Feed the Future Knowledge-Based Integrated

Sustainable Agriculture in Nepal (KISAN) II Project Year 3 Annual Report

July 16, 2019 to July 15, 2020

FEED THE FUTURE NEPAL KNOWLEDGE-BASED INTEGRATED SUSTAINABLE AGRICULTURE IN NEPAL (KISAN) II PROJECT

YEAR 3 ANNUAL REPORT JULY 16, 2019 – JULY 15, 2020

CONTRACT NUMBER AID-367-C-17-00001

DISCLAIMER This report is made possible by the generous support of the American people through the United States Agency for International Development (USAID) under the Feed the Future Initiative. The contents are the responsibility of Winrock International and do not necessarily reflect the views of USAID or the United States Government.

Cover Photo: Shanti Chaudhary in Kailali grows vegetables and other crops all year-round after benefiting from agriculture related trainings, technical assistance, and irrigation support from KISAN II partner, Kishan Agrovet Center. This shallow tube well benefits seven farming households and irrigates about two hectares of land. (Photo credit: Robic Upadhayay for USAID)

TABLE OF CONTENTS Table Of Contents ...... iii Acronyms...... vi Executive Summary ...... viii Introduction ...... 1 Key Output Level Indicator Results ...... 1 Key Outcome Level Indicator Results ...... 3 Farm-Level Yields ...... 3 Farm-Level Sales ...... 3 Firm-Level Sales ...... 4 Access To Finance ...... 5 Improved Management Practices And Technologies ...... 5 Organizational Capacity Development Outcomes ...... 5 Inclusion ...... 6 Enabling Environment And Government Collaboration ...... 6 Business Literacy Program ...... 7 Collaboration, Learning And Adaptation...... 7 Science, Technology, Innovation, And Research (STIR) ...... 7 Impact Of COVID-19 ...... 8 Impact On Agribusinesses And Farmers ...... 8 COVID-19 Adaptations ...... 9 Migrant Returnees And Skillsets ...... 9 Update On Activity Implementation ...... 10 Collaboration With Government Of Nepal ...... 10 Engaging Municipalities To Understand And Support Production, Marketing, And Irrigation (Activity CL.1) ...... 10 Component 2: Strengthen The Competitiveness, Resilience, And Inclusiveness Of Selected Agriculture Market Systems...... 13 Sub-Objective 2.1: Strengthen The Organization And Coordination Of Selected Market Systems .. 13 Sub-Objective 2.2: Strengthen The Organization And Coordination Of Selected Market Systems .. 17 Sub-Objective 2.3: Enhanced Financial Service Markets Serve Selected Market Systems ...... 17 Sub-Objective 2.4: Enhanced Market Infrastructure And Other Services To Support Selected Market Systems ...... 20 Sub-Objective 2.5: Expanded Trade In Domestic And Regional Markets To Support Agricultural Market Systems Development ...... 21 Component 1: Improve The Productivity Of Selected Agriculture Market Systems ...... 22 Sub-Objective 1.1: Facilitate Intensification And Diversification Of Male And Female Farmers And Socially Excluded Groups Into Higher-Value Commodities...... 22 Sub-Objective 1.2: Strengthen The Capacity Of Input Supply Systems To Deliver Timely And Affordable Productivity-Enhancing Technologies ...... 22 Sub-Objective 1.3: Increase Adoption Of Profitable, Productivity-Enhancing, And Climate-Smart Technologies By All Groups, Including Youth, Women, And Disadvantaged Groups ...... 24 Component 3: Strengthen The Enabling Environment Of Selected Agriculture Market Systems ...... 26 Sub-Objective 3.1: Build Capacity For Streamlining, Harmonizing, And Coordinating GON Policies And Regulations ...... 26 Sub-Objective 3.2: Improve Investments, Management, And Governance (E.G. Standardization) Of Infrastructure ...... 27

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Sub-Objective 3.3: Improve Systems To Increase Quality Of Selected Commodities ...... 28 Sub-Objective 3.4: Support Local Government Agencies To Improve Investments In Support Of Market System Development ...... 29 Component 4: Increase Vulnerable Communities Ability To Act On Business Opportunities Within Selected Markets Systems ...... 30 Sub-Objective 4.1: Enhance Literacy And Business Skills ...... 30 Component 5: Apply Collaboration, Learning And Adaptation To Market Systems Development ...... 32 Mid-Year Program Review Workshop To Plan Next Steps And Narrow Scope Of Learning Objectives ...... 32 Learning Agenda...... 32 Sub-Objective 5.1: Apply CLA To Advance Competitiveness...... 40 Sub-Objective 5.2: Apply CLA To Advance Inclusiveness ...... 40 Grants Under Contract ...... 42 Monitoring, Evaluation, And Learning (MEL) ...... 43 Operational, Financial, And Communications Activities ...... 45 Progress Reports And Bi-Weekly Updates Submitted To USAID (OP.1)...... 45 Fixed Price Subcontracts Issued (OP. 2) ...... 46 New Staff Recruited And Trained (OP.4) ...... 46 Short-Term Technical Assistance Engaged ...... 46 Standard Operating Procedures Updates Underway (Activity OP.6) ...... 47 Consultative Meetings Conducted (Activity OP.7) ...... 47 Emergency Management Preparedness Documents Developed (Activity OP.8) ...... 47 KISAN II Review And Annual Planning Workshops (Activity OP.10) ...... 47 Partnership, Collaboration, And Knowledge Sharing...... 47 Annexes ...... 1 Annex 1. Success Stories ...... 1 Annex 2. COVID-19 Impact On Crops And Farmer Coping Strategies ...... 2 Annex 3. Summary Of Signed Memoranda Of Understanding ...... 4 Annex 4. Select Activities For Y4T1 ...... 6 Annex 5. Detailed Implementation Plan ...... 8 Annex 6. Performance Indicator Tracking Table...... 22

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LIST OF TABLES Table 1. Y3 Project Reach At Beneficiary And Firm Level ...... 2 Table 2. Y3 Cumulative Partnerships, Households, And Grant Details By Type Of Organization ...... 2 Table 3. Farm-Level Yields Of Targeted Commodities ...... 3 Table 4. Farm-Level Annual Sales ...... 4 Table 5. Farm-Level Annual Sales Per Smallholder Farming Household ...... 4 Table 6. Firm-Level Sales...... 4 Table 7. Finance And Investment Outcomes ...... 5 Table 8. Farmer Adoption Of Improved Management Practices And Technologies ...... 5 Table 9. Inclusiveness Indicators ...... 6 Table 10. KISAN II Policy Advocacy Support ...... 6 Table 11. KISAN II Business Literacy Program Indicators ...... 7 Table 12. Collaboration, Learning, And Adaptation Outputs ...... 7 Table 13. Science, Technology, Innovation, And Research ...... 8 Table 14. Acquired Skills Of Migrant Returnees In KISAN II Households ...... 10 Table 15. Y3 Capacity-Building Activities For Cooperatives ...... 15 Table 16. Y3 Farmer Yields And Income By Business Model ...... 32 Table 17. Improved Management Practices And Technologies And Yields By Commodity ...... 36 Table 18. Major Learnings And Adaptive Management ...... 43 Table 19. Detailed Implementation Plan Table ...... 8 Table 20. Performance Indicator Tracking Table ...... 22

LIST OF FIGURES Figure 1. Key Achievements Of KISAN II In Y3 ...... viii Figure 2. Number Of Individuals Participating In USG Food Security Programs ...... 3 Figure 3. Y3 Vegetable Yields ...... 3 Figure 4. Average Percentage Improvement Across Five Capacities By Firm Type ...... 6 Figure 5. Types Of Private Sector Organizations Mapped To Date ...... 13 Figure 6. Resource Leverage For KISAN II-Supported Irrigation Schemes ...... 25 Figure 7. KISAN II Y3 Grant Partnerships By Type...... 42 Figure 8. Impact Of COVID-19 On Input Availability ...... 2 Figure 9. Effect Of COVID-19 Lockdown On Crop Harvest ...... 2 Figure 10. Effect Of COVID-19 Lockdown On Sales ...... 3 Figure 11. Farmer Coping Strategies ...... 3

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ACRONYMS ADP Agriculture Development Plan ADS Agriculture Development Strategy ADS-JSR Agricultural Development Strategy-Joint Sector Review AI Artificial Insemination AITC Agriculture Information and Training Center AKC Agriculture Knowledge Centers ANROPI Association of Nepalese , Oil and Pulses Industries BLB Branchless Banking BLP Business Literacy Program CATI Computer Aided Telephonic Interview CBM Cluster Business Manager CCDABC Center for Crop Development and Agro-biodiversity Conservation CEAPRED Center for Environmental and Agricultural Policy, Research, Extension and Development CLA Collaboration, Learning and Adaption CT Community Trainer DAG Disadvantaged Group DCC District Coordination Committee DCCI District Chambers of Commerce and Industry DEPROSC Development Project Service Center DFS Digital Financing Services DFTQC Department of Food Technology and Quality Control DOLS Department of Livestock Services DNA Data Not Available DQA Data Quality Assessment EMMP Environmental Management and Monitoring Plan EU/TA European Union/Technical Assistance FAO Food and Agriculture Organization FAW Fall armyworm FTFNIPM Feed the Future National Integrated Pest Management FWEAN Federation of Women Entrepreneurs' Association of Nepal GAP Good Agricultural Practices GESI Gender Equality and Social Inclusion GON Government of Nepal HPALF Hill Park Agriculture and Livestock Farm IPM Integrated Pest Management JNSC Joint National Steering Committee JRIP Joint Rice Intervention Program KISAN II Knowledge-Based Integrated Sustainable Agriculture in Nepal M&E Monitoring and Evaluation MEL Monitoring, Evaluation and Learning MOALD Ministry of Agriculture and Livestock Development MOLMAC Ministry of Land Management, Agriculture and Cooperatives MOU Memorandum of Understanding MT Master Trainer NARC Nepal Agricultural Research Council

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NIA Nepal Insurers' Association NSAF Nepal Seed and Fertilizer Project OSC Overseas Strategic Consulting, Ltd PERSUAP Pesticide Evaluation Report and Safer Use Action Plan PMAMP Prime Minister Agriculture Modernization Project PPD Public Private Dialogue PPR Peste des Petits Ruminants PQPMC Plant Quarantine and Pesticide Management Centre PSE Private Sector Engagement RFA Request for Application SACCO Saving and Credit Cooperative SEED Strengthening Entrepreneurship and Enterprise Development SFAN Safe Food Alliance Nepal SMS Short Message Service SMT Senior Master Trainer STTA Short-Term Technical Assistance SWO Stop Work Order T1 Trimester 1 (or 2 or 3) TC Technical Committee TOT Training of Trainer USAID United States Agency for International Development USG U.S. Government VHLSEC Veterinary Hospital and Livestock Services Expert Centers Y3 Year 3 ZECC Zero-Energy Cooling Chamber ZOI Zone of Influence

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EXECUTIVE SUMMARY In Year 3 (Y3, July 16, 2019 through July 15, 2020), the Feed the Future Nepal Knowledge-based Integrated Sustainable Agriculture in Nepal (KISAN) II project adapted to challenging circumstances while continuing to strengthen relationships among market actors within selected value chains to help build resilient agribusinesses and farming households. Through KISAN II’s collaboration with 1501 private sector partners and the Government of Nepal (GON), 166,022 farming households have benefitted from valuable technical support, quality inputs, and improved market linkages leading to more than USD 175 million in farm sales, an increase of nearly 350% over the project’s baseline farm sales. Figure 1 highlights key achievements of KISAN II as of Y3.

Figure 1. Key achievements of KISAN II in Y3

1 These 150 partnerships include 146 grants and 4 memoranda of understanding (MOU) partners. Two of the 146 grantee partners dropped out, but their data was included as they were relatively advanced in their agreements; the performance period of two other grantees ended in mid-2020.

