May 25, 2010

Bethsheba Nanjala, Kenyan Farmer

Filed under: FarmerProfile — Tags: — admin @ 12:45 PM

May1During input delivery week in February, I met many farmers who were excited to pick up their seed and fertilizer. One of these farmers, Bethsheba Nanjala, recently invited me to visit her farm. She proudly showed me where she and her husband had each planted ½ acre of maize using the One Acre Fund planting method. Bethsheba planted relatively late in the season, so her maize was just starting to germinate. She asked me to come back in a month or so, when the maize would be as high as her knees.

As we walked back to her house to have some tea, I noticed that there were many trees on her property, some quite large. She pointed out two grevallia trees that were over ten years old, a few jacaranda trees, and a small stand of grevallia trees that appeared about two years old. She also showed me her tree nursery, where she was cultivating grevallia seedlings for transplant.

“I love trees,” she told me, explaining that she was so happy when One Acre Fund provided grevallia tree seeds this year. “I want to plant a row of grevallia from here to here.” She motioned from one end of her front yard to the beginning of her maize field. She planned to plant a row of trees to separate her home from her field.

Bethsheba had a lot of experience with trees. As a child, her father would bring trees from as far away as Mombasa to plant on their land. After she finished secondary school, she got a job with the Ministry of Agriculture in Kakamega, where she completed training courses on tree cultivation and conservation agriculture. She proudly showed me a certificate from one of her tree courses.

May2Unfortunately, the job was a temporary one, and after that, Bethsheba could not find another job with trees. Now, she is married and has five children, whom she struggles to care for. Her husband has another wife with six children, and they must share his salary from his job at a restaurant in town.

Bethsheba’s eldest daughter, Spora, is almost ready to enter secondary school. She is an above average student, and she dreams of becoming a TV journalist. But Bethsheba is not sure she will be able to afford the school fees for Spora. She hopes that if her One Acre Fund maize harvest is good, she will send Spora to secondary school.

“I have confidence,” she told me, “I will struggle and see that she has joined secondary school until she finishes Form 4.”

May 21, 2010

Which maize was planted using the One Acre Fund method?

Filed under: FieldPhotos — Tags: — admin @ 9:48 AM

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May 19, 2010

On the Hunt for Good Bean Seed

Filed under: Trials — Tags: — admin @ 10:48 AM

DSC_0032Accessing high-quality seed varieties is a major challenge for rural East African farmers. One Acre Fund currently solves part of this problem by providing improved maize varieties to poor rural farmers. Establishing an efficient maize seed supply system for rural farmers is relatively straightforward because there is a well-established market for maize seed; One Acre Fund simply acts as the intermediary between the commercial seed industry and rural buyers. But how can we offer this same service for commodities that do not have a developed formal seed industry?

Beans, although a major crop for East African farmers, lack any semblance of a formal seed distribution system. Why? Seed supply bottlenecks typically affect self-pollinating crops such as beans. Self-pollinating crops are simply unprofitable for seed companies because of volatile demand caused by competition from farm-saved seed, transportation and storage difficulties, and strong regionally specific preferences.

One Acre Fund is experimenting with a few different models to offer high-quality bean seed to our farmers, despite the lack of commercial availability. Our first trial is to source high-quality seed from research centers such as the Kenyan Agricultural Research Institute (KARI), and to contract large-scale seed multipliers to produce these varieties in the quantity we need. This model is attractive due to the ways in which it simplifies quality control and standardizes production processes.

Another model that we are getting under way in Kenya, but that our Rwanda operation already uses, is known as the “outgrower model.” Here, we provide improved seed varieties to member farmers with large (2-3 acres) land holdings, buy back their bean harvests, and treat the beans to be used as seed. This model has advantages for our farmers in that it integrates them into the seed production system, offering them the opportunity for greater profits and the ability to supply their own communities with seed in the absence of commercial suppliers.

DSC_0068AThe success of either of these trials would not only boost the yields of rural bean farmers but could potentially have long-term regional environmental and food security benefits. Because the bean seed available on the market right now is such low quality, many farmers recognize that bean cultivation is an unprofitable activity and opt to grow maize season after season. This results in widespread soil degradation and a net decrease in maize yields. Making beans profitable will improve soil quality by incentivizing crop rotation. Many of our Kenyan farmers want to rotate their maize crop with a bean crop, but they just don’t have access to bean seed for planting.

