FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

MINISTRY OF AGRICULTUREAGRICULTURAL GROWTH PROGRAM (AGP)

PROGRAM IMPLEMENTATION MANNUAL (PIM)

(Main Text)

November, 2011Addis Ababa

Table of contentsDescription

page

ivList of Tables

vABBREVIATIONS AND ACRONYMS

1CHAPTER 1: EXECUTIVE SUMMARY

6CHAPTER 2: PROGRAM OVERVIEW

62.1Background and Program Rationale

82.2Purpose of the PIM

92.3Program Design and Approach

112.4Program Scope and Target Areas (woredas)

15CHAPTER 3: DESCRIPTION OF COMPONENTS AND SUB-COMPONENTS

163.1.Component 1: Agricultural Production and Commercialization

163.1.1Component Overview

183.1.2Sub component 1.1: Institutional Strengthening and Development

183.1.2.1Sub-component Overview

183.1.2.2Establishing and Strengthening ADPLACs

193.1.2.3Strengthening of key public advisory service providing institutions

243.1.2.4Establishing and Strengthening Farmer Organizations

293.1.3Sub component 1.2: Scaling Up of Best Practices

293.1.3.1Sub Component Overview

303.1.3.2Best Practices Identification and Sub Projects Preparation

313.1.3.3Implementation Support for Scaling up Best Practices

343.1.3.4 Support to Innovation and Adaptive Research

383.1.4Sub-component 1.3: Market and Agribusiness Development

383.1.4.1Sub component overview

383.1.4.2Support to Agricultural Value Chains

393.1.4.3Agribusiness Development

453.1.4.4Strengthening Supply Systems of Key Inputs (Improved Seed, including forage) and Breed (Livestock))

513.2Component II: Small Scale Rural Infrastructure Development and Management

513.2.1Component overview

533.2.2Sub component 2.1: Small Scale Agricultural Water Development and Management

533.2.2.1Sub-component Overview

533.2.2.2Small-scale irrigation infrastructure development and management, water harvesting and micro-irrigation technologies

593.2.2.3Watershed Based Soil and Water Conservation

113.2.3Sub-component 2.2: Small Scale Market Infrastructure Development and Management

113.2.3.1Sub-component Overview

113.2.3.2Feeder Roads Development and Management

133.2.3.3Market Center Development and Management

193.2.4Design and Construction Works Implementation Arrangements

213.3Component III: Program Management, Monitoring and Evaluation

213.3.1Sub component 3.1: PROGRAM MANAGEMENT AND INSTITUTIONAL ARRANGEMENTS

213.3.1.1Overview

223.3.1.2 Program Management

243.3.1.3 Project Steering Committee

263.3.1.4 Project Coordination Units

273.3.1.5 Technical committees: at federal, regional, zonal and woreda levels

283.3.1.6 Institutional Partnership Arrangements

283.3.2Sub Component 3.2: MONITORING AND EVALUATION (US$15.2 million)

283.3.2.1Overview

303.3.2.2Monitoring of Inputs and Outputs

303.3.2.3Evaluation of Outcomes and Impact

323.3.2.4Participatory M&E and Social Accountability

333.3.2.5Internal Learning, Knowledge Sharing and Communication

363.3.2.6Roles and Responsibilities in M&E

383.3.2.7Performance monitoring and performance-based disbursement

393.3.2.8Results Framework

53CHAPTER 4: SOCIAL AND ENVIRONMENTAL SAFEGUARDS MANAGEMENT ISSUES

534.1Social

544.2Environment

554.2.1.World Bank Safeguard Policies that triggers AGP

574.2.2.Safeguard Management Capacity

584.2.3.ESMF Implementation Arrangement

604.2.4.Stakeholders, consultation, and disclosure

61CHAPTER 5: PROGRAM COSTS AND FINANCIAL MANAGEMENT

615.1Costs and Financing Plan

645.2Resource Allocation

645.3Fund flow and financial management

67CHAPTER 6: PROCUREMENT AND CONTRACT ADMINISTRATION

676.1The Relationships and Capacities of the Procuring Entities

686.2Forms and Formats to Be Used

686.3Dual Reporting Lines to be authorized

686.4The Need to Authorize Procuring Entities

696.5Delegation of Authority to Commit Procurement Contract or Sign Checks

696.6The Need to Use Existing Programs Tender Committee

696.7Relationship b/n the AGP-CU Procurement Officer, and Directorate

706.8Broad Division of Labor on Procurements

List of Tables

13Table 1: List of AGP Woredas

26Table 2: Main Activities and Outputs

28Table 3: Sub-component Main activities, Institutions Responsible and Implementation Schedule

35Table 4: Main Activities and outputs of support to farmers sub projects

37Table 5: Main Activities, Institutions Responsible and Implementation Schedule for farmers sub projects

44Table 6: Details of Market and Agribusiness Development sub-component

51Table 7: Main Activities and outputs of Livestock breed improvement

62Table 8: Summary of Activities and Outputs of Sub-component 2.1

64Table 9: Main and Detailed Activities in Small-Scale Agricultural Water Development and Management sub-component

77Table 10: Main Activities and outputs of Market Infrastructure Development and Management Sub-Component Details

78Table 11: Main and Detailed Activities in Market Infrastructure Development Sub-component

82Table 12: Implementing Agencies for Small-scale Rural Infrastructure Development and Management (Component 2)

84Table 13: Main Activities and output of Program Management

100Table 14: Results Framework

104Table 15: Arrangements for Results Monitoring

List of Figures

90Figure 1: Accountability of Kebele and Sub-Kebele Development Committee

96Figure 2: M&E Input and Output Information Flow for Sub-Projects

124Figure 3: Overview of Fund Flow

ABBREVIATIONS AND ACRONYMS

ADLI=Agricultural Development Led Industrialization

AfDB=Africa Development Bank

AGP=Agricultural Growth Program

AGP-CU=AGP Coordination Unit

AGP-FSC=AGP Federal Steering Committee

AGP-RCU=AGP Regional Coordination Unit

AGP-RSC=AGP Regional Steering Committee

AI =Artificial Insemination

ARDPLCATA ==Agricultural Rural Development Partners Linkage Advisory Councils Agricultural Transformation Agency

AWPBs=Annual Work Plans and Budgets

BDS=Business Development Service

BoABoT

BoTT

BoWR

BoWME==

=

=

=Bureau of AgricultureBureau of Trade

Bureau of Trade and Transport

Bureau of Water Resources

Bureau of Water, Mines and Energy

CAADP=Comprehensive African Agriculture Development Program

CBO=Community Based Organization

CIDA=Canadian International Development Agency

CIG=Common Interest Groups

CLPP=Community Level Participatory planning

CAHW=Community Animal Health Worker

CSA=Central Statistical Authority

DA=Development Agent

EPA=Environment protection Agency

ERA=Ethiopian road Authority

FCA=Federal Cooperative Agency

FTCGAFSPGoE==

=Farmer Training CenterGlobal Agriculture and Food Security Program

Government the Federal Democratic Republic of Ethiopia

ICB=International Competitive Bid

IDA=International Development Association

IFAD=International Fund for Agricultural Development

IFR=Interim Financial Report

IMT=Intermediate Means of Transport

IPMISADA==Integrated Pest Management Irrigation Schemes Administration and Development Agency

IWUA=Irrigation Water Users Association

KDC=Kebele Development Committee

KDP=Kebele Development Plan

M & E=Monitoring and Evaluation

MCMC=Market Center Management Committee

MDG=Millennium Development Goals

MIS=Management Information System

MoA =Ministry of Agriculture

MoFED=Ministry of Finance and Economic Development

MoT=Ministry of Trade

MoU=Memorandum of Understanding

MoWR=Ministry of Water Resources

NGO=Non-governmental organization

O&M=Operation and Management

PASDEP=Plan for Accelerated and Sustained Development to End Poverty

PBS=Protection of Basic Services

PIM=Program Implementation Manual

PSNP=Productive Safety Net Program

QCBS=Quality and Cost Based Selection

QSAE=Quality and Standards Authority for Ethiopia

RDPS=Rural Development Policies and Strategies

REN=Royal Embassy of Netherlands

RRA=Rural Roads Authority

RUSACCO=Rural Saving and Credit Cooperative

SKDC=Sub Kebele Development Committee

SKDP=Sub Kebele Development Plan

SLMP=Sustainable Land Management Program

SMS=Subject Matter Specialist

SSI=Small Scale Irrigation

USAID=United States Agency for International Development

VC=Value Chain

WDC=Woreda Development Committee

WDP=Woreda Development Plan

WSHG=Women Self Help Group

WSSC=Water Supply and Sanitation Committee

CHAPTER 1: EXECUTIVE SUMMARY

Rationale of the Program: The fundamentals of agricultural development are preserved in the country's overall economic development policy. With due commitment of the government, considerable achievement in the growth of the agricultural and rural sector has been recorded. However, the problems of poverty and food insecurity still remain a challenge to the overall development process of Ethiopia. Growth of the agricultural sector could not match with the faster growth in domestic demand for food, and unable to produce adequate surpluses to meet the demand for local industries and export needs limiting forward and backward inter-sectoral linkages, which in turn could accelerate, as expected, the pace of economic transformation towards industrialization. Dawdling growth in farm productivity caused by slow technological progress, inadequate irrigation infrastructure, weak market functioning and recurrent drought are among the major challenges. Inadequate participation of stakeholders in value chain development further restricted the process of agricultural commercialization. Thus, Agriculture Growth Program (AGP) is designed aimed primarily at increasing agricultural productivity in a sustainable manner, enhancing market performance and facilitating value addition in selected targeted areas.