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Box 1 summarizes project highlights; additional information about Y3 accomplishments and events is detailed in the following sections. Partnering with New Private Sector Actors ● KISAN II has engaged 150 private sector Box 1: Numbers at a Glance partners, 32 of which were new in Y3. To date, 150 KISAN II private sector partners— Partners include 49 businesses run by 65 cooperatives, 58 agrovets, 12 traders, 10 rice women and disadvantaged groups (DAGs). mills, and 5 goat farms—are working to provide new Partners are targeting 187,690 farming services to 187,690 farming households. This led to households (75% headed by women) and increased overall farm sales and higher farm yields for have benefitted 166,022 households to date. rice, , lentils, and vegetables during Y3. ● KISAN II signed memoranda of To date, KISAN II held 669 field days to scale up understanding (MOUs) with 17 strategic adoption of technologies and motivate farmers to shift to commercial farming. partners this year. These partners include banks to increase access to digital finance, In Y3, KISAN II tested 500 insect and disease samples and 1,500 soil samples through 25 cold storage manufacturers, and the testing events in six districts. Provincial soil testing Department of Livestock Services (DOLS) and plant protection laboratories provided support at to facilitate inputs for goat breeding. Annex the events, which reached over 1,168 farmers. 4 presents summaries of seven new MOU In Y3, 18,760 individuals (15,850 female) partners that were added in the third graduated from the Business Literacy Program short trimester of Y3 (Y3 T3). course with 90% passing the final exam. Many ● To date, KISAN II has mapped 3,814 graduates have adopted newly learned skills on their farms and increased sales. organizations to identify new partners and extend the project’s reach across two Feed the Future Zones of Influence (ZOIs). Strengthening High-potential Sectors ● KISAN II exceeded Y3 yield targets for rice by 6%, maize by 23%, lentils by 8%, and vegetables by 16%, but fell slightly short on offtake rate for goat rearing by 14%. ● KISAN II and the Ministry of Agriculture and Livestock Development (MOALD) developed a Joint Rice Intervention Program (JRIP) to increase fine rice production in Nepal. JRIP uses a unique rice mill model designed to increase production, decrease transaction costs, and contribute to import substitution. Implementation began in April 2020 through KISAN II rice mill partners in six Terai districts in Province 5 and Sudurpaschim Province. ● KISAN II conducted a comprehensive landscape study of 96 Nepali rice mills to identify the key constraints they face with respect to upgrading and diversifying facilities. The project will use findings from this study to strengthen KISAN II partner rice mills, including JRIP participants. ● KISAN II works with vegetable farmers over multiple seasons through 132 private sector partners to produce and market high-value vegetables. Vegetable sales account for 84% of KISAN II’s total agricultural sales across all sub-sectors. ● KISAN II began working in the goat sector in Y3 and now partners with 5 goat farms targeting 4,000 households and 10 other goat-sector grantees (cooperatives and agrovets) targeting 2,850 households. Through MOALD’s Agriculture Information and Training Center (AITC), KISAN II provided two artificial insemination trainings to 31 participants this year. Trainees have since inseminated 322 goats with a 53% success rate. ● Overall annual farm level sales exceeded KISAN II Y3 targets by 55% (by 47% for rice, by 124% for maize, by 271% for lentil, by 53% for vegetables and 548% for goat) and the average sales per smallholder farming household increased by 71% in total. Similarly, the firm level sales exceeded

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the Y3 target of USD 28.5 million by 128% and the overall average sales per firm also exceeded the Y3 target by 66%. Deeper Engagement with Government Partners ● In Y3, KISAN II further strengthened its relationship with the GON through two Technical Committee (TC) and two Joint National Steering Committee (JNSC) meetings—the project’s core mechanisms for formal government engagement. Discussions during these meetings included collaborative actions such as the development of private sector engagement (PSE) guidelines and the implementation a joint KISAN II and MOALD initiative to increase fine rice production in Nepal. ● In January–February 2020, high-level officials from the United States Agency for International Development (USAID) and KISAN II representatives met with leaders of all four provincial Ministry of Land Management, Agriculture, and Cooperatives (MOLMACs) and other relevant provincial organizations in the KISAN II ZOIs. Together, they identified areas for mutual collaboration, such as the formation of donor-MOLMAC coordination mechanism and the promotion of KISAN II’s proven models. ● KISAN II carried out 34 municipal-level briefings and 46 joint monitoring visits, motivating municipal officials to collaborate and leverage approximately NRs. 15 million (USD 132,000) to support agriculture production, marketing, improved technologies, mechanization, and irrigation- related activities. ● KISAN II shared findings from a market feasibility study the project supported for Panauti Municipality. The municipality now plans to allocate funds to develop a cold storage facility and vegetable market. Building More Capable and Resilient Agribusinesses ● In Y3, 154,084 farmers took part in KISAN II trainings, demonstrations, and field days to help them produce and market high-value vegetables. ● This year, KISAN II provided training-of-trainers (TOT) to 68 new private sector extension workers, and refresher training to 227 (of the 378 total) existing extension workers. ● KISAN II facilitated six linkage and sales meetings for 132 value chain actors, during which traders and collectors shared market demands with farmers and producer groups. After the meeting in Salyan, lead farmers and trader partner Shanta Tarkari Pasal agreed to trade 200 metric tons of vegetables per week from May through December 2020. ● Six partner cooperatives accessed NRs. 39.6 million (USD 330,000) in wholesale loans, which has helped them expand lending services to their members. ● In Y3, 768 new farmer groups and 13,865 new farmer group members initiated group savings and credit activities. ● In Y3, KISAN II trained 10,457 participants (8,942 females, 3,288 youths) in the Business Literacy Program (BLP) short course at 480 locations in 18 districts. Nearly all (99.8%) of the 20,674 individuals enrolled in the long course completed Module 1 and half of Module 2 before the COVID- 19 lockdown began in March 2020. ● KISAN II supported 251 irrigation schemes benefitting 3,593 farming households across 20 districts, helping to irrigate 589 hectares of land. Y3 total irrigation contributions were NRs. 32,093,027 (USD 267,442): 38% from communities, 22% from the government, 5% from other institutions, and the remaining 35% from KISAN II.

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Piloting Innovative Approaches ● KISAN II continued to bring digital financial services (DFS) to farmers’ doorsteps through branchless banking (BLB) by executing an MOU with Laxmi Bank in Y3. Currently, five KISAN II agrovet agents in three districts—with two more pending—use BLB. In Y3, BLB served more than 437 accounts, collected deposits totaling NRs. 795,905 (USD 6,633) and disbursed four loans totaling NRs. 6 million (USD 50,041). ● KISAN II MOU partner Prabhu Management offered discounted DFS to 11 partner cooperatives (with 31 more pending) to help them provide minimal-contact banking services to members. ● KISAN II partnered with eSewa, the largest digital wallet service provider in Nepal, to provide virtual training to 89 partners on operating mobile wallets and DFS. ● KISAN II partners developed 55 community videos to promote new technologies and best farming practices and disseminated these to 83,000 farmers (80% women). Adapting and Building Resilience during the COVID-19 Pandemic ● During lockdown, KISAN II facilitated sending seven technical- and market-related short message service (SMS) communications to over 100,000 farmers, in addition to virtual extension support and store-to-farm input delivery. ● KISAN II conducted a rapid market assessment to understand the impact of COVID-19 on agribusinesses and farmers, and also initiated a follow-on study (to be competed in the first trimester of Year 4) to examine COVID-19 impacts on subsistence and market systems resilience and the associated needs of women and DAGs. ● To help agribusiness partners operate safely, remotely, and within the restricted lockdown environment, KISAN II signed an MOU with eSewa to introduce digital financial and payment services to grantee partners and their customers. This will help reduce overheads and promote lean management while ensuring a safe operating environment during the COVID-19 pandemic. ● KISAN II is using MOUs to help address COVID-19 supply chain disruptions. KISAN II signed an MOU with agri-tech company DV Excellus to strengthen its digital vegetable sales platform, Kheti. Linkages to KISAN II cooperatives and traders will ensure secure and stable market access for Kheti. KISAN II is also enhancing Kheti’s supply side by establishing a vegetable storage unit, strengthening its management and supply system, and increasing its customer base. Similarly, KISAN II signed an MOU with food delivery service firm Foodmandu to support its new vertical Foodmandu Fresh service, which enables the company to collect and supply fresh produce based on customer demand. The project is linking Foodmandu with KISAN II cooperative and trader partners for the supply of reliable, fresh produce.

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INTRODUCTION The Feed the Future Nepal Knowledge-based Integrated Sustainable Agriculture in Nepal (KISAN) II is a five-year, USD 32.7 million project implemented by Winrock International in collaboration with three Nepali and two international organizations. The Nepali organizations are the Center for Environmental and Agricultural Policy, Research, Extension and Development (CEAPRED); the Development Project Service Center (DEPROSC); and Siddharth Inc. The two international subcontractors are Digital Green and Overseas Strategic Consulting, Ltd (OSC).

KISAN II contributes to the objectives of the Government of Nepal’s (GON’s) Agriculture Development Strategy (ADS) and the U.S. Government’s (USG’s) Feed the Future Initiative. The project has five components, implemented in its Zone of Influence (ZOI), which focus on:

● Strengthening relationships among input suppliers, millers, cooperatives, farmers, and buyers within selected value chains. Strengthened relationships promote better planning, transparency, and access to quality inputs, extension, and other services, thereby increasing yields and sales for farmers and firms (Components 1 and 2); ● Strengthening the enabling environment for market development by helping the GON engage the private sector in policy dialogues and by linking market actors to sources of finance (Component 3); ● Providing business literacy training to members of disadvantaged communities to enhance their ability to shift from subsistence to commercial agriculture (Component 4); and ● Creating a culture of continuous learning and improvement within the team and project partners (Component 5).

KISAN II uses a private-sector-led facilitative approach to identify and address constraints within key market systems. The result is strengthened and improved agriculture markets, improved value chain efficiency, and the ability to manage unexpected shocks. Focusing on five commodities—vegetables, rice, maize, lentils, and goats—KISAN II promotes the business case for buyers, intermediaries, and service providers to improve their business outcomes through more substantial engagement with producers and other value chain actors.

KISAN II works with multiple value chain actors to ensure farmers are food- and income-secure. The project partners with input suppliers, cooperatives, agrovets, traders, millers, and financial service providers. In addition, KISAN II provides select households with business literacy training to encourage vulnerable populations to participate in commercial agriculture. Lastly, KISAN II facilitates a business environment that enables participants to address critical market system constraints, reinforces KISAN II’s interventions, and enhances the reach and value of benefits to women, youth, and marginalized groups.

KEY OUTPUT LEVEL INDICATOR RESULTS During year 3 (Y3)—July 16, 2019 through July 15, 2020—KISAN II performed well against key output and outcome targets despite inconsistent rainfall and the COVID-19 pandemic-related national lockdown, both of which affected overall agri-input supply, production, and marketing activities for farmers and private sector partners. The following discussion compares output and outcome targets to achievements and includes key factors that affected the results.

To date, through 150 partnerships (146 grants and 4 strategic MOUs), KISAN II reached a total of 166,022 farming households with trainings, demonstrations, and other direct support provided by partners. Table 1 shows the project reach for household, farmer, and firm level indicators, including the

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performance against targets. (“K” numbers signify KISAN II indicators, while other numbers are Feed the Future indicators used for monitoring and evaluation). Table 2 presents partnership and farm household numbers, as well as grant information, such as value and cost share by type of organization.

Table 1. Y3 project reach at beneficiary and firm level FY20 FY20 Indicator No. Abbreviated Indicator Title % Target Result Households and Farmers K1 Number of farming households benefiting directly from 180,000 166,022 92 EG. 3-1 USG assistance a K2 Number of individuals (farmers, firms, and government) 198,250 179,111 90 EG.3-2 participating in KISAN II program b K3 Number of individuals trained, who have received short- 191,200 154,084 81 EG.3.2-1 term agriculture and food security training Firms K14 Number of firms receiving organizational development 200 243c 121 EG. 3.2-4 assistance K22 Number of financial intermediaries (cooperatives) serving 65 70 108 EG.4.2-2 poor households and microenterprises a A household benefits directly if it contains at least one individual who is a direct beneficiary. An individual is a direct beneficiary if s/he comes into direct contact with the set of interventions (goods or services) provided by the project activity. Individuals who receive training or benefit from activity-supported technical assistance or service provision are considered direct beneficiaries, as are those who receive a ration or another type of good. b These are participants of Feed the Future-funded programs, including those reached directly, those reached as part of a deliberate service strategy, and those participating in the markets the project is strengthening. c The 243 partner firms include 150 grantee partners, 64 sub-grantees of the grantee partners, and 29 strategic partners.