Another benefit of improved varieties is their resistance to common diseases that wipe out large portions of bean crops in East Africa. One Acre Fund is experimenting with a variety that is resistant to an untreatable disease called bean root rot, a soil-borne disease that can cause yield losses of up to 70 percent.

Creative solutions to East Africa’s defunct bean seed supply system will not only increase the incomes of One Acre Fund’s farmers, they will also diversify the types of crops that rural farmers rely on for income generation. Diversification is good for household nutrition, long-term soil health, and regional food security—it helps individual farmers as well as the community.

May 10, 2010

The Repayment Process

Filed under: Operations — Tags: — admin @ 6:13 PM

In One Acre Fund’s flexible loan repayment policy, farmers can repay any amount at any time–no penalties are attached to paying later in the season, as long as you pay your loan by the final repayment deadline. This unique policy adds complexity to tracking a district’s aggregate repayment rate. Though the process is continually being refined, thus far we have achieved over 97 percent repayment in all our districts. High repayment rates are necessary for us to achieve our goals of operational sustainability and long-lasting impact in the communities where we serve.

1. The repayment process begins with the farmer. The average client repays in small increments (eg 300 KSh, or $4 USD).

2. The field officer is responsible for visiting the farmer each week to pick up repayment, issuing a receipt to the farmer for his cash payment. The field officer often picks up payments from all the farmers in a group at one time, which makes the process more efficient.

3. Every week, the field officer attends a district meeting and turns in the receipt copies and the money collected the previous week to the district bookkeeper.

4. After the district meeting, the district bookkeeper enters the repayment information for each client into a database. Field managers and field directors track repayment statistics and target lagging groups.

5. The goal is to reach 100 percent repayment for each client and each district. A farmer is eligible to reenroll with One Acre Fund if she has fully repaid her previous loan.

May 4, 2010

The Power of Solar

Filed under: Trials — Tags: , — admin @ 4:58 PM

At One Acre Fund, we are always looking for new ways to sustainably increase our farmers’ disposable income. Our core program accomplishes this by providing farmers with the tools they need to significantly increase their harvests. Helping farmers reduce their expenses is another way to increase disposable income.

Almost all of our farmers lack access to electricity. Most of our field staff are not connected to the grid either. They are part of the 1.5 billion people in the fifty poorest countries that do not have access to electricity, according to the UN Development Program. In these countries, as in Kenya and Rwanda, where we work, power lines often do not extend much beyond the paved roads. Even if they did, the current cost to hook up to the grid in Kenya is 30,000 Ksh ($400 USD). For most of our farmers, that would be close to one year of income.

So what do 79 percent of the people in developing countries do without electricity? They often use kerosene lamps to light their homes at night as they eat dinner and as the children complete their homework. These lamps cost around $6 USD to buy, but the typical farmer spends at least 25 cents per day on fuel. When you go to a gas station in Kenya, the longest line is the one of farmers with two-liter bottles waiting to buy kerosene. Add up all that kerosene and it comes to over $80 USD per year for farmers living on under $2/day.

One Acre Fund decided to look more closely at the economics of lighting for our farmers. We have surveyed 200 farmers to track their expenses on batteries, kerosene, charging (for batteries and mobile phones), lamps, and flashlights.

Barefoot Power Fire Fly Solar LightUsing this market data, we are starting to bring products to the market to help reduce costs for farmers. Our first product, an LED solar-powered desk lamp, costs around $20 USD. The lamp charges by a solar panel the size of a wallet during the day and lasts over five hours at night. It also functions as a cell-phone charger. If a farmer used the money he would spend on kerosene each day to pay for the lamp, he would own it in under three months. After that, he would be saving $80 USD per year for the next several years.

So why does it make sense for One Acre Fund to sell solar lights? One reason: distribution. Distribution is the biggest hurdle for solar light manufacturers. There has been a lot of innovation from companies like D.light, Barefoot Power, and Tough Stuff. Their products are great but they have no way to get them to rural customers. We are able to leverage our large existing customer base as well as our extensive network of field staff to create a distribution system able to reach the thousands of farmers inaccessible to businesses operating only in towns or cities.

Selling solar lighting allows us to increase our measurable impact on farmer income. We will use data on product sales and product usage to determine how much solar lighting affects the disposable income of our farmers. Our farmers are excited and we are excited to be bringing solar power to the poorest of the poor.

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