OUTREACH PROGRAM FOR SMALL FARM CROPPING SYSTEMS
I. Summary and Recommendations
A. Face Sheet
(contains funding, signatures, etc.)
The authorization for which approval is requested from
AID/W is as follows:
Total new AID obligations
C. Description of the Project
(draft of description of project follows on
C. DESCRIPTION OF THE PROJECT
This project is designed to assist the GOES through MAG
to increase food production by more efficient utilization of land
and human resources and the development of more efficient cultural
systems. To accomplish this objective it will be necessary to
develop a professionally trained and complementary MAG staff
capable of independent operation. The application of findings
will be channeled through method and result demonstrations, in-
service training of research and extension workers, teachers, farm-
er leaders, and technical trouble-shooting and back stopping of
extension workers in the field.
The term "small farm cropping systems", as used here, re-
fers to those planting combinations and sequences of annual and
perennial food crops intensively grown on the same piece of land
during defined production periods. Intercropping, crop overlap-
ping, cropping sequences, and multiple cropping are all terms rel-
evant to the concept. The project emphasis will be on these in-
tensive management systems in which, during at least part of the
growing season, two or more crops are grown together. Specif-
ically, the basic grains will stress, primarily, corn and beans.
Other agricultural products will be incorporated into the system
only as supplemental crops, not as primary crops.
By concentrating primarily on basic grains, the potentially
serious economic pitfall of oversupply relative to localized de-
mand conditions, e.g. for vegetables, will be averted.
Indications are that many products such as vegetables comprise a
market which is quickly saturated in El Salvador given the current
level of effective demand. This is not to say that people should
not be consuming more nutritous foods-dietary insufficiencies
speak to the need for improving nutritional balance. However,
the market (those who are willing and able to buy) demand appears
to be quite inelastic, and minimal supply shifts through increased
output may simply drive prices down, discourage market stability,
and lead to the old shortage surplus problem. We do know that de-
mand shifts for food commodities are in general income-elastic,
especially non-meat commodities. We do not know precisely the ef-
fective demand for vegetables in El Salvador. We do know that
substantial increases in the production of corn and beans would not
affect the internal market price appreciably, i.e. the demand curve
for domestically produced corn and beans is elastic at the imported
price. Since the country is a net importer of corn and beans, an
increase in domestic supply would probably not drive price down,
but rather have salutory effects including (a) increasing productiv-
ity and therefore family income of the rural poor, and (b) import
substitution and its consequent savings of valuable foreign exchange.
An elastic market demand for increased domestic production in corn
and beans is assured at the world import price CIF El Salvador -at
least up to the amount of current consumption, and perhaps even
higher given the fact that much of the increased domestic consumption
will be used for improved dietary intake on-the-farm. 1/
During the period of 1955-1964 agricultural output in
El Salvador increased at a rate of 5% per year. Currently this
rate has dropped to less than 3%. Therefore, the rate of in-
crease of agricultural productivity has fallen behind the popu-
lation growth. The resulting decrease in agricultural productivity
creates three major problems: (1) it increases imports and decreases
exports, thus, it aggravates balance of payments; (2) it reduces
income for government activities; and (3) it complicates the
country's ability to support investment programs necessary for
continued growth and development.
This situation needs not exist -- there is sufficient land
in El Salvador to produce enough food to overcome the population
growth; enough even to support a far greater population than now
exists. However, to produce more, some lands now being used to
produce non-food crops for export could be diverted to multiple
cropping, but more importantly, land being underutilized must be
incorporated into the intensive cropping production surface.
The small farmers in El Salvador do not practice production
techniques that yield harvests equal to that of modern technology.
Even though a form of multiple cropping has long been practiced in
1/ For corn and beans the world demand curve faced by El Salvador
is also elastic at the market price. As a small country it can
export corn and beans at the world prices without affecting the
world price. These, as relatively non-perishable food items,
would enable El Salvador, if it were sufficiently productive, to
export excess grain either to neighboring Central American countries
or export on the world market.
Latin America, under traditional methods of agriculture, there
exist customs that are not acceptable in a modern sense. The
proposed intensive management project is an attempt to combine
those elements of modern technology applicable to small farm a-
griculture with the intensive labor use needed to alleviate un-
employment in the rural areas while increasing rural income
Plantings of corn in El Salvador over the past ten years
have been relatively stable. First crop plantings during the
winter period represent about 90 percent of the total (see Table
1). The apante planting, while extremely important to a few farm-
ers, has historically been rather insignificant, accounting for
about 2 percent of the total plantings.
As can be seen from Table 1, over 250,000 manzanas of corn
are planted each year during the first part of the rainy season
Table II shows that there has never been more than 26,000
manzanas of beans planted during the winter (essentially August
--this among the cornstalks that were planted in May and June).
Thus, only about 10 percent of the early corn plantings
are utilized for the planting of beans. This is important, as over
200,000 manzanas of all corn planted is grown on small farms. This
land can be utilized! It is the primary purpose of the multiple
cropping project to intensify land use on these small farms during
CORN PLANTING IN EL SALVADOR, TIMING AND AREA
Agricultural Years, 1962-63 to 1972-73
FIRST SECOND THIRD
YEAR PLANTING PLANTING PLANTING TOTAL
WINTER SUMMER APANTE
(May-June) (Oct-Nov) (July)
a/ Data not available.
