The present day Ministry of Agriculture (MoA) was established in 1907during the reign of emperor Menelik II.More than a century has been elapsed since agriculture was transformed in to an institution. During the last successive regimes, some measures have been taken to improve the Agricultural sector. Despite such measures, there have not been any improvements in the sector. As result, the past regimes did not able to eradicate poverty and guarantee food security. This happened mainly due to the absence of conductive policies and strategies. Above all, farmers were not free to use their lands for their own benefit.
As farmers were highly oppressed and very little or no attention was given to the agricultural development during the past regimes, they were not motivated to increase their production and productivity. Lack of working policies and strategies, absence motivation for farmers to increase productivity finally led to the total failure in agricultural sectors.
The Government of Federal Democratic Republic of Ethiopia that has been established in 1991 designed the new agricultural policy and strategies. Agriculture Development led Industrialization (ADLI) that aimed at transforming the country's economy is one of the national policies and strategies. It is aimed at transforming the country's economy in to a well developed and prospered one.
This agricultural policy and strategies is based on the objective realities of the country and its prime objective is to accelerate agricultural production and productivity at all levels.
Since the start of the implementation of this timely and effective agricultural policy and strategy, the agricultural sector is influencing the over all economic performances in Ethiopia.There have been achievements so far obtained by implementing the agriculture development led industrialization policy and strategies.
For the past three or four regimes, in the history of agriculture there was no development in agricultural productivity, rather the legacy of poverty and food insecurity as a serious challenge were inherited. But Since the last two decades, there has been a complete and dynamic change in the history of Ethiopia's agriculture. There is successive development in agricultural productivity.
Since the last seven years, 8 per cent average growth of productivity has been registered for the last 7 consecutive years. About 11.7 million small holder houses hold account for approximately 95 per cent of Agricultural GDP and 85 per cent of employment opportunity. The necessity to transform this huge sector is unquestionable. That is why; our government has demonstrated a strong commitment to agriculture and rural development sector through allocating more than 10 per cent of the county's total budget.