Project assistance completion report : project 519-0303-G-00-5510-00 -- water management, FUSADES

The original plan to develop a private sector irrigation association (CORPREX) was not successful and in 6/87, responsibility for the component was given to FUSADES -- the Salvadoran Association for Social and Economic Development. Activities were carried out in four areas. (1) Using demonstration farms established by its agricultural research and extension arm, the Agriculture Diversification Program (DIVAGRO), FUSADES taught irrigation and farming practices to farmers. As a result, 1,582 farmers are applying their new skills, and precision irrigation has been adopted on 2,727 ha for the production of high labor, or high value, nontraditional export crops. DIVAGRO also set up a data base and library that are the best in the country for irrigated agriculture. (2) FUSADES trained 45 private sector field agents (agribusiness and farm employees) to support farmers in precision irrigation technology. (3) FUSADES established a credit fund to support the development of irrigated agriculture and the export of irrigation crops. Loans (through FIDEX, the FUSADES lending arm) were made to farmers and to packing and processing enterprises. Thirty-nine Salvadoran enterprises are using FUSADES to export nontraditional agricultural products to extraregional markets. DIVAGRO and FIDEX greatly benefitted from in-country training and international short courses and study tours. While the project component has ended, DIVAGRO continues to have an active TA program for farmers and food processors, and FIDEX continues its credit program. USAID/ES will continue to support the development of private sector irrigated agriculture through FUSADES. The following lessons have been learned. (1) Irrigation is a complex technology that takes considerable time to institutionalize, but it seems to be the only viable approach to profitable nontraditional agriculture. (2) Due to constraints upon the Salvadoran government, it is up to the private sector to develop and transfer irrigation technology. Fortunately, FUSADES/DIVAGRO now has the technical capacity to promote nontraditional agricultural exports, not only in irrigation techniques, but also in postharvest operations and marketing. (3) Nonetheless, farmers are reluctant to invest in precision irrigation due to its high costs. Alternatives, such as furrow irrigation, must be promoted.