The AGP recognizes that there are several obstacles to womens participation in economic activities that lower the economic potential in agriculture. In this connection, the program gives due attention to the inclusion of women in all the program components.

Program Design Approach: While AGP shares the common goal of most development programs and strategies, ending poverty and enhancing growth, its strategic intervention will have some peculiar features. These are:

i) Comprehensive: AGP is a broad based program that attempts to improve the whole range of production, marketing and agro-processing of agricultural products through enhancing productivity, value addition, and market and irrigation infrastructure.

ii) Value chain: The program will be implemented along the value chain dealing with stakeholders including producers, assemblers/traders, processors, distributors, exporters, retailers and finally consumers. A focus on value chains is made to ensure significant value addition along the supply chain to boost the incomes of target beneficiaries in a sustainable manner. It will take into account the role men, women and youth will play along the value chain and enhance their capacity to contribute and engage in a meaningful way. The AGP, through several of its intervention activities, will strengthen agricultural commercialization and rural-urban linkages.

iii) Decentralized and demand driven: Bottom-up planning process will be practiced to give greater power to kebele and woreda-level development initiatives with particular attention to ensuring equal and active participation of both women and men. Individual activities would be largely chosen by farmers, communities and organizations as well as business private sector at a grassroots level. Thus, local male and female farmers, youth, and private business enterprises are the owner of the program, and will actively participate in problem identification, planning, implementation and monitoring the activities.

Program Scope and Target areas: AGP is a five-year program and the program resource is also limited. Thus, AGP will operate only in selected areas. Based on the results and experiences gained, the program may be scaled out to wider parts of the country. The program targets the four regions; namely, Amhara, Oromiya, Southern Nations, Nationalities and Peoples (SNNP) and Tigray. Based on criteria such as suitability for agriculture, potentials for irrigation, access to infrastructure and institutional capacity, 80 woredas are selected; i.e., 34 in Oromiya, 22 woredas in Amhara,19 in SNNPR and 5 in Tigray.

AGP Components: AGP gives a priority to improve the livelihood of small male and female farmers. Inseparably, it supports key public institutions and private business that have multiplier effect on the growth of the agricultural sectors along the value chain. Major components of the program are broadly categorized into two. These are (i) Agricultural Production and Commercialization, (ii) Small-scale Rural infrastructure Development and Management.

Three sub-components are identified under the first component. These include: institutional strengthening and development, scaling up of best practices and market and agribusiness development.

i) Institutional Strengthening and Development: As an umbrella for the overall achievements of the program components, AGP gives a priority to strengthen and develop relevant institutions for agricultural growth in terms of working facilities and skill development. Particular attention will be given to include women in the capacity building efforts and skill enhancement, keeping in mind the gaps and challenges women face to actively participate. Key institutions have been identified for AGP intervention. These include: extension services at federal, regional and woreda levels; Agriculture and Rural Development Partners Linkage Advisory Councils (ADPLACs); Soil Testing Laboratories and Animal Health Services; and Common Interest Groups, including formal as well as informal groups. The inclusion of women affairs departments, or using the mainstreaming approach (provided that capacities are in place), as institutions responsible for ensuring womens concerns and needs is a deliberate move to ensure the participation of women. ii) Scaling up of best practices: AGP will complement regular government programs of scaling up of best practices. The main objective of this sub-component would be to increase agricultural productivity for male and female farmers and their household income by scaling up best practices through the sub-project proposals developed by the participating groups in the AGP woredas. Identification of best practices will take into consideration that selection of women led best practices. Specific activities to be supported would include: Identification of best practices and preparation of sub-project proposals for actions, enhancing extension support for implementation of investment of sub-projects to narrow the gap between average farm yields and those achieved at experimental farms or by progressive farmers, and support for innovations, demonstrations and adaptive research on-farmers field.iii) Market and agribusiness development: Unlike most of the components of the program, intervention in market and agribusiness operates along the value chain that encompasses not only target woredas but also regions and national level. The program supports farmers-market linkages for inputs and outputs and will attempt to boost value chain development through improving quality and standard of marketable products. In addition, AGP aims at strengthening the input supply systems (such as improved seeds and breeds). To stimulate agribusiness activities along the value chain, AGP will create incentive schemes for key value chain actors (such as Cooperatives, Unions, Women & Youth groups and other private sectors) to engage them in value addition activities (ago-processing). It will build up the capacity of stakeholders along the value chain through entrepreneurships skills and business management and facilitating access to credit. It will give considerations to the roles and responsibilities of women and men along the value chain and provide support accordingly. The second component has two major sub-components: i) Small Scale Agricultural Water Development and Management: This sub-component largely focuses on the physical development of small scale irrigation infrastructures, and water harvesting and micro-irrigation technologies. It involves upgrading of traditional schemes; rehabilitation of malfunctioning irrigation schemes; design and construction of new SSI schemes. Especially in the later, it will take note of the potential benefits that women could get from such intervention. AGP strongly supports building community skill in water use management system to ensure sustainable water supply for agricultural development.

ii) Small-scale Market infrastructure Development and Management: Most important infrastructure that greatly enhances efficiency of market performance include, among others, development of rural roads and market centers. Thus, AGP will support upgrading or construction of new feeder roads and support construction and management of improved market centers in selected critical areas that significantly contribute to value chain development and better market function. AGP gives special attention to particular needs of women and youth in the design and building of these infrastructures. Program costs and sources of funding: The revised AGP cost is estimated to be about USD $ 327.1 million. A number of donors have made commitments to finance the program (IDA, UNDP, CIDA, EKN, USAID, AECID and GASFP). The GoE and beneficiary communities will also put in significant resources for the accomplishment of the program. Accordingly, IDA pooled fund accounts for 65.89%, USAID parallel funding 24.89%, UNDP 0.73%, and the Government and community contribution 8.5%. . This is allocated as, with flexible use, 45.86% for Agricultural Production and Commercialization (component I); 45.25% for Rural Infrastructural Development and Management (component II); 8.28% for Program Management, Monitoring and Evaluation, and 0.61% unallocated. Taking into account the potential of the coordination unit, implementing agencies (IAs) and donors (DPs) procedures, it is estimated that the program will utilize 32% of the resource in the first year; 21.3% in the second year; 20.2% in the third year; and 17.7% and 8.8% in the fourth and fifth years, respectively.

Program management: AGP is a government program and its implementation will follow government policies and strategies in a way it ensures transparency and local ownership. The MoA at federal, BoA at Regional, DoA at Zonal and OoA at Woreda level are charged with the overall responsibility and accountability for execution of the program. However, the implementation of the AGP will also involve such institutions as FCA and ATA at federal level, BoWE, RRAs, Marketing Agencies as well as other IAs of relevance at regional level. The program will be led by Coordination Units (PCUs) to be established at Federal and Regional levels, and by assigned focal persons (FPs) at zonal and woreda levels. The PCUs will be guided by Steering and Technical committees to be established at all levels. Efforts will be made to ensure that the SCs as well as TCs will have at least 40 percent female committee members. The program would adopt a decentralized participatory approach spearheaded by community-led initiatives, and would also ensure the active involvement of the private sector, cooperatives and financial institutions along agricultural value chains. In this regard, a well defined monitoring and evaluation (M&E) systems is established to regularly assess the program effectiveness, outcomes, impacts and problems, and to strengthen the national M&E systems of the MoA in general. CHAPTER 2: PROGRAM OVERVIEW

2.1 Background and Program Rationale

The agricultural sector in Ethiopia has received due policy attention in the development agenda of the government since the last one and a half decades. The fundamentals of agricultural development are preserved in the country's overall economic development policy known as Agricultural Development Led Industrialization (ADLI). Thus, agricultural development is expected to adequately drive the process of industrialization. Firmly anchored on ADLI, the Rural Development Policies and Strategies (RDPS), which is designed to ensure, among others, to ensure effective and efficient utilization of resources, promote agricultural growth, integrate agricultural development activities with other sectors, and establish effective agricultural marketing system.

