Hodfa is the District Farmers Association of Hoima district; it is a member-based organisation that represents around 4150 farmers. The programme targets smallholder farm households in selected sub counties of Hoima District. These smallholder farmers are subsistence-oriented, own small pieces of land (between 1.5 to 2 acres) and employ simple farm tools and technology; the majority live in semi-permanent structures, have limited access to productive assets (including information and formal financial services) and are generally food and income insecure. The proposed project through its Participatory Agro-Enterprise Development approach, facilitate farmer groups in increased production, access to financial services, collective marketing and lobby/advocacy.

1. Project background and rationale 1.1.Project context: The programme will target three sub-counties: Buhimba, Bugambe and Kitoba. The selection of sub-counties was based on 3 criteria: Current HODFA membership; Incidence of poverty; and Agricultural potential. A PRA situation analysis was conducted in the 3 selected sub-counties in March 2007. Focus group discussions (with men and women separately) and interviews with key informants were held in selected parishes, as input for programme planning. The results affirmed the high prevalence of poverty and food- and income insecurity in the 3 sub-counties. More than 90% of the households can be characterised as subsistence-oriented smallholder farm households, with land holding varying from 0.25 – 5 hectares. Yields are described as average to poor, due to inappropriate technology and minimal external input use; this in turn is caused by lack of capital / finance, ignorance and ‘the tendency of households to stick to primitive ideas’. Households resort to selling (a major part of) their produce directly after harvest, when prices are lowest, to cover impending household cash needs; no clear marketing channels exist – farmers generally sell to any produce dealer available (either on-farm or via local markets). Only a few farmers have access to external capital via micro-finance institutions and/or SACCOs, savings culture is poor due to poor household / farm planning. 1.2.Target group: The programme will target the vulnerable smallholder farm households of Hoima, focussing on three sub-counties. The programme aims to empower these farmer households – economically (by facilitating remunerative access to markets), organisationally (by stimulating and strengthening farmer groups) and institutionally (by linking groups to strengthened district farmer movements) – through their active and effective participation. Economic empowerment is geared towards the promotion and development of agricultural based micro-enterprises: Hoima District is basically an agricultural district, and there is still considerable room to increase agricultural productivity and incomes. The programme further acknowledges the importance of gender, HIV/Aids and environment in poverty: all three dimensions will be incorporated as cross-cutting themes and areas of concern throughout the programme. The programme intends to reach approximately 3,750 smallholder farm households (or 375 groups) over a period of 3 years: 620 current HODFA member households (or 62 groups) and 3,130 new HODFA member households (or 313 groups). It is estimated that approximately 1,875 of these smallholders will have accessed micro-financial services of HOFOKAM by the end of the three years. 1.3.Social and economic aspects Overview of Socio-Economic Indicators of Hoima District: -Human Development Index (2004): 0.498 (Uganda average: 0.489), ranking 42 out of 55 districts. -Human Poverty Index (2003): 29.7 (Uganda average: 36.0), ranking 45 out of 55 districts. -Mean household size: 5 (Uganda average: 4.7) -Life expectancy (2002): 45.7 years (Uganda average: 47 years) -Total fertility rate: 7.0 -Occupation: 77% of population derives their livelihoods from agriculture -Main revenue sources population: maize, bananas, rice, beans, tobacco, small-stock livestock -Literacy men / women: 76 / 54 -Net enrolment rates primary education: increase from 37,940 in 1996 to 105,008 in 2006 -Maternal mortality (per 100,000 live births): 520 (Uganda average: 354) -Infant mortality rate (per 1,000 live births): 88 -Malnutrition - % of stunted children: 26.8% -Underweight children – under 5 years (malnourished): 18.4% -Access to safe water (%): 69% (Uganda average: 49.8%) -Latrine coverage: 54% -% living in temporary structures: >50% (Uganda average: 27) -% living in permanent houses: 19% (Uganda average: 40) 1.4.Main commodities and markets A PAED approach will be used to facilitate remunerative market-led agro-enterprise development of farmer groups. This approach was adapted from the PAED approach of CIAT; it is non-commodity specific, supports a balance between on- and off-farm interventions and supports collective action, diversification and ‘added value’ as viable pathways out of poverty. 1.5.Main stakeholders The participatory agro-enterprise development approach will be facilitated by Hoima District Farmers’ Association (HODFA) with technical support from TRIAS and specialised institutions (e.g. CIAT). Appropriate savings- and loan facilities will be developed and offered by HOFOKAM, with technical support from TRIAS. A overview of stakeholders can be found in the attached detailled project proposal on page 84-86. 