BEAN PLANTING IN EL SALVADOR, TIMING AND AREA
Agricultural Years 1964-65 to 1972-73
FIRST SECOND THIRD
YEAR PLANTING PLANTING PLANTING TOTAL
WINTER SUMMER APANTE
a/ Data not available.
For many crops there are limitations on the utilization of
certain production areas throughout the year. However, the potential
does exist for expanding production by additional plantings through-
out the year. There could be additional second and third plantings
--even more on corn land. These plantings would greatly expand the
During 1975, thirty-two manzanas will be planted to experi-.'
mental intensive cropping plots. It is now planned that his area will
be expanded to 300 manzanas in 1976. This is an insignificant portion
of the total -- the potential exists for at least 200,000 manzanas to
be incorporated into an intensive management program.
A one year pilot project will also begin in the fall of
1975 to test a system to spread the use of intensive management system
on very small farms. This pilot project will be designed to evaluate
costs and benefits of the many variables related to small farmers.
They measure the effects of infrastructure, credit, land tenure,
The program complements other existing and potential A.I.D.
strategies in agriculture, including the CENTA program, agrarian trans-
C.n s.'1'en t
formation, grain storage and stabilization, etc., and is also with the
GOES policy of developing instruments to improve corn and bean produc-
There is no Salvadorean institution having the expertise or
experience needed to conduct this program without technical assistance.
However, two years of investigative work with CENTA has laid the ground-
work whereby MAG/CENTA, with technical assistance, can now carry
out the elements of this program.
During the past several years, CATIE has conducted the most
extensive field trials supported by laboratory analysis yet undertaken
on cropping systems in Latin America. One of these compares 54
different multiple-cropping systems utilizing five basic commodities
in monocropping, intercropping and cropping sequence systems. '
By combining the knowledge gained by CATIE research, and pre-
vious research results obtained by CENTA, the program in El Salvador
is ready to move into an intensive extension phase. El Salvador is
the only country in Central America to date that has attempted to
transfer multiple-cropping research to the small farmers that are to
use the techniques. Seventeen small farmers are now cropping with
the CENTA multiple-cropping project.
The essential elements of the project are:
1. An 8-man team of U.S. technicians to train an 8-man "core team"
of CENTA multiple cropping extension specialists.
2. Each of the eight multiple-cropping specialists will in turn
supervise five leader farmers. Thus, there will be 40 leader
3. The 40 leader farmers will in turn (one year later) each assist
Pv i4oea'ifAly 7iei^ A hoy;
five selected Aemwuldi farmers. The leader farmers will be assisted
by approximately 40 general extension agents. Together they will
supervise the 200 cooperating farmers.
4. The spread effect at this point should encompass no less than ;000
5. A pilot project to evaluate method and constraints.
Improved plant material developed by the international
research institutes is available for utilization in this activity.
This program will make maximum use of established technological
practices in developing improved cropping systems. The project will
not fund research on plant breeding, development of new pest control'
methods, nor will it provide a credit source for farm inputs. The
program is designed primarily to utilize known techniques, employ
rural labor to its greatest extent, and promote extension activities
to derive greater productivity.
Soil fertility analysis, weed control, irrigation, credit
for inputs, etc., are all an integral part of any cropping system.
These kinds of expertise will be provided through the Florida Contract
with short-term technical assistance or through AID's Technical
Assistance Bureau. Information on agricultural market prices and
socjo-economic information will be provided by IRA and MAG to the
technicians in order to insure that field trials are oriented towards
the expansion of employment opportunities and increasing economic
returns on small farms.- The International Research Centers, CIAT,
CIMMYT, and IRRI will also be requested to provide research information
regarding the selection of high yield seed varieties, improved cultural
practice recommendations and similar areas. The pilot project will be
co cp a private agricultural consultant firm.
In conducting the basic cropping systems trials in El Salvador,
individual field trials will be conducted under the several different
ecological situations in El Salvador. Each of these field trials
(demonstration plots) will include corn and bean in'its annual crop
cycle. In addition to these basic food commodities, higher money
valued diversified cash crops will be also included where appropriate
in the field trials to increase potential income, employment and
total nutritional value of the cropping system.
The project will be carried out under dry farming conditions
and under irrigation depending upon the availability of supplemental
irrigation in each ecological situation.
Results from the cropping system plots will be compared
against the existing cropping systems under prevailing technology on
small farms adjacent to the research study. The new cropping systems
to be recommended will be expected to increase the production index
over existing technology by more than 30 percent on non-irrigated
lands. In addition, one or more non-traditional crops will be
incorporated into the system where feasible. Employment per area of
land cultivated will be increased by 20 percent without reducing income
per employment unit (constant prices).
By the end of the third year, 200 small farmers will be directly
using the techniques. An additional 2,500 farmers will have observed
2,Doo a W'll
the techniques and it is expected that at \iC#st adopt the techniques
Ly the 3rd or 4th year.