The government has also formulated a plan for accelerated and sustained development to end poverty (PASDEP) by promoting, among other things, commercialization of agriculture and growth of private sector and infrastructure (especially roads, energy, and irrigation). Presently, Ethiopia is in the process of institutionalizing Comprehensive African Agriculture Development Program (CAADP) within the existing sector strategies and in the framework of ADLI. CAADP sets the principle of allocation of 10% of the national budget to the agricultural sector targeting at attaining a 6% average annual growth rate for the sector at the national level as a main strategy to half poverty and food insecurity by 2015 (MDG). Appreciably, public spending towards agricultural growth is so considerable in Ethiopia accounting for about 13 to 17 % of the government annual budget and about 7.5% of GDP, which already surpassed the CAADP targets. Supported with the budget allocation, the existing policies and strategies also considerably stimulated agricultural growth. With due commitment of the government, considerable achievement in the growth of agricultural and rural sector has been recorded. According to the annual progress reports of PASDEP in 2006 to 2008, Ethiopian economy showed a double digit growth ranging from 11.5% to 12.6% and similar growth has been recorded in agriculture. Accordingly, food poverty head count reduced from 42% in 1999/00 to 31.4% in 2007/08.

Despite considerable socio-economic improvements, a lot of tasks need to be done to end the problems of poverty and food insecurity. Growth of the agricultural sector could not match with the growth in domestic demand for food, to produce adequate quantity and quality of surpluses to meet the demand for local industries and foreign earnings. Low farm productivity (owing to subsistence farming systems in crops and livestock production), poor market linkages and little value addition, land degradation, weak infrastructure (such as irrigation scheme, road network and market centers, etc.) are among the major causes of the problem.

To date, significant investments are being made to address the underlying causes of chronic food insecurity in Ethiopia through interventions such as the Productive Safety Net Program. These investments are meeting critical needs that were previously addressed in an unpredictable and inadequate manner using emergency aid. At the same time, watershed rehabilitation is helping to restore the productive base of food insecure communities. However, there is a clear need to complement these efforts through increased investments targeting areas with better rainfall and higher agricultural potential.

It is felt necessary, therefore, to design an Agriculture Growth Program (AGP) focusing on selected areas to enhance fast agricultural growth to primarily meet the domestic demand for food and create surpluses for industrial input and exports. AGP is strategically aligned to the fundamentals of the ADLI and the main principles of the CAADP which are consistent and reinforcing each other. The proposed AGP is also designed in such a way that it addresses each of the main principles of the RDPS and in agreement with elements of PASDEP and underlining linkages and complementarities between them. In addition, efforts will be made to harmonize the intervention areas of AGP with the current government initiative of Growth Corridors. The commodity selection in agro-ecological zones (AGP clusters of woredas) will reflect priorities of growth corridors and the Agro-industry Master-plan. A particular focus on women and youth, under AGP will give the highest increase in economic growth and the largest reduction in poverty. Estimates show that removing the constraints facing Ethiopian women in education and in the labor market could add almost 2 percentage points to GDP growth per year between 2005 and 2030. Adding the growth effects of gender equality in agriculture suggests that there are huge economic benefits from including women more fully in development strategies. By giving due emphasis to rural women, the AGP will strengthen the commitment of the government in achieving its goal of economically empowering women and allowing them to take part in decision making on development initiatives that affect their lives. The engagement of the womens machinery in the implementation of the program is critical in achieving the expected results of program.Box: The PIM Design process

For the preparation and implementation of the program the MoA has established a Taskforce. In the process of program formulation, review of different documents and a number of consultation workshops were carried out at national and regional levels with the objectives of identifying problem areas and mechanisms of interventions. At national level a four-day consultation workshop was undertaken with government stakeholders from federal and regional offices. A one day workshop was made with civic societies and private sectors. The taskforce held more in-depth discussion on the program design with government implementing stakeholders in the four major regions. Different regional bureaus and zonal offices such as Agriculture and Rural Development, Finance and Economic Development, Water Resource, Trade and Industry, Road Authority, Marketing Agency, Financial Institutions, Zonal Administration, Cooperative Agency, Women and Youth affairs offices were also consulted. The Taskforce and the World Bank mission team members also undertook field observation to collect information on best practices and development gaps. To build up the program document, the draft work was presented to the Rural Economic Development and Food Security Sector Working Group Broader Platform and to the management of the MoA for comments and suggestions. The taskforce was closely working with the World Bank to ease two way communications. The design and preparation of the program was supported by the UNDP under the project of Enhancing National Capacity for Agricultural Growth. Accordingly, the program has been formulated based on comprehensive analysis of opinions and experiences of higher officials, implementing agents and development partners.

2.2 Purpose of the PIM

The purpose of the Program Implementation Manual (PIM) is to guide the implementers and partners in executing the Agricultural Growth Program (AGP). The PIM is designed to provide a detailed and time bound plan to assist the program and all stakeholders in undertaking program-related activities at different levels (Federal, Regional/Zonal, Woreda, Kebele and Community) and other beneficiary groups. It is also meant to provide guidance to senior managers within different implementing agencies and experts in the different departments of IAs tasked with program execution and implementation. It will also serve as a tool for supervision and monitoring by federal and regional steering committee as well as development partners. The PIM is not intended to be a rigid blue-print document and hence will be subject to updating periodically in consultation with the program stakeholders to ensure that it will remain relevant and useful overtime hence a living document.

Project Development Objective

The Project Development Objective (PDO) is to increase agricultural productivity and market access for key crop and livestock products in targeted woredas with increased participation of women and youth.Key PDO level Indicators The key outcome indicators will be monitored for the average household as well as separately for female- and youth-headed households. The indicators are: Percentage increase in agricultural yields of participating households (an index of crops and livestock products).

Percentage increase in total marketed value of targeted crops and livestock products per participating household.

2.3 Program Design and Approach

To achieve its development objective, AGP is designed in a comprehensive manner, in such a way that the planning and implementation would be in a decentralized manner with a focus on ensuring that women benefit equally as men from the components, following a demand-driven and incentive-(performance) based approach along the value chains. The program would focus on a targeted group of commodities with strong domestic/export market potential and demand-led service and infrastructure interventions that respond both, to community priorities and market signals.

Comprehensive: AGP is a broad-based program that attempts to improve the whole range of activities (production, processing, and marketing) along the agricultural value chain in order to improve productivity, value addition, marketing and infrastructure for male and female farmers in selected target areas. Thus, it will help participating small and medium scale commercial farmers to access improved technology, infrastructure, finance and input-output markets. The basic strategy of the program is also to improve the business environment for agriculture by gradually shifting from subsistence to market oriented commercial agriculture.

Focus on selected areas: In the face of limited financial resources and with an aim to bring about meaningful/tangible impact, AGP will be initially implemented in relatively high potential (food secure) areas but based on the results and experiences gained; the program will subsequently be scaled out to cover wider agro-ecological areas of the country. AGP will attempt to end the challenges of alarmingly diminishing natural resources in such areas in response to the national and global issue of climatic change.

Demand driven and decentralized (participatory): Bottom-up planning process would give greater power to kebele and woreda-level to initiate and determine integrated plans for AGP. Individual activities would be largely chosen by farmers and their communities and organizations as well as other private sector beneficiaries at a grassroots level. Thus, local female and male farmers and youth are the owner of the program, and will actively participate in problem identification, planning, implementing and monitoring of activities. The program encourages women, women headed household and youth to participate in the program as they easily fall within the target group of small scale farmers.Value chain: Value chain approach will be used for the implementation of the program. A typical supply chain will include producers, assemblers/traders, processors, distributors, retailers, exporters, financers and finally consumers. A focus on specific value chains is made to ensure significant value addition along the supply chain. The Program will strive to boost the incomes of target beneficiaries engaged in all activities and services that are undertaken along all lines from the primary production to the final consumption of a commodity. The program will also take note of the roles of women, men and youth along the lines of value chain to ensure that all rounded support is provided. The technologies, the improved systems and other opportunities and the selection of the commodities will consider the potential benefit to women and youth.The AGP, through several of its intervention activities, will also strengthen rural-urban linkages.

