Armenia--Agricultural Reform Support Project Supplemental

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The Agricultural Reform Support Project is not explicitly focused on poverty alleviation, but on the establishment and operation of critical support services for private farming. It therefore has strong linkages to a large number of small-scale private farmers, and an indirect, but substantial impact on poverty reduction. The additional activities foreseen under the Supplemental Credit, are explicitly targeted at assisting small farmers to recover from a devastating frost. This Supplemental Credit would restore funds for extension, research and market information activities which were reallocated for the purchase of fertilizers in response to the devastating frost suffered in late December 2002, and provide additional funding to mitigate damaged orchards and vineyards. Restoration of the funds used for emergency fertilizer imports will allow the continued institutional development, and operation of the extension, research and market information services which are essential for the country's small farmers. The funding for vineyard and orchard replanting will allow smallholders to recover, at least partially, from the devastation of grapevines and fruit trees, and to generate income. At the same time, the program will facilitate upgrading of genetic diversity, and quality of Armenia's grape and fruit tree stock, under competitive procurement from international sources.