Oyo State Government announces tractorisation subsidy for smallholder farmers

April 15, 2025

The Oyo State Government has announced the commencement of the second phase of its 50% land ploughing subsidy, also known as the Tractorisation Policy, to support smallholder farmers in the state.

Here’s a step-by-step guide on how farmers can benefit from this initiative:

Steps to Benefit from the Subsidy

Step 1: Contact the Ministry: Farmers contact the Ministry of Agriculture and Rural Development by calling the extension officers attached to their Local Government Area.

Step 2: Farm Assessment: Extension Officers visit the farmer’s farm to capture and ascertain the size of the farm.

Step 3: Booking: Farmers or Extension Officers book for the Oyo State Land Tractorisation Subsidy in the Hello Tractor App.

Step 4: Confirmation: Backend officers at the ministry confirm booking and farmer information, giving the go-ahead for counterpart payment by the farmer.

Step 5: Payment and Deployment: Farmers make payment into the ACCOS account, and the Ministry deploys the tractor to their farm.

The Oyo State Government has approved N600m for tractorization subsidy for arable farmers in the state, with each farmer paying N15,000 instead of N30,000 for land clearing, while the government pays the balance.

This initiative aims to enhance food security and support smallholder farmers in the state.

The Commissioner for Agriculture and Rural Development, Mr. Olasunkanmi Olaleye, disclosed that the subsidy is part of the government’s efforts to ensure food sufficiency across the state.

With extension officers deployed across 33 Local Government Areas, farmers can access the subsidy and improve their agricultural productivity.