Table 2. Y3 cumulative partnerships, households, and grant details by type of organization Partner Household Grant Amount (USD) Grant % Partner of Firm Type % of Total Partner No. Target Actual % Cost Portfolio Total Value Average Share Value Cooperatives 65 43 74,865 70,987 97 1,382,220 21,265 1,398,613 40 Agrovet/Input 58 39 74,675 68,600 96 1,367,267 23,574 1,133,393 40 Suppliers Traders 12 8 11,900 11,686 106 209,567 17,464 196,296 6 Rice Mills 10 7 22,250 14,327 68 404,170 40,417 435,272 12 Goat Farms 5 3 4,000 422 16 85,805 17,161 82,528 2 Total 150 100 187,690 166,022 92.3 3,449,029 22,994 3,246,102 100

As shown in Table 1, 154,084 individuals participated in KISAN II-supported trainings and demonstrations, including business literacy trainings (K3). Of these, 75% were women, 20% were youths, and 10% were Dalits (Figure 2). Because of the lag between when partners formed farmer groups and when they conducted trainings and demonstrations, the number of individuals trained (K3) is lower than the number of individual project participants (K2) (see Table 1).

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99.7% 75.7% 80.3%

44.4% 37.5% 24.3% 19.7% 10.3% 1.1% 5.9%

0.2% 0.2% 0.8%

Male

Dalit

Newar

Janajati

Female

29)

Muslim

30 plus 30

Others

Producers

Brah/Chet

Youth(15-

Proprietors Governstaff

Figure 2. Number of individuals participating in USG food security programs

KEY OUTCOME LEVEL INDICATOR RESULTS Farm-level Yields KISAN II yields exceeded Y3 yield targets for rice, maize, lentils, vegetables and goat (Table 3). Contributing factors differed by commodity: favorable climatic conditions (rice); additional technical support from private sector partners (maize, lentils, and vegetables); high-yielding/ varieties (lentils and vegetables); and lack of intensive veterinary support from grantees (goats). Figure 3 compares Y3 vegetable targets and actuals to baseline and Y2 yields. Annex 6 (Performance Indicator Tracking Table) provides additional details on yields.

Table 3. Farm-level yields of targeted commodities Y3 Target Y3 Actual Indicator No. Commodity % (MT/ha) (MT/ha) Rice 4.97 5.28 106 Maize 3.27 4.04 123 EG.3-10 (Crops) Lentils 1.00 1.08 108 EG.3-12 (Goat) Vegetables 22.38 26.05 116 Goats 6.61 6.4 105

37.92 32.53 22.09 30.10 28.21 27.65 24.49 23.88 17.57 13.78

Tomato Cauliflower Cabbage Cucumber Bitter gourd Bottle Eggplant Chili pepper Onion French gourd Bean

Baseline (2018) Year 2 Actual Year 3 Target Year 3 Actual Yields shown in MT/ha

Figure 3. Y3 Vegetable Yields

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Farm-level Sales Overall, farm level sales exceeded Y3 targets by 55% (Table 4), despite the nationwide lockdown and its subsequent impacts on agricultural activities. Primarily, this is because the lockdown took effect on March 22, 2020, affecting only the final three months of the survey period. Further, the farmer and firm- level mitigation strategies outlined below helped maintain sales momentum, despite the lockdown. Commodity-specific factors also contributed to high sales: higher-than-projected prices (rice and lentils, especially in Hills, and goat meat), and a greater percentage of producers selling larger quantities of products than anticipated (maize, lentils, and vegetables). Annex 6 (Performance Indicator Tracking Table) provides additional details on sales.

Table 4. Farm-level annual sales

Indicator No. Commodity Y3 Target (USD) Y3 Actual (USD) %

Rice 11,719,871 17,216,944 147 Maize 1,520,340 3,405,239 224 K17 Lentils 549,389 2,039,258 371 EG. 3.2-26 Vegetables 81,436,160 124,764,749 153 Goats 79,121 512,825* 648 Total 95,383,088 147,774,158 155 * Includes value of meat/kids sold and breeding services.

The average sales per smallholder farming household increased by 71%. Maize, lentils, vegetables, and goats were all significant contributors to the overall sales increase (Table 5).

Table 5. Farm-level annual sales per smallholder farming household

Commodity Y3 Target (USD) Y3 Actual (USD) % Rice 319 320 100 Maize 60 104 173 Lentils 59 107 181 Vegetables 422 1,025 243 Goats 158 323 204 Total 596 1022 171

Firm-level Sales As shown in Table 6, firm level sales exceeded the Y3 target of USD 12.5 million by 128%. Of this, 64% (USD 15.9 USD) came from 26 small and medium enterprises, with the remainder from 154 microenterprises. Similarly, overall average sales per firm also exceeded the Y3 target by 66%.

Table 6. Firm-level sales No. of Firms Total Sales Firm Classification Y3 Target Y3 Actual Y3 Target Y3 Actual % (USD) (USD) (USD) (USD) Micro-enterprise 120 154 7,412,736 12,577,914 170 Small and medium 11 26 5,118,696 15,969,276 312 enterprise Total 131 1802 12,531,432 28,547,190 228

2 180 is the number of firms (as per FTF classification) who were contracted before January 1, 2020 and were included in annual survey (census universe).

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Access to Finance In Y3, KISAN II met its target for new agriculture financing-related partnerships (K23), although USG commitments and private sector investment (K27) decreased this year due to smaller grant sizes and associated cost-share amounts. The value of outstanding balances on agriculture loans (K26) was slightly under target in Y3 but is anticipated to rise in Y4 (Table 7).

Table 7. Finance and investment outcomes Indicator Indicator Title Y3 Target Y3 Actual % No. Total agriculture-related financing (USD) 31,404,860 46,639,065 149 Producer (smallholder) 28,569,600 30,728,777 108 K23 EG.3.2-27 Microenterprise: average per ME 1,563,500 2,922,182 187 Small and medium enterprise: average per 1,271,760 12,988,106 1,021 SME Value of new USG commitments and private 2,192,581 1,648,802 75 K27 sector investment EG.3.1-14 USG commitments 2,192,581 731,226 33 Private sector investment N/A 917,576 N/A K26 Value of the outstanding balance on EG.3.2-312- 18,119,500 17,197,058 95 agriculture loans of USG-assisted households CUST

Improved Management Practices and Technologies On the project’s Y3 farm survey, 100% of respondents said they had adopted at least one improved management practice or technology. The lower percentage shown in Table 8 for K4 is a result of the smaller size of the survey universe (144,855) than the 155,100 individuals targeted for applying improved management practices and technologies.3 The quantity of nutrient-rich vegetables kept aside for home consumption surpassed the Y3 target.

Table 8. Farmer adoption of improved management practices and technologies Indicator Indicator Title Y3 Target Y3 Actual % No. K4 Number of individuals who have applied improved 155,100 145,035 94 EG.3.2-24 management practices and technologies K41 Quantity of nutrient-rich value chain commodities set 13,076 13,561* 104 EG.3.3-11 aside home consumption (MT) * Versus Y2 actual of 3,646 MT.

Organizational Capacity Development Outcomes Census data for fiscal year 2020 suggests that firms are improving across all five capacity development domains—governance, general management, human resources, financial management, and sustainability—as shown in Figure 4.

3 In Y3, KISAN II’s annual farm survey included 144,855 farmers who were able to harvest at least one of the commodities promoted by KISAN II during the year. The survey methodology used a web-based computer aided telephonic interview (CATI) following World Bank’s ‘Survey Solution package.

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Governance General Management HR Financial Management Sustainability 90 90 77 75 81 80 68 71 66 72 65 63 59 51 42 25 26 30 18 22

Agrovet (98) Cooperative (61) Miller (7) Trader (13)

Figure 4. Average percentage improvement across five capacities by firm type

Inclusion Table 9 shows that KISAN II exceeded the Y3 target on women’s participation (K6) and met the target for youth access to productive resources (K7).4 The project nearly met its Y3 target of having 53% business leadership positions5 filled by women or members of vulnerable groups (K49).

Table 9. Inclusiveness indicators Y3 Y3 Indicator No. Indicator Title % Target Actual Percentage of participants in programs designed to increase access K6 GNDR-2 70 82 117 to productive economic resources who are female (unique) Percentage of participants in programs designed to increase access K7 YOUTH-3 15 15 100 to productive economic resources who are youth Percent of leadership positions in business management entities K49 DR.4.3-304- (firms) that are filled by a woman or member of a vulnerable 53 49 92 CUST group

Enabling Environment and Government Collaboration KISAN II met its Y3 targets for policy advocacy support (K28) and support for studies on investment feasibility (Table 10).

Table 10. KISAN II policy advocacy support Y3 Y3 Indicator No. Indicator Title % Target Actual Number of agricultural and nutritional enabling environment policies K28 analyzed, consulted on, drafted or revised, approved and implemented 3 3 100 EG.3.1-12 with USG assistance (two technical regulations and goat breeding strategy) 1) analysis and 2) stakeholder consultation 3) drafting. a K34 Number of investment feasibility studies, exposure tours, and/or EG.3.2-313- guidance documents produced that promote evidence-based local 5 5 100 CUST investment in market systems b a Includes: 1) Goat Breeding Strategy, 2) technical regulation on "Licensing and Registration of Food Businesses", and 3) technical regulation on "Import-Export Inspection and Certification of Food Products." b Includes: 1) Case study to support Narayan municipality, Dailekh, in making investment decision on cool chambers, 2) case study to support Bheri municipality, Jajarkot, in making investment decision on cool chambers, 3) feasibility study to support Panauti Municipality in making investment decision on vegetable marketing centers, 4) identifying constraints that limit women's engagement in agribusiness, and 5) goat artificial insemination (AI) manual.

4 Feed the Future access to productive resources includes only those who had access to finance. 5 Leadership positions are owner, chair, vice chair, treasurer, and secretary.

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Business Literacy Program KISAN II fell short of its target for entrepreneurial skills training (K36) due to the COVID-19 lockdown and restrictions for group activities (Table 11). For the same reason, the project did not meet its target for training in life skills (K37). However, the project met the targets for trainee competency testing (K39) and nearly met the target for the number of trainees who initiated or expanded sales of goods and service (K40).

Table 11. KISAN II Business Literacy Program indicators Y3 Y3 Indicator No. Indicator Title % Target Actual K36 Number of people trained in entrepreneurial skills 22,078 10,457 47 EG.3.2-305-CUST K37 Number of people trained in life skills through USG 20,146 0 0 EG.3.2-301-CUST supported programs K39 Percentage of business literacy trainees that pass a 90 90 100 EG.3.2-314-CUST competency test K40 Percentage of entrepreneurial literacy trainees who 90 86 93 EG.3.2-302-CUST initiate or expand sales of goods and services

Collaboration, Learning and Adaptation Collaboration, learning and adaptation (CLA) is a set of practices to improve development effectiveness. KISAN II systematically applies CLA approaches that enable market actors and stakeholders to learn from each other’s experiences and facilitate new ways of doing business that foster better relationships and outcomes. The top three indicators in Table 12 focus on a relatively small subset of CLA-related topics at the firm and farm level. The project nearly met the targets for the number of individuals trained on adaptive management and climate change adaptation (K42 and K45) and met the target for individuals taking risk-reducing actions (K46). Similarly, the organizational indicators on CLA (K44 and K50) exceeded Y3 targets, with strong results for K43.

Table 12. Collaboration, learning, and adaptation outputs Y3 Y3 Indicator No. Indicator Title % Target Actual Individual-level CLA indicators K42 Number of individuals who have received short-term training on 22,078 20,605 93 EG.3.2-1 adaptive management K45 Number of people trained in climate change adaptation supported by 55,448 51,516 93 EG.3.2 USG assistance Number of people using climate information or implementing risk- K46 reducing actions to improve resilience to climate change as 37,200 337,092 100 EG.11-6 supported by USG assistance Firm-level CLA indicators K43 Number of for-profit firms and organizations receiving USG EG.3.2-4 organizational assistance related to CLA or monitoring shocks and 80 76 95 Disaggregates stressors K44 Number of for-profit firms and organizations that have applied CLA EG.3.2-20 40 44 110 or have a mechanism in place for monitoring shocks and stressors Disaggregates K50 Number of microenterprises supported by USG assistance on 200 227 114 EG.5-3 agriculture and food security related development

Science, Technology, Innovation, and Research (STIR) KISAN II tracks a wide range of investments that respond to identified challenges. In Y2, KISAN II reported that cool chambers and zero energy for vegetable pre-cooling and storage were innovations

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supported through USG assistance. In Y3, three additional private sector traders replicated the cool chamber storage innovation. Also, in Y3, KISAN II observed that maize seed dryers, plastic mulching,6 and the rice mill model under STIR10 (Table 13) were taken up by 10 KISAN II rice milling partners.

