Evaluation report : small farmer production project

Special evaluation covers the period l980-83 and is based on site visits and interviews with key project officials and beneficiaries. The credit component, being implemented by village banks (VB's), has been well received by farmers, many of whom were previously ineligible for credit. Funds are being used well, especially for broiler chicken and dairy enterprises. Lending practices are sound; loan repayment has been virtually 100%; and VB savings levels have increased. The target of 27 participating VB's is on schedule. Given the financial capability of the PBDAC (which, however, has not fully embraced the project) and the increasing availability of other credit funds, project extension through 1988 and its nationwide replication thereafter are recommended. Also urged, due to project success without subsidies, is the general elimination of the latter. Problems include an inadequate project communications system, and the lack of: a uniform credit delivery system; an improved VB accounting and management information system; and essential support staff. The farm management (FM) component has also fared well, with evidence of the introduction of a broad spectrum of improved techniques (especially block farming), increased yields of major crops, expanded farmer incomes and new farmer enterprises, and improved linkages between research, extension, the PBDAC, and farmers. FM data collection/analysis has been weak, however. VB and extension personnel have received initial hands-on training (in part from Ministry of Agriculture and agricultural university personnel), but there will be an increasing need for formal project training and in-country training facilities are virtually non-existent. Short-term U.S. training was provided to a first group of 10 credit and FM personnel in l982. Existing facilities are in deplorable condition; an unrealistic schedule has made it almost impossible to complete Phase I construction of VB's and warehouses before mid-1984. A total of 15 recommendations are made.