Feasibility analysis for agricultural projects

THIS CHANGE WILL REQUIRE A LARGE PRIVATE AND GOVERNMENTAL CAPITAL INVESTMENT. MAJOR INVESTMENTS ARE SEEN IN ALL-WEATHER FARMING, FOOD PROCESSING, MECHANIZATION OF AGRICULTURAL PRODUCTION, LIVESTOCK DEVELOPMENT, MARKETING AND STORAGE FACILITIES, AND RURAL ROADS. SINCE CAPITAL IS SCARCE AND COSTLY, INVESTMENT FUNDS MUST BE USED WISELY IF THE GOALS ARE TO BE ACHIEVED. A SYSTEMATIC APPROACH IS REQUIRED TO IDENTIFY HIGH PRIORITY PROJECTS. THE HIGHEST PRIORITY PROJECTS ARE THOSE THAT CONTRIBUTE MOST TO NATIONAL ECONOMIC GROWTH. A WIDELY ACCEPTED INDICATOR OF A PROJECT"S ECONOMIC POTENTIAL IS THE INTERNAL RATE OF RETURN (IRR). THE STEPS IN ECONOMIC FEASIBILITY ANALYSIS AND PROCEDURES FOR DETERMINING THE IRR ARE DEVELOPED IN DETAIL IN THIS HANDBOOK. THIS DOCUMENT SHOULD ASSIST LOCAL STAFFS IN DOING AN ECONOMIC FEASIBILITY ANALYSIS OF AGRICULTURAL PROJECTS. THIS HANDBOOK IS ORGANIZED AROUND SIX SPECIFIC CASE STUDIES WHICH ILLUSTRATES THE PROCEDURES AND TECHNIQUES INVOLVED. THERE ARE INSTRUCTIONS FOR ADOPTING THESE MATERIALS TO OTHER TYPES OF AGRICULTURAL, FORESTRY, AND FISHERIES PROJECTS. THERE IS ALSO A SYSTEM OF WORKSHEETS COVERING ALL PHASES OF FEASIBILITY ANALYSIS, FROM THE PROJECTIONS OF MARKET DEMAND FOR THE PRODUCTS TO THE DETERMINATION OF THE IRR AND PROJECTED FINANCIAL STATEMENTS FOR THE PROJECT.