Table 13. Science, technology, innovation, and research Y3 Y3 Indicator No. Indicator Title % Target Actual K47 Number of innovations supported through USG assistance 3 3 100 STIR 10 K48 Number of innovations supported USG assistance with 2 2 100 STIR 11 demonstrated uptake by public and or private sector

IMPACT OF COVID-19 In response to the COVID-19 pandemic, the GON issued a nationwide lockdown from March 22, 2020, through July 21, 2020, to protect its citizens and curb the spread of the disease. The lockdown imposed strict travel restrictions, limited public movement, and enforced the closure of non-essential businesses. These measures helped protect the population from disease exposure, but also drastically reduced economic activities and disrupted Nepal’s agricultural supply chains and market system, which affected various KISAN II project participants in different ways. Impact on Agribusinesses and Farmers Although the government eventually eased restrictions for agriculture-related activities, many agriculture sector actors faced challenges during the lockdown.7 The demand for fresh vegetables decreased because regular bulk consumers such as restaurants, hotels, educational institutions, and other non- essential businesses closed. Coupled with logistical and operational difficulties faced by vegetable traders, this reduced business and increased post-harvest losses for traders. As a result, traders are short on working capital and have been unable to make timely payments to farmers.

Lockdown travel restrictions hindered farmers from visiting local agrovets to buy necessary agri-inputs. With limited operating hours and restricted inter-district and -provincial movement, agrovets struggled to maintain their stock of agri-inputs from wholesalers and input suppliers. Logistical challenges led to a sharp rise in the cost of doing business and resulted in price increases for available agri-inputs, which put additional strain on farmers’ purchasing capacity.

During the lockdown, farmers could not easily access their savings or take loans from cooperatives. Many cooperatives reported significant increases in customer withdrawals; coupled with the logistical challenges associated with collecting loan repayments from members this threatened cooperatives’ liquidity. Rice mills faced barriers to market access including limited paddy stock, labor shortages, and logistical bottlenecks. Many goat farmers could not sell pure-bred kids for breeding, which forced them to rear goats for meat, skip a breeding season, or with low-quality stock. The economic impacts of COVID-19 appeared to be hardest on subsistence farmers and private sector business owners, especially women and those from disadvantaged groups (DAG). A KISAN II-led rapid market assessment on the impact of COVID-19 conducted early in trimester 3 of Y3 (Y3 T3) showed that the shock experienced by farmers during the subsequent lockdown led to low performance, both on the farm and market. Farmers from the DAG community suffered from reduced demand for their vegetables, falling prices, supply chain disruptions, local movement restrictions, and other forms of social disparities.

6 Farmers re-use plastic for two crop cycles and then sell it to recyclers. 7 The COVID-19 lockdown affected only the last three months of the KISAN II Y3 survey period. Although Y3 agricultural sales targets were affected minimally, longer-term impacts may be apparent during Y4 and onward.

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COVID-19 Adaptations Although many of KISAN II’s agribusiness partners took proactive steps to adapt to the changing business environment, others needed support to transition to a sustainable model. Together with government partners, KISAN II supported agribusinesses in adapting and responding to new constraints, ultimately enabling farmers to access the inputs and support needed to remain competitive during the crisis. KISAN II took steps to support the financial needs, resiliency, and access to inputs and information of agribusinesses and farmers. As described in more detail under the Update on Activity Implementation section, KISAN II:

● enabled agribusinesses to form strategic partnerships with financial institutions for new loans and facilitated digital payment platforms and e-wallets to help them stay competitive during lockdown; ● continued to build long-term resilience among agri-entrepreneurs through the Business Literacy Program and linked mills and wholesale agrovets with business development services to help them transition to more efficient post-COVID-19 operations; and ● ensured farmers’ reliable and safe access to valuable agri-inputs and technical support by helping agribusinesses implement innovative ways to reach customers without group-based activities. For example, KISAN II facilitated technical- and market-related short message services (SMS) to over 100,000 farmers, in addition to virtual outreach and store-to-farm input delivery.

Specific results from KISAN II’s rapid market assessment conducted in June 2020 on the impact of COVID-19 on specific crops, as well as farmers’ coping strategies, can be found in Annex 2. As a follow up to KISAN II’s rapid market assessment during Y3 T3, the project initiated a rapid assessment to examine COVID-19’s effects on women and DAG, to identify and learn from the challenges and opportunities these groups faced during the pandemic. The study focuses on three major domains: economic disruption, gender and social inclusion consequences, and market system resilience. KISAN II will complete data collection in Y4 T1 and will use the findings to tailor interventions to the unique needs of women and DAGs during Y4 T2 and T3. Migrant Returnees and Skillsets The COVID-19 pandemic has affected the economy worldwide, resulting in a massive loss of jobs and global remittances to developing countries. Globally, about 200 million migrant workers and their families have been affected.8 Nepal is the top recipient of remittances as a share of gross domestic product in South Asia, and ranks fifth (28.6%) among remittance-dependent economies worldwide.9 About 15–33% of Nepalese migrant workers are expected to lose their jobs and return to Nepal, straining the country’s ability to create job opportunities that match their skill sets. A study conducted by Samridhi Foundation found that about 77% of Nepal’s returnees are no longer willing to re-migrate abroad but have acquired skills at home or abroad (50% in agriculture, and others in driving, cooking, electric repair, carpentry, and masonry)10. KISAN II's annual monitoring survey indicates that 13% of the 144,855 targeted households have one or more family members who have returned or expect to return to Nepal, but only 4% of these have agriculture-related skills (Table 14). In Y4, KISAN II will join hands with GON and private sector actors to explore ways to involve qualified and interested returnees in agriculture and other agri-value chain activities.

8 https://www.ifad.org/en/web/latest/blog/asset/41969816 9 https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS?end=2018&locations=IN-LK-BD-NP-BT- MV&most_recent_year_desc=true&start=1975&view=chart 10 https://samriddhi.org/publications/

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Table 14. Acquired skills of migrant returnees in KISAN II households Migrant Returnees Expected to Return Total Acquired Skill Area No. of No. of No. of % % % Households Households Households Agriculture 425 4 709 17 1,134 8 Service sector (cooking, shop, 3,969 40 2,551 60 6,520 46 hotel etc.) Vocational skills (electrician, plumber, construction workers, 1,843 19 992 23 2,835 20 carpenters) General labor 1,701 17 3,118 0 4,819 12 Other skills 1,984 20 1,701 0 3,685 14 Total 9,922* 100 9,071** 100 18,993 100 *Number of Nepali households in which at least one household member has already returned from an overseas migrant job. **Number of Nepali households in which at least one household member is expected to return from an overseas migrant job.

UPDATE ON ACTIVITY IMPLEMENTATION Progress is reported by component activity and objective in this section, as outlined in KISAN II’s approved Y3 Annual Work Plan. The information presented reflects specific progress under each component during this reporting period. Detailed progress against each activity is illustrated in the Detailed Implementation Plan table in Annex 5.

Collaboration with Government of Nepal

KISAN II and its partners coordinate and collaborate closely with the GON at the federal, provincial, and municipal levels. The project also coordinates with two district-level organizations, the District Coordination Committee (DCC) and the District Chambers of Commerce and Industry (DCCI). This engagement enables KISAN II to update public sector organizations on project activities, garner support for implementation, and identify measures to integrate KISAN II’s successful models into GON programs. The project coordinates with GON through formal and informal meetings, joint monitoring visits, support of the Agricultural Development Strategy-Joint Sector Review (ADS-JSR) mechanism, and collaboration to solve technical issues.

Engaging Municipalities to Understand and Support Production, Marketing, and Irrigation (Activity CL.1) Partnering with Municipal Leaders to Accelerate Project Implementation (Activity CL.1) To deepen municipal leaders’ understanding of KISAN II's private-sector-led approach and facilitate smooth program implementation, the project and its partner firms hold municipal-level briefings and engage leaders through joint monitoring visits. KISAN II grantee partners also organize events to inform local municipal officials of activity progress and lessons learned, which helps garner municipal support to accelerate implementation. In Y3, KISAN II held 34 municipal-level briefings and discussions, 13 of which were carried out directly by private sector partners. Joint monitoring visits provide an opportunity for municipal-level officials, Agriculture Knowledge Centers (AKCs), and zone and super-zone representatives of the Prime Minister Agriculture Modernization Project (PMAMP) to observe field activity implementation and changes brought about by project interventions. These visits focus the attention of elected representatives and officials on the agriculture sector and its importance. Altogether, 46 joint monitoring visits were organized in Y3, 31 of which were conducted directly by private sector partners.

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Briefings and discussions with municipal officials, joint monitoring visits, and informal meetings have led to municipalities and other GON entities leveraging their resources to support production, marketing, improved technologies, mechanization, and irrigation-related activities carried out by KISAN II grantees. In Y3, these KISAN partners leveraged approximately NPR 15 million (USD 132,000) from local government to support agriculture activities, and additional support may be forthcoming. For example, in Y3, KISAN II supported case studies for Narayan and Bheri Municipalities on establishing cool chambers, and a feasibility study for Panauti Municipality to establish a vegetable market center. KISAN II shared study findings with all three municipalities, who expressed interest in funding the projects in FY 2020/21. KISAN II will follow up with the municipalities in Y4 T1 to support resource allocation and to facilitate the start of construction.

Mobilizing the Private Sector and Municipalities to Adapt Agribusinesses to COVID-19 During the first few weeks of the GON's national lockdown, municipalities were indecisive on how to support agricultural activities. KISAN II’s grantee partners were crucial in motivating local leadership (municipalities and wards) to facilitate marketing of agri-inputs and outputs. Grantees also supported municipalities to conduct regular agricultural activities (e.g., the distribution of subsidized materials, construction of plastic tunnels, and dissemination of virtual technical messages). In coordination with municipalities, Jagaruk Cooperative of Nuwakot and Bhandari Agrovet of Palpa opted for door-to-door vegetable sales to accommodate consumers limited by the strict lockdown. Similarly, in Banke, Bardiya, Kapilvastu, and Dang districts, KISAN II partners provided rice as in-kind support for municipalities’ food relief distribution. Acting on a request by of Kapilvastu, KISAN II conducted vegetable production training for farmers. maintaining social distancing and other safety measures.

Central-level Coordination Results in Collaborative Action (Activity CL.2.1) KISAN II coordinates with the federal government through two mechanisms, a Joint National Steering Committee (JNSC) and a Technical Committee (TC). To provide opportunities for strategic guidance and support during implementation and to monitor progress, a JNSC consisting of four USAID-funded projects—KISAN II, the Nepal Seed and Fertilizer Project (NSAF), Sustainable Action for Resilience and Food Security, and Promoting Agriculture, Health and Alternative Livelihoods—was formed with the Secretary of MOALD as the Chair. To address operational issues during program implementation, a separate TC for KISAN II was formed under the chairmanship of the Joint Secretary of Planning and Development Cooperation Coordination Division under MOALD. This year, two JNSC meetings and two TC meetings (of four planned TC meetings) were organized. KISAN facilitated an additional virtual meeting in June to obtain feedback on the project’s Y4 T1 work plan; this meeting included the TC chairperson and other senior officials from MOALD, Center for Crop Development and Agro- biodiversity Conservation (CCDABC), Department of Food Technology and Quality Control (DFTQC), and National Planning Commission.

Acting on decisions from the JNSC meeting in September 2019, KISAN II supported MOALD in developing PSE guidelines. Similarly, KISAN II collaborated with MOALD to start implementation of the Joint Rice Intervention Program (JRIP) to promote fine rice in six project districts in Terai regions. Please see the Component 2 section (page 13) for details.

