SMALL FARMER SUPERVISED CREDIT

A REVOLVING SEASONAL CREDIT FUND WILL BE ESTABLISHED FOR PROCUREMENT OF INPUTS ON AN 8 TO 12 MONTH BASIS FOR CROP AND ANIMAL PRODUCTION. GOT WILL PROVIDE MEDIUM-TERM CREDIT FOR CONSTRUCTION OF LIVESTOCK SHELTERS. SUPERVISORY AND TECHNICAL ASSISTANCE AT THE FARM LEVEL WILL BE FURNISHED BY FIELD AGENTS OF THE AGRICULTURAL SERVICE OFFICES IN EACH PROVINCE. THEY WILL ASSIST EACH PARTICIPATING FARMER IN THE DEVELOPMENT OF AN INDIVIDUALLY TAILORED FARM PRODUCTION PLAN. THESE PLANS WILL PROPOSE A MIX OF FOOD CROPS, FORAGE CROPS, PLUS ANIMAL AND DAIRY PRODUCTION. THE PLANS WILL THEN BE SUBMITTED TO THE LOCAL CREDIT COMMITTEE FOR REVIEW AND APPROVAL. THESE COMMITTEES WILL CONSIST OF PROVINCIAL REPRESENTATIVES FROM GOT MINISTRIES, THE NATIONAL BANK OF TUNISIA (BNT), MUTUAL GUARANTEE SOCIETIES (SCM"S), AND OTHER AGENCIES. FARMERS WILL BE ORGANIZED UNDER EXISTING AND NEWLY CREATED SCM"S TO PROVIDE A GUARANTEE FOR LOAN REPAYMENT. AFTER APPROVAL OF THE PRODUCTION PLANS, A LINE OF IN-KIND SEASONAL CREDIT FOR THE COOPERATING FARMER WILL BE ESTABLISHED THROUGH THE BNT - WITH WHICH PRODUCTION INPUTS AS REFLECTED IN THE AGREED UPON PLAN MAY BE PURCHASED. THESE INPUTS WILL INCLUDE SELECTED SEEDS FOR CEREALS, LEGUMES, AND FORAGES; FERTILIZERS; HERBICIDES AND PESTICIDES; CUSTOM SERVICES (MECHANICAL OR ANIMAL TRACTION SERVICES); AND ANIMAL FEED CONCENTRATES. CREDIT FOR LIVESTOCK PURCHASES (IMPROVED LOCAL BREED HEIFERS AND BARBARINE EWES) WILL ALSO BE AVAILABLE. USAID GRANT FUNDS WILL BE USED FOR 2 LONG-TERM TECHNICIANS, 2 SHORT-TERM CONSULTANTS, ADMINISTRATIVE SUPPORT FOR THE 0-5 HECTARE SMALL FARMER PORTION OF THE LENDING PROGRAM, TRAINING AND EVALUATION.