Farmers' Ownership Model

completed

This is an innovative pilot attempt by IFC to alleviate the acute poverty of cotton farmers in Tajikistan by enabling them to take control of their own commercial activities. FOM, which will be owned by the farmers, will use the IFC Loan and the SECO grant to: (i) purchase and deliver to the farmers a complete input bundle (including seeds, fertilizers, agrochemicals, tools, implements, grain bags, crop storage, equipment rental, picking charges and transport); (ii) arrange for processing the farmers’ crop; (iii) sell through its marketing service the farmers’ crops directly on the market; and (iv) identify and develop market opportunities and enterprises to assist with improving farmer viability and enterprise diversification. The proposed project will bring management skills and financial support to the agricultural sector and demonstrate the economic benefits to be gained by upgrading the quality and quantity of the cotton crop. The technical assistance will be managed by Private Enterprise Partnership (PEP), who will train the farmers in proper production, irrigation, fertilization and financial management, in addition to appointing the manager. The technical assistance is part of the overall Swiss-IFC Central Asia technical assistance Partnership for Central Asia that has been recently approved by SECO and that will be implemented by PEP. The project is expected to increase cotton yield and revenues for farmers currently living in abject poverty. The venture will also bring an increase of foreign exchange in the country, as over 80% of Tajikistan''s cotton is exported.