Mahaweli agriculture and rural development

The project, to be implemented by the Mahaweli Authority of Sri Lanka, includes: (1) research and extension aimed at diversifying crop production; (2) water management and farmer organization; and (3) agricultural support services. The project will operate in Zones 1, 2, 3, and 5, and eventually in Zone 4A, being developed under companion project 3860103. Agricultural research and extension will help develop the full potential of 21,314 ha of irrigated land currently designated for rice cropping and 28,609 ha of associated unirrigated highlands. Through support to the newly commissioned Regional Research Station at Aralaganwila, the project will develop cropping systems of 2-3 crops per year (growing rice only if it the most profitable for individual farming conditions). A linear programming model will be created to provide site-specific extension recommendations to diversify settlers from the existing low-income paddy-paddy cropping pattern. Using a farm management approach, the project will support detailed recordkeeping of costs and returns to cropping alternatives, so as to move rapidly from research recommendations to field results. Activities will include TA in farming systems research and training of extensionists (including 44 new personnel). Secondly, the project will support the training, facilities, and water management procedures that are needed for flexible, diversified cropping patterns and to ensure system maintenance. Turnout- and farm-level water management will be improved by a series of demonstrations. Because diversified irrigated agriculture calls for far more agreement and cooperation than new, non-related settlers are likely to generate on their own, the project will test the introduction of Irrigation Community Organizers to help form turnout groups and eventually federate them into water users" associations. When suitable export crops have been identified through the research at the Aralaganwila Center, the project will support linkages to exporters and brokers, helping in quality control for postharvest handling and packaging; funding will be provided for marketing tests as well. To overcome the lack of resources for new settlers in Zone 4A, the project will support a Farmers" Investment Program, which will provide agricultural inputs during the first and second cropping seasons. While farmers will be under no direct obligation to repay the money, any money that is paid back will go into a Savings Scheme, which can be drawn down for housing or other credit needs. Finally, because farmers in System B have been demonstrating high paddy yields without using commercial credit, the project will study the availability and costs of rural credit and the relation between costs and tenancy. Amendment of 3/22/92 increases funding to (1) introduce production, marketing, and extension systems for high-income commercial crops in System B, and (2) complete irrigation and drainage infrastructure in Zones 1 and 5, begun under the Mahaweli Downstream Project (3830103), which ends 8/92. New outputs will include: (1) five fully operational commercial farms; (2) establishment of 917 farmer turn-out groups for irrigation system operation and maintenance and 55 unit-level farmer organizations for marketing and income-generating activities; (3) completion of infrastructure (canals, drains, roads, reservoir improvements) in Block 503 and in Zones 1 and 5; (4) settlement of an additional 1,200 families on irrigated allotments. (PD-ABE-387)