Renovation & Rehabilitation

 A critical question for smallholder farmers, and all who depend on their productivity, is how we can build economically viable systems that triggers investment in productivity, inputs and trainings, so that farming becomes an attractive occupation for farmers and their families.

Therefore, together with key experts and partners IDH organized a series of seminars and workshops to engage stakeholders with the topic. Drawing from these events and successful examples of R&R from around the world,  IDH has identified five building blocks for successful, large scale and cost effective renovation & rehabilitation systems. Through a combination of applying these building blocks, sectors can develop more efficient service delivery models.

Building Blocks of Efficent Service Delivery

Public Private Partnerships (PPPs)
PPPs can breakthrough historic obstacles and challenge traditional roles. Governments enabling role may be co-financiers, providers of certified planting materials, and setting up regulatory frameworks. Companies can be investors, coordinators and buyers of agro-commodities and financial institutions can help de-risk investments.

Access to knowledge
Farmers need access to knowledge and technology to implement R&R, including good planting materials. Farm data management needs to be organized so that companies, financial institutions and CSOs receive symmetric, aggregated farmer data to provide the right services to farmers.

Innovative Finance
Replanting requires long term financing (including grace periods for first unproductive years). These loans  may have higher risks and lower returns than most commercial lenders can bear. By blending (e.g.) public risk-reduction funds, commercial finance and grants, and developing risk sharing arrangements, the risk profile and return for R&R investments can become acceptable for both lenders and borrowers.

Delivery Mechanisms
Getting extension services, inputs and finance to the doorstep of farmers in a cost-effective way is challenging since most farmers are not well organized. When delivering services to farmers, farmer self-selection is key for successful R&R interventions. Farmer need to be “investment ready” to ensure a positive return on investment.

Central Coordinator
A “central coordinator” is key for having an overview of and for coordinating the different building blocks. Different types of organizations can play this role of a “central coordinator”; a farmer union, a government organization, a private company.

For more information about the workshop, on rehabilitation and renovation of smallholder tree crops, held in Tanzania during the 2016 African Fine Coffee Conference (AFCA) check out the summary report below.

Related

Sectors: Cocoa, Coffee, Palm Oil, Tea

Initiative: Smallholder Finance Facility

Iris van der Velden

Senior Manager, Learning and Innovation

phone+31 (0) 6 1481 1394

e-mailemail me

Gerben de Witte

Program Officer, Learning and Innovation

phone+31 (0) 6 2115 9731

e-mailemail me

Gillian Evans

Communication Manager

phone+31 (0) 6 4228 7488

e-mailemail me

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