D. SUMMARY FINDINGS
The purpose of the's. project is to further develop profitable
intensive management systems and to disseminate this technology
by means of the MAG/CENTA extension staff. By increasing the
managerial skills of ou lreach agents, a continuing and increasing
capability for small farm improvement will be in evidence.
A secondary purpose is to provide planning and marketing
assistance in order that the increased production may be economically
passed through the entire marketing systems, without detriment to
the small farmer.
The project described here will accomplish the purpose by '
providing support to MAG/CENTA/IRA.
The program will focus on:
1. Continuing research and analysis of intensive management
field plot trials.
2. Training intensive management out reach personnel.
3. Extending in a very practical way present knowledge to
the small farmer.
Through technical assistance funded under this project,
MAG/CENTA's capacity will be strengthed so that the organization can
provide much needed out reach expertise, leadership and national
coordination. This assistance is complimentary to other USAID proj-
ects and conforms to GOES goals.
MAG/CENTA has been performing the needed research/educational/
extension service for about two years. The methodologies which MAG/
CENTA have developed during the course of its applied research crop-
ping systems are ready for a major push to carry this information to
the small farmer.
An expanded contract team located at CENTA/MAG/IRA will
provide the needed technical assistance. Short-term specialists
will be made available as future needs are determined.
The project will drawn on CIAT and CIMMYT for improved
plant material and productiolrmethods; INCAP, for human nutritional
research; and the AID/TAB research program for information and
expertise on weed control, pest management and irrigation practices.
Multiple cropping extension specialists of MAG/CENTA will
establish a minimum of 200 small farmer multiple cropping projects
at the farm level. Technicians will participate in in-country
pilot project, workshops and training programs, and will assist in
conducting the demonstration plots. The USAID will monitor the
project, evaluate and suggest priorities for improvement of the
USAID support of this project will amount to $1.96 million
which will be obligated over a three-year period.
The project meets all applicable statutory criteria. (See
reference checklist, Annex I).
a. Criteria checklist
b. Signed Mission Directors 611 (e) certification that El
Salvador has the capability to effectively maintain and
utilize the project.
E. PROJECT ISSUES
There are no major issues relating to this project.
II. Project Background and Detailed Description
The USAtD has adopted a sub-sectorial approach, for the
agricultural development program in El Salvador, In December
1969, a major sector analysis was completed by Robert R. Nathan
and Associates which identified the key problems in El Salvador.
These problems as outlined by the sector study and in key govern-
ment planning documents include:
(01 Low farm income; and
C2) Unemployment and underemployment of labor and land
Low farm income is directly attributable to a low level of
agricultural productivity. Under utilization of labor and land
resources contribute to low productivity and in turn to low farm
income, A major constraint to the continual improvement of production
on small farms is the lack of adequate recommendations and extension
of sound cropping/management systems which are suitable for the socio-
economic and ecological conditions prevailing in El Salvador. Eyen
though there is a lack of adequate recommendations, there does exist
a body of knowledge sufficiently large to permit the extension of'.the
most basic system and now needs to disseminate this primary informa-
tion to the small farmer, It is the purpose of this project to carry
to the small farmer the results of initial efforts while continuing
adequate back up research related to the system's dynamics,
In Central America, almost all agronomic research conducted
to date has focused primarily on the development of economically
efficient monocropping practices biased towards economies of scale
and usually emphasizing employment substitution through mechanization.
This, in turn, has led to production recommendations on nomo-
cropping which have been adopted most rapidly by medium and large
farm enterprises. The existing bias toward research on single crops
usually results from the training of technicians in temperate zone
countries, where monocropping research has well developed methodologies,
and is operationally easier to conduct. The small farmer in El Salva-
dor primarily utilizes the multiple cropping technique, but generally
only in the traditional sense.
The design, conduct and interpretation 6f experiments on
crop mixtures is a complex task ofter requiring coordinated inter-
disciplinary research and the use of moder technologies, such as system
analysis. Hence, the tendency has been to ignore the fact that large
numbers of small farm operators have needed and have empirically
developed cropping systems which increase total productivity per
area of land and labor over given production periods. Small farmers
have inter-cropped corn with beans, yucca and beans, and various vege-
table combinations for many decades,
Research conducted by USAID/EL SALVADOR and CATIE at Turri-
alba, Costa Rica, have demonstrated that these empirically evolved
options may be more propitious for small farmeEs. This/further sup-
ported by practices and research in the Orient which indicate that
further systematic studies can significantly improve on existing
cropping systems. Research done to date, including intercropping
and crop rotations has resulted in increased efficiency in the
use of available capital, sunlight, fertilizer, and has expanded
El Salvador is utilizing existing GOES and USAID capability
to conduct applied cropping systems research and is already extending
this information to the small farmer by means of a small investigative
pilot project. Benefits from the use of an improved cropping system
in El Salvador are surfacing. The preliminary results indicate
increased production per unit area of land, employment generation,
added nutrient value, and increased efficiency in the use of produc--
tion inputs. The USAID has also preliminary data which indicates that
Its multiple cropping system is effective in spreading the risks of
farming for the small farmer. In a basic corn/bean system one crop
may be less than expected, but data show that the remaining total
crop will generally be better that it would have been if either crop
did'well independently. It appears quite likely that this phenomena
is related to the amount of sunlight available to the crop in question.
