Fruits of Our Labor: A Nepal Case Study in Smallholder Wealth Creation
In Nepal, more than 85 percent of the population earns their income from agriculture. Currently, most on-farm production is devoted almost solely to staple crop cultivation for home consumption. Farm units earn cash typically from off-farm, seasonal employment either in the fields of wealthy farmers, or by migratory labor, primarily to India. IDE Nepal has been developing markets for agricultural inputs, including micro irrigation technologies, since 1993. Micro irrigation includes a foot-powered treadle pump for pumping ground water in the plains region, and local versions of drip, micro-sprinkler and mini-water storage systems for upland farmers in the hills. Specifically, IDE has been supporting the production of vegetable crops to increase the cash income of small farm units. The goal has been to transform farmers from subsistence to micro-enterprise market production orientation. IDE has worked with over 27,000 farmers who have increased their annual net income, on average, by more than $100. The majority of these farmers were not commercial growers prior to involvement in IDE programs.
In 2001, IDE Nepal began linking small-scale rural farmers to high-value horticultural markets by facilitating private sector provision of a range of products and services through the horticultural value chain. A key technology input has been the marketing of micro irrigation technologies (treadle pumps, drip irrigation) to allow smallholders to increase their number of cropping cycles into the dry season. Production of vegetable crops has the following highly desirable characteristics for the small farm unit: high labor requirement, fast turnover of investment (2-4 months), high profitability, and high value per land unit required. This makes this enterprise uniquely suited to the land and cash-poor, labor abundant family farm environment. Demand for vegetables is estimated to increase by 5 percent per year nationwide, thus creating a demand for more than 6,000 additional tons of vegetable production in the six IDE project target districts each year. This is equivalent to roughly 13,000 micro-production units.
Using methodologies in the PRISM model of subsector analysis, IDE has identified major constraints to high value horticultural production, including access to a reliable supply of quality inputs, especially irrigation technologies, and access to downstream markets to sell market produce. IDE is facilitating the establishment of a network of private sector entrepreneurs who are providing these services to the farmers (i.e. reliable access to quality micro irrigation technologies and agricultural inputs), and sustained access to downstream markets for their products. The cost of providing this access is covered by commercial mark-ups paid for in full by the farmer.
Polak Wins Monito del Giardino Prize
(June 1, 2008) IDE Founder Paul Polak recently traveled to Florence, Italy, to accept the prestigious Il Monito del Giardino prize. The award, which included a €30,000 grant, is presented annually...
Polak's Out of Poverty Now Available
(February 15, 2008) In this hard-hitting new book,IDE Founder Paul Polak tells why traditional poverty eradication programs have fallen so short, and how he and his organization developed an alternative approach that has succeeded in lifting 17 million people out of poverty...
IDE Receives Second Grant From Bill and Melinda Gates Foundation
(January 25, 2008) IDE today announced a grant of $27 million over four years from the Bill & Melinda Gates Foundation in support of its micro-irrigation programs for Indian smallholder farmers...
