Agriculture Finance

Projects are now seldom seen as isolated vehicles for funding self-contained actions.

Instead they tend to complement or reinforce country commitments to adjustments in economic and institutional policies.

Thus projects may underpin adjustments in prices, subsidies or land tenure, with the aim of encouraging farmers to adopt more sustainable land use practices; or they may explicitly support institutional reforms, for example by strengthening the support services required to encourage a stronger private sector role in agricultural trade.

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Experience says that Agricultural Projects fail because of the following, so this is an important consideration to take note of when your project is being assessed.

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1.    Unrealistic project schedules

2.    Under-estimated costs

3.    Production technology deficiency

4.    Bad management and staffing

5.    Poor engineering

6.    Procurement difficulties

7.    Poor monitoring and evaluation

8.    Wrong project structure

9.    Ineffective technical assistance

10.  Too many components

11.  Low output prices/market problems

12.  Inequitable benefit distribution

13.  Slow adoption

14.  Insufficient government commitment

15.  Natural disaster

16.  Political turmoil/war

17.  Land acquisition difficulties

18.  Project Inflexibility

19.  Resource degradation

GENERAL CRITERIA

• in accordance with the country's development objectives and priorities;

• technically sound and the best of alternatives;

• attractive to the intended beneficiaries;

• operationally and managerially workable;

• economically and financially viable;

• sustainable and environmentally sound.