Agriculture
Ondo cocoa farmers slam N250,000/Ha 'Forest Tax' as discriminatory burden amid price crash
Written By: Emmanuel Ikhenebome
04 Nov 2025 04:27 PM
Idanre, Ondo – Cocoa farmers in Idanre and Akure forest reserves, Ondo State, have protested a new Forest Farming Policy proposed by Governor Lucky Aiyedatiwa's administration.
In a letter sighted by Daily South Nigeria, dated October 30, 2025, signed by their lawyer, Prof. Olugbenga Oke-Samuel of Lawville Legal Practice, Akure, and obtained by The Nation, the farmers rejected the policy's requirements.
The policy mandates farmers growing cocoa in forest areas to pay N250,000 per hectare—N150,000 for polygon mapping and N100,000 for agro-forestry—along with a five-year farming permit.
Government officials say the policy aligns with the European Union’s Deforestation Regulation (EUDR).
The farmers called the fees “unreasonably high, discriminatory, and financially burdensome,” warning they could devastate cocoa production and drive thousands of smallholders into poverty.
They highlighted the policy's timing amid a cocoa price crash from N14,000 to N6,000 per kilogram.
The farmers also criticized the Ministry of Agriculture for hiking cocoa grading fees from N11,000 per tonne to effectively N22,000 per kilogram equating to N660,000 per trailer.
“Our members are smallholders facing costs that would challenge even large investors,” the letter stated.
Under the current system, farmers pay N20,000 per hectare and say they already support environmental compliance.
They asked why the state cannot subsidize mapping, noting exporters provide it free in non-forest areas and often give farmers incentives.
The N100,000 agro-forestry levy was deemed excessive, as seeds for 1,000 trees cost just N5,000, raising transparency concerns.
The farmers alleged unfair treatment:
smallholders get five-year permits, while big investors secure long-term leases at far lower rates.
Examples include: JB Farms Ltd (Ore-Otutule Forest Reserve): 14,000 hectares, 50-year permit, N50 million annually (N3,572/ha)
SAO Agro Ltd: 10,000 hectares, 80-year permit, N20 million annually (N2,000/ha)
Tropic Palm Oil Ltd (Ute Owo Forest Reserve): 14,000 hectares, 40-year permit, N30 million annually (N2,150/ha)
“Cocoa trees produce for over 40 years. Limiting indigenous farmers—many formerly unemployed—to five years while investors get decades is unjust,” the letter said.
The farmers urged Aiyedatiwa to cut the N250,000 levy, extend permits to at least 50 years for long-term investment returns, align agro-forestry fees with real tree-planting costs, and subsidize mapping for EUDR compliance.
“Your Excellency, our clients trust your dedication to equity, sustainability, and inclusive growth. We believe you will address their concerns fairly,” the letter concluded.
In a letter sighted by Daily South Nigeria, dated October 30, 2025, signed by their lawyer, Prof. Olugbenga Oke-Samuel of Lawville Legal Practice, Akure, and obtained by The Nation, the farmers rejected the policy's requirements.
The policy mandates farmers growing cocoa in forest areas to pay N250,000 per hectare—N150,000 for polygon mapping and N100,000 for agro-forestry—along with a five-year farming permit.
Government officials say the policy aligns with the European Union’s Deforestation Regulation (EUDR).
The farmers called the fees “unreasonably high, discriminatory, and financially burdensome,” warning they could devastate cocoa production and drive thousands of smallholders into poverty.
They highlighted the policy's timing amid a cocoa price crash from N14,000 to N6,000 per kilogram.
The farmers also criticized the Ministry of Agriculture for hiking cocoa grading fees from N11,000 per tonne to effectively N22,000 per kilogram equating to N660,000 per trailer.
“Our members are smallholders facing costs that would challenge even large investors,” the letter stated.
Under the current system, farmers pay N20,000 per hectare and say they already support environmental compliance.
They asked why the state cannot subsidize mapping, noting exporters provide it free in non-forest areas and often give farmers incentives.
The N100,000 agro-forestry levy was deemed excessive, as seeds for 1,000 trees cost just N5,000, raising transparency concerns.
The farmers alleged unfair treatment:
smallholders get five-year permits, while big investors secure long-term leases at far lower rates.
Examples include: JB Farms Ltd (Ore-Otutule Forest Reserve): 14,000 hectares, 50-year permit, N50 million annually (N3,572/ha)
SAO Agro Ltd: 10,000 hectares, 80-year permit, N20 million annually (N2,000/ha)
Tropic Palm Oil Ltd (Ute Owo Forest Reserve): 14,000 hectares, 40-year permit, N30 million annually (N2,150/ha)
“Cocoa trees produce for over 40 years. Limiting indigenous farmers—many formerly unemployed—to five years while investors get decades is unjust,” the letter said.
The farmers urged Aiyedatiwa to cut the N250,000 levy, extend permits to at least 50 years for long-term investment returns, align agro-forestry fees with real tree-planting costs, and subsidize mapping for EUDR compliance.
“Your Excellency, our clients trust your dedication to equity, sustainability, and inclusive growth. We believe you will address their concerns fairly,” the letter concluded.
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