Complementary: In addition, AGP will complement the existing government programs, to promote agricultural growth in the selected areas. The strategic thrust of the program is to support access to productivity-enhancing technologies and agricultural commercialization through scaling up of best practices in agricultural growth, improve market access, rural infrastructure and building capacity in areas of need. 2.4 Program Scope and Target Areas (woredas)

To achieve maximum impact through an integrated support and given that the program has limited resources, the AGP interventions would focus on selected areas, defined as cluster of contiguous woredas. The selection of areas would make use of already existing works on agricultural growth potential. The program will focus on the four regional states; namely, Oromiya, Amhara, Southern Nations, Nationalities and Peoples (SNNP) and Tigray. To complement the current initiatives of the governments intervention strategies, selection of the program areas (woredas) is harmonized with those delineated by Growth Corridors in all regions. Woreda Selection: AGP gives attention to woredas where location factors are conducive for agricultural growth. The geographic restriction of the intervention to growth clusters of woredas will ensure that the program will make significant impact within the targeted areas. The AGP intervention areas would be defined as clusters of woredas. Using the already existing work on agricultural growth and based on selection criteria, clusters of 80 woredas, largely within a four Regional state are selected. The criteria for Selection of AGP Woreda include: access to markets (access to cities of 50,000 population or over in less than 5 hours);

natural resource endowment (including factors such as good rainfall distribution with annual average of 700 mm or over, soil suitability for crop and fodder production, etc.);

potential for development of small-scale irrigation facilities;

existence of a good range service providers, including: viable cooperatives; male and female farmer groups; and existing partnerships with private sector);

willingness and commitment to participate (supportive institutional environment; demonstrated performance in other donor supported projects/programs);AGP resource allocation by regions and communities should be largely in line with the size of the population. With close discussion with MOA and MoFED, the number of woredas was determined as 34 in Oromiya, 22 in Amhara, 19 in SNNPR and 5 in Tigray. List of the woredas is indicated in Table 1.Beneficiaries: The main target group of the AGP is the small- and medium-scale farmers in the selected woredas with an average land holding of somewhat less than 1 hectare (ranging between 0.25 and 2.3 hectares). The total population in the 83 woredas is 9.8 million people in an estimated 2 million households. Women and young people will be encouraged to participate as these groups are not only vulnerable but also easily identifiable as small scale farmers. Other beneficiaries of the AGP will be medium scale commercial farms, farmer organizations, traders, agro-processors, and other private actors whose participation would also benefit smallholders,Planning and Implementation: Most activities supported by the AGP will be based on demand from farmers, their groups, associations, cooperatives, community institutions, and other private sector beneficiaries. A focus on specific value chains will channel activities toward products with identified markets. The AGP is designed to:

Provide support to farmers and the private sector using a market-oriented approach to strengthen value chains of identified commodities with observed demand.

Support the governments decentralization agenda by enhancing participation of farming communities in planning and implementing kebele/woreda-level investment programs, with due attention to including women and youth in the development process. Provide performance-based support to farmer organizations and other private sector stakeholders as well as to kebeles and woredas against clearly agreed criteria.

Support an enabling policy and institutional environment that promotes innovation for sustainable agricultural growth.Table 1: List of AGP Woredas Oromia Amhara SNNP Tigray

Hidebu-HaboteJabi-TehnaneChenaAlamata

G/JarsoBure DechaRaya/Azebo

Y/GuleleWenebermaEnemor na EnerOfla

DendiDebub AcheferEndegeng Endamehoni

AmboSemen-AcheferMirab-AzernetTsegede

Toke KutayeBahir-Dar-Ketema ZuriaMisraq-AzernetWelqayt

Bacho (Tulu Bolo)DejenGorcheQafta Humra

WenchiEnemayMelgaTahtaye-Adiyabo

WelisoDebre EliasWondo-Genet

AdaaAnkashaEsira

LibanGwangwaKonta

GimbichuDangelaDebub Ari

Gutu GidaJawiSemen Ari

DigaTaqusaDebub Bench

Wayu TuqaMetemaSheye Bench

GuduruQuaraBule

Jima-GenetAlefaGedeb

HoroDeraYem

GechiEfrata na GidimBesketo

BedeleAnitsokiya-Gemza

DhedhesaKewt

GomaTarma-Ber

Gera

Limu saqaa

Limu-Bilbilo

Shirka

Munesa

Dodola

Adaba

Kofle

Sinana

Gasera

Agarfa

Welmera

CHAPTER 3: DESCRIPTION OF COMPONENTS AND SUB-COMPONENTS

AGP supports three components, namely: Agricultural Production and Commercialization (Component I); Small-scale Rural Infrastructure Development and Management (Component II); and Program Management, Monitoring and Evaluation (Component III). The three components are designed to: (i) facilitate adoption of improved technologies; (ii) enhance marketing and value addition; and (iii) ensure enhanced project implementation. Within each component are series of sub-components. In Component 1, Sub-component 1.1 (Institutional Strengthening and Development) is designed to strengthen key public advisory service providing institutions such that they will be able to deliver improved and enhanced services to farmers in targeted communities. Sub-component 1.2 (Scaling up Best Practices) will be based on sub-projects prepared by beneficiary groups, including women and youth, formed around common interests to introduce innovative practices that improve agricultural productivity, enhance market access and value addition. Sub-component 1.3 (Market and Agribusiness Development) will identify market opportunities and stimulate linkages of agro-enterprises and cooperatives with domestic, regional, and international markets. Activities under 1.3 will be handled at the federal and regional level as this requires working with stakeholders somewhat higher up in the agricultural value chains, and farmer groups will be assisted to integrate with the agro-enterprises supported under component 1.3. Under Component 2, Sub-component 2.1 (Small-scale Agricultural Water Development and Management) will focus on the development and management of small-scale irrigation schemes and micro-irrigation technologies as well as the implementation of watershed based soil and water conservation practices. Sub-component 2.2 (Small-scale Market Infrastructure Development and Management) will focus on improving rural market infrastructure such as the construction (new), rehabilitation (existing but debilitated), maintenance (both newly constructed and rehabilitated) and management of feeder/farm access roads and market centers. Both sub-components will use community-based participatory planning to identify need based investments. The bottom-up planning process will result in kebele-level and subsequently woreda-level integrated plans for AGP that will complement the woredas other budget allocations Component 3 addresses management of the project and monitoring and evaluation of activities.

Across all components and sub-components, AGP gives specific considerations, to encourage and allow women and youth to actively engage and benefit from project intervention. To illustrate: 1. giving space for women to participate and have a voice in project selection and decisions to be made; building the capacities of implementers to address the needs of women;2. building knowledge on gender and youth issues; developing capacity among women and youth to form producer groups, enhancing women and youth leadership skills and stimulating them to voice their views in meetings. Ensure DAs and SMSs are able to serve women farmers3. engaging and giving attention to women and youth in the planning and implementation of the program; engaging the same group in the scaling up of best practices and identification of sub-project proposal, with specific attention given to improved technologies and management practices3.1. Component 1: Agricultural Production and Commercialization3.1.1 Component OverviewThe objective of this component is to sustainably increase the productivity and production of crops and livestock (including aquaculture) production systems, to improve female and male farmers access to markets in the participating regions and woredas and to enhance agricultural commercialization. Efforts will be made to ensure that men and women farmers benefit equally from the program. Crop production and productivity enhancement can be achieved through measures such as scaling up of the best practices, supporting availability and adoption of improved inputs, agronomic practices, promoting utilization of organic and inorganic fertilizers, and increased use of small scale irrigation. In addition, promoting appropriate land husbandry practices to reduce soil erosion and improving agricultural productivity on individual farmland could be achieved through measures such as applying physical and biological soil and water conservation measures thereby restoring and sustaining soil fertility and improving water use efficiency in smallholder farming systems. Clearly, fast growth in the livestock sub-sector could be achieved through improving availability of feed both in quantity and quality, veterinary (animal health) services, improved breeds, market infrastructure and enhancing value addition.