The basic system. beans/corn, has yieled approximately 40 percent
more production that does the monocropping system presently in use.
B. Detailed Description
(See Logical Framework Matrix -- annex)
- 7 -
III. Project Analysis
A. Technical Analysis and Environmental Assessment
The project financial imputs of the GOES shown on the
face sheet are those related to the buildup of MAG/CENTA/IRA
plus the host governments cost associated with AID participants.
We have not imputed "in kind" costs incurred by the GOES in
support of our technicians, e.g. office space, utilities,
etc. We have not attempted to calculate local currency
contributions to the proposed grant. We assume the GOES will
have the counterpart funds required for both, existing loans,
and the proposed project. Our analysis of the GOES
five-year financial plan and recent budget appropriations toY
IRA lead us to believe that this is a reasonable assumption.
The technological implications of the project are appro-
priate for El Salvador. Part I, Description of Project,
adequately points out that El Salvador is ready for this phase
of outreach program. The employment implications are discussed
in the economic analysis section.
In an effort to improve productivity and land and labor
utilization the GOES has expanded its research efforts and
has place special emphasis on appliea research in production
techniques, land use and product mix throughout the country
and to improve and expand the extension service delivery of
new techniques. r/ /> / f^ /4# tC
7AS ^ a -nee-I -4 d//1 /c4; ws/,L z
(need a statement as to whether the project meets FAA Section 611
(a) and (b).
(a statement will be needed which stipulates that the cost
estimates are reasonably firm and that adequate planning has
No adverse environmental impact is foreseen as a result of
this project. Additionally, while changing the environment is
not a primary focus of this project, general benefits to the
environment should result because reforestation, soil conser-
vation and the proper use of agricultural chemicals will all be
routinely taught to the small farmer.
The Role of Women
Even though rural Salvadorean women participate in field
activities having to do with crop production it is beyond the
scope and potential of this project to produce noteworthy change
in the traditional role of women.
The section on social analysis pointed out that the social
structure in El Salvador was that of a nuclear matriarchial society.
Additionally, the results of a recent market structure study reveals
that women dominate the market place, as 88 percent of the vendors
are women. This indicates that substantial "agricultural power" is
already in the hands of women -- Probably all that can be obtained
under competitive conditions, lacking processing a- o5 ->eos oS
B. Financial Analysis and Plan
1. Financial Rate of Return/Viability .
(An annex to the Handbook (yet to be issued) will present
-guidance for financial analyses.)
2. Recurrent Budget Analysis
It is anticipated that the cost of this project for the
USAID/ES will total 1.96 million dollars over a three year period
(FY 1976-1978). During FY + IQ 1976 ($683 + 57 = $740) $740,000
is required for this activity. During the second and third years
of project activities, the project will require an annual funding
level of $660,000 to cover expenses of US4A611 funded assistance.
The major USAID inputs to this program and their use are:
a. Personnel Services
A contract-funded project leader and seven agricultural
specialists will be employed on a full-time basis using USAID
financing. It is anticipated that the University of Florida,
Gainesville, Florida, will be the contracting agency.
Five of the project staff will be located at CENTA, two
in MAG and one in IRA. The CENTA team will be working on the field
demonstrations, providing in-service training and participating
in the short courses and conferences to be held. The two techni-
cians to be located in the MAG are to provide timely market infor-
mation and assist in the planning endeavors of MAG. The one techni-
cian at IRA will assist in marketing studies, grain buying activities,
storage and handing practices, etc. The USAID has a 6.5 million
dollar loan with IRA to enable this institution to carry out its
grain marketing program. The purpose of locating the staff in the
manner described is to make possible a team approach, providing
assistance at the marketing level as well as for production.
Short term consultants in systems analysis, nemotology,
biometrics, etc., will be employed as required to meet/special
needs of the program. A pilot project will be carried out on two
small farmer projects by a consultant firm as described earlier.
b. Participant Training
Approximately $175,000 annual 'throughout the life of
the program will be needed to finance long-term degree training.
The project provides for relatively modest commodity sup-
port over the three year period. A total of $45,000 has been
budgeted for commodities. These funds are to cover costs of
purchase of one vehicle, seeds, fertilizer and other special
materials as needed, when the budget flow of MAG/CENTA is untimely
d. Other Costs
A total of $30,000 has been budgeted for other costs during
the life of the project. These funds are to cover costs of services
(locally procured, short term, not available through Ministry),
operational travel, home office expense and locally procured sup-
*E the project's primary training focus will be on applied in-
service training provided by the specialists to counterpart techni-
cians. The project personnel will also organize and participate in
in-country conferences and training workshops. The cost of trainee
support in in-country training is to be provided by MAG/CENTA.
