SMALL FARMER PRODUCTION

LOCAL ACCESS TO INPUTS, INPUT SCHEDULING AND QUALITY, AND FARMER ACCESS TO CREDIT AND LOANS, WILL BE ADDRESSED AS VITAL PROJ COMPONENTS. PROJ ACTIVITIES WILL FOCUS ON IMPROVEMNT IN PBDAC FUNCTIONS, ASIT IS THE PRIMARY INSTITUTN PROVIDING INPUT SUPPLIES AND FINANCING TO SMALL FARMERS. A WIDE RANGE OF ACTIVITIES TO IMPROVE THE INPUT SUPPLY SYSTEM WILL BE CONDUCTED IN 27 VILLAGES IN 3 GOVERNORATES: SHARKIA, KALYUBIA, AND ASSUIT. WITHIN THE GOVERNORATES, THE MOST INTENSIVE IMPROVEMT EFFORTS WILL BE DIRECTED TO LEVELS OF THE PBDAC HAVING MAXIMUM CONTACT WITH SMALL FARMERS -- VILLAGE BANKS AND AGENCIES, AND DISTRICT AND GOVERNORATE BANKS. EXTENSIVE PBDAC STAFF TIME WILL BE CONTRIBUTED BY THE EGYPTIAN GOVT TO SUPPORT LOCAL BANK ACTIVITIES. BANK ADMIN PRACTICES WILL BE IMPROVED BY REDUCING DUPLICATN AND LENGTHY HAND CALCULATNS, AND INCREASING AVAILABLE MGMT INFO THROUGH EQUIPMT AND FACILITIES UPGRADING. OVERALL LENDING OPERATNS WILL BE STRENGTHENED THROUGH IMPLEMENTATN OF NEW PROCEDURES DESIGNED TO MEET SMALL FARMER NEEDS MORE EFFECTIVELY BY SIMPLIFYING SHORT-TERM LOAN PROCEDURES AND EVALUATING LONGER-TERM LOANS ON THE BASIS OF INCOME GENERATION RATHER THAN COLLATERAL. EXTENSION SERVICE AND VILLAGE BANK ASSISTANCE PROGRAMS FOR SMALL FARMERS WILL BE COORDINATED. VILLAGE FARM MGMT TEAMS WILL BE INSTALLED IN EACH PARTICIPATING VILLAGE BANK. AN AID-FUNDED TECH ASSISTANCE TEAM WILL PROVIDE MGMT AND SUPERVISORY SUPPORT. ADDITIONAL PROJ OPERATNS INCLUDE EXTENSIVE IN-COUNTRY AND US TRNG, IMPROVED INPUT STORAGE AND HANDLING, BASELINE DATA COLLECTION, AND PERIODIC EVALUATIONS. AS PART OF ITS AGR MECHANIZATN PROJ, THE WORLD BANK PROVIDES SUPPORT TO PBDAC IN IMPROVING CENTRAL LEVEL OPERATNS. LOCAL PBDAC SYSTEM REFORMS WILL BE CLOSELY COORDINATED WITH CENTRAL LEVEL WORLD BANK EFFORTS. PROJ WILL BE IMPLEMENTED BY HOST CNTRY CONTRACTOR, WITH ADDITNL SUPERVISION AND MGMT SUPPORT FROM AID AND EGYPT"S MINISTRY OF AGRICULTURE. Amendment of 6/84 extends Project Assistance Completion Date (PACD) to 7/87 and increases funding from $25 million to $49 million to complete work remaining to be done in the project, namely, to: (1) make the project fit for national replication by consolidating the improved credit system at the district level (this will require expanding the number of participating village banks from 27 to 38 and placing all village banks under the supervision of district banks); (2) improve the monitoring and analysis of farm record data; and (3) complete planned construction of village banks and storage facilities. (PD-AAR-805)