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 Description of the project






Title: Outreach program for small farm cropping systems
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 Material Information
Title: Outreach program for small farm cropping systems
Physical Description: 39, 3 leaves : ; 28 cm.
Language: English
Donor: unknown ( endowment )
Publication Date: 1976?
Copyright Date: 1976
 Subjects
Subject: Cropping systems   ( lcsh )
Farms, Small   ( lcsh )
Genre: non-fiction   ( marcgt )
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General Note: At head of title: Project paper.
General Note: Typescript.
General Note: Caption title.
 Record Information
Bibliographic ID: UF00095699
Volume ID: VID00001
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 436879047

Table of Contents
    Title Page
        Page 1
    Description of the project
        Page 2
        Page 3
        Page 4
        Page 5
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Full Text





PROJECT PAPER



OUTREACH PROGRAM FOR SMALL FARM CROPPING SYSTEMS


I. Summary and Recommendations


A. Face Sheet

(contains funding, signatures, etc.)



B. Recommendations

The authorization for which approval is requested from

AID/W is as follows:


-- GRANT


Total new AID obligations


$1,960,000


$1,960,000


C. Description of the Project


(draft of description of project follows on
next page)











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.






-5



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

possibilities.

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

(early winter).

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

this period.







(0



TABLE I


CORN PLANTING IN EL SALVADOR, TIMING AND AREA

Agricultural Years, 1962-63 to 1972-73


-MANZANAS
FIRST SECOND THIRD
YEAR PLANTING PLANTING PLANTING TOTAL
WINTER SUMMER APANTE
(May-June) (Oct-Nov) (July)


1962-63

1963-64

1964-65

1965-66

1966-67

1967-68

1968-69

1069-70

1970-71

1971-72

1972-73

Increase or
Decrease


a/

a/

a/

254,300

267,457

241,095

251,400

241,300

268,280

269,200

257,000


+14,900


a/

a/

a/

15,740

23,223

25,000

27,000

28,500

20,150

23,900

28,000


+8,160


a/

a/

a/

5,780

5,920

8,000

6,950

7,500

5,770

7,200

7,800


1,420


283,594

246,686

236,792

275,820

296,600

274,095

285,350

277,300

294,200

300,300

292,800


+17,706


a/ Data not available.











TABLE II

BEAN PLANTING IN EL SALVADOR, TIMING AND AREA

Agricultural Years 1964-65 to 1972-73


MANZANAS
FIRST SECOND THIRD
YEAR PLANTING PLANTING PLANTING TOTAL
WINTER SUMMER APANTE


1962-63

1963-64

1964-65

1965-66

1966-67

1967-68

1968-69

1969-70

1970-71

1971-72

1972-73


a/

a/

17,400

17,700

23,631

21,595

24,120

21,400

22,800

25,100

25,600


a/

a/

10,211

12,800

11,180

16,000

18,500

21,800

24,600

27,100

26,730


a/

a/

2,930

3,100

2,950

3,000

2,650

3,765

4,200

4,800

4,520


47,044

39,690

30,541

33,600

37,761

40,595

45,270

46,965

51,600

57,000

56,850


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

production potential.

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,
and
technical assistance,/organization.

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-

tivity.

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-






9



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

farmers.

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






I0



,farmers.

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,






-/I-


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.







1-5"

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

program.

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.







- 14-


II. Project Background and Detailed Description

A. Background

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

resources.

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,







-is-

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
is
options may be more propitious for small farmeEs. This/further sup-

ported by practices and research in the Orient which indicate that








116-

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

employment opportunities.

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).






- 12-


(a statement will be needed which stipulates that the cost

estimates are reasonably firm and that adequate planning has

taken place.)

Environmental Considerations

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






20 -

assistance at the marketing level as well as for production.

Short term consultants in systems analysis, nemotology,
the
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.

c. Commodities

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

/non available.

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-

plies.

*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

(1) Personnel

Horticulturalist

Agric Economist

Plant Pathologist

Multiple Cropping Specialist

Chief of Party

Agric Marketing (MAG)

Agric Economist (MAG)

Agric Marketing (IRA)

Short Term Consultants

Home Office

(2) Commodities

(3) Other Costs

Services (locally procured)

Operational Travel

Home Office

Supplies

C4) Pilot Project
TOTAL
(5) Participants G.


FY-1976 + IQ
MM $
460

12 + 3 55,000

12 + 3 50,000

12 + 3 50,000

12 + 3 50,000

12 + 3 50,000

8 30,000

8 30,000

12 + 3 50,000

14 70,000

8 30,000

15,000

10,000


FY 1977
$-


FY 1978
MM $


3,000

3,000

2,000

2,000


100,000
565 + $484,699
175
7-0


.T.


$484,699


7 /<777


S Cee A
budge> ,







-23-


MAG/CENTA INPUTS


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

approximately $300,000.

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-

onstration plots.

6. Vehicular Support: Those vehicles which are required to support

personnel.

7. Assume costs of salaries, travel and per diem in-country, in-country

training costs and all other associated costs normally charged to

locally employees.











8. Assume all support costs related tovvehicles assigned to the

project.


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

arises.


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

organization.

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
their
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
SS it.


