Agriculture takes centre stage with $113.2B allocation

– as Govt focuses on food security, growth

Agriculture has emerged as one of the central pillars of Guyana’s $1.558 trillion National Budget for 2026, with a record $113.2 billion allocation aimed at strengthening food security, reducing production costs, expanding value-added production and reinforcing the sector’s role as the backbone of the country’s non-oil economy. Speaking after Senior Minister with responsibility for Finance Dr Ashni Singh presented the budget to the National Assembly, Agriculture Minister Zulfikar Mustapha said the 2026 budget, delivered under the theme “Putting People First”, reflects a people-centred and evidence-driven approach to national development, with agriculture positioned as a key driver of diversification, growth and shared prosperity. According to Mustapha, the allocation represents the largest investment ever made in the agriculture sector and forms part of a broader strategy to transform Guyana into a leading food-producing nation in the Caribbean. He said the Government’s work in agriculture is grounded in service and guided by the principle that every farmer, fisherfolk and agri-processor, whether on the coast, in the hinterland, or in riverine communities, deserves full state support. The $113.2 billion allocation includes major investments across drainage and irrigation, crop and livestock development, fisheries, agro-processing and agricultural infrastructure, reflecting what the Minister described as a comprehensive and integrated approach to sectoral development. Central to that approach is the recognition that modern, climate-resilient infrastructure is essential to sustaining production and lowering operational costs. Of the total allocation, $81.9 billion has been earmarked for drainage and irrigation works, an area Mustapha identified as critical to the sector’s success. He pointed to extensive canal cleaning, rehabilitation and construction programmes already underway across the country, alongside the installation of new pump stations and sluices, noting that these investments have already delivered tangible benefits in reducing flood risk and improving productivity. He said continued investment in drainage and irrigation remains fundamental to ensuring food security and expanding arable land, with plans over the next five years to bring more than 100,000 acres of new land under cultivation.

Traditional commodities
Rice, one of Guyana’s traditional agricultural pillars, continues to receive significant attention under the 2026 budget. Mustapha said $430 million has been allocated to the rice sector, with resources directed toward seed processing facilities, the establishment of rice-producing clusters and the development of value-added rice products. He pointed to the sector’s strong performance in recent years, noting that yields have climbed as high as 6.6 tonnes per hectare, supported by the introduction of new varieties such as GRDB-16, GRDB-18 and bio-fortified rice. Beyond production, the Government is also targeting post-harvest challenges, with $1 billion set aside to construct storage facilities to allow farmers to store paddy during periods of market glut. Mustapha said this investment is intended to stabilise prices, protect farmer incomes and reduce post-harvest losses, while supporting continued expansion into new export markets. He noted that in 2025, Guyana exported rice and rice by-products to more than 30 countries and that efforts are underway to expand trade with markets such as Mexico and Europe. Sugar, another cornerstone of the agricultural economy, has been allocated $13.4 billion under the 2026 budget. Mustapha said the funds will be used to modernise and revitalise the industry, including investments in mechanised harvesting, new sugar boilers, conveyor systems and factory upgrades. He said the Government remains committed to the sector, pointing to its role in employment, rural livelihoods and national production. Targets for 2026 include sugar production of more than 100,000 tonnes, supported by investments across more than 3000 hectares of mechanised harvesting.

Diversifying agricultural production
The budget also reflects a deliberate push to expand and diversify crop production beyond traditional commodities. The “other crops” sector has been allocated $3.3 billion, with a focus on technical support, shade houses, hydroponics and climate-smart farming systems. Mustapha said Guyana now hosts some of the largest hydroponics farms in the Caribbean, with facilities already operating in several regions, including Regions Two, Four, Five and Ten. He noted that the commissioning of the Tissue Culture Laboratory, capable of producing up to one million disease-resistant plantlets annually, is expected to be a game changer for fruit and vegetable production. Coconut cultivation continues to be scaled up under the 2026 budget, with $195 million allocated to expand production by an estimated 5000 acres. Mustapha said this builds on expansion achieved in 2025 and includes the distribution of high-yielding seedlings, including Green Dwarf coconut plants, as well as the development of facilities for processing coconut waste. He described coconut as an increasingly important commodity with strong domestic and export potential. New and non-traditional crops also feature prominently in the Government’s agricultural agenda. Mustapha said corn and soya bean production, which began only a few years ago, has already demonstrated success through public-private partnerships. Targets for 2026 include growth of 8.9 per cent in corn production and more than 22 per cent in soya beans. He said these crops are critical to reducing import dependence and supporting the livestock and feed industries.
Livestock development has been allocated $1.9 billion, reflecting steady growth in the sector in recent years. Mustapha pointed to improvements in cattle, sheep, goat and poultry production, alongside investments in processing infrastructure such as abattoirs. He said the commissioning of a new abattoir in Region Five is expected to further strengthen the sector, while continued expansion is planned nationwide. The fisheries sector, including aquaculture, has received $1.5 billion, as the Government moves beyond traditional marine and artisanal fishing. Mustapha highlighted the expansion of brackish water shrimp farming, which has already been replicated in several regions, including Region Five, with growing interest from Regions Two, Three and Four. He said aquaculture is becoming an increasingly important contributor to food security and export earnings.

Agro-processing
Agro-processing, long identified as a weak link in the agricultural value chain, has been allocated $745 million. Mustapha said the Government is moving away from a reliance on primary production toward value-added processing, ensuring farmers and agro-processors capture greater returns from their output. Investments are also planned for regional food hubs, mega food parks, modern port facilities with cold storage and agro-industrial zones. Supporting these sectoral investments is a broader push toward data-driven and technology-enabled agriculture. Mustapha said the Ministry of Agriculture is developing a national agricultural data centre and situation room, expected to be commissioned before mid-2026, to provide real-time information to farmers locally and across the Caribbean. He said soil testing laboratories, improved information systems and regional data sharing will strengthen decision-making and resilience in the sector.
The Minister also pointed to policy measures designed to ease the financial burden on farmers, including the removal of duties on outboard engines under 150 horsepower, tax relief on all-terrain vehicles and incentives for agricultural equipment. He described the introduction of crop insurance for rice farmers as a major step forward, noting that Guyana is the first country in the Caribbean to implement such a programme. Mustapha emphasised that all of these investments are being made without the introduction of new taxes, underscoring what he described as the Government’s commitment to balancing oil-driven growth with diversification and people-centred development. He said agriculture will continue to serve as the cornerstone of Guyana’s economy, anchoring the non-oil sector and ensuring food security, job creation and growth.
As the Government rolls out further details in the coming weeks, Mustapha said the 2026 budget sets out a clear vision for agriculture, one that places food security, modernisation and shared prosperity at the centre of national development, while inviting farmers and entrepreneurs to be active partners in shaping the sector’s future.