June 28, 2010

Violet Laisa, Kenyan Farmer

Filed under: FarmerProfile — Tags: — admin @ 5:07 PM

June1As the rainy season in Kenya draws to a close, our farmers are starting to get ready to harvest their maize. In Chwele District, the difference between the maize of One Acre Fund farmers and non-One Acre Fund farmers is stark. At the beginning of June, one of Chwele’s farmers, Violet Laisa, stood on the edge of her maize field holding a baby in her arms. Her dark green maize stalks soared over her head, and they were covered with sizeable cobs.

Violet planted Pannar seed and plans to harvest at the end of June. Pannar is a fast-growing variety of maize, and it has performed well for our farmers this year. One Acre Fund provides professionally grown hybrid seed, and we allow our farmers to choose between several different varieties. Hybrid seed is naturally grown and selected for higher yields and drought resistance—it is not genetically modified.

Violet liked Pannar so much that she has a cloth with the Pannar logo that she likes to tie over her skirt. When farmers use improved seed for the first time, they are often amazed at how well it performs—and they become loyal customers.

Violet said she hoped to harvest ten bags of maize on ½ acre of land, double what she harvested last year. One Acre Fund farmers generally double to triple their yields in one growing season. This increase means that Violet will have enough maize to feed her family this year—last year, she didn’t.

Violet raises five children, but only two of them are hers—Ian, who is nine months old, and Regan, who is three. The other children belonged to her husband’s first wife, but after she passed away, Violet adopted them.

June2Though she is raising five children and managing her fields, Violet also holds a leadership position in her group. In fact, she had already finished repaying her loan—a full three months before the repayment deadline.

In the next growing season, which begins in August, Violet plans to plant beans. Early repayment of her maize loan means that she is eligible to receive beans and fertilizer from One Acre Fund. Like many farmers in Chwele District, Violet saw that One Acre Fund farmers had good bean harvests last year. Beans are a good crop for home consumption, and they fetch a good price at the market. Next year, Violet wants to plant 1 acre of maize with One Acre Fund, and a good bean harvest will help her earn enough income to repay a larger loan.

June 24, 2010

Adapting Our Model to Different Farming Conditions

Filed under: Trials — Tags: — admin @ 12:09 PM

Dryland SoilMaize seed and fertilizer on credit is what One Acre Fund does best in Kenya. But there are many areas of the country where maize cultivation on credit simply does not make economic sense. In these locations, low rainfall and poor soil conditions virtually guarantee weak maize harvests. One Acre Fund wants to help smallholder farmers increase their harvests in these areas too, which means we must adapt our core program model to different crops and farming conditions.

To learn about the challenges of working in low rainfall areas, we recently started a new trial program in a dryland district bordering Lake Victoria in Nyanza Province. The program is only a few months old, but we have already started tackling two significant challenges: low population density and limited water access.

Low rainfall tends to correlate with low population density throughout the world, and Kenya is no exception. Low population density is challenging for numerous reasons. First, One Acre Fund’s service model entails frequent contact between field officers and farmers. When farmers live further apart, this contact becomes more time consuming, as well as more costly. Second, fewer farmers means fewer potential clients, which means our trial program will require a higher adoption percentage than most One Acre Fund districts to reach sustainability. In high-density areas, enrolling 10 percent of households in the first year would be considered a major win. In a low-density area, with fewer households to serve, we must enroll closer to 40 percent of households to achieve the same level of sustainability. To accomplish this target, we are experimenting with field officer transport and farmer mobilization to maximize our ability to reach clients.

Our second major challenge is water access. In our existing districts in Kenya, high rainfall levels are conducive to growing maize. In our trial program, we are offering tree and bean inputs to farmers. But even tree seeds need a fair amount of water—they must be cultivated in water-hungry nurseries during the dry season prior to transplant during the rains. Other One Acre Fund districts planting trees use seed beds as nurseries, which require 20-40 liters of water per day. Many farmers in the dryland district must walk an hour or more each day to access this amount of water. It’s possible that farmers will be willing to invest the labor to produce healthy tree seedlings, but there is no way to guarantee full adoption.

To address this problem, we are developing a less water-intensive planting method involving smaller bucket nurseries. This method should allow farmers to plant the same number of seeds using only around 2 liters of water per day. After a few months in the buckets, seedlings are transplanted into perforated tubes. Five hundred tubed seedlings only require 15-20 liters of water per day. By significantly reducing the amount of water needed, we hope to save our farmers time and money and ensure that they have strong tree seedlings for transplant during the rains.