2.Project objectives, expected results, main activities (PS: the numbering of the objectives, results follows the original project document) Specific Objectives: Specific Objective 1:Small holder farm households have adopted practices of ensuring good and balanced nutrition throughout the year Specific Objective 2: Small holder farm households have increased access to- and participation in remunerative markets Specific Objective 4: HODFA provides appropriate services to her members – the small holder farm households of Hoima District – and adequately / effectively represents them on a sustainable basis Results: 11. Farm households aware of the importance of food security and nutrition 12. Farm households aware of the need for joint planning, decision making and sharing of responsibilities within households 13. Farm households equipped with appropriate knowledge and skills on production of both cash and food crops 14. Farm households accessed with appropriate technologies 15. Farm households imparted with knowledge and skills on the preparation, post harvest handling and preservation of nutritious foods 21.Farmer groups mobilised and strengthened 22.Farmer groups equipped with knowledge and skills to assess and select profitable agro-enterprises 23.Farmer groups acquired skills to manage sales and input contracts and to link-up with markets 24.Farmer groups imparted with business management skills 25.Farmer groups imparted with knowledge and skills on production of high quality / quantity produce 26.Farmer groups equipped with skills, knowledge, equipment and systems to market collectively 27.Farmer groups equipped with skills to self-evaluate their performance and make necessary adjustments 41.Strategic orientation and organizational structure reviewed, amended and operationalised 42.DEC, PEC & ELFs capacitated to effectively carry out their roles and responsibilities 43.Qualified and well-motivated management and staff in place according to organizational needs 44.Number of informed and committed members increased 45.Culture of ethics and integrity nurtured 46.Effective systems of management, accountability and control established and operational 47.External relations / networks established and maintained 48.Diversified and expanded sources of income established (including financial support) 49.Adequate working environment and facilities in place and maintained 410.Interests and concerns of members are adequately represented and advocated at district and national levels Activities: The original project document presents the detailled overview of all activities on page 46-64. 3.Tentative budget and funding The total budget for the three years 2008-2010 is 365.289 Euro. The budget requested to SCC is 80% of this total budget, being an amount of 292.231 Euro. The other 20% is financed by Belgium DGDC program financing. Together with the 12% administration costs (39.850 Euro), the total budget requested to SCC equals 332.081 Euro. 4.Monitoring and evaluation: M&E is essential to continually align programme strategy and operations to programme objectives; it is an integrated system of reflection and communication that is intricately linked to programme implementation. The programme will adopt a participatory monitoring and evaluation system (PME), whereby partners and target group are actively involved in the design and implementation of the system itself. The PME system will be designed together with main (primary / secondary) stakeholders at the start of the programme. The PME system will be logframe-based and will use the intervention logic as foundation for (a) identifying information needs, (b) gathering and managing information, (c) analysing and discussing information with programme stakeholders, and (d) communication / reporting. The M&E system will not only track progress (outputs, outcomes and impact) at target group level but also at organisational / institutional levels. 5.Sustainability and cost efficiency: Both aspects are transversal attention points in the way of working of Trias and HODFA. Special aspects herewith are: At the level of the target group: -Be careful with subsidies. Cost-effectiveness and sustainability considerations should be overriding principles for any ‘service’ developed for the target group. While short-term subsidies may be necessary when introducing new technologies – especially for the more vulnerable households – there should be clear perspective for medium-term cost-effectiveness and sustainability. Hand-outs do not promote ownership and responsibility. -Farmer groups solely created to get benefits from the programme are rarely sustainable. Group formation should be based on internal drives, not external (e.g. marketing for a common crop). -In order to safeguard the sustainability of income generating activities, thorough profitability, impact and marketing studies need to be done before embarking on these activities. At the level of the partner organisation: -The role of TRIAS towards partners should be strengthening and advisory only. Implementation is the sole responsibility of the partner organisation and this right from the beginning of the programme. -Strengthening or building the capacity of local partners to be able to perform certain organisational and programme functions has a bearing on final organisational and programme sustainability. However, the initial interest to fill or satisfy the capacity gap has to originate from the partner for greater ownership and effect.