Role of SFACL Systematic Approach and Farmers Participation

Role of SFACL Systematic Approach and Farmers Participation

 This research was conducted to SFACL of Nepal. 100 SFACLs were chosen from 10 districts out of 615 SFACLs spread in 64 districts representing mountain, hilly and terai region. Both primary and secondary level information related to the research were gathered for the analysis. In primary data collection, different tool of participatory rural appraisal was applied. Beside this, focus group discussion, key informant survey, observation & individual interview were performed while for secondary information, related literature was reviewed. During the course of research secondary level information such as research and study carried out by GIZ/Rural Finance Nepal (RUFIN) on Institutional Sustainability and Impact of Small Framers Agro Cooperative Nepal, were reviewed. Research carried out by JICA on present situation of agro cooperative in rural Nepal Beside this other relevant literature was also reviewed. It identifies that SFACLs' systemic approach is unique model which has three tiered structure (group-intergroup and main committee). At community level 5-12 people can form a group while representative of all groups in a particular ward form inter-group, which works as catalyst between main committee and group. Main committee is formed by the representative of intergroup. In this model, small farmers are involved in managing the program in all three components of the model. The three strong foundations systemic approach includes: SFACLs at the grassroots level to provide services to its members, based on members need, Small Farmer Development Bank (SFDB) to provide wholesale credit and training and technical support to SFACLs and Nepal Agriculture Cooperative Central Federation Ltd. (NACCFL) Central level x federations of SFACLs to provide non-financial services such as capacity building, policy advocacy & linkage among SFACLs. Research revealed that, SFACL represents 72% of women participation while it also includes 49 % of disadvantage group (socially excluded/Janajati group) of Nepal such as Raute, Bankariya and Chepang, as their members. It has also served 2500 households who were directly affected by a decade long civil wars. It has been noticed that farmers are shifting toward commercial farming from subsistence farming. Overall network of SFACL has invested 12 billion (NPR) own resources as loan to their members. SFACLs included in research has invested 2.28 billion (NPR) among own members. In addition, SFACLs are also supporting farmers by providing agro-inputs and establishing cooperative market. Besides this, farmers are also receiving nonfinancial services from (NACCFL), this financial and non-financial services has helped to increase production/productivity. The findings deepen how SFACL model has helped to increase participation of community and reduce poverty. Agriculture cooperative has proven to be an effective and popular measure for social and economic development of the nation. It has been successful in achieving two major development goals: reaching to the large numbers of rural poor and moving towards cost recovery. In terms of measuring sustainability, Operating Self Sufficiency (OSS) and Financial Self Sufficiency (FSS) of surveyed SFACLs were measured. Average OSS & FSS of surveyed SFACLs were found 134.07 & 128.6 respectively. It indicates that SFACLs operating profit is more than sufficient to cover its operating expenses. . Research also found that huge participation of socially excluded group, access to agro-input, cooperative marketing, good governance, and high recovery rate indicate the better performance of a SFCL which leads to a sustainable institution.