In line with the decentralized community-demand driven approach, the AGP activities to be supported under this component will be planned at the community level using participatory approaches that ensure equal participation of men and women. Farming communities in the target woredas will be empowered to share responsibilities for planning, implementation and monitoring of the services. Formation of groups of farmers or farmer organizations will be the key instrument for social mobilization of men and women, including youth, as well as for community-level institution building, demand identification and planning process. Preparation of demand-based micro plans at kebele and sub kebele level will be carried out using Community Level Participatory Planning Guideline (Annex VI) by community facilitators, who would be given special technical training to organize farmers group and mobilize the community for agricultural growth program. The community facilitators will have a special responsibility to make sure women are included in all program activities at the local level.Under this component there are three sub components: institutional strengthening and development, scaling up of best practices and market and agribusiness development. The expected intermediate outcomes of the component would be enhanced service delivery, increased crop and livestock productivity, increased value of marketable surplus and increased participation of farmers in product and factor markets and value addition. 3.1.2 Sub component 1.1: Institutional Strengthening and Development3.1.2.1 Sub-component Overview

The objective of this sub component is to strengthen key public advisory services so that they become effective and efficient as well as demand driven for enhanced productivity, increased market access and value addition. The aim is to create favorable opportunities to access technical support and inputs for male and female smallholders and thereby to transform agriculture from subsistence mode of production to market-oriented mode of production.

3.1.2.2 Establishing and Strengthening ARDPLACsAn effective agricultural technology development and delivery system requires effective linkage among all actors of rural development. AGP recognizes the Agricultural and Rural Development Partners Linkages Advisory Councils (ARDPLACs) as platforms that enhance linkages among the actors of agricultural and rural development and thereby derive the entire agricultural technology generation, dissemination and utilization process to make it demand driven and client oriented. Thus AGP envisages supporting the establishment and strengthening of ARDPLACs at federal, regional and zonal levels.

The MoA has already been facilitating and spearheading the establishment and strengthening of ARDPLACs at all levels with the financial support provided through projects like ARTP and RCBP. ARDPLACs are established and operational at federal, regional, and zonal (in some instances) levels. However, ARDPLACS have not been established at woreda level. Thus, AGP will support the establishment of ARDPLACs in zones that they do not exist and in all the AGP woredas. The steps required to be followed and the processes of establishing the ARDPLACS with clearly defined membership, meeting schedules, reporting structures as well as roles and responsibilities are provided in the ARDPLACs Guideline (Annex II). The performance of ARDPLACs, although established at federal, regional and zonal (in some instances) levels, have not been satisfactory i.e. they are not holding their regular meetings where members discuss about agricultural and rural development challenges and suggest possible solutions. AGP will thus provide support to ARDPLACs to strengthen them so that they become fully operational and well functioning. The strengthening of ARDPLACs at all levels includes the provision of such facilities as ICT facilities e.g. computers, printers, photocopiers, fax machines, etc., office equipment i.e. office furniture, stationeries, etc. the provision of both of which will be based on needs assessment, and the provision of sufficient operational funds to cover the cost of recurrent cost items arising from holding regular ARDPLAC meetings. 3.1.2.3 Strengthening of key public advisory service providing institutions Key public advisory service providing institutions will be capacitated and strengthened to improve their service delivery capacity. Among the key public advisory service providing institutions to be capacitated and strengthened under the program, emphasis will be given to strengthening agricultural extension services, strengthening of soil fertility management services and strengthening of animal health services. Strengthening Agricultural Extension ServicesAgricultural extension service will primarily focus on promoting best practices using a demand driven approach in all areas of agricultural development through bringing attitudinal changes, alleviating knowledge and skill gaps through capacity improvement at all levels and making available agricultural technologies and inputs through demonstration and popularization activities. The program will take into account the different constraints that female and male farmers face when participating in the trainings, and also encourage women to participate through extension purposively designed for improvements in tasks usually carried out by women. The program will focus on strengthening of the existing extension system i.e. Participatory Extension System. This will mean strengthening Regional Bureaus of Agriculture, Zonal Departments of Agriculture, Woreda Offices of Agriculture following the existing Participatory Extension System Guideline (Annex V). In addition, the AGP will support:FTCs: AGP will provide support to make FTCs fully operational. The support includes rehabilitation of buildings, provision of essential furniture and farm equipment, and development and use of demonstration farms to share innovations based on location-specific needs identified by male and female farmers. Currently established governance arrangements under the management committee appointed in agreement with the Kebele Council will be maintained. To enhance sustainability of operations, FTCs, in consultation with their management committees and the Kebele Councils, will be able to engage in income-generating activities. At least during the early years of implementation, however, the focus will be on FTCs role as innovation centers for the farming communities they serve on the basis of the farmer-led learning model being promoted under AGP. See the processes involved and steps required in the establishment and operationalization (functionality) of FTCs in the FTC Guideline in the annex (Annex VI). Training: The focus will be on bridging knowledge and skill gaps for farmers, DAs, woreda and zonal staff so that they can use participatory approaches to support market-oriented agriculture involving the production, processing, and marketing of a broad range of crop and livestock commodities. Short-term training of farmers, DAs and SMSs will emphasize practical skills in participatory extension management, identifying needs in market-oriented agriculture, improving crop/livestock production systems, managing natural resources sustainably, and related technical subjects. The ability of DAs and SMSs to serve women farmers will be strengthened in all training modules. Assistance will be provided to prepare project-specific training modules, train trainers, engage specialized organizations and experts for short-term training, and upgrade training facilities in specialized institutions such as Agricultural Technical Vocational Education and Training (ATVETs) and agricultural universities. The details of how to go about capacity building in general and training in particular are indicated in the Capacity Building and Training Manual (Annex I)Mobility: Since lack of mobility of DAs and SMSs is a major constraint to provide effective extension service, by way of addressing this constraint, the AGP will finance the purchase of vehicles, motorcycles and bicycles, as appropriate.Information Technology Support: The AGP will provide IT equipment with internet connectivity and training to SMSs at the woreda and zonal levels to improve linkages with partner organizations, especially research, through the Woreda Net.

Extension has to focus on improving production and productivity of priority commodities along the value chain. It will also have to oversee that improvements are made by both women and men farmers and youth groups. To do this, planning should be made at extension/farmers group level and consolidated at sub-kebele and kebele levels and forwarded to Woreda Development Management Committee. This will allow extension to be developed for each component of program implementation area. It focuses on scaling up of best practices, new technology transfer and adaptation to specific agro-ecological conditions and market opportunities. Crop extension should focus on testing of new crop varieties, demonstrating varieties that perform well and helping channel demands for the production of the most popular and widely-adapted crop varieties to the formal seed system.Strengthening Soil Fertility Management services In Ethiopia soils are poor in fertility with wide spread deficiency of nitrogen, phosphorus and other micro nutrients. In many of the farm lands top soils have been eroded and soil fertility management in general is very poor. The fertilizer consumption in Ethiopian is also very limited and farmers are not using required quantities of chemical fertilizer and therefore crop production and productivity remain stagnant and low. The institutions dealing with soil fertility management i.e. the National Soil Testing Center (Laboratory) and Regional Soil Testing Centers (Laboratories) lack the necessary facility i.e. equipment and chemicals, and they are not adequately staffed. This has led to poor soil analysis techniques, interpretation of soil test results, fertilizer calibration, and data processing for delineation of deficient areas the combined effect of all of which is poor soil fertility management services. AGP will thus provide support to strengthen soil fertility management services. This will be in the form of provision of analytical equipment and chemicals for Soil Testing Laboratories and training (based on needs assessment) for their staff. This will help ensure improved and increased fertilizer use based on soil analysis or soil test based fertilizer application. In addition, AGP will also provide support to increase the production of lime to reclaim acid soils, which are widespread in many AGP woredas. Before any investment is made in terms of strengthening soil fertility management services, however, two studies will be undertaken, one to assess and prioritize the institutional and capacity needs of soil testing laboratories serving the AGP as well as define the investment packages; and to evaluate proposed investment to increase lime production to determine the most cost-effective approach to funding this activity under the AGP.Strengthening Animal Health Services

The livestock resource base of Ethiopia, which is considered amongst the largest in the world in terms of numbers of livestock, is not benefiting the country in proportion to its size and potential. One of the main causes of this mismatch between population size and production output from livestock in Ethiopia is undoubtedly the widespread occurrence of a multitude of infectious diseases and parasites which drastically reduce the production of the animals through morbidity, mortality, low fertility, slow growth and limited production leading to yet less efficient use of feed, and market restriction. In the absence of effective animal health services, the productivity of exotic breeds is also limited since crossbred animals are more susceptible to these factors than local breeds. Thus, the risk of disease occurrence makes farmers and entrepreneurs reluctant to invest in more intensive livestock production and commercialization which constrains development.

