Ghana Parliament Approves Law Criminalizing Cocoa Farm Conversion

Ghana's parliament has passed a bill that imposes severe penalties, including prison sentences of up to 20 years, for cocoa farmers who convert their farms to other uses without government approval. The legislation, which received parliamentary backing on Thursday but was not made public until Sunday, awaits President John Mahama's signature.

The new law grants protected status to all cocoa farms, making any unauthorized repurposing a criminal offense. Critics, including cocoa farmers and administrators, argue the law is unfair, particularly given the limited government support provided to farmers who invest heavily in establishing and maintaining their farms.

"If the law stands as it is now, it’s not fair," said Moses Djan Asiedu, administrator of the Ghana Cooperative Cocoa Farmers and Marketing Association Limited and a cocoa farmer. He added that if cocoa is considered a national asset, farmers should receive support to offset production costs.

The strictest penalties are reserved for illegal gold mining activities on cocoa lands, carrying prison sentences ranging from 10 to 20 years and substantial fines per affected cocoa tree.

Cocoa farming is a critical source of livelihood for hundreds of thousands of farmers in West Africa. In neighboring Ivory Coast, cocoa beans constitute 40% of the nation's export revenue, while in Ghana, they account for nearly 15%.

Ghana's government regulates the cocoa industry by setting a fixed price for cocoa beans at the start of each planting season. The majority of beans are sold through government-licensed entities to shield farmers from international market price volatility. Despite these measures, cocoa futures experienced a significant surge in 2024, reaching over $12,000 per metric ton, a multi-decade high, before crashing to approximately $4,000 as supply exceeded demand.