To Improve Competitiveness of Rural Businesses, Linking Farmers to the Private Sector

by: borderjumpers

Mon Mar 22, 2010 at 08:48:45 AM MST

The U.S. Agency for International Development's Production, Finance, and Technology (PROFIT) program in Lusaka, Zambia, is different from other development projects, according to Rob Munro, the program's senior market development advisor. This is because PROFIT has "real clients" in the private sector who maintain relationships with smallholder farmers.

By working with these partners, PROFIT isn't distorting the market "by throwing money at it" or giving farmers subsidies for inputs, such as fertilizer. Instead, it is working with farmers, the private sector, and donors to improve the competitiveness of rural businesses by linking large agribusiness firms to farmers. It's helping to improve linkages within industries that large numbers of small and medium-sized enterprises participate in, such as cotton, livestock, and non-timber forest products like honey.

Specifically, PROFIT helps communities select and train agricultural agents who work with agribusiness to provide inputs to farmers in rural areas-places where agribusiness firms had been reluctant to go because they didn't think there was a big enough market. The agents are essentially entrepreneurs who provide goods and services that the communities didn't have access to. In addition to selling things like hybrid maize or fertilizer, the agents can also provide ripping services to farmers practicing conservation farming methods, as well as herbicide spraying and veterinary services.

The "key" to the program's success, says Munro, is that the agent is a "community man" selected by the communities themselves, not by agribusiness firms. The farmers trust the agent not to run off with their money and to deliver the goods and services they've purchased.

Unlike traditional development projects that "inundate" communities with trainers, PROFIT minimizes the number of USAID staff involved locally, helping to ensure that the project isn't viewed as traditional "aid," which can create dependency. Unlike the AGRA-supported CNFA, which relies extensively on its own staff to train agro-dealers, 80 percent of the trainings for agents are not provided by PROFIT, but by firms that are training agents how to use their products.

PROFIT's model means that the program doesn't work "with the poorest of the poor," but with farmers who have the ability to scale up, says PROFIT chief of party Mark Wood. If you start with the very poorest, Wood says, "it's like trying to start a car without an engine." But by working with the 200,000 farmers in Zambia who have the means to collaborate with businesses, PROFIT is helping to create opportunities for thousands of poorer farmers in the future.

Stay tuned this week for more about PROFIT and Mobile Technology's work to help small and medium-sized enterprises and farmers use mobile phone technology for e-banking services and to access market information.

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Ask these Republicans if they still support their campaign promise after they said....

by: Junior

Fri Jan 30, 2009 at 10:29:14 AM MST

"Wyoming provides a great example of how economic growth can and does benefit schools.  As Wyoming's natural-resource industry has grown, so have the salaries paid to teachers."  "We can and must provide the same for the children of our state." Sen. Roy Brown (R-SD 25)

"Montana should be developing our natural resources in a more expansive and responsible way and, in turn, use 25 percent of all new tax revenue from energy production for education salaries, infrastructure, materials, etc."  Sen. John Brenden (R-SD 18)

"I would also like to see our state pay its teachers more, and I believe we can accomplish this, as Wyoming has, by developing our resources and boosting our state's economy."  Rep. Wendy Warburton (R-HD 34)

"Surrounding states that are developing resources have more tax revenue that creates more flexibility in financing such things as higher teacher pay and health and human services."   Rep. Mike Milburn (R-HD19).

"He (Kerns) says increased funding for public schools isn't going to happen unless the state taps its coal, oil and natural gas resources." Rep. Krayton Kerns (R-HD 58)

"We can develop our natural resources while protecting our environment and I would support legislation to accomplish this goal. We have a tremendous opportunity to support school funding and other infrastructure needs and a supplier of secure affordable energy in our Nation."  Rep. Cary Smith (R-HD 55)

"I believe a better answer is to cut the ties of schools and property taxes. I would propose a bill that would switch the reliance from property tax to excise taxes from coal, gas, and methane."  Rep. Lee Randall (R-HD 39)

"We've got to raise pay for our teachers to a competitive wage."  Sen. Taylor Brown (R-SD 22)

"Decrease tuition for Montanans that attend higher education (college). This should be accomplished with the tax's Montana receives from energy development."  Rep. David Howard (R-HD 60)

"I support good pay for good teachers."  Sen. Daniel McGee (R-SD 29)

"Increase income to schools by selling coal and/or generating electricity next to the mine."  Sen. Verdell Jackson (R-SD 5)

Answer to vote smart test:

Yes - Provide funding increase to teacher salaries.  Sen. Dave Lewis (R-SD 42)

Yes - Provide funding to increase teacher salaries.  Sen. Rick Liable (R-SD 44)

Yes - Provide funding to increase teacher salaries.  Sen. Kelly Gebhardt (R-SD 23)

Yes - Provide funding to increase teacher salaries.  Sen. Greg Barkus (R-SD 4)

Fact: Montana has increased oil production by 38% since 2004.
Fact:  Montana has increased gas production by 34% since 2004.
Fact:  Exxon Mobile posted a record $45 billion profit last year.