Private agricultural services

The project will consist of two cooperative agreements: one with the Union of Agricultural Producers of Nicaragua (UPANIC) to fund agricultural services for PAOs, the other with the Nicaraguan Association of Producers of Nontraditional Exports (APENN) to promote nontraditional agricultural exports (NTAEs). The UPANIC agreement will comprise three activities. First, a mechanism will be set up to provide institutional strengthening grants of up to $50,000 each to all of UPANIC"s 46 local associations and commodity federations. These organizations will use the grants first to reestablish themselves at a minimum level of operation, and then to build their former level of membership and service provision. Activities may include restoration of facilities, purchase of equipment, training, personnel support, etc. The grants will be provided on a noncompetitive basis so as not to penalize weaker associations that have suffered more than others in the adverse political and economic climate of the last decade. A contractor will help UPANIC to set up a management unit to administer the grants and to assist the local PAOs in developing and implementing grant proposals. Second, UPANIC itself will receive institutional strengthening assistance to recover and expand its representative and policy dialogue activities for the agricultural sector. TA will be provided to upgrade UPANIC"s ability to: coordinate technical support to its member associations; coordinate market contracts, investment opportunities, and sources of financing, and develop a technical and financial database; conduct policy analyses; and disseminate information to UPANIC membership and the general public through newsletters, technical reports, radio programs, seminars, forums, and meetings. Third, productivity grants of up to $200,000 each will be available to PAOs through UPANIC on a competitive basis for activities that directly increase farm productivity, e.g., importation of improved bulls and heifers, veterinary services, small infrastructure improvements, marketing assistance, introduction of improved varieties, etc. Commodity federations (federations of PAOs for coffee, cattle, cotton, etc.) may also be awarded productivity grants. Finally, the project will support four APENN activities: (1) strengthening of its ability to provide member services to voice policy concerns with the government; (2) a market information center, to include a computerized international market price database and a reference library, with information on procedures governing agricultural imports into the United States, Europe, and Asia; (3) provision of extension and marketing services for specific export crops such as melons, asparagus, ornamentals, etc., along with efforts to address transportation and infrastructural constraints; and (4) a variety of training events on key export crops and themes such as market analysis, pesticide regulations and use, and produce handling, packaging, and processing. Amendment of 9/13/94 increases funding, extends PACD to 9/98, and amends project to rapidly expand assistance to small farmers, agricultural cooperatives, and privatized agricultural commissions. The amended project will consist of three components. (1) Cooperative Support -- providing cooperative member farmers with TA, information, and training in NTAE and basic grain production technology, NTAE marketing, and cooperative agribusiness management; most assistance will be provided through a U.S. PVO. (2) Production and Marketing Services -- production-oriented training activities, field research, and TA for the privatized coffee, cotton, and cattle commissions, respectively, using P.L. 480 Title III resources; production promotion activities with both UPANIC affiliates and non-affiliated associations and cooperatives (but through the UPANIC Project Management and Support Offices called the PSMO), productivity support activities to UPANIC, APENN, and the Nicaraguan Union of Agriculturalists (UNAG) using P.L. 480 Title III resources; and legume inoculant production and marketing support from the University of Hawaii to the Nicaraguan Agricultural Development Foundation (FUNDA). (3) Institutional Strengthening and Integration -- TA and training for the privatized commissions, UNAG, UPANIC, and APENN. (PD-ABL-589)