Some specialized equipment and minimal office and laboratory
equipment will be supplied through the project. Normal office re-
quirements will be supplied by MAG/CENTA.
e. The USAID Budget
Multiple Cropping Specialist
Chief of Party
Agric Marketing (MAG)
Agric Economist (MAG)
Agric Marketing (IRA)
Short Term Consultants
(3) Other Costs
Services (locally procured)
C4) Pilot Project
(5) Participants G.
FY-1976 + IQ
12 + 3 55,000
12 + 3 50,000
12 + 3 50,000
12 + 3 50,000
12 + 3 50,000
12 + 3 50,000
565 + $484,699
S Cee A
a. During the Grant Period:
The USAID has discussed with MAG/CENTA those inputs that
institution must make as its contribution to this program. MAG/CENTA
has agreed to the following:
1. Office space and facilities for the technical specialists.
2. Project assistance as needed, classrooms and training facilities
for holding short courses and conferences in accord with the project,
program as a part of its contribution.
3. Eight multiple cropping extension specialists, 40 general agri-
cultural extension agents (part time basis), plus field assistants,
field laborers, and agricultural equipment for work in this project.
It will also provide land, laboratory facilities, etc., for field
trials and demonstration plots. This represents an annual cost of
4. Agrees to provide necessary financial records and reports as
required by USAID.
5. Material Support: Seed, fertilizer, plant protection materials,
tools and other materials necessary to conduct field trials and dem-
6. Vehicular Support: Those vehicles which are required to support
7. Assume costs of salaries, travel and per diem in-country, in-country
training costs and all other associated costs normally charged to
8. Assume all support costs related tovvehicles assigned to the
b. After Grant Termination
The USAID presently provides substantial funds for MAG/
CENTA/IRA technical assistance support. In addition, the USAID has
granted a $4 million loan to CENTA and a $6.5 million to IRA. The
USAID support will be non-existent once the grant terminates. Hences
it is imperative that already developed1ntensve, cropping techniques
be disseminated to the farmers at once.
The ROCAP Sponsored Small Farm Cropping Systems PROP provides
funds for a coordinated Central American food crop research program,
which is to have a continuing capability to develop improved crop-
ping systems for use on small farms. Thus, this project will depend
upon the research results of the ROCAP funded project. If the multiple
cropping extension project proves successful, MAG/CENTA will, with its
trained extension staff, be able to expand its activities as the need
3. Financial Plan/Budget Tables (See Annex)
4. Summary Opinion
C. Social Analysis
The USAID recently financed a sociological study which
undertook to assess the socio-cultural patterns of the small
farmer in El Salvador. The results of that study are available
in preliminary form and wev~ used to provide the basis for
the following statements:
1. The small farmer in El Salvador has bridged the tech-
nological "gap". He is no longer bound by tradition. It was
discovered that even the smallest producer understands the need
for hybrid seed, fertilizer, pesticides, better tools, etc. Not
only does he understand the need for these production imputs, he
does use and will continue to do so as his financial resources
permit. The major constraint haday is access to credit along
with access to impyovec/ cn/tuY^L cecA' c5s.
2. Most of the rural populace has, sme access to land.
The amount. of ~4s /nv/ $ e i5 af/y not adequate, nor is con-
3. The greatest single motivating factor for the small
farmer is his desire for land ownership. The study showed that
non-owners of land were ready to move to distant locations if
they were to receive a title which proved land ownership. This
is indicative of latent mobility.
4. Actual mobility of the rural poor in El Salvador is high.
Each year he must travel to the harvest sites of the commercial
crops, coffee, cotton, and sugar cane. This is about his only
opportunity to earn "cash" during the year. He is unemployed
approximately 6 months per year.
5. The rural poor are chiefly a nuclear family, having
very little interest in distant relations or local organizations.
The one exception to this generalization is that nearly all
expressed a desire to be 0- member of an economic cooperative
6. Underconsumption is prevalent among the rural poor,
especially during certain seasons of the year. By the time
the planting season arrives many rural residents are desperately
hungry their stock of beans and corn completely depleted.
7. Indications are that there are probably 20 percent
more rural inhabitants living in El Salvador than demographic
statistics provide for.
8. The basic diet of the rural poor is composed of corn
and beans. As much as 80 percent of total food intake imE
sxxXHnxbxeHKnsx these two items.
9. Each family member, including females, work in the fields.
However, the sB family is definitely matriarchial in its makeup.
The dominant woman member generally makes the important decisions.
10. Even though a family actually does own the land that it
is occupying the majority have no current proof. Transfer of
land titles are deferred because of the expense involved in
transfer. Therefore, many potential credit users are excluded
from credit because no.guarantee.
11. The El Salvadorean farmer is an industrious, pleasant,
happy, individualistic person. EEMKNXXM Contrary to expectations,
he does not fit the role of a traditional individual. He is
ready to move into a modern society given the chance. He will
throw down his planting stick, at the first opportunity.
.,14. The second most important motivational actor of the
Y'-Y& L Pec is the desire to educate hc! v children, even to
ptoressional levels. Lack of income is the only restraint in
their achieving this goal.
