AID grant to the American Institute for Free Labor Development for small farmer support service in Ecuador

Project activities will include agricultural credit and extension and assistance in organizing campesino associations. To strengthen the administrative capacity of the two federations, AIFLD will provide a full-time advsior to supervise project implementation, a lawyer to help farmers obtain credit and titles to their land, and two accountants to introduce accounting systems and expenditure controls in federation affiliates. Secondly, the project will provide poor farmers having 3 ha or less of land with production credit and TA. A $350,000 line of credit will be negotiated with the National Development Bank (BNF) - the project will provide $150,000, the BNF $200,000. Each participating farmer will be required to pay 16% interest, plus another 4% annually which the BNF will deposit in a personal savings account; about 1,500 loans are targeted. The project will also demonstrate new technology packages (planting systems, seeds, fertilizers, fungicides, etc.) to participating farmers and provide marketing assistance to farmer associations. Production is expected to increase by 40%, and farm income by 20%. Ten activists from farm families in local areas will conduct a campaign to encourage farmers to organize/maintain democratic associations affiliated with the regional federations. The activists will also help eligible campesinos obtain land parcels under Ecuador"s agrarian reform law. Finally, various educational activities will be conducted, including orientation seminars for new association members, and seminars for women in handicrafts, family gardens, cooperative enterprises, etc.