Provincial-level Coordination Identifies Areas for Collaborative Action (Activity CL. 2.2) KISAN II coordinates with provincial-level organizations through formal and informal meetings, joint monitoring visits, and joint efforts to manage operational issues. At the province level, the project works with MOLMAC, national organizations that work at the sub-national level (e.g., the PMAMP’s zones and super-zones), other public sector organizations, and other development partner-supported projects. In Y3, KISAN II conducted four formal, five informal, and two virtual meetings with provincial MOLMACs,

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which were attended by relevant provincial-level organizations and municipalities. Decisions resulting from these engagements included supporting MOLMAC preparation of the Agriculture Development Plan (ADP), promoting mechanization, replicating business literacy classes, developing business cases for improved technologies, promoting market infrastructures, and expanding areas for maize and spring rice production. Guided by decisions made during provincial-level joint monitoring visits with KISAN II and USAID in Y3 T3, a Joint Technical Working Group that includes KISAN II was set up in all four provinces, to help facilitate and monitor performance Similarly, Bagmati Province is in the process of forming two new committees: a high-level agriculture development coordination committee, led by the Minister, and a multi-stakeholder implementation coordination committee, led by the Secretary. KISAN II will take part in both provincial committees. Other provincial-level collaborative actions planned for Y4 T1 include support to finalize the ADP of Bagmati Province, and replication of KISAN II's BLP training by Province 5 and Karnali Province.

KISAN II also conducted coordination meetings with 31 Agriculture Knowledge Centers (AKCs), the Veterinary Hospital and Livestock Services Expert Centers (VHLSEC), and PMAMP zones and super- zones. Through these meetings, KISAN II disseminated project extension materials—technical reports, briefs, manuals, leaflets, and brochures—to farmers. To showcase KISAN II activities, three joint monitoring visits were organized for government employees of Province 5, Karnali Province, and Sudurpaschim Province. The provincial officials committed to supporting farmers with successful spring rice production and marketing.

District-level Coordination Strengthens Collaborative Actions (CL.2.2.4 and 2.2.5) In Y3 T2, KISAN II held coordination meetings with six DCCs and seven DCCIs. Participating DCCs and DCCIs expressed interest in linking KISAN II beneficiaries, particularly vegetable producers, with nearby markets where they could sell produce. The project team also participated in provincial and district-level forums on minimizing damage from fall armyworms (FAW), contributed to FAW task force actions, organized FAW trainings, and installed lures in FAW-prone areas. The KISAN II team is working closely with public sector organizations such as the MOLMACs, AKCs, PMAMP zones and super-zones, Nepal Agricultural Research Council (NARC) stations, plant protection laboratories, and the Plant Quarantine and Pesticide Management Centre (PQPMC) to control FAW damage to rice in Banke and Bardiya districts.

Support for Joint Sector Reviews (Activity CL 3) The 2019 ADS-JSR recommended three actions;11 two are now completed and one is in the final stage. Similarly, seven of the 11 actions agreed from the 2019 annual ADS-JSR meeting were implemented and the remaining five are in different stages of progress, though delayed due to COVID-19 and the subsequent lockdown. Three ADS-JSR Technical Committee meetings were held this year, but preparatory work for the second annual ADS-JSR meeting has been postponed to October 2020 due to the pandemic. KISAN II supported the development of the 2020 annual ADS-JSR report, a shorter version of which was translated into Nepali and included in MOALD's Annual Progress Report FY2018/19. MOALD is taking steps towards institutionalizing the joint sector review mechanism and adopting the annual approach in the government system through a provision in the National Agriculture Policy, which is being revised in coordination with development partners.

11 (1) Assessment of ongoing agriculture projects' alignment and contribution to ADS, (2) ADS orientation to MOLMACs and selected municipalities, and (3) establishment of mechanisms for communication, coordination, and information flow among federal, provincial, and local governments.

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Component 2: Strengthen the Competitiveness, Resilience, and Inclusiveness of Selected Agriculture Market Systems

Opportunity Mapping Exercise Helps in New Partner Selection (Activity 2.0) To date, KISAN II has mapped a total of 3,814 organizations (Figure 5), which include most of the relevant agribusinesses in the ZOI. KISAN II used information from the maps to target and recruit new partners and to extend the project’s reach across the two ZOIs, including some less commercial, underserved areas and areas with high concentrations of disadvantaged groups (DAGs). In Y3, the project signed 32 new grant partnership agreements.

Cooperatives (Agri/ Multipurpose) 1,134 Agrovet 1,032 Financial Institutions 413 Vegetable Traders 371 Feed Processor and Millers 331 Farms and Grain Aggregators 205 Collection Center/Haat Bazaar 180 Machinery Suppliers 73 Insurance Company 46 Seed Company 16 Extension Service Provider 13 No. of mapped organizations

Figure 5. Types of private sector organizations mapped to date

Sub-objective 2.1: Strengthen the Organization and Coordination of Selected Market Systems

Join Forces with GON to Reduce Rice Imports (Activity 2.1) Nepal’s import of medium and fine rice varieties reached an all-time high in fiscal year 2018/19. Despite greater domestic rice production and an increased annual budget allocation in agriculture by GON, the import of milled rice to Nepal during the same period increased by 30 percent.12 KISAN II collaborated with MOALD to scale up and showcase the project’s rice mill model to help reduce the import of medium and fine rice varieties, increase fine rice production in Nepal, lower production and transaction costs, and contribute to import substitution. This joint initiative targeted the 2020 rice season (Box 2).

Eight KISAN II rice mills and three cooperative partners currently participate in the Joint Rice Intervention Program (JRIP) to demonstrate the impact of the rice mill model to local, provincial, and federal officials. The model demonstrates how partnerships among various rice value chain actors (rice mills, traders, machinery suppliers, agrovets, cooperatives, and farmers) can increase production and improve the processing and marketing of medium and fine rice varieties. Through JRIP, GON officials will increase their understanding of market systems development and prepare to replicate KISAN II's rice mill model. Specifically, JRIP will demonstrate the impact of the rice mill model, emphasizing how partnerships with various rice value chain actors can lead to increased production and improved processing and marketing of fine rice varieties. Through government replication of this model, Nepal can gradually reduce its dependency on rice imports to meet growing demand. Under JRIP, KISAN II

12 https://www.indexmundi.com/agriculture/?country=np&commodity=milled-rice&graph=imports

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partners have formed 315 farmer groups that Box 2. Joint Rice Intervention Program include 7,960 farming households and cover 3,786 ha Launches During 2020 Rice Season of land. This joint initiative between KISAN II and MOALD Identifying New Partnerships Across Value was launched at the start of the 2020 rice season (July/August), and includes 8 rice mills and 3 Chains (Activity 2.1.1) cooperatives targeting to reach 7,960 farmers with KISAN II uses cost-sharing grants to buy down risks improved rice production on nearly 4,000 ha. in six for private sector actors willing to pilot new Terai districts of Province 5 and Sudurpaschim business models for input supply, service provision, Province The goal of JRIP is to help reduce rice imports by increasing production and productivity of and commodity purchasing. To date, KISAN II has fine rice during the main and spring season. Both signed agreements with 150 private sector partners KISAN II and the GON earmarked funds for this (49 partnerships with women- and DAG-led purpose and are committed to using these resources businesses) through its Annual Program Statement. to successfully implement the program. JRIP also provides an opportunity for federal, provincial, and These partners target 187,690 farming households local government officials to increase their (75% headed by women). KISAN II received five understanding of the rice mill model and replicate it applications for modifications from current partners in the GON's regular program. to increase their household reach and approved the To complement JRIP’s core goals, KISAN II is proposal of Kasturi Cooperative from Jajarkot to collaborating with Cereal Systems Initiative for add 800 households. The remaining four applications South Asia to select existing service providers and are under negotiation. custom hire centers providing mechanization services in the JRIP intervention area. KISAN II will KISAN II also signed MOUs with 17 strategic then provide demand-based training on partners: banks and service providers to increase mechanization, to make service delivery more access to digital finance; cold storage manufacturers efficient and accessible for farmers. to enhance knowledge and awareness of available cold storage technologies; and the Department of Livestock Services (DOLS) to increase production and supply of quality buck semen and liquid nitrogen for breeding purposes. As described under the Effects of COVID-19 section (beginning on page 8), the nationwide lockdown impacted the agricultural sector heavily, as farmers had very limited access to agricultural inputs and were unable to sell their fresh produce. To support farmers of ZOI II, KISAN II partnered with Kheti, Foodmandu, and munaa— three digital food sales platforms—to link buyers with partner cooperatives and traders, and to link farmers to markets. KISAN II is supporting these firms to scale their business, increase their customer base, and source the required quantity, quality, and variety of vegetables they need directly from farmers.

In light of the growing demand for medium and fine rice in Nepal, KISAN II published a Request for Application (RFA) for rice millers interested in increased investment in domestic production, processing, and marketing of premium rice. As a result, KISAN II signed agreements with two additional rice mill partners this year, bringing the project total to 10.

Strengthening Vertical Linkages Among Actors (Activity 2.1.1) Developing vertical linkages13 is a key KISAN II intervention to connect agrarian households with end markets. KISAN II works closely with its partners to strengthen linkages and increase information flow between traders and farmers, enabling farmers to meet market demands. To that end, KISAN II conducted 132 meetings between traders, partners, and farmer groups in Y3. After a meeting in Salyan,

13 Vertical linkages are business relationships formed between actors working in different nodes of value/supply chain to enable higher efficiency in moving the product or service to the end market.

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lead farmers signed an agreement with trader partner Shanta Tarkari Pasal to produce 200 metric tons of vegetables per week from May through December 2020.

Building Capacity of Cooperatives Boosts Farmers’ Groups and Taps into Market Opportunities (Activity 2.1.2) KISAN II grantee partners provide formal training and technical backstopping to farmer groups to build technical and management capacities. Technical training covers a wide range of topics, such as nursery management; agronomic practices; integrated pest management (IPM) and nutrient management; post- harvest management; production of rice, maize, and lentils; and food safety and grading. In addition to individualized technical assistance, the project also conducts capacity-building training to help cooperative partners develop action plans and address emerging issues. During technical training, KISAN II trains grantees’ field staff on gender equality and social inclusion (GESI), enabling them to incorporate these principles during their interactions with farmers. In Y3, KISAN II selected 12–15 cooperative partners led by women and DAG to participate in a GESI-specific capacity building workshop to build leadership and economic empowerment skills, enabling them to help cooperatives serve women and DAG more effectively. Table 15 lists the KISAN II capacity-building activities conducted for partner cooperatives in Y3, including trainings, coaching, and information sharing:

Table 15. Y3 capacity-building activities for cooperatives No. of cooperatives Cluster Capacity-building Activities trained Agri-loan product development Business plan preparation Dang Cooperative education 4 Generation of internal resources Orientation on use of digital financial services (eSewa) Revision of statute as per new act Kailali Policy amendment 5 Business plan preparation Revision of statute as per new act Business plan preparation Surkhet Policy amendment 4 Internal auditing Wholesale loan documentation Operating guidelines preparation Kapilvastu Accounting 2 Cooperative education Business plan preparation Dadeldhura Policies amendment 5 Financial literacy Revision of statute as per new act Banke Business plan preparation 4 Cooperative members' charter preparation Policy revision/amendment Kathmandu Business plan preparation 6 Revision of statute as per new act All clusters Digital financing services to board of directors 21

Increasing Resilience of Vulnerable and Marginalized Groups through Technical Knowhow (Activity 2.1.3) KISAN II activities are designed to empower and link vulnerable and marginalized groups to markets. This year, the project trained partner firms to work actively with marginalized groups and acknowledge them as a viable customer base for their businesses. KISAN II developed and disseminated guidelines for integrating GESI norms into program activities to serve farmers within an inclusive market system, with

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priority given to the unique needs and roles of women and DAGs in program activities. KISAN II distributed booklets to staff and partners on the use of these guidelines.

The project has already observed a shift in partner firms’ willingness to treat vulnerable groups as potential clients that can expand their businesses. Mr. Samir Regmi, proprietor of Laxmi Agrovet in Surkhet, shared the following: "We are profit-oriented, but we didn't know about inclusive models. Learning from KISAN II, GESI interaction meeting held with KISAN II partner Laxmi Agrovet and staff. Photo credit: Ghan Bahadur Thapa for we have adopted an inclusive marketing model USAID to increase our sales." Since partnering with KISAN II, Laxmi Agrovet has increased overall sales by 18–20% by adopting more strategic and inclusive approaches that attract, expand, and retain a wider customer base. Approaches include discounts to group customers, links with municipalities for further support, and one-to-one technical visits to members. Of the 800 households this agrovet reaches, 70% are women, 30% are DAGs, and 10% are youth farmers.

