Poor Farmers Income Improvement Through Innovation (PFI3P)

To improve their incomes, poor farmers have to be able to innovate in agricultural production and marketing in response to market opportunities. However, they are constrained from doing so because of a lack of appropriate technologies, village-level investments in public goods, and access to information. While the Government is taking steps to fill the gaps in providing public goods support for agriculture, and increasingly for nonrice crops, additional support is needed to target village-level public investments to the needs of poor farmers, to increase the access of poor farmers to information, and to increase the availability of technologies needed by poor farmers. The Project responds to the above by empowering farmers to undertake simple village-level investments, providing support for the development of appropriate technologies for marginal rainfed areas, and providing farmers with the relevant information resources.

In the long term, Project will promote improvements in agricultural production and or agricultural marketing to increase farmers incomes. In the immediate term activities should be clearly demonstrated as (i) targeting village-level public investments to location-specific needs of poor farmers, (ii) increasing access of poor farmers to information, or (iii) reorienting agricultural research to marginal rainfed areas.

The Project is implemented in about 1,067 villages in five districts: the Blora and Temanggung districts in Central Java; Donggala in Central Sulawesi; Ende in East Nusa Tenggara; and East Lombok in West Nusa Tenggara. The Project will enhance poor farmers capacity to adopt innovative agricultural production and marketing methods by better targeting village-level public investments to location-specific needs, providing farmers with access to information, and reorienting the focus of agricultural research to the needs of marginal rainfed areas. Nongovernment organizations working through elected village facilitators and supported by government and private agencies will help farmers to identify innovations, and undertake the necessary public investments to support adoption. The Project comprises four components to be implemented over 5 years starting 2003 until 31 December 2007 and extend until 2009: (i) poor farmer empowerment, (ii) development of national and local agricultural information resources, (iii) support for agricultural innovation development and dissemination, and (iv) project management. The executing agency of the project is the Indonesian Agency for Agricultural Research and Development (IAARD).

The Project will benefit farmers in five districts with about 2.75 million poor people and overall poverty rate of 66%almost twice the national average. The components for farmer empowerment, development of national and local information resources, and support for agricultural innovation development and dissemination are expected to benefit these poor people by facilitating agricultural and marketing innovations and increasing incomes. The Project will target villages in which 75% of the households are poor. Typical project beneficiaries will be poor farmers who have low productive landholdings of less than 0.1 hectare and who generally only cultivate staples. They have an average income of less than Rp1,000,000 per capita per year, and often use communal resources such as the sea and the forest to supplement their income which is often not able to meet their basic needs. The village-level investments will directly raise the incomes or food security of about 400,000 poor households to levels above the poverty line. Women will directly benefit from active involvement in the planning of village investments, capacity building, and targeting of village investments especially to women.