Small-scale farmers face uncertainty over where they will sell their maize and soya beans next year. The Government will not release any Treasury money to the Food Reserve Agency (FRA) for the coming farming season, after overspending on this year’s strategic reserve purchases.
Minister of Finance and National Planning Situmbeko Musokotwane confirmed that the Government bought more maize than it had budgeted for. He said purchases exceeded the initial target of 500,000 metric tonnes.
“Yes, it is true that the amount of money spent to acquire the strategic food reserves is much more than what we had in the budget. Arising from the fact that we bought more,” Dr Musokotwane said.
The decision means the agency, for years the dependable buyer of last resort for smallholder farmers, will go into the next marketing season without fresh funding from the Treasury.
Go Back to the Land Zambia executive director Cyprian Chimwendo Phiri described the announcement as a big setback for farmers who rely on the FRA to buy their crops.
“The announcement by the minister of finance that government will not release any treasury funds to the Food Reserve Agency for next year’s farming season is a sad development for small-scale farmers who depend on FRA for the sale of their produce,” Mr Phiri said.
He said the freeze raised concerns about what lies ahead for farmers under the Grow Zambia Agenda, which President Hakainde Hichilema unveiled on October 9. The five-year programme aims to double the size of the economy, create jobs and improve living standards.
Mr Phiri said the agenda held real promise for rural producers, but only if they had somewhere to sell what they grow.
“The Grow Zambia Agenda is a great opportunity for small-scale farmers to enhance and improve their livelihoods with a predictable market,” he said.
He said reliable markets were essential if small-scale farmers were to benefit from the country’s agricultural opportunities.
The overspend followed a record season. Zambia harvested about 4.9 million tonnes of maize in the 2025/2026 farming season, a historic high that left strategic stocks at record levels. Dr Musokotwane has cited those reserves as a key reason the country is better prepared for the El Niño threat that led the Treasury to cut its growth forecasts for 2027 and 2028.
The cost of building those reserves has drawn concern from the International Monetary Fund (IMF). IMF resident representative Reginald Darius flagged fiscal slippages arising from spending beyond budget allocations, singling out FRA maize purchases alongside shortfalls in revenue collection.
Mr Darius called for corrective measures. He said reforms at the FRA should help the agency stay focused on its strategic mandate and avoid spending that could undermine fiscal discipline.
The funding freeze lands as the Government finalises a new US$1.5 billion Extended Credit Facility with the IMF. That programme awaits approval by the Fund’s executive board in December.
Opposition voices seized on the decision. Leadership Movement (LM) president Dr Richard Silumbe described the suspension of FRA funding as a total betrayal of farmers by the Government.
He questioned how the Grow Zambia target of producing 10 million tonnes of maize a year by 2031 could be met without a properly funded agency.
“Mr Hichilema wants to increase maize production by 10 million tonnes of maize, but how will he achieve that if FRA is not empowered?” Dr Silumbe said.
He said Zambians should brace for harder times, pointing to the high cost of fuel, electricity and fertilisers.
The FRA question goes to the heart of the agenda’s agricultural ambitions. The national targets include 10 million tonnes of maize, three million tonnes of soya beans and one million tonnes of wheat a year by 2031, all of which depend on farmers having confidence that their harvests will find buyers.
For now, the Treasury’s position is settled. The FRA will receive no fresh Treasury allocation for the next season, and farmers preparing their fields for the coming rains must plan without the certainty of the agency’s purchases.
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