SMALL FARMER DEVT.

closed

The project is designed to increase agricultural productivity and expand rural employment opportunities among the small-scale farmers, most of whom are beneficiaries of Government's ongoing agrarian reform program. It would be implemented primarily by LBP, would benefit about 28,000 rural families, and would include: (i) production and marketing credit mainly for rice, corn and vegetables; (ii) term credit for light farm mechanization, post-harvest facilities, backyard livestock and poultry and cottage industries; (iii) strengthening of LBP's field operations; (iv) minor infrastructural works in selected agrarian reform areas; and (v) studies aimed at better understanding of the socio-economic conditions of small-scale agriculture. Incremental employment is estimated at 11,900 man-years and additional production of goods and services at $15.4 million at full development, resulting in foreign exchange savings of $8.8 million annually. Attainment of higher crop yields, loan repayment, and LBP's limited experience in agricultural credit are the main risk factors. Against these risks, strengthened field level technical assistance and organizational measures adequate to promote higher yields and ensure satisfactory loan collections have been incorporated in the project.