Strengthened Horizontal Linkages to Optimize Market Systems (Activity 2.1.4) Horizontal linkages14 are also critical for a market system to sustain and thrive. Similarly placed actors can form alliances and share resources, optimizing operations and benefitting all members of the value chain. In the Dadeldhura and Kailali clusters, KISAN II facilitated six linkage and sales meetings among 132 value chain actors, enabling traders and collectors from nearby market points to share market demands with farmers and producer groups and purchase vegetables from farmers who meet market specifications. Similar discussions in Salyan helped improve market coordination, as traders were oriented on the importance of sharing a demand schedule with farmers. This encouraged market-led production and the adoption of post-harvest storage practices, such as zero energy cold storage to reduce post-harvest losses. Such linkage activities offered a platform for value chain actors to share individual experiences with supply chain management and to discuss possible collaboration to address inefficiencies in the vegetable supply chain.

Increasing AI to Boost Production and Income in the Goat Sector (Activity 2.1.5) Nearly half of all Nepali households rear goats, contributing about 21% to national meat production and 12% to the national livestock gross domestic product. Key constraints to growing the sector include the poor genetic makeup of current goat and the traditional breeding practices used by goat farmers. KISAN II is working closely with the GON to boost the country’s goat sector using artificial insemination (AI)—an important tool for Twin goat kids born in Kavrepalanchowk as a result of AI using 100% frozen Boer buck semen. Photo credit: introducing more productive goat breeds, such as Balaram Chaulagain for USAID

14 Horizontal linkages are business relationships formed between two actors working in the same node of the value/supply chain. The two actors pool resources to conduct mutually beneficial activities that also improve the overall performance of the value/supply chain.

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Boer. This year, KISAN II collaborated with MOALD’s AITC to provide two AI trainings to 31 participants—mostly experienced cattle and buffalo inseminators. The participants have since used AI on 322 goats with a 53% success rate. To complement the training, KISAN II developed an AI manual in collaboration with AITC, as well as two AI-related videos covering steps and procedures for AI technicians, and forage-based goat farming techniques for farmers. These videos are currently being reviewed by the National Livestock Breeding Office and AITC.

To date, KISAN II works with 15 grantee partners Box 3. Livestock Farm Uses Incentives to Build in the goat sector (Box 3). The partners are from Capacity of Breeding Service Providers eight districts and cover 6,850 households. In Y3, KISAN II is working through 15 partners in the KISAN II signed two strategic MOUs. One is with livestock and goat sector to strengthen Nepal’s goat the DOLS to increase the availability and supply of sector potential and productivity. diversified buck semen and to introduce an Hill Park Agriculture and Livestock Farm (HPALF) in American lineage of Boer buck. The second, with Banke is one such partner. In addition to building its Hester Biosciences Pvt. Ltd., aims to expand own goat breeding capacity by using highly productive Boer bucks, HPALF is building capacity for other distribution of a thermostable Peste des Petits in the area. With KISAN II support, HPALF 15 Ruminants (PPR) vaccine and feed supplements in uses an incentive-based approach to encourage 10 KISAN II’s ZOI, and to raise awareness on small breeding service providers to adopt improved improved goat husbandry and management breeding practices for their customers. HPALF offers practices. service providers a 50% discount on Boer bucks to kick-start their breeding businesses. It also has a buy- On the policy front, KISAN II supported MOALD back program, which exchanges non-Boer bucks over time to help maintain breed purity. to conduct a public–private-dialogue (PPD) on goat breeding. The dialogue included presentations by NARC, DOLS, and private sector partners on their experiences and challenges with goat breeding.

Sub-objective 2.2: Strengthen the Organization and Coordination of Selected Market Systems Exposure Visits and Sales Meetings Expand Business Networks (Activity 2.2.1) Because of poor production planning and management, farmers are often unable to supply vegetables that meet market demands. As a result, collectors, traders, and wholesalers have little incentive to establish linkages with farmers. To address this, KISAN II built the capacity of traders to communicate demand schedules with farmer groups and cooperatives. In the Banke cluster, the project organized exposure visits at regional vegetable markets in Attariya, Tikapur, Kohalpur, and Nepalgunj to enable the Bihani Madhyavarti Multipurpose Cooperative to meet and negotiate with vegetable marketing centers and establish better relationships to market members’ produce more effectively. Similarly, Rolpa KISAN II supported Swargadwari Agrovet to conduct four sales meetings with other agrovets, dealers, agents, and municipalities to expand their marketing and sales network. Such meetings also helped the agrovet establish a business relationship with Jaljala Seed Company Udhyog and Bageshwori Agrovet.

Sub-objective 2.3: Enhanced Financial Service Markets Serve Selected Market Systems Expanding SME Agribusiness Lending and Investment in Wholesale Loans (Activity 2.3.1) In response to an increasing demand for loans from members of KISAN II cooperative partners, the project is supporting partners to prepare the documents needed to apply for wholesale loans from larger financial institutions. As a result, six partner cooperatives accessed a total of NRs. 39.6 million (USD 330,000) in wholesale loans, which has helped them expand lending services to members. Additionally, KISAN II facilitated three virtual orientations to educate partners on the criteria and

15 PPR is a viral disease found in goats and sheep which can infect 90% of the herd and kill up to 70% of infected animals.

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documentation for wholesale loans, with technical support from RMDC Laghubitta Bittiya Sanstha, National Cooperative Bank Ltd., and Sana Kisan Laghubitta Bittiya Sanstha Ltd.

Branchless Banking through Agrovet Agents Picks Up Momentum (Activity 2.3.1.4) Until recently, farmers and traders in remote areas with high production potential lacked access to the banking and credit services required to start commercial farming and agri-businesses. KISAN II, through an MOU with Laxmi Bank, has piloted branchless banking (BLB) through three agrovet agents in Kavrepalanchowk, Dang, and Dadeldhura districts. These agrovets now serve more than 437 accounts and have collected deposits totaling NRs. 795,905 (USD 6,633) from farmers and disbursed four loans totaling NRs. 6 million (USD 50,041) this fiscal year. BLB is picking up momentum, with many beneficiaries adopting good financial saving practices. Two new partner agrovets were added as BLB agents in Y3 T2, and two more have applied to become agents. When the COVID-19 nationwide lockdown limited farmer access to agri-inputs, support, and financial services, BLB agents managed to keep their doors open and handle the increased demand for digital financial services, while implementing adequate safety precautions.

Introducing Insurance to Increase Resilience Among Partners and Its Members (Activity 2.3.1.5) Expanded lending services exposes cooperative partners to greater risks. To minimize these risks, KISAN II links cooperatives to insurance agencies. In Y3, KISAN II collaborated with Nepal Insurers' Association (NIA), an umbrella organization of Nepal’s insurance companies to hold a workshop for partner cooperatives on how to market and operate micro-insurance for farmers. In addition to helping farmers scale up commercial production, micro-insurance sales can provide cooperatives with a supplemental, sustainable income source. As a result of this workshop, seven cooperative partners have applied through NIA to provide insurance services through their own outlets. In addition, KISAN II organized a virtual insurance orientation with NIA and Shikhar and Sanima insurance companies to activate COVID-19 insurance for members and staff of three cooperatives. Following this orientation, KISAN II partner, Gangamala Cooperative in Surkhet collaborated with Everest Insurance to launch a COVID-19 insurance policy. The cooperative aims to enroll 7,000 members and has already registered 210. To facilitate this progress, KISAN II has integrated monitoring activities for insurance activities with NIA and other insurance companies into the project’s work plan.

Increasing Access to Loans through Linkages with Larger Financial Institutions (Activity 2.3.2) To increase access to rural credit, KISAN II organized a coordination meeting with four large financial institutions, including a commercial bank. As a result, 58 farmers accessed agri-loans valued at NRs. 6.8 million (USD 56,670) in Y3. KISAN II also built the financial management capacity of accountants from 19 partner cooperatives, enhancing their knowledge and skills related to bookkeeping. The cooperatives are now able to manage their accounts using prescribed formats that maintain transparency.

Spurring Increased Farming Investment with Interest-subsidized Agriculture Loans (Activity 2.3.1.2) KISAN II established a partnership with Sanima Bank in Y2 to provide easy access to interest-subsidized agriculture loans for eligible agribusinesses and agri-entrepreneurs. Through its private partners, KISAN II actively seeks eligible applicants for this type of loan and helps loan-seekers navigate the application process. This year, 12 individuals (one female) accessed a total of NRs. 16.3 million (USD 135,750) in loans, with 11 additional loans underway.

Promoting New Profit Centers through Cooperative Exposure Visits (Activity 2.3.2.2) Many cooperatives in Nepal run successful profit centers and generate additional revenue while providing services to their members. To understand and assess the viability of profit centers, in January

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2020 KISAN II organized exposure visits for 21 partner cooperatives to three successful cooperatives and microfinance institutions based in Syangja, Chitwan, and Nawalparasi. Drawing on its learning from the visit, Silsila Multipurpose Cooperative in Arghakhanchi opened an agrovet shop and collection center, and Kasturi Multipurpose Cooperative in Jajarkot is working toward this goal. The potential for additional revenue, which translates into higher savings, serves as an attractive incentive for cooperatives to continue providing these services to farmers, even after the KISAN II grant ends.

Increasing Savings by Individuals and Farmers (Activity 2.3.3) To ease quick access to financial services for farmers, KISAN II promotes savings and credit at the farmers’ group level. Part of KISAN II’s training of trainers (TOT) for grantee extension staff includes a session on increasing group savings and credit services. KISAN II also coaches cooperatives to increase their internal capital. This year, a total of 768 new farmer groups and 13,865 new farmer group members initiated group savings and credit activities. To date, a total of 1,105 groups and 20,268 members are engaged in group savings and credit activities. Group savings helps farmers access capital to purchase inputs.

Promoting and Using Digital Finance Presents New Service Line for Cooperatives (Activity 2.3.1.3) KISAN II MOU partner Prabhu Management offers its core banking solution at a discounted rate to partner cooperatives for error-free digital financing services (DFS). These include remittance services, digital payment and transfer of funds, SMS banking, and utility payments—all of which are especially critical during the COVID-19 pandemic. Of the 51 cooperatives with the interest and potential to adopt DFS, 11 now provide DFS, with 10 more in the negotiation stage and 20 in the documentation stage. By adopting DFS into their service offerings, partner cooperatives can increase membership, transactions, and trust, as well as reliability and ease of service delivery. During the nationwide lockdown, Prabhu Management oriented Gangamala Saving and Credit Cooperative (SACCO) on DFS and the use of digital conferencing platforms, so it could continue to provide technical backstopping support to its partners. As a result, the SACCO is now establishing contactless, secure digital services for its members.

In the current COVID-19 context, many KISAN II partners and farmers continue to face challenges accessing financial services due to social distancing rules, limited mobility, and shortened business hours. KISAN II has partnered with eSewa, the largest digital wallet service provider in Nepal, to build partners' capacity to operate mobile wallets and introduce DFS. This will help reduce overhead costs, while offering safer, minimal-contact payment options. A virtual training in June 2020, led by eSewa, enabled 89 interested KISAN II partners to learn about mobile wallet services and consider becoming official eSewa agents. Out of 13 interested partners, three agrovets have already signed up to become eSewa agents.

KISAN II Facilitates Dialogue to Help Safeguard Cooperatives During COVID-19 Crisis KISAN II organized a virtual meeting to develop strategies to mitigate COVID-19-related financial crises for cooperatives. Attended by 41 participants, the meeting was moderated by the deputy CEO of Sanakisan Laghu Bitta Bittiya Sanstha Ltd. (SKBBL). Technical presentations focused on challenges faced by cooperatives during lockdown and mitigation strategies by the National Cooperative Federation; government perspectives on actions to curb COVID-19 impacts (led by the Department of Cooperatives); measures to manage capital, preserve liquidity, and strengthen profit centers (led by the CEO of the Nepal Federation of Savings and Credit Cooperatives Union); and advice on accessing wholesale loans during COVID-19 (led by SKBBL). The discussion also covered key strategies to help safeguard cooperatives, such as increasing operational efficiency, maintaining liquidity, expanding into new businesses centers (such as agrovet, remittance, or insurance services), and the merger of

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interested cooperatives. KISAN II developed and shared a report detailing these strategies at the government, national organization, and cooperative levels.

