SUMMARY OF CY1971 IMPLEMENTATION OF AGRICULTURE SECTOR LOAN 514-L-064

Funds were made available to 5 agr implementing agencies to grant loans which would improve Colombia"s agricultural development. Evaluation methodology is based on quarterly reports, data provided by the Ministry of Finance, other sector agencies, and on-site visits. This summary, the first of 2 parts, covers first agricultural implementing agency and general information about loan implementation. Part II (summary #514 016400 1702) summarizes the last 4 agricultural implementing agencies. During 1971 receipts about equalled expenditures, and exports increased by 22.2%. The major problems to the financial side in 1972 were irregularity in official fund flow during the early part of the year. Funds were only partly compensated for by Agency short term borrowing from banks or suppliers. During 1972 119 kilometers of the proposed 423.5 kilometers of road were completed under the newly organized pick and shovel access road program along with labor-intensive techniques work on 40 farm-to-market roads which provided employment for 4,000 persons, and extension services were provided to road construction areas to assist farmers use their earnings in improving farm production. In early 1973 the Agrarian Reform Law was modified to speed up the legal processes involved in land distribution and acquisition, to protect the ownership of adequately exploited land, and create a presumption land tax. The Agricultural and livestock Finance Fund was also modified to enable the Monetary Board to better regulate funds available for loans on long-term crops and livestock, and set aside assets to small farmers including technical assistance. The Natural Resource Institute (IDERENA), one of 5 agricultural implementing agencies, either fulfilled or exceeded its programmed targets. IDERENA successfully completed: 1) hectare inventories, 2) plot and species investigations, 3) forestry training, 4) fishery management and/or research, 5) watershed surveys, 6) pollution studies, 7) wildlife and national park studies, and 8) ranger training.