Government to Open Farm Advisory Market to Private Sector

May 31 , 2025. By NAHOM AYELE ( FORTUNE STAFF WRITER )

A draft proclamation, endorsed by the Council of Ministers two weeks ago, will permit private entities to deliver agricultural extension services that were previously the sole responsibility of government agents.

“For 50 years, only the government offered agricultural extension services,” Tesfaye Beljige (PhD), the ruling party's whip, told lawmakers. “Now the bill seeks to open this role to the private sector.”

Tabled in Parliament on May 27, 2025, the seven-section, 40-article bill says any provider seeking a license should register with the authorities and supply “not less than three” kinds of agricultural inputs and extension services. According to Tesfaye, his administration plans to reduce problems of access, quality and poor service and to build “a digital, standardised, efficient, accessible and accountable” system that will “boost agricultural-centre efficiency.”

The legislation mandates that the Ministry of Agriculture and regional bureaus launch short-, medium-, and long-term agricultural initiatives independently, in partnership with approved providers, or through project-based arrangements.

A broad range of non-public actors, including private companies, sectoral associations, cooperatives, research centres, and private educational institutions, can tap into public extension infrastructure and information once cleared by the Ministry or regional agricultural bureaus.

The text lists core services that licensees may deliver, ranging from promoting agricultural technologies to scaling up proven innovations, as well as business development assistance and training. Providers can also be paid to forge market linkages, coordinate stakeholders and facilitate access to finance.

However, registration comes with conditions. Applicants should meet quality-control standards and agree to be monitored by the Ministry, an autonomous authority and regional offices. They may join public projects on contract or work directly with district bureaus.

Public services dispensed by the Ministry and its regional bureaus will remain free, while high-cost activities could face additional regulation. Non-public providers may offer services free of charge or on a cost-sharing basis, with fees embedded in the technologies they supply. The government retains the power to intervene in cases of excessive pricing to maintain stable costs.

The bill leans heavily on digital technology, directing authorities to standardise data collection and make information easily accessible to farmers and service providers.

Before referring the draft to the Agricultural Affairs Standing Committee, chaired by Solomon Lale Kalo, federal legislators have raised pointed questions.

Azmeraw Andom (MP) warned that a clause allowing non-government providers to set their payment terms “could undermine the proclamation’s purpose” and urged that it be amended before final approval.

Another MP, Almaw Tigabu, said many farmers were frustrated with the existing extension workers.

“We used to receive multiple services from a single expert," he said. "But now, despite the increase in the number of experts, those services are no longer available. Even when farmers are interested in improved extension services, they often cannot access them.”

He argued that “knowledgeable farmers should be enabled to provide extension services to others”. He emphasised “the need for a regulatory body to oversee all service providers, monitor service quality and ensure accountability through proper assessment mechanisms.”

Outside the federal legislative chamber, farmers say they share those concerns.

Zemene Ferede, who farms in Armacho Woreda in the West Gondar Zone of the Amhara Regional State, see extension officers often prioritise large landowners and investors over smallholders.

We get the service only by pleading,” he told Fortune.

He hopes private competition will make the system accessible, but fears that if private providers charge too much, smallholder farmers may struggle to access these services.

Atnafu Fanta, a grower near Arbaminch, in South Ethiopia Regional State, echoed that worry. He criticised the services currently offered and said private extension agents “should consider the needs of low-income farmers above all.”

Industry representatives take a mixed view.

Desalegn Ayansa, a market-research specialist for the Liben Farmers’ Cooperative Union in Woliso, quibbled that many extension workers are trained in a particular discipline and have a limited skill set to address the diverse queries of farmers.

"Farmers want to know about not only farming but also animals and the environment," he told Fortune. "But, these experts can only advise on one topic.”

Observing some of these workers opting for city life over the field, he believes private providers, driven by profit motives, would offer better support. Yet, he fears that because farmers are accustomed to free services, they might resist paying.

Serku Tarekegh, manager of the Ras Gaynt Farmers’ Cooperative Union, supports private involvement but doubts that companies will be able to satisfy demand.

Regional officials countered that the bill guards against abuse.

According to Beriso Feyisa, deputy head of the Oromia Agriculture Bureau, talk of inflated fees comes from “misreading the draft,” stating that private operators are required to work “within the government framework.”

"The measure is designed to benefit farmers and address existing limitations in the agricultural sector,” he told Fortune.

Academics welcome the opening yet see gaps. Tesfakidan Admasu, head of Agriculture & Development at St. Mary’s University, called the move “long overdue”.

"Poor access and quality in government services make private involvement potentially beneficial for farmers,” he said.

Still, he criticised the bill for not spelling out what the extension services should entail in each sector and how artificial intelligence (AI) can support these efforts. He urged lawmakers to clarify service scopes, establish a non-governmental body to evaluate the quality and impact of private services, and outline clear fee guidelines.

The draft law now heads to the Standing Committee for detailed review. Supporters say the measure could modernise the farming sector by widening access to expert advice, new inputs, and stronger market ties, while sceptics worry that the reform might leave the poorest growers paying more for help they once received for free.

PUBLISHED ON May 31,2025 [ VOL 26 , NO 1309]