Sub-objective 2.4: Enhanced Market Infrastructure and Other Services to Support Selected Market Systems Showcasing Successful Storage and Warehousing Technologies Aids Replication (Activity 2.4.1) KISAN II facilitated an exposure visit to a KISAN II-supported cold room facility in Surkhet for 27 grantee representatives from two clusters who plan to open cold chambers but have limited knowledge on cold chamber installation or operation. KISAN II also promoted zero-energy cooling chamber (ZECC) technologies to reduce post-harvest storage losses for small- and medium-size farmers and traders. To date, KISAN II has supported construction of three ZECCs; another seven were constructed by traders who witnessed the benefit of this cooling system. To increase awareness about ZECC among large wholesalers and retailers, KISAN II signed an MOU with New Siddhartha Refrigeration and conducted a workshop for 31 private actors in Kathmandu. The workshop included a technical presentation by a KISAN II grantee and client of New Siddhartha Refrigeration, Mr. Prabal Shahi, who shared his positive experience operating a cold room that paid for itself in just 1.5 years. After the workshop, Aatmanirbhar Cooperative installed a 50-metric-ton-capacity cold chamber with financial support from Bagmati Province, Panchkhal Municipality, and KISAN II.

Increasing Access to Mechanized Services for Improved Productivity (Activity 2.4.2) In Y3, KISAN II partners continued to promote agri-mechanization through numerous farmer-level demonstrations to increase access to equipment such as electric shellers, mini-tillers, reapers, threshers, and shallow tube wells. MOU partner Modern Agriculture Farm, a custom hiring farm in Bardiya, demonstrated the use of modern machinery for crop production and harvesting to farmers, including a seed drill for dry direct seeded rice, a laser land leveler for land reconsolidation and precision leveling, and a combine harvester to harvest rice, maize, and . Many KISAN II partners also received support from PMAMP to operate custom hiring centers offering mechanized equipment to member farmers.

A major constraint for maize producers is the lack of efficient drying technology. To address the issue, KISAN II signed an MOU with Krishi Tech Nepal Private Limited to promote and facilitate the adoption of improved grain drying technology. Krishi developed a mobile, portable grain dryer that can dry about 500 kgs of shelled maize in roughly three hours, and demonstrated its use in Banke, Makwanpur, Nuwakot, and Pyuthan. Following the demonstration, Krishi Tech is remodeling the dryer, adapting it from wood fire to electric, in order to make it more user-friendly. The adapted version is expected by early 2021, as delivery of raw materials into Nepal are delayed due to lockdown restrictions. Once the remodeled dryer is ready, Krishi Tech will conduct another round of demonstrations among cooperatives, agro-vets, and government agencies.

Promoting Adherence to Safer Post-harvest Standards for Better Prices (Activity 2.4.3) Despite the increasing demand for safer food in urban areas, consumers do not yet trust product labeling and are unwilling to pay premium prices for safe, quality products. Consequently, farmers as well as private sector actors are reluctant to invest in improved production, harvesting, and post-harvest practices. KISAN II signed an MOU with Safe Food Alliance Nepal (SFAN)16 to develop and implement voluntary guidelines to cover all major nodes along the supply chain, from production to marketing. These guidelines will be rolled out to the 15 SFAN members in Province 3, 70% of whom are producers,

16 SFAN is a non-profit sharing private organization which works for building credibility of agricultural products, promotes fair pricing and helps trade facilitation.

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to ensure the quality of vegetables remains intact as they move along the supply chain to consumers. The guidelines will enable SFAN to earn the trust of consumers and eventually enable farmers to benefit from product price differentiation. KISAN II also drafted a post-harvest manual for vegetables that could lead to price differentiation based on improved post-harvest management. KISAN II staff and selected grantees will be oriented on the postharvest guidelines in Y4.

Use of SMS Ensures Timely Information Dissemination to Farmers During Lockdown (Activity 2.4.4) In Nepal, farmers’ lack of access to timely technical knowledge directly impacts farm yields and incomes. KISAN II partnered with Laxmi Agrovet Center of Surkhet to pilot the dissemination of technical knowledge to 400 farmers through mass SMS in March 2020. This proved to be an important means of delivering timely technical assistance to farmers during the COVID-19 pandemic. KISAN II facilitated sending seven mass SMSs and four grantee-specific technical messages to over 100,000 farmers on behalf of private sector partners. As a result, farmers phoned partners to inquire about technical information and to order essential agri-inputs, helping to boost agrovet sales, despite limited operating hours during the lockdown.

Extending Business Development Services to Miller Partners (Activity 2.4.5) KISAN II is constantly building the capacity of partner firms to enhance their business, management, and governance approaches. A KISAN II partner analysis in Y3 showed that rice and feed millers understand the benefits of business development services better than other partner types. Despite this, most rice and feed millers face similar constraints to achieving transformational growth: weak organizational capacity among firms; low adoption of appropriate improved technologies and management practices; supply chain inefficiencies related to production volume, varietal selection, consistency, and quality; and insufficient storage and product aggregation. In June 2020, KISAN II published an RFP to provide consulting and mentoring services to millers interested in overcoming existing technical gaps and inefficiencies to develop their business growth strategies. The selected consulting firm will provide business development services to KISAN II miller partners in Y4.

Sub-objective 2.5: Expanded Trade in Domestic and Regional Markets to Support Agricultural Market Systems Development Deeper Look at Lentil Sector Reveals Systemic Weaknesses (Activity 2.5.1) Once a top global lentil producer, Nepal has fallen behind because it has not adapted its business to changing market demands. In Y3, KISAN II concluded a rapid assessment of the lentil sector in five districts, identifying major private sector actors, constraints, gaps, and opportunities for possible intervention. The three major constraints identified in the assessment include lack of adequate input supply, mechanization, and export promotion, although agronomy was also an important constraining factor. The study report will be finalized in Y4 and will guide KISAN II’s work with lentil processors to increase operational efficiency, strengthen the supply chain, and link them with farmers for technical support and market guarantees. The project plans to release an RFA in Y4 T1 targeting lentil value chain actors.

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Component 1: Improve the Productivity of Selected Agriculture Market Systems

Through its partners, KISAN II conducts trainings, demonstrations, and field days for farmer groups, encouraging them to adopt improved agricultural technologies and practices to enhance their crop productivity and income. KISAN II collaborates with other Feed the Future projects to identify the best technologies and management practices and integrate them into KISAN II’s training curriculum for farmers.

Sub-objective 1.1: Facilitate Intensification and Diversification of Male and Female Farmers and Socially Excluded Groups into Higher-Value Commodities Inclusive Technical Trainings to 122,000 Farmers Boosts Commercialization of High-Value Commodities (Activity 1.1.1) In Y3, KISAN II’s private sector partners formed 5,250 farmer groups, bringing the current total for the project to 6,520 farmer groups, comprising 184,590 farmers. In T3 alone, after an exemption from USAID and the easing of lockdown, partners formed 440 farmer groups, including 11,000 farmers (75% women). During Y3, 122,000 farmers benefited from trainings, demonstrations, and field days that helped them produce and market rice, maize, lentils, and high-value vegetables. KISAN II helps private sector partners ensure inclusivity by encouraging women to participate in farmers’ groups and by helping them develop as commercial and semi-commercial producers. KISAN II partners also facilitate linkages with buyers for sustainable income growth.

Sub-Objective 1.2: Strengthen the Capacity of Input Supply Systems to Deliver Timely and Affordable Productivity-Enhancing Technologies Empowering Agrovets to Better Serve Customers with Quality Inputs and Services (Activity 1.2.1) KISAN II works through wholesale and retail agrovets to improve farmer access to quality inputs. The project builds the capacity of agrovet extension workers through informal and formal trainings on commercial crop production. KISAN II also equips them with tools, methodologies, and approaches to deliver extension services more efficiently and effectively. This year, the project provided TOT to 68 new private sector extension staff, and refresher training to 210 existing extension staff, all while integrating inclusive approaches. The training uses a practical approach that combines field work and discussion to enhance the learning experience, empower participants, and facilitate sharing. Participants gained technical knowledge and confidence to tackle issues related to crop and vegetable production and management. KISAN II did not conduct TOTs in T3 because of COVID-19, however, KISAN II staff continued to provide coaching and mentoring to grantees virtually, through individual phone calls to discuss issues, or via Microsoft Teams for common topics with small groups.

The project also facilitated interactions between agrovets and farmers to further strengthen linkages between farmer groups and major agrovets in each cluster by sending information directly to farmers through SMS (see discussion on page 24 under Activity 2.4.4) on technical topics such as pest management and seed availability, and to provide operational information such as agrovets' business hours and delivery services for farmers. To ensure a smooth supply of rice and maize seeds, and pesticides needed for FAW management during the lockdown, KISAN II coordinated with AKCs and local government to link agrovets with seed companies.

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Enhancing Input Supply and Service Delivery to Farmers through Outreach Service (Activity 1.2.2) To date, 56 agrovet and 61 cooperative partners have used outreach services to provide 145,000 farmers with improved quality inputs and extension services. To strengthen input management and delivery systems, KISAN II linked cooperatives with agrovets, and linked retail and wholesale agrovets, enabling cooperatives and retail agrovets to supply necessary agri-inputs in bulk to farmers. In Y3, more than 20 cooperatives opened mini-outlets to supply agri-inputs, helping increase farmer access to quality inputs. For example, Aatmanirbhar Cooperative in Kavrepalanchowk strengthened its agro-outlet and inventory management system to improve agri-input supply.

In Y3, KISAN II encouraged agrovets and cooperatives to expand outreach services to suit their customers' needs. To address farmers’ plant and soil health issues, KISAN II’s private sector partners conducted mobile clinics in their communities, collaborating with AKCs, municipalities, and provincial- level laboratories. To date, 11 soil testing and 14 plant health events were held by private sector partners in six districts, with support from provincial-level soil testing and plant protection laboratories, reaching over 1,168 farmers. Government officers and technicians with knowledge on soil health and plant protection identified issues and provided plant protection advisory services to farmers at the community level. During the events, 1,500 soil samples, and 500 insect and disease samples were tested, providing farmers with immediate solutions to soil health and pest problems and improved insight on crop management. Offering such services in the community improves relationships between farmers and private sector partners, thereby boosting outlet sales.

Promoting IPM Practices Encourages Farmers to Adopt Safer Food Production Practices (Activity 1.2.3) In Y3, KISAN II trained 122 private sector extension staff (from 105 partners) on IPM; these participants disseminated IPM knowledge to their farmer groups. To promote the appropriate use of pesticides and to introduce alternatives to chemical pesticides, such as lures and botanical or organic pesticides, KISAN II private sector partners trained 31,291 farmers on IPM. Partners encouraged vegetable farmers to adopt IPM practices and technologies, such as bio-pesticides and pheromones for insect trapping, to enhance IPM technology demonstration by private sector staff in safe food production. In Dang, Siddhartha Agri Kavrepalanchowk. Photo credit: Balkrishna Shrestha for USAID Center installed FAW monitoring lures in 10 maize-growing areas to monitor pest populations and advise farmers about when to spray pesticides. KISAN II also coordinates regularly with the Feed the Future National Integrated Pest Management (FTFNIPM) project on IPM-related activities through trainings, workshops, and FAW task force meetings. As a result, a common FAW brochure was developed in close coordination with all USAID projects.

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Sub-Objective 1.3: Increase Adoption of Profitable, Productivity-Enhancing, and Climate- Smart Technologies by All Groups, Including Youth, Women, and Disadvantaged Groups Visual Materials Help Improve Farmers' Adoption of Technologies and Management Practices. (Activity 1.3.1) In response to the identified needs of farmers, KISAN II developed farmer-friendly extension materials on 20 improved agriculture technologies and management practices and distributed these materials through private sector partners. Beyond KISAN II, private sector partners may be able to continue accessing similar technical support from established cooperatives, such as BISCOL in Kavrepalanchowk, Udaydev in Kanchanpur, and Siddharth Agri-Center in Dang. Identified farmer needs included low productivity, crop protection, post-harvest management, packaging, safer use of pesticides, and storage grain pests. The materials, which are mostly pictorial, contain easy-to-follow instructions on cultivation and harvesting practices for targeted commodities and are in high demand by farmers. KISAN II shared the materials with USAID projects such as NSAF and FTFNIPM and used them extensively in the project’s Business Literacy Program. KISAN II also developed and disseminated FAW-related training materials in coordination with the National FAW Taskforce, and contributed to other FAW materials, including a factsheet to help farmers identify FAW and adopt timely, recommended management practices. Working with NSAF, KISAN II compiled best fertilizer application practices in rice, maize, tomato, and cauliflower, and will distribute related materials to farmers in Y4.

