Small farmer livestock improvement

The FGH will be established as a for-profit enterprise capitalized by both the public and private sectors; an AID-financed TA unit will ensure the FGH"s long-term operational and technical development. For the in-kind animal loan program, the National Agrarian Institute (INA) and the Ministry of Natural Resources (MNR) will each provide the FGH with a farm, one in the north, the other in the south, for breeding, quarantine, and training and demonstration purposes. The FHG will place at least 60% of the farm herds in cow-calf breeding operations aimed at producing both milk and calves and will lend them mainly (80%) either to individual, resident owners/operators of farms up to 50 ha or to organized campesino groups and cooperative farm owners/operators. Other farmers the size of whose farm is in accordance with the Agrarian Reform Law will also be eligible. All participants will be screened to ensure that land is in stable, peaceful possession. To generate income, the FGH, following criteria similar to those for the breeding program, will lend year-old male calves to individuals and groups for fattening and growing out operations. The FGH will establish a TA department which will visit participants monthly to ensure use of improved breeding and fattening technologies and will also help participants keep proper records. Also, in conjunction with the Pan American Agricultural School, the MNR, and local producers, the FGH will develop two 2-week hands-on training modules in basic livestock and farm management skills. All participants will be required to take the first 2-week course. To ensure continuity with its own extension program, the MNR will help orient FGH field workers. Finally, the FGH will lend up to HNL 10,000 to enable farmers to install or improve the infrastructure needed to participate in the project. Beneficiaries will be drawn from a universe of 16,800 farms nationwide.