12. The diffusion process in El Salvador has been impressive.
The rural poor have managed to adopt modern techniques. So-much-
so in certain instances that one might suspect thme illegal
borrowing of imputs had taken place. The fact that El Salvador
has the highest yields dax in Central America fS4 the ,basic grains
supports the diffusion contention.
13. The rural poor are fatalistic in nature)but this is not
to say that they are irrational. They are typically not accustomed
to expect, or even aspire to, any considerable raising of ceilings
on ~UEsconsumption or social position. The rural poor in El
the SAc'$w tl4t
Salvador are also fatalistic in nature but they are ready for
increased consumption and social position. They will strive to
The effectiveness of the appeal of this program is relative
to the aat-h need-satisfying regards. ( his principle
4McW, appl pame if material or even finaci&l wellbeing is held
constant.) The potential rewards of this program include prestige
and esteem within an acceptable system of social valuation. It
also includes the potentiality of decreasing hunger.
Over time we expect an increase in aspiration and the addition
of values associate~ with status mobility, merit evaluation, and
a realistic sense of choice and initiative. We also expect new
systems of social organizations and statification to which these
aspirations and values are appropriate. In other words, we expect
the rural poor (given the opportunity) to adopt this program at
a satisfactory rate.
0. Economic Analysis
The primary issue in the potential success of a
for corn and beans is the verification of
technical and economic feasibility. The technical aspects
of feasibility have been demonstrated in another section of
this paper. The verification of economic feasibility in El
Salvador is not possible. There are several general studies,
on multiple croppi available in the agricultural literature.
However, there are no studies, nor accurate data at this
time in El Salvador that could lead to measures of net in-
come and/or cost benefit. Preliminary data are available
from research carried out at CENTA during the past two years.
This data, along with the data which will be generated by
this project, will permit the USAID to evaluate (a) production
costs and yields utilizing existing "traditional" small plot
technology, and (b) production costs and yields utilizing
the proposed intensive farm management technology.
Even though there is a lack of data for Economic Analysis,
the : Vprogram can greatly expand the pro-
duction potential of El Salvador. With this in mind, the
following analysis is presented, using the meager data
available at this time.
Table III shows the estimates of the potential land
area which could be utilized in the pro-
gram. It also shows the estimated production that could be
derived, and the gross revenue which could be expected by
the full realization of 'ieY\sive cropping techniques.
ESTIMATED AREA, PRODUCTION AND GROSS VALUE OF PRODUCT FOR
SELECTED CROPS THAT COULD BE DEVOTED TO MULTIPLE CROPPING.
Corn (2nd. crop)
AREA PRODUCT I ON
130,000,000 2/ 1
T 0 T A L 232,000 - 0 169,175,000
I/ Corn yield equals 45 quintals per manzana;
Beans yield equals 10 quintals lper manzana.
2-/ Corn price equals 019 per quintal; (PYeS.LtztRA SuPPovt p;~ )
.Beans price equal 065 per quintal (-Pawi (present IRA support price*).
Table III estimates that the gross value of added
production would approximate- 170 million colones or about
#3WW million, This additional revenue would be generated
from the full utilization of 232,000 manazanas not now
Table IV shows IRA estimates for cost of production
for selected basic food crops for 1975.
ESTIMATED COSTS OF PRODUCTION FOR SELECTED FOOD PRODUCTS IN
EL SALVADOR FOR 1975. 1/
PR 0 DUCT
COST OF PRODUCTION
1/ Estimates provided by MAG/IRA.
Table V compares total gross revenue to total cost. The net income that would
accrue annually to small farmers that adopt the multiple cropping technique is
estimated at 013.1 million $5.25 million (Assuming that 100 percent adopt the
technique). If only 10 percent adopt the technique, over $ 1/2 millionAwould result
as a net return to the multiple cropping project.
ESTIMATED COSTS OF PRODUCTION FOR SELECTED CROPS COMPARES TO
ESTIMATED GROSS REVENUE, 1975.
TOTAL COST TOTAL GROSS NET REVENUE
C R 0 P OF PRODUCTION T/ REVENUE FOR PRODUCTION 2/ (Colones)
Corn 3,106,900 4,275,000 1,168,100
Beans 125,916,000 130,000,000 4,084,000
Sorghum 1,094,950 2,000,000 905,050
Cowpeas 1,234,500 2,000,000 765,500
Cassava 24,069,000 30,000,000 5,931,000
Peanuts 241,010 300,000 58,990
Tomatoes 200,000 300,000 .100,000
Cucumbers 194,780 300,000 .105,220
T 0 T A L 156,057,140 169,175,000 .13,117,860
This expected net revenue return is substantial. However, additional benefit will
result from the program, as no less than a minimun additional~ an work years
will be required 7/ A 6'
There4tfe a formalized data collection procedure will be implemented
under this project to document the net gains as the program
unfolds over the next three years. Data amenable to cost-
benefit will be accumulated in a systemized manner. It is
planned that the following information be collected:
(1) Average annual domestic price structure for corn
and beans over time;
(2) World price as measure by CIF import price delivered
(1) Average yield per hectare for (a) irrigated, and
(b) non-irrigated land on plots without intensive
farm management, i.e., traditional techniques with
existing levels of credit and outreach services;
(8) Same data as (3) for experimental and demonstration
plots utilizing intensive farm management techniques;
(5) Estimated fixed and variable costs of production using
traditional corn/beans technology on both irrigated
and non-irrigated land;
(6) estimated fixed and variable costs of production
using Intensive farm management techniques on both
irrigated and non-irrigated land;
(7) net income statement for traditional and Intensively
(8) Increased social costs of intensive cropping program,
i.e. additional extension services, delivery system costs
for credit, irrigation programs if required, etc.
