AGRICULTURE SECTOR PROGRAM

MODEL AGRARIAN FUND (MAF) HAS BENEFITED 588 FAMILIES BY PROVIDING TRNG FUNDS FOR 24 OF 70 SCHEDULED ASENTAMIENTOS. BY FOLLOWING THE RECOMMENDATNS OF EXTENSN AGENTS TO CULTIVATE SUGAR CANE & MELON, 19 DE JULIO COOP HAS GREATLY INCREASED ITS AGR YIELD. UNFORTUNATELY, FEW TARGET GROUPS ARE BEING REACHED SINCE THE NATL DEVEL BANK (BNF) RARELY LENDS TO COOPS & FAILS TO PROVIDE LONG-TERM CAPITAL REQUIRED FOR AGR DEVEL DUE TO OVER-EMPHASIS ON ANNUAL CROP FINANCING. ALTHOUGH THE COOP WINDOW (BNF'S ADMINSTRATIVE AGR COOP SECTN) IS BETTER STAFFED, IT LACKS AUTHORITY TO APPROVE LOANS. THESE & OTHER LOAN DELAYS HAVE DEFERRED STATISTICAL STUDIES. MAF RECOMMENDATNS ARE THAT: 1)IMPROVED USE OF LAND & LABOR BE DETERMINED; 2)INVESTMT PLANS BE DEVEL; 3)TOTAL FARM BUSINESS BE PLANNED; AND 4)ASENTAMIENTOS DRAFT THEIR OWN PLANS. DUE TO HIGH LOAN COLLATERAL REQUIREMTS IMPOSED BY BNF,LIMITED USE HAS BEEN MADE OF SMALL FARMER COOP PRODUCTN FUND (SFCPF) OR SMALL FARMER CAPITAL DEVEL FUND (SFCDF). SFCPF WAS INTENDED TO COMPLEMT MAF BY PROVIDING CREDIT TO SMALL FARMERS NOT MEMBERS OF THE ASENTAMIENTOS. SFCDF WAS TO FINANCE LONG-TERM PRODUCTIVE INVESTMTS. SFCPR & SFCDF SHOULD BE MADE AVAILABLE TO THE HONDURAS FEDERATN OF COOP SAVINGS & LOAN ASSOCS SO FUNDS WILL BE AVAILABLE TO COOPS. GOH TRNG FUNDS HAVE PROVIDED LATIN AM & US TRNG FOR 234 PARTICIPANTS. TRNG HAS BEEN VERY SUCCESSFUL (ONLY 2 TRAINEES HAVE DROPPED OUT OF PROGRAM) DUE TO REIMBURSEMT REQUIREMTS FOR LOAN NONCOMPLIANCE. ALTHOUGH GOH IS NOW DETERMINING MANPOWER REQUIRMTS,TRNG FUNDS PROBABLY WERE NOT USED EFFECTIVELY SINCE INITIAL AGR SECTOR TRNG WAS CONDUCTED WITHOUT REFERENCE TO MANPOWER REQUIREMTS. OFFICE OF SECTOR PLANNING IS DEVELOPING ADEQUATE STATISTICAL STUDIES. FEASIBILITY STUDIES RELATED TO NUMEROUS CROPS ARE ALSO EITHER COMPLETED OR IN PROCESS. ALTHOUGH 7 REGIONAL AGR COMMITTEES WERE ORGANIZED BY AGR SECTOR PLANNING COMMITTEE,NECESSARY AGR SECTOR CHANGES ARE STILL TOO SLOW & WILL REQUIRE FURTHER ANALYSIS & BANK REORGANIZATION.