Increasing livestock production and productivity and thereby the incomes and living standards of smallholder farmers whose livelihoods depend on livestock through the progressive control of economically important diseases, ensuring progressive improvement in health standards of foods of animal origin and increasing foreign exchange earnings of the country from export of animals and animal products by meeting international animal health standards and requirements are the main focus areas of AGP. AGP would thus provide support to improve the effectiveness and efficiency of animal health services.

The veterinary services in Ethiopia are organized under the Ministry of Agriculture (MoA), federally (centrally), and under the Bureaus of Agriculture (BoA), regionally. GoE has invested in the Animal Health Service delivery system which includes a network of animal health care facilities at all levels that require further strengthening. At the kebele level this network includes Animal Health Posts which are managed by Health Assistants (GoE plans to, over time, establish 1 Animal Health Post for 3 kebeles). The Animal Health Posts provide primary health care to the local farming community. At the woreda level, the Animal Health Clinics (Veterinary Clinics) provide diagnostic services and referral support for the kebele Animal Health Posts. The woreda Animal Health Clinics are managed by a veterinarian (DVM), three Animal Health Technicians (AHTs) and two Animal Health Assistants. Woreda Animal Health Clinics are in turn supported by the regional Animal Health Laboratories, which are also responsible for the region-wide disease surveillance work. The federal level veterinary service includes the National Veterinary Laboratory which provides further referral support to the regions control of type-A diseases.

Although the animal health care network has relatively adequate staff, it is unable to provide quality service because of shortages of equipment and chemicals and low skill base of technicians at all levels, as well as of health assistants. Community outreach remains weak due to shortage of operational funds and lack of mobility. The plan to improve outreach by developing a cadre of voluntary Community Animal Health Workers (CAHWs) has barely started. Thus, AGP would provide support to equip Animal Health Laboratories, Animal Health Clinics and Animal Health Posts; upgrade knowledge and skills of professional staff and, strengthen community level outreach by training a group of CAHWs identified by participating communities within AGP woredas/kebeles. It is intended that the CAHWs would be trained and supported to provide combined primary animal health care and AI services (discussed under sub-component 1.3). Moreover, AGP will provide support to strengthen the extension service delivery and at the same time explore other opportunities like the rural youth as service providers. CAHWs would operate under overall supervision of health assistant. The AGP would facilitate linkage with drug suppliers (both private and public), but would not support revolving drug schemes. The support to this system would be implemented following an assessment of critical gaps, to be carried out through the public animal health service system and coordinated by the AGP-CUs. In summary, AGP will support the following activities and other farmers proposed sub projects:

Strengthening Animal Health Clinics in facilities, field equipments, human resource development (short to medium term training of staffs, tours and visits, etc);

Strengthening the Animal Health Posts in facilities, field equipment, veterinary equipments and human resource development (short to medium term training of staffs, tours and visits, etc);

Training of Community Animal Health Workers (CAHWs) combined with Artificial Insemination (AI);

Strengthening the disease surveillance and diagnostic capability of Animal Health Laboratories in facilities, lab equipments, training etc. and human resource development (short to medium term training of staffs, tours and visits, etc) ;

3.1.2.4 Establishing and Strengthening Farmer Organizations Strengthening of informal farmer organizations (groups)Support will be provided to promote and build capacity of existing or new informal grassroots organizations of farming communities. More specifically, the AGP will support formation of farmer groups along some common interest (CIGs), such as production of the same commodity (cereals, oil crops, legumes, vegetables, milk, beekeeping, cattle fattening, honey processing, and seed), water use, marketing, credit, and so on. Women and youths will be supported to either form their own groups or join another group of their choice. Since there is experience of working with farmer groups in Ethiopia, many kebeles will have some farmer groups. These groups will be identified; where appropriate, re-constituted; and based on the interests of their members, oriented to participate in AGP-supported activities. These groups will be the key instrument for social mobilization and community-level institution building. Exchange visits between groups having common interests will be supported to promote group-to-group and farmer-to-farmer learning. By working in groups, farmers will have improved access to public services and facilitate linkages with markets to move towards a market orientation in farming operations. Capacity and skills of group leadership as well as members will be enhanced. Establishing and strengthening of formal farmer organizations Based on their interests and vision, informal male and female farmer groups will be supported to federate and register as formal organizations such as cooperatives, cooperative unions and federations to facilitate wider and stronger collective action. For example, they could form a multi-purpose or commodity-specific cooperative society or a primary rural savings and credit cooperative society (RUSACCO) to address important social, economic, or financial needs. Governance, financial management, and business operations of new as well as existing cooperatives, including their unions and federations, will be strengthened through training and exposure visits. This effort will enable farmer groups to undertake wider and stronger collective action on behalf of members and provide them with a range of services, including marketing of inputs and outputs and financial services.Capacity Building of Agencies Supporting Farmers OrganizationThis support, targeted mainly to woreda-level agencies, will develop their capacity and skills to train informal farmer groups and farmer organizations. This activity will be coordinated and partly provided by the regional and federal Cooperative Promotion Agencies. The federal Cooperative Agency (FCA) will be involved in the training of regional cooperative experts who are responsible for overall technical backstopping of woreda experts. The Woreda Cooperatives Promotion Offices (WCPAs) will support Woreda Offices of Agriculture (WOoA) in the formation of informal CIGs (women, youth, etc). Table 2: Main Activities and Outputs Sub-component 1.1: Institutional Strengthening and Development

Responsible Organization/Department:

Lead Organization: MOA/Agricultural Extension Directorate Supporting Organizations: Regional BoAs, and Federal and Regional Cooperative Promotion Agencies/Bureau of Cooperatives and Agricultural Marketing

Budget Allocated: US$ 38.3 million

Sub-component Objectives: The objective of this sub component is to strengthen the capacity of public advisory services and grassroots organizations such that they provide and demand for effective and efficient services which would in turn enhance agricultural production and productivity as well as commercialization.Main Activities:

Establishing and strengthening of woreda and zonal ARDPLACS by financing the organization and conduct of establishment workshops

Strengthening of ARDPLACS at regional, zonal and woreda levels by financing the conduct of regular meetings and the purchase of ICT facilities and office equipments Capacity building of BoAs, ZDoAs and WOoA, including the provision of knowledge and skill imparting training (short-term tailor made and long-term (as appropriate)) to SMSs (at regional, zonal and woreda level), DAs and farmers

Conducting knowledge and experience sharing traveling workshops, field visits and exchange visits Undertaking demonstration of proven technologies at FTCs and on farmers fields Furnishing FTCs with training facilities and demonstration equipment

Enhancing mobility i.e. furnishing regional, zonal and woreda offices with transport facilities, office equipments, and IT facilities as well as training facilities

Establishing and strengthening women, youth and common interest groups and farmer organizations Strengthening primary, multipurpose, RUSACCOs and cooperative unions and recommending improvement measures,

Strengthening of existing kebele and sub kebele level AGP planning and implementing units,

Strengthening of national and regional soil testing laboratories

Strengthening animal health clinics and posts

Strengthening of lime production and establishment of bio-fertilizer production

Strengthening and establishing of formal and informal farmers organization.

Outputs

80 workshops and 1660 meetings carried out with equal male-female participation and woreda ARDPLACs become operational

2108 FTCs furnished with training facilities and equipments and undertake demonstration of proven agricultural productivity improvement technologies

80 woreda offices provided with transportation facilities, computers and other office facilities

18591 youth, women and common interest group established and existing cooperatives strengthened. 2108 kebele development committee and 4800 sub kebele development committee strengthened, and with at least 40 % female committee members

80 animal health clinics, and 320 animal health posts strengthened/established Four Regional and one National soil testing laboratories strengthened and furnished with lab equipment and chemicals

Five lime production centers strengthened and four bio-fertilizer production centers established.

