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(Farm Mechanization Program)


September 2010



1. BACKGROUND The Mechanization Promotion Program of AVIPA Plus intends to promote farm mechanization through distribution of 6,000 Mechanization Packages or simply as Packages, each including a two-wheel tractor (TWT) and a set of implements, among the farmers of 18 north- central provinces of Afghanistan during a period of next 6-7 months (September 2010 to March 2011). All the 6,000 Packages shall be sold to middle farmers having 5-125 Jaribs (1-25 hectares) of land and willing to pay the 35% cost of the package as copayment. The tentative distribution of the number of tractors to be provided/sold in different regions is given as under: S. No. 1 2 3 4 Region West (Herat) North (Mazar) North-East (Kunduz) Central (Parwan / Kabul) Total No. of Packages 1,100 1,500 1,700 1,700 6,000

The above targets have been estimated based on the relative significance attached to different target groups of farmers with potential for the program, thereby indicating the projected beneficiary farmers in different target groups as under: S. No. 1 2 3 4 5 6 Target Group Fruit & Nut Producers Wheat Farmers Cooperative Member Farmers AVIPA Trainees AVIPA Farm-Saved Seed Trainees AVIPA Lead Farmer Trainees Projected Beneficiaries 30% 20% 20% 15% 10% 5%

The accomplishment of achieving a sales target of 6,000 tractors and related agricultural implements, in scattered market segments of 18 north-central provinces during a very limited time of 6-7 months, seems to be a very ambitious and challenging task. It is believed that such a huge target could only be achieved through an effective program of demonstration and sales promotion campaign. Because, wheat crop would be expected to be planted and paddy crop to be harvested in most part of the country during September November months, the demonstration of following operations could be planned as under:

Land preparation for and planting of wheat crop; Harvesting of paddy / rice crop; Pudding of paddy fields (under special arrangements); and Transportation

In addition, operations like cultivation could also be demonstrated at Fruit and Vegetable farms during the demonstration program.

Following staff positions have, exclusively, been provided to implement the Program in above 4 regions and 18 provinces in these regions: S. No. 1 2 3 4 5 6 Staff Position Mechanization Distribution Manager Sr. Mechanization Program Officer Mechanization Supervisors 1 Mechanization Assistants 2 Distribution Assistants 3 Inspectors 3
Notes: 1 2 3 : : :

Center 1 1 -

No. at (Location) Regions Provinces 4 36 12 12 -

One at each of 4 regions Two at each of 18 provinces Three at each of 4 regions

In addition, there will be about 60 Demo Teams and 40 Sales Teams, each team comprising 2 members, in order to help achievement the targets of selling about 6,000 Packages through effective demonstration, follow-up and sales promotion activities. The proposed Organization Chart is given as Figure-1. 2. STRATEGY The strategy for implementation of farm mechanization program, involving a series of field demonstrations and sales promotion activities, has been devised based on the following targets and assumptions: Mechanization Voucher Packages to be sold Prospective farmers that would buy the Package Farmers to be targeted Demo Teams to be deployed No. of farmers expected to attend a Demo Farm Operations to be demonstrated a Demo Farm : : : : : : 6,000 10% 60,000 60 20-25 Tillage, Sowing, Transportation

Based on above targets and assumptions, it is estimated that a total 2,400 3,000 Demo Farms would have been selected, Each Demo Team would be expected to work on 40-50 farms, and it will take about 80 days to complete the demonstration exercise. The salient features and components of this proposed strategy include the following:

For the field demonstrations, prospective buyer or beneficiary farmers shall be groups (hereinafter called as Demo Groups) of 20-25 farmers, preferably, belonging to same village or locality. The demonstration of different field operations shall be carried out on the fields of a promising and progressive farmer within each Demo Group. The Mechanization Assistants shall give the weekly schedules / programs to the Demo Teams, and would, accordingly, inform the farmers about the tentative schedule of demonstrations for their respective Group. A representative farmer of each Demo Group would inform other farmers about demonstration program 2-3 days before the exact day of demonstration. A number of (about 60) demonstration teams (hereinafter called as Demo Teams) shall be deployed in all 18 provinces falling in above 4 regions. It is anticipated that 3 - 4 Demo Teams shall be working in each province. Each Demo Team would comprise the following:




Agri. Engineer / Agronomist (Team In-charge) : 1 Tractor Operator :1

A set of agricultural machinery, to be provided2to each Demo Team, shall include as under:

Two Wheel Tractors :2 Rotavator : 1 (land preparation for wheat) Seed Drill : 1 (wheat planting/sowing) Pair of Cage-wheels (for North-east region) : 1 (pudding rice/paddy field) Reaper : 1 (harvesting paddy) Truck (for Transportation) :1

Each Demo Team will carry tools kit for routine maintenance and minor repairs in field. For major repair, however, services of local workshop would be utilized. vi.