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









- 29-


the full realization of 'ieY\sive cropping techniques.



TABLE III


ESTIMATED AREA, PRODUCTION AND GROSS VALUE OF PRODUCT FOR
SELECTED CROPS THAT COULD BE DEVOTED TO MULTIPLE CROPPING.


CROP

Corn (2nd. crop)

Beans

Cowpeas

Sorghum

Cassava

Peanuts

Tomatoes

Cucumbers


AREA PRODUCT I ON
GROSS VALUE


AREA
(Manzanas)

5,000

200,000

5,000

5,000

15,000

.1,000

500

500


PRODUCTION
(Quintals)

225,000 1/

2,000,000 1/

50,000

200,000

6,000,000

6,000


GROSS VALUE
(Colons)

4,275,000 2/

130,000,000 2/ 1

2,000,000

2,000,000

30,000,000

300,000

300,000

300,000


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

being utilized.

Table IV shows IRA estimates for cost of production

for selected basic food crops for 1975.




TABLE IV


ESTIMATED COSTS OF PRODUCTION FOR SELECTED FOOD PRODUCTS IN
EL SALVADOR FOR 1975. 1/


PR 0 DUCT


Corn

Beans

Sorghum

Cowpeas

Cassava

Peanuts

Tomatoes

Cucumbers


COST OF PRODUCTION
PER MANZANA
(Colones)

621.38

629.58

218.99

246.90

160.46

414.08

788.00

600.00


PER QUINTAL


PER QUINTAL
(Colones)

13.81

51.52

10.95


3.94


1/ Estimates provided by MAG/IRA.




- I-


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.

TABLE V

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)
(Colones) (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'





-J3-


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:

A. Revenue


B. C


(1) Average annual domestic price structure for corn

and beans over time;

(2) World price as measure by CIF import price delivered

El Salvador}

ost

(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

managed plots;

(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


1. Recipient

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,

and,

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/






- 3S--


B. Implementation Plan

FY 1976


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

holdings.


2. Field Research Implementation

a. Plant, maintain and harvest demonstration plots;

maintaining suitable date.

b. Work directly with and assist farmer leaders and

farmer cooperators.

c. Conduct training courses and workshops,

















USAID will:

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





-37"

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

and TAB.

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

determine:

(1) Area planted, production and yields for the basic grains.

(2) Credit extended and seed and fertilizer sales to

small farmers.

(3)Extension Agents contacts with small farmers.

b. CENTA reports on:

(1) Production of improved corn, bean and sorghum

seed.

(2) Participant and in-service training.

(3) Number and type of farm experiments and demonstration

plots.

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

resolution.


- 3y-


























D. Conditions, Covenants and Negotiation Status









C ... .


X 1. 1. .


PIO/T AGRICULTURAL DEVELOPMENT (U. of Florida)
in, -,.,. . . . .., :. ..:- .


BUDGET
(1/1/76 thru 12/31/76)


Personnel


$437,780


Field Staff
Horticulture (vegetable crops)
Agric. Economist (CENTA)
Plant Pathologist
Multiple Cropping Specialist
Chief-of-Party
Agric. Marketing (MAGUp9,y
Agric. Marketing (IRA)
Agric. Economist (MAG Planning DiL-v.
Short Term Consultants oI 0m,


$45,826i
40,622-
41,923-'
40,622v-
53,432-

<45,525>-
48,077
53,037


Home Office
2,
Commodities


Supplies (publications, seeds and other 15,000
special materials)


Other Costs


Services (locally procured, short
term, not available thru Ministry)


Operational travel


H

S





NOTES:

1/ In
ex

2/ Pr


ome office expense

supplies (locally procured)


3,000


3,000

2,000

2,000


TOTAL


cludes overhead and all other costs associated with
cept operational travel.


$462,780



personnel


ocurement subject to prior written authorization of USAID/ES.


,Y *r~~ C


~ ':.!~v


414,639







n/ ^



23,141

15,000


10,000
















PIO/T AGRICULTURAL DEVELOPMENT (U. of Florida)



BUDGET
(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
Chief-of-Party 56,156
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
22/
| Commodities 15,000

Supplies (publications, seeds and other 15,000
special materials)

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

TOTAL $484,669

NOTES:

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
Logical Framework


Project Title & Number:


Life of Project:
From FY to FY
Total U.S. Funding
Date Prepared


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.


Project Purpose:

- 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
personnel.

- markets exist for new production.

- that institutional credit is available when
needed.

- the GOES and MAG will develop its capabili-
ties in the needed areas of research and
extension.
- 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
trained.

SFarmer training days conducted.

. Marketing studies completed and
systems demonstrated.

. Adequate storage facilities construct
ed. GOES price stability fund
operational.

-Farmers resettled.

-CENTA Library facilities upgraded.

-Disease identification and treat-
ment capability.
--Operational-statistical foiecasjti".

p


Output Indicators:

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._, "


Important Assumptions:

- CENTA is operational

- IRA continues to receive GOES budgetary
support.

- Reforms implemented in ICR (ISTA).

- Participants are identified, trained anc
returned to work according to predeterm;
ed plans.

- Extension service receives necessary
budgetary support and agents trained to
desired level.

- Competent people assigned to critical
posts.




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