This is only the first season for the dryland district. We plan to open a trial nursery this summer to experiment with alternative low-rainfall crops, including peanuts, millet, and short-maturity maize varieties. We are focused on offering products and services that are adapted to the challenges our clients face. Through this “farmers first” strategy, we plan to help dryland farmers achieve the same income increases that our other One Acre Fund farmers have achieved.

June 17, 2010

Developing Kenyan Managers

Filed under: CoreProgram, Operations — Tags: — admin @ 10:45 AM

DSC_0050One Acre Fund wants to reach as many needy farmers as we can, as quickly as possible. Our current districts in Western Kenya are each serving between 3,000 and 4,000 clients this season. At the top of each district, we have one extremely dedicated, highly competent leader – the field director. Field directors are the engines of growth within One Acre Fund, pushing the organization to reach even the most ambitious goals season after season.

Our field directors have set aggressive growth targets for the coming season. Our biggest district will aim to reach more than 7,000 clients. Yet field directors already manage on average thirty-three field officers and six field managers. Growing a district staff to fifty field officers and eight field managers necessitates some additional management support to maintain the quality of our services.

In preparation for rapid growth, this season we have developed a new role with our field operations – the assistant field director. In Kakamega, our largest district, we promoted one of our top field managers – Joan Lihru – to the assistant field director position in January.  She has thus far done an amazing job helping to define this important role. Joan joins the Kakamega field director and fellow Egerton University alum Daniel Okongo as a leader of Kakamega District.

Based on this first experiment, we have so far identified three critical roles filled by the assistant field director:

  • Field presence and supervision: With 35 field officers per district and more on the way, there is a lot of ground to cover in the field. The assistant field director gives the district another set of highly trained eyes to observe key field activities, to monitor staff, and to capture best practices to improve our program.
  • Mentorship of Field Managers: A growing management team needs additional mentorship, and the assistant field director helps fill this role by taking primary ownership over mentorship of half of field managers.
  • Planning and logistics: As the district grows, planning and logistics become even more critical to a smooth operation. The field director and assistant field director meet twice weekly to discuss field progress, and to make plans for upcoming field activities.

Within a few short weeks under Daniel’s guidance, Joan was able to independently manage her new mentorship and training responsibilities. Not only has Joan benefited from Daniel’s experience and perspective, but the process of training a high-level manager at the district level has also helped to develop Daniel’s leadership skills.

Aside from helping a district to handle the challenges of rapid scale-up, the assistant field director position serves another very critical strategic purpose. In the next few years, we will grow our service territory in Kenya by opening up new districts and even new regions. These districts will need strong leaders like Daniel and Joan to build a new team, to start a new operation, and to instill their nuanced understanding of the One Acre Fund model and organizational culture. The assistant field director role is a valuable opportunity to rapidly develop future leaders of One Acre Fund. If the experience thus far with Joan is any indication, we can look forward to a fast-growing team of excellent leaders, helping to expand the reach of One Acre Fund to smallholder farmers across East Africa.

June 15, 2010

One Acre Fund Wins Financial Times Sustainable Banking Award

Filed under: News — admin @ 11:12 AM

FTLogoOne Acre Fund is the recipient of the Financial Times Sustainable Banking Award for Achievement in Basic Needs Financing! The Award for Achievement in Basic Needs Financing recognizes groundbreaking transactions, programs, and initiatives that use the power of finance to address the scarcity of essential goods—including food, water, and energy—across society.

One Acre Fund is honored to receive the basic needs financing award, which is a tremendous validation from some of the preeminent thought leaders in the banking world. The FT and IFC awards attracted 156 entries from 110 institutions across 44 countries.

One Acre Fund’s work was also recently featured in a Financial Times article on food and microfinance. The article examines the importance not only of basic financial services for smalllholders, but of risk management tools such as crop insurance. “Linking financial services to access to weather insurance could help, as this will reduce farmers’ risks and at the same time reduce the probability of defaulting on a loan,” says Maximo Torero, the director of the markets, trade, and institutions division at the International Food Policy Research Institute. One Acre Fund bundles crop insurance with all the loans it disburses to farmers. To read more about the innovative weather-indexed crop insurance product we use in Kenya, see this post on the One Acre Fund blog.

June 9, 2010

Mary Martin, New One Acre Fund farmer

Filed under: FarmerProfile — Tags: — admin @ 2:54 PM

Mary MartinWater leaks into the house, spilling down the wall and flowing onto the floor, adding to the small stream that cuts through the bedroom and sitting room in this small mud hut. Mary Martin, the hut’s owner, is surprisingly upbeat. “I’m not happy about the hole in the wall, but at least I can afford to fix it,” she says.