We expect at least short-term estimates on all of these
variables within one year since thirty experimental plots are
being tested this year.
The required revenue data (items 1 and 2 above) may be
readily gathered at the time a cost-benefit study is under-
taken, and thus are not critical. It is the incremental cost
of production and productivity data that currently prohibit
a rate-ot-return analysis.
IV. Implementation Planning
A. Administrative Arrangements
The principal counterpart agency is MAG (CENTA). CENTA
was created as a semi-autonomous agency of the Ministry of Agri-
culture in December, 1971. It has autonomy in scientific, tech-
nological and administrative affairs and obtains funding through
the noraml budgeting process of the Ministry of Agriculture. The
CENTA Capital Asistance Paper, dated June 12, 1972, adequately
describes and analyzes the CENTA Institution and the role it
plays in agriculture.
The CENTA/AID evaluation is used as the basis for the a-
nalysis of the management capability of CENTA. The evaluation
report indicates that:
a. CENTA is fully capable to carry out its assigned role,
b. CENTA can achieve the required coordination of functions.
It is not anticipated that the service of Contractors are
to be used.
/Administrative Environment of MAG/CENTA7
/Administrative Arrangements to reach and involve target/
B. Implementation Plan
A. In cooperation with USAID/ES, MAG/CENTA will carry
out the following:
1. Planning and Programming:
a. Determine the regions and crops to be planted as
demonstration plots. Select staff personnel.
Enlist the cooperation of leader farmers.
b. Develop detailed work plans, assign personnel,
and schedule technical assistance.
c. Determine training requirements and schedule
field days and short courses.
d..-Hold six courses for training extension agents.
e. Hold eight field days per year for farmers.
f. Have operational 32 pilot plots on small farm
2. Field Research Implementation
a. Plant, maintain and harvest demonstration plots;
maintaining suitable date.
b. Work directly with and assist farmer leaders and
c. Conduct training courses and workshops,
Provide overall program guidance, monitor program
implementation and evaluations of programs.
SECOND AND THIRD YEARS
Activities during the second and third years will be
essentially the same as that of the first year. At the end of
the third year, a minimum of 200 small farmers will be actively
participating in the program. Ak leo Vav 0Jit0 o co
C. Project Evaluation Plan
Evaluation of progress toward achievement of the project
goal and pupposes has been included as an integral part of
the project. The primary responsibility for evaluation will rest
with the Government of El Salvador although supplemental
assistance will be provided by the contractors, USAID, TEBX
The basic evaluation technique which will be used over
the life of the project is described below:
Sample surveys: Under the MAG/IRA/loan)the USAID has
provided assistance to the Ministry of Agricutture to establish
a data collection and analysis system based on the stratified
sample survey technique used by the U.S. Department of Agriculture.
Under such a system, national estimates can be derived from a
relatively small number of scientifically selected geographic
sample units. In this project, it is planned that sample data
will be collected at least annually to determine changes in
average net farm income, and changes in production and pro-
ductivity of basic food crops.
Quite apart from the specific evaluation activities des-
'cribed above, there exists GOES evaluation proceduresAwhich
will, over time, provide good data with respect to changes in
rural areas. The GOES five-year plan *tresses the need to
increase food production for internal consumption and gives,
at the same time, equal emphasis to the need for increasing
the income of the rural poor. The GOES has mounted an intensive
evaluation effort over the life of the plan to measure progress
in achieving its objectives. The USAID will provide a limited
amount ot Technical Assistance to assist the GOES in formulating
evaluation plans tor the agriculture sector.
Other sources of data will be utilized to measure progress
towards production of outputs and achievement of project
purposes and goals in the following manner:
a. Reports from MAG, CENTA and IRA will be analyzed to
(1) Area planted, production and yields for the basic grains.
(2) Credit extended and seed and fertilizer sales to
(3)Extension Agents contacts with small farmers.
b. CENTA reports on:
(1) Production of improved corn, bean and sorghum
(2) Participant and in-service training.
(3) Number and type of farm experiments and demonstration
c. IDB and UNDP reports on:
(1) Technical assistance
(2) Loan assistance.
TAB assistance is contemplated over the life ot the project
in terms of periodic assessments of progress in project im-
plementation and identification of limiting factors requiring
D. Conditions, Covenants and Negotiation Status
C ... .
X 1. 1. .
