectations anymore,” he said. “The price of things like motorcycles has gone far beyond what most of them can afford.”
In previous years, these seasonal workers accepted these arrangements because they found value in the exchange. Now, however, many of them prefer to be paid for specific tasks as they are completed, rather than waiting until the end of the season. This shift to pay-per-task has further increased labour costs and added to the uncertainty for farm owners.
In his remarks, Pelumi Aribisala, co-founder of Cato Foods, also commented on the situation.
He said changes in foreign exchange rates have played a major role in disrupting farm operations.
According to him, what used to be an affordable motorcycle for a farmer to offer now costs up to three times more, making it difficult to retain labour. Workers, on their part, are also less willing to accept cash, as currency value losses reduce its purchasing power once they return home.
Dr. Oladunni further explained that there is a growing labour gap in agriculture. This shortage, he said, is slowing down food production just as the country needs to boost output in response to population growth and urban development.
He added that one of the solutions lies in improving access to basic mechanised tools.
