Central American Summit: Forging a Viable Future. Víctor M. Villalobos Director General

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1 Central American Summit: Forging a Viable Future Víctor M. Villalobos Director General Fort Worth, Texas June 28,

2 Honorable Kay Granger Honorable Ministers and Vice Ministers of Agriculture from El Salvador, Honduras, and Guatemala Mr. Michael Young, President of Texas A&M University Dr. Mike Hussey, Vice Chancellor of Texas A&M University System Dr. Elsa Murano, Director of the Borlaug Institute for International Agriculture Distinguished Colleagues Good evening, I would like to begin by thanking Texas A&M and the Borlaug Institute for the honor of being invited to speak to this distinguished and important summit. 2

3 In reviewing the subjects of this summit, I am hopeful we will find common ground on how to move forward in partnership among the United States government; the governments of El Salvador, Guatemala and Honduras; the private sector; universities; research institutes and NGOs who offer technical cooperation. I have noticed that the sessions focus on: 1. Reducing Rural Poverty through Agriculture. 2. Investing in Capacity Building, Infrastructure, and Entrepreneurship 3. USAID Support for Central American Transformation 4. And Policy and Partnerships. The Inter-American Institute for Cooperation on Agriculture (IICA) works in all these areas in the Northern Triangle countries that are the focus of this conference. We have been doing so for 74 years and much of it in line with the development objectives of the United States Government. 3

4 In reaction to the migrant crisis of 2014, I wrote to Secretary of Agriculture Tom Vilsack urging him to look to investment in improving agriculture in the region, precisely as the summit suggests, to reduce rural poverty. It is through economic development that we can begin to turn the tide on the pressures that force people to choose to leave their home in search of a better way of life and opportunity for themselves and their children. The circumstances in which this phenomenon has arisen are undoubtedly very serious and complex; however, many of these minors come from poor rural areas. Therefore, as part of the solution to address this issue, it is urgent to invest in the improvement of the quality of life of rural families, with immediate and medium term actions. These actions should include direct humanitarian aid, coupled with the creation of opportunities to enable families overcome marginalization and poverty. 4

5 To help in the definition of this strategy, IICA presented to the governments of the three countries of Central America and the United States a proposal aimed, firstly at guaranteeing food security for the population affected, and secondly, at strengthening the productive capabilities of family agriculture. IICA suggested that we could help articulate the participation of all agents and agencies acting at the country and territorial level in the transfer of simple agricultural technologies and practices which have already been proven to increase productivity, incomes and organization in the poorest rural communities. Coupled with these interventions we should work to strengthen farmer organizations and to improve the business and entrepreneurial capacity of farmers and producers. We suggested a plan that would comprise immediate, short term, and medium term actions. The immediate actions will take place within the first four months of execution of the strategy. 5

6 First, identification and characterization of the rural territories with the highest proportion of emigrants. Second, quantification and prioritization of urgent needs in the area of agriculture. Third, identification of relevant NGOs and other organizations working in the area of agriculture in these territories to coordinate a complementary response. The short term actions are defined as actions that will take place within two years of the initial implementation of the strategy and will define the basis for a sustainable and inclusive development of the rural territories. We must build sustainable production programs, with emphasis on food production and improved organized access to markets, supplying inputs adapted to the conditions of the different rural areas such as improved seeds, fertilizers and pesticides, or small items of farming equipment, organizing and equipping centers where products are collected, processed and marketed, and developing technical skills and the capacity to organize associative enterprises. 6

7 Next, we need to develop programs on rural entrepreneurship and collaborative leadership for young people, to enable them to integrate into labor markets and markets for goods and services, to develop their potential to innovate, to identify and implement small rural businesses. To do this, we must facilitate revolving loan funds to translate ideas for projects into established and new rural businesses such as handicraft goods, rural tourism, services, etc. Then, we must integrate small farmers into local purchase systems, including institutional purchasing systems, the World Food Program, local purchasing programs, among others. The Medium term actions will take place during the first four years of initiation of the strategy and the primary purpose of them will be to build an enabling environment conducive to improve the social and economic development of the most affected territories. 7