PIO/T AGRICULTURAL DEVELOPMENT (U. of Florida)
in, -,.,. . . . .., :. ..:- .
(1/1/76 thru 12/31/76)
Horticulture (vegetable crops)
Agric. Economist (CENTA)
Multiple Cropping Specialist
Agric. Marketing (MAGUp9,y
Agric. Marketing (IRA)
Agric. Economist (MAG Planning DiL-v.
Short Term Consultants oI 0m,
Supplies (publications, seeds and other 15,000
Services (locally procured, short
term, not available thru Ministry)
ome office expense
supplies (locally procured)
cludes overhead and all other costs associated with
cept operational travel.
ocurement subject to prior written authorization of USAID/ES.
,Y *r~~ C
PIO/T AGRICULTURAL DEVELOPMENT (U. of Florida)
(1/1/77 thru 12/31/77)
Personnel ( IS' ;^ i //$459,669
Field Staff 435,369
Horticulture (vegetable crops) 48,117
I Agric. Economist (CENTA) 42,653
Plant Pathologist 44,019
Multiple Cropping Specialist 42,653
Agric. Marketing (MAG) 47,801
Agric. Marketing (IRA) 47,801
Agric. Economist (MAG Planning) 50,480
Short Term Consultants 55,689
Home Office 24,300
| Commodities 15,000
Supplies (publications, seeds and other 15,000
Other Costs 10,000
Services (locally procured, short
term, not available thru Ministry) 3,000
Operational travel 3,000
Home office expense 2,000
Supplies (locally procured) 2,000
1/ Includes overhead and all other costs associated with personnel
except operational trave.
S2/ Procurement subject to prior written authorization of USAID/ES.
PROJECT DESIGN SUMMARY
Project Title & Number:
Life of Project:
From FY to FY
Total U.S. Funding
NARRATIVE SUMMARY OBJECTIVELY VERIFIABLE INDICATORS ____
Program or Sector Goal: The broader Measures of Goal Achievement: Assumptions for Achieving Goal Targets:
objective to which this project con-
tributes: Change in income and other Socio-Economic variables Institutional capability and Success in
research, education and extension.
- increase the Income of the rural Net farm income of producers of basic grains will
poor in El Salvador. increase an average of approximately 20 percent. institutional manpower stability and
equitable wage structures.
Subgoal: Increase food production Measures of Subgoal Achievement:
through intensive farm management stabilized or reduced population growth
practices. increased productivity of corn 10 percent annually, rate.
increased productivity of beans 8 percent annually. no appreciable decrease in area planted
to corn and beans.
increased productivity of vegetables 5% annually.
- improve the GOES's capability to
develop and introduce new and/or
improved cultural practices and
crop mixes while putting presently
available intensive farming tech-
niques into practice.
Conditions that will indicate purpose has been achieved,
End of Project Status:
- new technology that will increase yield potential of
the basic food crops by 30 percent.
- GOES budget for MAG will be sufficient to sustain
projected level of activities.
- the number of extension-farmers demonstrations would
increase each year.
- extension agents utilizing findings.
- the number of small farms of viable size would increase.
- MAG effectively managing outputs.
- regional and on farm storage capacity increased by 50%.
- operational price stability system capable of effect
tively influencing the market for basic grains.
- sectoral planning and evaluation unit operational in
Ministry of Agriculture.
Assumptions for Achieving Purpose:
- that operational and capital budgets are
adequate to finance GOES counterpart and
- markets exist for new production.
- that institutional credit is available when
- the GOES and MAG will develop its capabili-
ties in the needed areas of research and
- price/supply relationships will be adequate.
- input prices will be fairly stable at/or
near 1975 levels, and adequate supplies willV
- climatic conditions favorable.
-Research projects in variety selec-.
tion and fertilizer trials for basic
food crops underway.
- MAG planning capability established..
-Multiple cropping test and demonstra
tion plots installed.
Extension agents and specialists
SFarmer training days conducted.
. Marketing studies completed and
. Adequate storage facilities construct
ed. GOES price stability fund
-CENTA Library facilities upgraded.
-Disease identification and treat-
1. Number and status of variety selection trials, fertilizer
trials, and experiments with. basic food crops.
2. Scientific and applied research papers published on all
research trials and in hands of appropriate personnel.
3. Two hundred and48 demonstrations we e,,>d of Pojec-,;
4, 12. courses per year for training extension agents.
5. Eight field days per year for farmers. i
6. Eight extension agents trained. /I Sys_-eh5. i
7. Construction of storage facilities'completed. GOES financed'
grain stavilization fund established.
,8. Crop forecasting improved in quality and timeliness.
9. Over 11,000 small farmers on new land and production increased.
10. Annual improvements in marketing.
11. A five year plan prepared in 1977.
12. Economic analysis un[t trained.
09, 2o Y,, v.. v', .', po .- .S pee._, "
- CENTA is operational
- IRA continues to receive GOES budgetary
- Reforms implemented in ICR (ISTA).
- Participants are identified, trained anc
returned to work according to predeterm;
- Extension service receives necessary
budgetary support and agents trained to
- Competent people assigned to critical