Outcome Indicators, disaggregated by gender when possible:

Number of ARDPLACs established, strengthened and became fully operational

Number of FTCs strengthened and became fully operational Number of SMSs, DAS and farmers trained (disaggregated by gender) Number of exchange visits, experience sharing workshops and cross visits conducted/held

Number of demonstrations conducted on improved agricultural technologies Number of ICT equipments, vehicles and office equipments purchased

Number of kebele and sub kebele development committees strengthened Number of common interest groups established and existing cooperatives strengthened Number of soil samples tested, amount of lime and bio-fertilizer produced

Number of animal health clinics and health posts strengthened and established Number of male and female beneficiaries in the different activities

Monitoring, Reporting and Evaluation Arrangements.

Monthly, quarterly and yearly progress reports.

Field verification by project personnel Joint Review and Implementation Support Missions (JRIS)

Table 3: Sub-component Main activities, Institutions Responsible and Implementation ScheduleNo

Activity

Responsible organizationImplementation schedule

year 1year 2Year 3Year 4Year 5

12341234

1.1.1Institutional Strengthening and Development

Woreda level ARDPLAC workshops Regional BOA

Regular ARDPLAC meetings Woreda ARD

FTC demonstration Woreda ARD

FTC training facilities Woreda ARD

Furnishing woreda offices with computers and training facilities Regional BOA

Technical assistance for study on soil improvement measures and soil test laboratories National soil test lab

Strengthening soil test laboratories and lime production centers National soil test lab

Training for SMS, DAs and farmersFederal and regional ARD

1.1.2 Establishment and strengthening of farmers organizations

Technical support for study on designing establishment of youth, women and common interest farmers groups,MOA

Training on group establishment and group enterprises for DAs, SMS, Farmers (technical assistance, per diem, training material development) MOA

Studying the status of primary, multipurpose, RUSACCOs and cooperative unions and recommending improvement measures Cooperative Agency

Strengthening of existing kebele and sub kebele level AGP planning and implementing units (DSA, fuel, stationary materials) Woreda ARD

Strengthening animal health clinics and establishing animal health posts

3.1.3 Sub component 1.2: Scaling Up of Best Practices3.1.3.1 Sub Component Overview

Scaling up is a geographical spread of improved technologies and practices to cover more people and communities through replication and adaptations that involve different stakeholders from grass roots to higher levels. It is adapting knowledge and innovations to end users. Adaptation and application of innovations to different contexts requires understanding of the knowledge and principles underlying the innovation. In order for a technology to be adapted and applied in a variety of different contexts, those involved in the program need to have a good understanding of the knowledge and methods underlying the principle. This involves an intensive capacity building of farmers and staff in local institutions. Building and strengthening the capacity of communities to innovate may often be just as, or even more important than the technologies themselves. Major activities include assessment and identification and demonstration of suitable good practices, capacity building through provision of the required knowledge and skill, bringing attitudinal changes in incorporating scaling up into the program.

In scaling up of best practices focal areas for technical support include raising agricultural productivity by narrowing the gap between average farm yields and those achieved by male and female model farmers through improved crop, livestock and natural resource management practices. In transforming agriculture from subsistence to market oriented production system availability of improved inputs/technologies is very crucial. Technology adoption will also be accelerated by improving input availability. Such inputs, in addition to increasing agricultural production, will help farmers to access market through its effect in a larger volume of surpluses of quality products. Scaling up of best practices without support to key inputs will be meaningless. Input availability could be carried out by strengthening the capacity of grass root/community level input providers as well as promotion of public-private partnerships.

In scaling up best practices, AGP will support the identification of best practices and the preparation of sub projects; implementation support for scaling up best practices; and support to innovation and adaptive research. The implementation of this sub component will pay special attention to making female farmers benefit equally as men farmers. It will engage women in identifying technologies that address the needs of women and sharing the same and replicating relevant ones to different stakeholders. 3.1.3.2 Best Practices Identification and Sub Projects Preparation

Identification and Compilation of Best Practices

In consultation with key stakeholders, the extension service will identify improved technologies and management practices in a range of thematic areas related to production, post harvest value addition and marketing. Best practice identification will focus on proven technologies that have been implemented by model female and male farmers and showed successful results. The process or steps of how the identification and compilation of best practices is supposed to be handled is indicated in Scaling Up of best Practices Guideline (Annex VII).

Preparation of sub projectsParticipating farmers (groups) would prepare investment sub project proposals reflecting their priority needs to raise agricultural productivity and household incomes. The sub projects would be prepared, screened and approved at the woreda level using a community based participatory planning and approval process, which has already been field tested. Special attention will be given to ensure equal participation of male and female farmers, and that 50 percent of the approved sub projects involve females.

AGP would support sub-projects developed by farmer groups to address key constraints and opportunities to improve their livelihood. To enable the farmers to tackle their problems, the program would assist farmer groups with training, information sharing and exposure visits, dissemination of technical information in problem identification, prioritization and community level planning process. This sub-component focuses mainly on the realization of proposals that can be locally initiated by female and male farmers themselves. Groups of farmers will be encouraged to formulate projects based on specific needs of the community and existing potentials and capabilities through their community level participatory planning process. These proposals would be aggregated and approved at the kebele and woreda level as a woreda agricultural development plan. The process of preparation, screening and approving as well as implementing sub-projects will be guided by the Community Level Participatory Planning Process Guideline (Annex VI). 3.1.3.3 Implementation Support for Scaling up Best PracticesExtension supportSupport for the investment sub projects to narrow the gap between average farm yields and those achieved at experimental farms or by progressive farmers. The range of practices to be promoted could include improved varieties of plants and animals, better livestock health, improved forage and fodder, conservation farming including improved land and water management, as well as crop rotation and mulching, integrated nutrient and pest management. The details of how to go about providing extension support are indicated in the Participatory Extension System Guideline (Annex V).Capacity building will be an essential component of implementation support. Capacity building will focus on constraints that affect sustainability issues like attitude and behavior, gender equality, skill and leadership commitments. It will focus on building implementation capacity which is a pivotal for over all transformation of agricultural development. Along this line there is a need to assess the capacity needs to implement the program. In this regard capacity improvement should focus on the capacity improvement of male and female farmers, Development Agents and medium to high level officials with a particular attention to increase the participation of women in the program implementation. It should also build the capacity of implementers to understand the gender issues in each of the interventions AGP is planning to embark on. The details of how to go about capacity building in general and training in particular are indicated in the Capacity Building and Training Manual (Annex I)In addition the program will support targeted interventions to address key cross cutting constraints, in relation to evolving needs of the groups which include:

Improved two way flow of information on production post harvesting and marketing issues. This would be backed up by delivery of better information as well as training to farmers and production of extension materials based on local knowledge and needs using both the print and electronic media.

Promotion of improved crop and livestock production, on-farm processing and value addition using improved technologies and hygienic systems. Since the quality of the product brought to the market has a strong bearing on the price received by the seller and food safety, AGP would support low-cost post-harvest management to improve quality of products. These would include cleaning, grading, packing, storage and transport and AGP will ensure high female participation in these activities. Farmer Organizations wishing to establish low-cost packing and storage facilities would be assisted by the AGP. Group action would allow production and supply of larger volume of high quality produce to the market, thus strengthening bargaining power of producers for better prices. To supplement income of farmer organization members and to diversify sources of income from on-farm production systems, the AGP would help improvement of non-farm value addition activities involving processing of farm produce which is an important generator of income to women as they traditionally handle much of the processing of farm produce. These would be location specific support to build on local comparative advantage. Ensuring that both males and females can take advantage of these approaches, the main role to be played by the AGP would be introducing improved hygiene and quality standards, provide training and other skill development support, improve market linkages, provide business development support and facilitate access to credit.

Support for social intermediation, including saving and credit groups and their cooperatives to promote closer linkages with the micro finance institutions to access credit. Not all farmers groups in the program area will have the financial capacity to implement sub projects and many will lack key business skills and risk taking behavior necessary to access credit, particularly in the case of female farmers. For those farmer groups with sufficient financial capacity the program will focus on providing technical supports which include mainly training and technical assistance. For those farmer organization that are income generating type but without adequate finance further support is required to enable them to better access financial services to implement sub projects mainly through creation of sustainable linkage with financial institutions.