The demonstrations, comprising field operations on farmers fields as well as test or trial rides by prospective buyers shall be carried out Demo Teams on daily basis. For sales promotion and follow-up of the demonstrations, there shall be a total number of about 40 Sales Teams, each comprising 2 members, deployed at provincial offices in order to follow and pursue the farmers that have become interested to buy the Mechanization Package as result of attending the demonstrations or otherwise, for obtaining their commitment in terms of a written application along with proof of ownership of agricultural land and a refundable Application Fee of Afs 1,000/-. After due scrutiny, the Mechanization Assistants would send all the applications to the respective regional Mechanization Supervisor who will get them approved from Regional Implementation Review Panel. The regional Mechanization Supervisor will issue the Supply Order, on first-come-first-served basis, to the respective regional Distribution Center of the Supplier for delivery of the Package. A copy of the Supply Order shall also be provided to the eligible farmer. The suppliers Distribution Centers will make sure that each beneficiary farmer has paid the 35% copayment and has completed other formalities before farmers can collect the Package. AVIPA Plus will qualify multiple number of Suppliers who meet the selection criteria, and agree to provide the Package at unified cost and specified delivery schedule; AVIPA Plus will make the payment of 62.5% cost of each Package (retaining 2.5% cost of Package for warranty performance) to the supplier only after verification that the components of the Package i.e. tractor and implements have been delivered in accordance with the terms of the contract.






APPROACH AND METHODOLOGY 3.1 Identification of Farmers: Eligibility Criteria and Terms of Sale

The prospective farmers for demonstration program (Demo Groups) shall be identified by the regional Mechanization Supervisors with the assistance of Mechanization Assistants, Sales Teams and Social Mobilizes. The identified farmers would have fare representation of different Targets Groups as mentioned in Section 1 above. The farmers, who shall be willing and interested in buying the Mechanization Package, shall have to formally apply, through Demo Teams, Sales Teams, Mechanization Assistants, or directly to the respective regional Mechanization Supervisor on a prescribed format (Application Form: Annexure - A). Each applicant farmer shall have to pay a refundable fee of Afs 1,000 with the application as a token of commitment. All the applications so received shall be sent, after due scrutiny, to the regional Mechanization Supervisors for approval by Regional Implementation and Review Panel and onwards transmission to suppliers Distribution Centers (Section 2 above and Section 3.2 below). In order to qualify for selection as beneficiary farmer, the applicant farmer should meet the following eligibility criteria:

He is owner and self cultivator of land holding of 5 - 125 Jeribs; Prior to taking delivery the beneficiary or his designated operator must attend an Operators Training program of 5 days in operation & maintenance, trouble shooting and safety (to be arranged by the supplier at regional level); and He should have paid his copayment.

Further, the applicants shall agree to the following terms and conditions of the Package sale: 3.2

He undertakes to use the tractor and implements for agricultural purposes only; He will rent out the tractor and implements to other farmers in the area; and He will not sell or transfer or hand over possession of the tractor and implements to any person within period of at least 1 year.

Receipt of Applications and Processing The applications will be received / collected by Sales Team members or Mechanization Assistants who will maintain a register for this purpose and issue a receipt in token of receipt of each application. After receipt of applications, the Mechanization Assistants will get initial scrutiny of applications in terms of eligibility conditions of the program, and send them to the respective regional Mechanization Supervisor regularly on weekly basis. The regional Mechanization Supervisor will get the approval from Regional Implementation and Review Panel and inform the applicants whose applications will be accepted / rejected. Reasons of rejection will also be recorded and communicated. The regional Mechanization Supervisor shall issue the Supply Orders to the suppliers Distribution Centers with a copy to the finally selected eligible farmers. Farmers / Operators Training in Operation and Maintenance, and Safety





The qualified Suppliers will establish regional level Training Facilities to provide training to eligible Farmers, particularly, in following areas: Operation and maintenance of TWT and related implements Trouble shooting of equipment Safety

The Training Facilities shall function till completion of the delivery of Packages, and run continuous training sessions, each of 5 days duration. Each eligible Farmer or his designated Operator will attend one of these training sessions before taking delivery of the Package from the Supplier. The schedule of training, in general, shall match the schedule of delivery of Packages (Section 3.4 below). It shall be mandatory for the regional Mechanization Supervisor to make sure that the beneficiary Farmer or his designated Operator has been trained properly and shall issue a certificate to this effect. 3.4 Delivery of Mechanization Packages The Regional Machinery Inspector (hereinafter called as Inspector) shall carry out the inspection of the tractors and implements being delivered to farmers at suppliers Distribution Centers, and shall issue Inspection Report as per format given as Annexure-B;

The Supplier shall deliver the Package to the beneficiary farmer in the presence of the regional Distribution Assistant, fill-in the Delivery Receipt and get it signed by both the Farmer and the Distribution Assistant. Sample of Delivery Receipt is given as Annexure-C;

The Supplier shall send the original Delivery Receipt and Inspection Report to AVIPA. AVIPA will, immediately, make payment equivalent to 62.5% of Package Cost, thereby retaining 2.5% of Package Cost. The retained amount shall be released after expiry of warranty period or satisfactory performance. The AVIPA Plus shall communicate, to the Suppliers, the quantities and schedule of delivery of Packages to the eligible farmers.


PROGRAM IMPLEMENTATION Successful implementation of the Program will be achieved through effective coordination, management, administration, monitoring and review of progress achievements by establishing Regional Implementation and Review Panel. The composition of the Panel is proposed as under:

Regional Field Coordinator Regional Team Leader Regional Mechanization Supervisor Regional QA/QC Officer

Major functions of the Panel would include, but not limited to, the followings:

Review progress achievement in the region; Approve the list of eligible farmers recommended by Regional Mechanization Supervisor / Mechanization Assistants; and Resolve the issues, and overcome problems and constraints that hinder the progress achievement.

The Regional Implementation and Review Panel would normally meet fortnightly or called earlier, if so required. The meetings would be chaired by Regional Field Coordinator or Regional Team Leader and Regional Supervisor would act as its Secretary.