Small/Medium Scale Farming

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1 Small/Medium Farmer in Sub-Saharan & USAID Agricultural Strategy Michael Satin / AFR/SD USAID September 2004 Small/Medium Scale Farming 70% of n households income comes from Agriculture Agriculture represents 30% 40% of 's GDP Accounts for almost 60 percent of 's export income Small-scale farms represent 90 percent of 's agricultural production IFAD 2003 Challenges Faced by the Small Scale Farmer Low land productivity, Inadequate rural infrastructure, Vulnerability to natural disasters, and; High levels of insecurity. is plagued by a high prevalence of HIV/AIDS - significantly reduces Agriculture production. Challenges High levels of poverty and malnutrition Declining food security in many countries Low crop yields; population growth rates have exceeded agricultural production growth Land degradation & deforestation Declining role for in world trade (i.e. down to only 2% of world agricultural trade, only 1% of overall world trade) 1

2 Hunger in is expected to rise Number of people undernourished (millions) Increasing Share of Global Hunger (USDA, 2002): Rest of the World 62% Rest of the World 50% Year 2001 Year 2011 Sub- Sahara 50% Sub- Sahara 38% Per Capita Food Production Across Subregions Old Model Focus of past efforts large scale, industrial agricultural production. Old Model Development Theories Development is measured primarily by increased material consumption Efficiency measured by the bottom line Increasing farm size leads to increases in productivity through economies of scale The New Model Focus efforts on increasing yields for small scale / subsistence farmers. Characteristics of The New Model The average subsistence farm is half to one hectare in size May be simultaneously growing various crops such as: cassava, sorghum, millet, dairy, and vegetables Household size is 5-7 people with approx. 1-2 adults managing 2

3 USAID APPROACH For More Information see the USAID website at Strategic USAID Themes Expanding Global, Regional, and Domestic Trade Opportunities and Improving Capacity Improving the Social, Economic, and Environmental Sustainability of Agriculture Mobilizing Science and Technology and Fostering a Capacity for Innovation Broadening Agricultural Training and Education, Outreach, and Adaptive Research Expanding Trade Opportunities and Improving the Capacity of Farmers Expand access to credit Develop Farming Cooperatives Improve access to commodity storage and processing technologies Mobilizing Science and Technology and Fostering Capacity for Innovation Science Policy, Strategies, and Governance Systems Technology Development and Application Public/Private Sector Partnerships and Networks National Innovation Capacity Broadening Agricultural Training and Education Education and Training Information and Communication Technologies Problem-Based Site- Specific Learning Complimentary Themes Food Security and Nutrition Health and HIV/AIDS Assets and Risk Management Gender Equality Good Economic and Political Governance Expanded Alliances 3

4 Initiative to End Hunger in (IEHA) Overview Initiative to End Hunger in Goal: To help significantly reduce hunger and poverty in sub-saharan Objective: To rapidly and sustainably increase agricultural growth and rural incomes in sub-saharan Initiative was announced at the 2002 World Summit on Sustainable Development, implemented in 2003 in three countries & three regions IEHA s Distinguishing Features I A market-oriented and smallholder-based growth strategy to reduce hunger and poverty in A sub-saharan -wide strategy that focuses investments in those countries that will serve as models of success as well as growth poles National development strategies will be complemented by regional ones to help generate regional growth dynamics IEHA s Distinguishing Features - II IEHA recognizes that hunger and poverty will not be solved by agriculture alone advances also needed in health, education, infrastructure, environment and public policy management To ensure success, IEHA will focus on countries whose leaders are committed to growth and hunger reduction as a priority development concern. IEHA will build alliances and constituencies with other development partners Focal areas of a New Initiative for 1. Technology systems and applications that support agricultural growth and economic transformation (TARGET). 2. Improving the efficiency and equity of agricultural market and trade systems. 3. Community-based farmer organizations, to deliver grower, business and environmental services. Focal areas of a New Initiative for Con t. 4. Building the human capacity to shape and lead the policy, technical and service development efforts. 5. Ensure that vulnerable groups have access to services and markets (especially those in transition from crisis to development) 6. Ensure that economically important land use systems are developed in an environmentally sustainable manner. 4

5 IEHA Results on the Ground Uganda: Biotechnology Policy Development / Biosafety Commission / Biotechnology Research / Fisheries Research and Dissemination / Investing in the Development of Export Agriculture (IDEA) Project Other USAID n AG Programs REDSO: Regional Agricultural Trade Expansion Support (RATES), Seed policy harmonization, Fine Coffee Association Mozambique: Formation of Farmer Associations / Export marketing and rice and cashew production projects has a crucial producer association support components RCSA: Dissemination of low-external-input technologies and farming methods to smallholder farmers; and (b) Development of strategies to mitigate HIV/AIDS and other impacts WARP: Support to Regional Market Information Networks Mali: The Mali Trade Promotion project has a crucial producer association support components. Sustainable Tree Crops Program The goal of STCP is to improve the economic and social wellbeing of smallholders and the environmental sustainability of tree crop farms STCP Program Structure regional program in 5 West n countries Cameroon, Côte d Ivoire, Ghana, Guinea, and Nigeria 7 national pilot projects, working directly with farmer organizations works with the ILO/IPEC regional project on Child Labor and with organizations such as with S OC O D EVI in Côte d Ivoire Conclusion Agriculture (especially smallholder agriculture) is the vehicle out of hunger and poverty THANK YOU! About 80% of the n population derive their food and economic livelihood from rural Agriculture Over 70% of the n labor force is employed in Agriculture n Agriculture contributes over 30% to overall GDP 40% of s export earnings are from Agriculture In most countries, smallholder agriculture accounts for more than half of the total value of agricultural production, and up to 96% in some 5