SMALL FARMER CREDIT : PROFITABILITY AND REPAYMENT

EVALUATION, WHICH COVERS THE PERIOD 9-30-79 TO 8-30-79, SERVES THE ROLE OF AN ANNUAL EVALUATION AND A 30-MONTH SPECIAL EVALUATION TO DETERMINE FUTURE FUNDING PROSPECTS. OKLAHOMA STATE UNIVERSITY (OSU) HAS ACHIEVED SUBSTANTIAL PROGRESS IN IMPLEMENTING ITS CONTRACTED PROJECT ACTIVITIES ON LOCATION IN THE TECHNICAL DIVISION OF THE BANCO NACIONAL DE FOMENTO OF HONDURAS (BNF). AGREEMENTS HAVE BEEN REACHED BETWEEN USAID/H, BNF, AND OSU, AND THE PRINCIPAL INVESTIGATOR, DR. LOREN PARKS, WAS ASSIGNED TO HONDURAS IN JULY 1978. A FARM ACCOUNTING BOOK WILL PROVIDE FARMERS AND BNF WITH A METHOD OF MEASUREMENT OF FARM RESOURCES AND FAMILY CONSUMPTION FIGURES. THE BOOKLET HAS BEEN FIELD-TESTED WITH 15 FARM FAMILIES. CROP BUDGETS HAVE ALSO BEEN PREPARED FOR MOST AGRICULTURAL CROPS UNDER 3 DIFFERENT TECHNICAL LEVELS FOR THE HONDURAN AGRICULTURAL SECTOR. COLORADO STATE UNIVERSITY HAS ENCOUNTERED SEVERE OBSTACLES IN ATTEMPTING TO IMPLEMENT ITS PROJECT ACTIVITIES. EFFORTS TO WORK IN THE PHILIPPINES AND NICARAGUA WERE THWARTED BY INSTITUTIONAL AND POLITICAL PROBLEMS. A THIRD EFFORT TO SET UP OPERATIONS IN THE DOMINICAN REPUBLIC WAS PLACED IN SERIOUS JEOPARDY FOLLOWING THE AUGUST "79 HURRICANE THERE. ALTHOUGH OSU IS MOVING TOWARD COMPLETION OF PROJECT ACTIVITIES, THESE WILL PROBABLY NOT BE FAR ENOUGH ALONG TO PERMIT TRANSLATION OF THE HONDURAN EXPERIENCE INTO PRACTICAL GUIDELINES FOR ASSISTING RURAL FINANCIAL INSTITUTIONS ON A GLOBAL BASIS. CSU PROJECT ACTIVITIES WILL PROBABLY BE INCOMPLETE BY PROJECT TERMINATION. AID/W AND COOPERATING UNIVERSITIES MUST MAKE A DECISION ON THE FOCUS OF ACTIVITIES FOR REMAINING TIME. USAID PROJECT MONITOR MUST TAKE APPROPRIATE ACTION REGARDING ANY FOLLOW-ON WORK BETWEEN OSU AND BNF.