Agriculture is said to be the backbone of the country’s economy as a significant portion of the population relies on it to sustain themselves. Suppose this statement is to be given more credence. In that case, the recent legislative efforts in the country, such as the Mung Beans Bill, 2024, sponsored by Senator Enoch Wambua and the Nuts and Oil Seeds Bill, 2023, sponsored by Senator Hamida Kibwana, are indicative of the high regard agriculture is held in the country.

Similarly, these bills also point to a growing trend where lawmakers attempt to address sector-specific challenges through targeted legislation. These bills, while well-intentioned, are designed to protect farmers from exploitation by middlemen who often gain more from the sale of produce than the farmers themselves. However, an overly strict legal and regulatory approach focused on individual crops may not only fail to achieve its intended outcomes but may also create unintended consequences that could further curtail the country’s economic backbone’s growth.

Genuine concerns at the heart of regulation

At the core of these legislative efforts lies a genuine concern for the welfare of farmers, who are often marginalised in the agricultural value chain. Middlemen, who serve as the intermediaries between farmers and markets, have historically been viewed with suspicion, accused of taking advantage of farmers’ lack of market information, capital, and bargaining power.

The result is that farmers receive a fraction of the market value of their produce while middlemen reap substantial profits. In response, lawmakers have sought to regulate these relationships through crop-specific bills, aiming to set minimum prices, regulate trade practices, and establish frameworks for market access.

A complex sector!

Given the agricultural sector’s complexity, a more comprehensive approach to regulation is urgently needed. Agriculture is a dynamic and interconnected system in which various crops are often grown in rotation or alongside each other, sharing resources such as land, water, and labour. 

Creating separate legislative frameworks for each crop could lead to a fragmented regulatory environment, where farmers are burdened with navigating multiple, potentially conflicting, sets of rules. This complexity could also stifle innovation, as farmers may be discouraged from diversifying their crops or adopting new practices that fall outside the scope of existing legislation.

Furthermore, these crop-specific bills risk reinforcing the very power dynamics they seek to dismantle. Middlemen thrive not merely because of the absence of regulation but because of systemic issues such as inadequate infrastructure, limited access to credit, and poor market access. By focusing on regulating transactions at the micro-level, these bills may overlook the broader structural challenges that give rise to the problem in the first place. For example, without addressing the issue of market access, farmers may still be forced to rely on middlemen to sell their produce, even if they are guaranteed a minimum price by law. The underlying issue is not just the presence of middlemen but the lack of alternatives for farmers.

Another potential pitfall of crop-specific legislation is the risk of politicisation. Agriculture is deeply intertwined with local economies and politics, and laws that favour one crop over another could be seen as playing favourites, leading to regional tensions and imbalances. For instance, regions that are major producers of mung beans might benefit from the Mung Beans Bill, while other areas that grow different crops could feel neglected. This could exacerbate regional disparities and lead to a situation where legislative attention is disproportionately focused on crops with strong political backing rather than those that might need it the most.

The imperative of a holistic policy approach

Given these challenges, a more holistic policy approach is needed—one that addresses the root causes of farmers’ exploitation and creates an enabling environment for their empowerment. Rather than focusing on individual crops, a broader agricultural policy framework that promotes farmer empowerment, market access, and infrastructure development is required.

To begin with, farmer cooperatives and producer organisations need to be strengthened. By pooling resources and collective bargaining, farmers can enhance their market power, reduce their dependence on middlemen, and secure better prices for their produce. Governments can support these organisations by providing training, facilitating access to credit, and creating legal frameworks that ensure their transparency and accountability. Additionally, cooperatives can play a crucial role in processing and value addition, allowing farmers to capture a greater share of the value chain.

Another crucial area is the improvement of rural infrastructure, particularly in transportation and storage. Many farmers are forced to sell their produce immediately after harvest, often at low prices because they lack access to storage facilities. By investing in rural infrastructure, the government can help farmers store their produce and sell it at a time when prices are more favourable. Improved transportation networks can also reduce the cost of getting produce to market, making it easier for farmers to bypass middlemen.

Moreover, access to information is another critical component. Many farmers lack real-time market information, which puts them at a disadvantage when negotiating with buyers. The government can play a role in providing market information services, perhaps through mobile platforms, which give farmers up-to-date data on prices, demand, and potential buyers. This could significantly reduce the information asymmetry that middlemen currently exploit.

Furthermore, financial inclusion must be at the core of any policy designed to protect farmers. Access to credit is a major barrier for many farmers, who often rely on middlemen for advance payments. By expanding access to affordable credit, perhaps through the establishment of agricultural banks or targeted loan programs, the government can help farmers become more financially independent and less reliant on exploitative intermediaries.

Finally, it is essential to recognise the role of technology in transforming agriculture. Digital platforms can connect farmers directly with buyers, reducing the need for middlemen and ensuring that farmers receive a fairer share of the profits. Governments can support the development and adoption of these technologies by creating favourable regulatory environments and investing in digital literacy programs for farmers.

Conclusion

In conclusion, while the Mung Beans Bill and the Nuts and Oil Seeds Bill represent important steps in addressing the exploitation of farmers by middlemen, a more comprehensive policy approach is needed to truly protect farmers and empower them to take control of their economic destiny.

By focusing on farmer cooperatives, infrastructure development, access to information, financial inclusion, and technology adoption, policymakers can create a more equitable and sustainable agricultural sector.

Rather than piecemeal legislation that addresses individual crops, what is needed is a holistic strategy that addresses the root causes of farmer exploitation and creates a vibrant, farmer-centric agricultural economy. This approach not only protects farmers but also ensures that agriculture remains a viable and thriving sector for future generations.