8 We need to strengthen public policy and programs for inclusion of the rural territories into the national prosperity framework, with emphasis on the creation of opportunities for family agriculture. It includes three pillars: public policies; organization of local actors, and articulation of sectorial policies and investments, both public and private, in the priority areas. Much of this proposal is reflective of the focus sessions for this conference. We are all speaking the same language. Hopefully, with the disbursement of funds for the Alliance for Prosperity, the governments will consider these suggestions and others that come from this summit for the improvement of the agricultural sector. Experiences at IICA, working in coordination with national governments, and with the regional mechanisms for integration, have shown that it is possible to improve income and productivity in small-holder farming, which in turn contributes to widespread economic improvements in the region. 8

9 In El Salvador, in coordination with its government, we worked to increase corn, bean, dairy and production in other sectors to improve the incomes of 19,000 families, many with female heads of households. If we link similar initiatives with a program directed toward young producers and women, we could generate a virtuous cycle in the three countries to improve rural incomes in the regions that are sending their children to the United States. With USDA, we have created a Regional Consortium for Agricultural Research to improve agricultural productivity. IICA has identified 18 different product value chains in specific territories to develop viable technical and commercial information for extension services. In Honduras, we are working to improve the value chains in coffee, cacao, rice, sugar, beans, and cashews. 9

10 In Guatemala, thanks to funding from the USDA, we are helping 1500 small farmers in the Q eqchi territory receive information on climate, prices, productive technologies and other tools in their native language through the TOTOGEO platform in cooperation with Rafael Landivar University, the University of San Carlos, and other partners. A few months ago, I had the privilege of visiting Texas A&M University, to meet its faculty, administrators and tour its laboratories. It is truly an impressive place and has so much human and scientific talent to share, not just with the United States, but with the world as well. I was asked to give a talk on what are the challenges and opportunities facing agriculture in the Americas, so allow me highlight a few things. Firstly, today we are faced with the challenge of how to feed humanity in the future. 10

11 How do we do this sustainably, without further damaging natural resources and given the prospect of greater climate changes and natural resource constrains, particularly of water? Secondly, how can we make agriculture a good business for all producers? Lastly, how can we help make agriculture more productive, sustainable and inclusive? There is no doubt that agriculture can respond to all these challenges, but to do so, we need a drastic transformation in the way agriculture is practiced. We need a new agriculture that is economically profitable, socially inclusive, and environmentally sustainable. 11

12 Our hemisphere has the greatest potential to become the food basket of the world. We have not only some of the best lands, the most productive systems and abundant natural resources, but also we have a rich tradition in science and innovation with talented human resources to make this transformation possible. Our producers have demonstrated, time and again that they are able to produce what is needed, how it is needed, and when it is needed. Agriculture is a good business and a powerful engine for development and eradication of inequalities. It is also a powerful engine for maintaining populations in their native cities and towns. Giving particular attention to agriculture in the countries of the Northern Triangle will impact not only the competitiveness of the region, but will serve as a magnet to attract investment and to make life more attractive to all of those who today are seeking better living conditions. Agriculture today is a synonym for innovation, as innovation is essential to bring about the big changes in agriculture. Technologies, both new and traditional, are needed. The pace of change is accelerating and can be felt everywhere. 12

13 Communication technologies, global data and market information are only the tip of an iceberg that will transform the way our food is produced. Allow me to quote Bill Gates who said in If we are serious about ending extreme hunger and poverty around the world, we must be serious about transforming agriculture. Small family farms make a fundamental contribution to the economies and food security in the region, nearly 60 percent in Central America. When coffee rust hit the region in 2012, it was estimated that the economic damage caused to the coffee sector impacted as many as two million people.and with that the downstream impacts affected millions more. Ladies and gentlemen, I am truly hopeful that your work here will lead to increased investment in the agricultural sector in these three countries and eventually throughout the hemisphere. 13

14 I would like to reiterate IICA s commitment to work with you to achieve these goals and to join forces with the US Government and with the governments of the region, to find solutions to this problem. We must begin by attacking them at the root of the problem; that is, improving family and smallholder agricultural development, coupled with innovative programs to train women and youth to enhance their skills and labor marketability I would like to offer you our entire platform of offices and our experienced staff to advance the National Agendas to reduce this problem in the short term, and to find more sustainable solutions in the future. I am indeed grateful for the invitation to speak to this distinguished audience. We at IICA stand ready to assist our member countries achieve our shared mandate to improve agricultural production and stimulate rural well-being. Thank you. 14