Development of private service providers, including cooperatives, using small scale machinery/implements for timely completion of key farm operations, e.g. land preparation and threshing. Under this activity the program will assist demonstration and dissemination of improved farm tools, implements and small machinery that can be used in conjunction with human labor or animal traction power. The traditional/cultural barrier that limits the role of women in the production system such as plowing and using animal traction to prepare land should be influenced to encourage the change in practice. Such farm machinery and implements aimed at saving labor and time include: different types of plow, irrigation equipment, processors, harvesters, threshers and animal drawn carts. Given the existing predominant use of traditional tools, with the traditional division of labor between men and women, the prospective increased use of improved seeds and breeds could, in turn, induce substantial demand for these machinery, and equipment. Therefore, greater effort is needed to encourage their availability through further development, fabrication and marketing. The program will pay due emphasis to women labor and introduce time saving farm implements that will reduce the workload of the women. Arranging credit so as to enable male and female farmers to own these farm implements will be an important intervention to be targeted. To improve availability of farm implements the program will support and encourage private farm implement manufacturers through technical supports and introduction, testing and dissemination of farm improved farm implements. Community-based Seed Production for Food and Forage CropsIn view of the widespread shortage of good seed of improved varieties, extension support will target community-based seed production through groups. This activity will focus on producing seed for self-pollinated crops, especially staple cereals like teff and wheat. AGP will support groups engaging in seed production either as contract growers for public or private enterprises or through a sub-project to increase seed availability within their own community. Contract growers will receive training and technical advice to ensure that groups can meet quality standards set by buyers (seed enterprises). For sub-projects proposed by the groups, a wider range of support will be provided, including access to a greater supply of breeder and/or basic seed and training and demonstrations on improved seed production techniques. In addition, linkages with cooperatives will provide access to seed processing, cleaning, grading and packing facilities. The project will train and assign one of the woreda SMSs to provide dedicated extension support to improve the quality of farmer-saved seed of self-pollinated crops, improve farmers seed replacement rate, and advise them on issues related to seed production. Detailed guidelines on the scope and coverage of the support to be provided under AGP will be included in the Extension Manual. 3.1.3.4 Support to Innovation and Adaptive Research

i. Innovation Facility

The objective of this support would be to facilitate and accelerate the scaling up process using initiatives and local innovations for AGP purpose. Innovation can be defined as a process that adds value or solves a problem in a new way, incorporating indigenous knowledge of the participating communities. In conjunction with the group based investment sub-projects, support would be provided for participation of male and female common interest groups in developing innovative solutions. The specifics involved in how to handle innovation fund is indicated in the Guideline for Farmer Innovation Fund and Adaptive Research Guideline (Annex VIII)

ii. Support for Location Specific On-farm Adaptive Research To ensure suitability of available technologies to the local needs and to bridge technology gaps identified by farmers or through ARDPLACs for which ready solutions are not available, the AGP would support short-term on-farm adaptation research on issues related to crop and livestock production systems with the help of scientists from the regional or federal agricultural research institutes. Since this would require work over more than one season, regional or federal project coordination units would sign a memorandum of understanding (MoU) specifying the work to be undertaken and channel fund directly to the implementing institute(s). If considered appropriate, funding for acquisition of technologies from the global knowledge pool, especially for production and post-harvest management of high value commodities would also be considered using the technology shortcut mechanism established under RCBP . The how to go about of conducting on-farm adaptive research is indicated in the Guideline for Farmer Innovation and Adaptive Research (Annex VIII).Table 4: Main Activities and outputs of Scaling up of best practices Sub-component 1.2: Scaling Up of Best Practices

Responsible Organization/Directorate:

Lead Organization: MOA / Agricultural Extension Directorate

Supporting Organizations: Regional BoA

Budget Allocated: US$ 30.6 million

Sub-component Objectives: to prepare demand driven community plans to enable the community to address key constraints and to improve their livelihood. Main Activities:

Training of development committees on preparation of kebele and sub kebele development plans

Preparation kebele and sub kebele development plans and group sub projects

Assessment and Identification of agricultural best practices

Skill training on best practices

Scaling up of best practices

Promotion of community level crop and forage seed production

Promotion of farm implement and equipment

On farm processing and value addition

Amelioration of acidic soils through strengthening of lime production centers

Outputs

6972 kebele and sub kebele development committee members trained on agricultural growth plan preparation and implementation,

Kebele development plan prepared for 2108 kebeles

4800 innovative groups supported

Agricultural best practices identified and scaled up

Community seed growers organized and supported Different types of farm equipment prototypes identified and multiplied

400 small scale agro-processing groups( mainly women) established

Outcome Indicators:

Number of kebele and sub kebele development committees trained and participated on AGP plan preparation

Number of kebeles and sub kebeles that prepared agricultural growth development plans

Number of farmers innovations promoted and adopted

Number of male and female farmers who adopted improved agricultural best practices

Number of new farm implements adopted and utilized by male and female farmers

Monitoring, Reporting and Evaluation Arrangements.

Monthly, quarterly and yearly progress reports.

Field verification by project personnel

Table 5: Main Activities, Institutions Responsible and Implementation Schedule for farmers sub projectsActivityResponsible organizationImplementation schedule

year 1year 2Year 3

Year 4

Year 5

12341234

Preparation of sub projects and kebele plans

Training of SMS and DAs on farmers sub project preparation MOA, BOA

Training of farmers on sub project preparation and participatory approaches (kebele and sub kebele development committee and development group leaders) = training manual preparation, DSA for trainers WARDO

Preparation of farmers sub projects and kebele development plans (Kebele plan, group sub projects and community sub project preparation)WARD, WDC, KDC

support to farmers innovation through grant fund (group sub projects)WARDO

Assessment and identification of best practicesMOA, BOA

Skill training on best practicesMOA, BOA

monitoring of promotion of best practices/ DSA, fuel costs for field supervision (five field trip per year per region) MOA, BOA

support to scaling up of best practices (individual, farmers group sub projects) MOA, BOA

Community level input multiplication

Assessment and identification of community seed growersMOA, BOA, RSE

Capacity building for community seed growers MOA, BOA, RSE

Matching grant for community seed growers BOA1

Promotion of farm implement and equipment

Assessment and identification of key farm implements and manufacturers Rural technology centers

Assessment and identification of farm implement prototypesRural technology centers

Purchase of farm implement prototypes Rural technology centers

Support to multiplication of prototypes Rural technology centers

On farm processing and value addition

study on identification of on farm processing and value addition activities BOA, Rural technology centers

Skill training on on-farm processing and value addition activitiesBOA, Rural technology centers

Organizing small scale agro-processing interest groups (women)BOA

Allocating matching grant for small scale agro processing groupsBOA

3.1.4 Sub-component 1.3: Market and Agribusiness Development3.1.4.1 Sub component overview

Agricultural production and growth in particular relies increasingly on markets and private sector development that tend to center around value chains, i.e. marketing activities and actors engaged in production, processing, marketing and other value added activities. Promoting agribusiness is vital in transforming subsistence agricultural production towards a more commercial approach. This may stimulate activities for agricultural production, provide opportunities for diversification of rural economies, and thereby contribute to increasing rural household incomes and livelihoods. Sound investment in value chain development is therefore a key precondition to a sustained agricultural production program.

3.1.4.2 Support to Agricultural Value Chains

The objective of this sub-component is to strengthen the key selected value chains in the four AGP regions. The activities are expected to result in an increase in the value and volume of (domestic or export) sales of the key (selected) value chain commoditiestargeted by the project. Overall, the sub-component will employ a market-led approach; i.e. a value chain methodology designed to identify and address the constraints and market opportunities of the key value chains and stakeholders and stimulate market-led agro-enterprise and cooperative linkages with domestic, regional and international markets. Support is targeted at the value chain overall, as well at key public and private stakeholders. Selection of commodities for value chain development: The activities will target at least four, high growth potential commodities (per region) including important staple crops with potential for new or improved market linkages (domestic, regional or international) that can result in significant increases in investment, sales, jobs and incomes. The number of initially selected commodities should be limited to four per region, with flexibility to add additional commodities if opportunities arise and funding permits. Economies of scale and operational efficiencies are also possible if multiple regions select the same or similar commodities. Selection of commodities is based on value chain analysis, additional market studies, and through multi-stakeholder (including diverse key value chain stakeholders) processes. Criteria for selection of commodities include, but are not limited to: Importance of potential marketable production;

Number of farmers (women, men) involved in producing this commodity;

Capacity to increase household profitability (increased value addition potential and revenue growth);

Potential to increase productivity/production in a sustainable manner (i.e., including involvement of or potential for private sector) and reduce production risk;

Potential for female and male labor absorption in the value chain;

Potential for direct and indirect positive effects in neighboring woredas.

The final selection of commodities will also take notice of the following issues: a balance between commodities (e.g., a mix of rain fed and irr