Mary, 37, who lives in Kenya’s Nyanza province, is not new to hardship. Her parents died years ago and her only two siblings both passed away within the past three years. In 2003 her husband died of AIDS, leaving Mary to raise their three children on her own. With little formal education and no assets other than the land on which they live plus a few animals, there was only one way for Mary to provide for her family: farming.

With declining harvests over the last five years, however, even the family’s most basic needs were hard to meet; her children ate less each day, medical and school bills were constant concerns and repairs or improvements to the house were simply not affordable. Last year was particularly bad – Mary only harvested one sack of maize.

The small harvest, though, was certainly not a result of indifference; Mary wakes up each morning at five, prepares her children for school, heads to the field at six, returns a few hours later to prepare lunch for her three children and then continues her work in the field until they return from school.

Desperate to grow more, Mary was excited when she first heard about One Acre Fund. Her excitement grew when she attended a One Acre Fund community meeting last summer. “I wanted to join right away to grow more – to have more food for my family.”

Although this season’s harvest is still a month away, Mary face brightens when she talks about her maize. “All my neighbors are very jealous,” she says. It’s difficult to predict the size of her harvest, but both Mary and the One Acre Fund staff member for her area expect her field to produce at least three to four times more maize than last season. Mary knows things are not perfect – she has to repair the hole in her wall and recently took one of her children to the hospital for malaria – but her improved harvests give her hope. When asked if she will work with One Acre Fund next season, her response is pragmatic and direct: “I have to – my family needs to eat.”

June 3, 2010

Measuring Farmer Impact

Filed under: CoreProgram, Research — Tags: — admin @ 5:44 PM

One Acre Fund believes that we must rigorously measure our client impact. But in order to measure impact, we need to understand the lives of our farmers before they join One Acre Fund.

Every May, our monitoring and evaluation department sends its agents out to the field to administer the One Acre Fund Baseline Survey. The survey consists of forty-two questions that range from “How many chickens do you have?” to “What are the 2-3 areas that you plan to spend your savings on in the future?” The answers to these questions are gathered from over one thousand first-time One Acre Fund clients and repeat clients. The data becomes part of a Baseline Survey database, intended to track the demographic and agricultural profile of One Acre Fund clients.

One of the first-time clients our agents surveyed recently was a mother of three named Helen. She lives in a mud house with a pit latrine. She owns one goat, thirteen chickens, and a cell phone. She does not have a formal bank account. Last year, she only harvested 10 bags of maize on ¾ acre of land, not enough to feed her family for the year. Before she harvests this year, she will purchase at least 1 bag (180 pounds) of maize for home consumption. Helen completed primary school, but did not go to secondary school. All three of her children are currently in school.

Gathering data from thousands of farmers like Helen allows One Acre Fund to measure its client impact, but it also adds to the cost of our field operations. Days gathering baseline data are long. Agents begin their day by traveling to village areas, where One Acre Fund field staff help direct them (usually via cell phones) to specific farmer homesteads. There can be plenty of legwork in between interviews—from office to fields, between fields, and between communities. Agents will find themselves motorbikes, bicycles, and matatus (passenger vans) to get from farmer to farmer.

In preparation for executing the surveys, agents practice techniques for efficiently asking questions, and ensuring data integrity. Agents are clued into how to avoid biasing answers (ie, not asking leading farmers to specific answers), and how to recognize honest responses. On average, an agent is able to complete one survey in twelve minutes. This season, more than one thousand surveys were completed over a six-week period, and agents aim to complete five hundred more before the upcoming harvest season.

This season, One Acre Fund’s monitoring and evaluation team integrated new questions into the baseline survey. Embedded within the survey are eleven questions that, once complied, will allow One Acre Fund to measure poverty level using a popular microfinance industry tool called the Progress Out of Poverty Index (PPI). Using this tool helps us measure our income impact, but it also allows us to provide data that can be compared with other financial services institutions.

But our survey allows us to collect a much richer level of data than the PPI. We are collecting information on rates of livestock ownership, access to arable land, and expenditure on agricultural inputs, among other household economic information. Knowing clients’ assets, hunger experience, home expenditures, and income-generating activities will help One Acre Fund continue to offer products and services that provide maximum impact to our farmers. Though measuring our impact with this level of rigor is costly, we believe it is a worthwhile investment in the long-term future of our organization.

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