Transferring Agricultural Technologies Rapidly to More than 90,000 Farmers Using Locally Produced Videos (Activity 1.3.3) KISAN II private sector partners are expanding outreach, linkages, and overall business by adopting a video-based extension approach to educate farmers about their products and services. In Y3, KISAN II supported partner development of 55 community videos, which were presented to 90,931 farmers (80% women) using a discussion and recall method. Videos covered topics such as low plastic tunnel farming, post-harvest technology, market-led production, and AI in goats. The videos were used extensively in Business Literacy Program (BLP) trainings, reaching 10,038 participants (90% women) who have been learning and adopting technologies. The COVID-19 lockdown temporarily halted video presentations, but KISAN II tested alternative dissemination approaches, including mobile devices and social media platforms such as Facebook, Viber, and WhatsApp.

Scaling Up Best Technologies and Management Practices through Demonstrations, Field Days, and Exposure Visits (Activity 1.3.4) Targeted technology demonstrations are a proven Box 4. Increasing Maize Yield with a extension tool to increase farmer adoption of new Nepali Hybrid Variety technologies and management practices, and to increase KISAN II partner Siddhartha Agri Center from farmer demand for agri-inputs. In Y3, KISAN II partners Dang organized a demonstration of Rampur conducted 4,425 crop production and management Hybrid-10 maize variety for members of the demonstrations in lead farmers’ fields. Demonstrations Milijuli Farmers' group. Learning from the demonstration, farmers adopted improved focused on IPM technology, fine rice varieties, maize maize variety and farming practices that hybrid varieties, line sowing of lentils, super grain bags, increased maize yields from 3 MT seed drilling, plastic mulching, post-harvest technology, /ha up to 5.4 MT/ha. Pleased with the increased improved vegetable varieties, and balanced use of yield, the maize farmers plan to expand chemical fertilizers. KISAN II also conducted farmer field cultivation areas in the coming year. In addition, days in collaboration with private sector partners to KISAN II is coordinating with NSAF to source extend project learnings to a wider audience. To date, seed and promote this improved maize variety for the upcoming season. 669 field days (34 in Y3 T3) have helped scale up the adoption of technologies and improved practices and motivate farmers to shift to commercial farming

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(see Box 4). Cereal and vegetable crop demonstrations, attended by 16,725 farmers (70% females), were held at different stages of the crop cycle, allowing farmers to discuss the pros and cons of the demonstrated technologies. The grantee extension workers conducting the demonstrations used KISAN II GESI guidelines to help them communicate effectively with women, DAGs, and semi-literate and illiterate farmers.

Access to Irrigation Boosts Commercialization of High-Value Commodities (Activity 1.3.5) Access to irrigation is critical for scaling up commercial Box 5. Municipal Support Creates vegetable farming for year-round production. In Y3, Enabling Environment for Commercial KISAN II accelerated its irrigation program by mobilizing Vegetable Farming irrigation technicians and extending irrigation support to KISAN II partner Tharu Agrovet Center, in farmer groups, prioritizing women and DAGs. Private Bardiya, signed an MOU with Thakur Baba Municipality to install nine shallow tube wells sector partners implemented 42% (106) of the 251 with electric motors valued at NRs. 700,000 irrigation schemes installed this year. Installations (USD 5,833) for three farmer groups. After benefited 3,593 farming households across 20 districts completing installation, which was monitored and helped irrigate 589 hectares of land. In T3 alone, by the municipality, the agrovet’s extension KISAN II completed 136 irrigation schemes, 54% (74) of workers began providing technical support to farmers for high-value vegetable cultivation. which were implemented by partners. KISAN II After observing the agrovet’s work with collaborated with municipalities, the PMAMP, and farmers, the Mayor and Deputy Mayor of organizations such as Plan Nepal, to leverage resources Thakur Baba decided to support additional (see Box 5). Y3’s total irrigation contributions of NRs. irrigation schemes through Tharu Agrovet. As a result, local farmers have been motivated to 32,093,027 (USD 267,442) included 38% from expand their vegetable production areas. communities, 22% from the GON, 5% from other institutions, and 35% from KISAN II (Figure 6).

5%

22% Communities 38% KISAN II Government Other Institutions

35%

Figure 6. Resource leverage for KISAN II-supported irrigation schemes

Identifying High-Yield and Climate-Resilient Seed Varieties through Collaboration with NSAF In Y3, KISAN II coordinated with NSAF to establish 15 lentil varietal demonstrations in Banke and Bardiya districts. These demonstrations, conducted by KISAN II rice mill partners, included new lentil varieties (Khajura-3, Khajura-4 and black lentil) that are rich in zinc and iron and are tolerant to fusarium wilt and stemphylium blight diseases. The black lentil variety performed best despite poor weather conditions, highlighting its potential for climate resilience. Further coordination with NSAF linked a NSAF-supported seed company, GATE Nepal, with the KISAN II-supported Jaljala Agriculture Cooperative for seed production of the new lentil variety. The collaboration aim was to produce large quantities of black lentil seeds and make them available to farmers. Black lentils were planted on 0.5 ha

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of land and the cooperative harvested 250 kg of seeds, which are being safely stored for next year's planting season.

KISAN II also coordinated with NSAF to promote the Rampur Hybrid-10 maize variety. NSAF provided 27 sets of the variety, which were planted in Banke, Bardiya, and Dang districts for demonstration. The performance was excellent, yielding an average of 5.4 metric tons per hectare. KISAN II will promote the new variety for the upcoming maize growing season and link its agrovet partners with NSAF's seed companies. Similarly, rice millers in Banke conducted six varietal demonstrations of rice, including high- yielding and stress-tolerant varieties (e.g., Hardinath-3 and Bahuguni-2).

Joining Hands to Combat Fall Armyworm and Locusts KISAN II participates regularly in technical meetings conducted by USAID's FAW Task Force committee based in Kathmandu. During the third trimester of Y3, KISAN II participated in a virtual training conducted by Farmer-to-Farmer experts, who provided the latest knowledge and skills on FAW management. KISAN II organized two TOTs on FAW identification and management in November 2019 for 80 GON personnel and implementing partners in collaboration with the Directorate of Agriculture Development of Karnali and Sudurpaschim Provinces in Surkhet and Dhangadhi. KISAN II works closely with FTFNIPM and NSAF to monitor and manage FAW and participated in a virtual meeting on the safe use of pesticides, conducted by FTFNIPM.

During a virtual meeting in July 2020, the FAW Task Force committee discussed the current status of FAW and the recently arrived desert locust, including action plans for both. Despite locust occurrences in many Feed the Future ZOI districts, actual crop damage and loss was not significant, except for some damage to the maize crop in Dang and Pyuthan districts. Nevertheless, the projects will remain alert and ready to combat locusts as needed. Participants agreed to mobilize the existing Feed the Future FAW Task Force committee for locust surveillance, coordination, and management at both federal and provincial levels, and to develop a fact sheet based on PQPMC's materials. Agrovets and pesticide suppliers will supply recommended pesticides and suitable sprayers, including readily available biopesticide (metarhizium with a neem base solution). KISAN II developed a locust management-related SMS and disseminated it to more than 100,000 farmers.

Component 3: Strengthen the Enabling Environment of Selected Agriculture Market Systems

To strengthen the enabling environment for selected agricultural market systems, KISAN II coordinates with public sector organizations at the federal, provincial, and municipal levels and with private sector organizations, such as the Association of Nepalese Rice, Oil and Pulses Industries (ANROPI) and the Federation of Women Entrepreneurs' Association of Nepal (FWEAN).

Sub-objective 3.1: Build Capacity for Streamlining, Harmonizing, and Coordinating GON Policies and Regulations Fostering an Enabling Environment for Agribusiness by Supporting the MOALD Policy Agenda (Activity 3.1.1) KISAN II, in coordination with the MOALD DFTQC, engaged a subcontractor to draft two technical regulations related to licensing and registration of food businesses and import-export inspection and certification. Both regulations are required for effective implementation of food laws that align with international best practices. KISAN II submitted the draft regulations to DFTQC for further discussion

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in the TC. The TC meetings and PPD to refine the draft regulations were delayed due to the COVID-19 lockdown, however, KISAN II is consulting with DFTQC on alternative online mechanisms to conduct the discussions.

In Y3, MOALD drafted the Agribusiness Promotion Bill, incorporating inputs from the Ministry of Law, Justice and Parliamentary Affairs, and the Ministry of Finance. Although the Bill has not yet been submitted to the Council of Ministers for endorsement and registration in Parliament, KISAN II remains in regular communication with relevant MOALD officials. In the meantime, KISAN II selected a consultancy firm to help MOALD assess existing PSE in agribusiness and draft PSE guidelines. In a recent meeting, KISAN II learned that MOALD is drafting a new Agriculture Bill that will cover different sectors including agri-business promotion. As the content of the Agribusiness Promotion Bill is expected to be incorporated into the new Agriculture Bill, the PSE guidelines will now likely be aligned with the proposed Agriculture Bill. These guidelines, which should be completed in Y4 T1, will illustrate the roles and responsibilities of the private sector and will be designed to encourage new entrants into the agriculture sector. The KISAN II consultant is conducting a situational analysis, via desk review, of policy documents and reports, and interacting online with relevant stakeholders. Visits to seven provinces had been planned to interact with public sector officials at all three tiers of government and with private sector organizations, but these were postponed due to lockdown.

This year, to promote the goat sector and support standardization of quality goat breeding stock and meat quality, KISAN II collaborated with MOALD, DOLS, AITC, NARC, Nepal Agricultural Market Development Program, the SAHAJ project, and the Federal Goat Association Nepal, to conduct a series of goat working group meetings, a PPD on the goat breeding strategy, and two goat AI trainings. In addition, KISAN II finalized the Goat Breeding Strategy and Goat AI training manual, both of which are ready for wider circulation.

Engaging Private Sector in Policy Dialogue (Activity 3.1.2) KISAN II partnered with FWEAN in Y3 on an assessment to identify constraints that limit women’s engagement in agribusiness in Nepal. FWEAN conducted a PPD in December 2019 to obtain inputs from key government and private sector stakeholders. FWEAN is using the final study report and policy brief developed from the assessment as an advocacy tool with the Ministry of Finance and Ministry of Industry. Planners and policymakers at the federal and provincial levels are also using the report and policy brief, which are being circulated to officials, district chapter presidents, and development partners for practical application.

To promote favorable policies that boost investments in Nepal’s rice mills, KISAN II collaborated with ANROPI to conduct a rice mill survey and focus group discussions with rice millers in different parts of Nepal. KISAN II is finalizing the report and incorporating inputs from relevant stakeholders. Because of the lockdown, KISAN II postponed the planned evidence-based policy advocacy meeting with the GON to introduce policy reform measures needed to improve rice milling in Nepal. The meeting is now planned for Y4 T1.

Sub-objective 3.2: Improve Investments, Management, and Governance (e.g. Standardization) of Infrastructure Menu of Proven Post-Harvest Technologies Drafted to Inform GON Program (Activity 3.2.1) In partnership with the Center for Agricultural Infrastructure Development and Mechanization Promotion, and the CCDABC, KISAN II developed a draft menu of proven technologies for rural grain storage and dryers. In addition to a list of small-scale drying equipment, the final menu, which will be finalized in Y4 T1, will include basic information to help farmers adopt the technologies.

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Rice Mill Study Conducted to Enhance Competitiveness of Nepal's Rice Milling Industry (Activity 3.2.2) In Y3, KISAN II commissioned a comprehensive survey and study of existing rice mills to identify key constraints faced by Nepali rice mills interested in upgrading and diversifying milling facilities. The results of this study will enhance the competitiveness of Nepal’s rice milling industry as it shifts to medium and fine rice milling. The selected consulting firm, in coordination with ANROPI, completed a survey of 100 rice mills, including 86 mills located in Nepal’s major grain belts, 10 closed mills, and 4 mills that border India. The draft report is underway and will be finalized after a validation workshop in Y4 T1. Findings, including key sector constraints and specific recommendations, will be used to strengthen KISAN II rice mills participating in the JRIP, jointly implemented with MOALD.

Targeted Training Builds Policy Analysis Capacity for Senior Officials (Activity 3.2.3.1) KISAN II facilitated a customized training on agricultural policy analysis in Hyderabad, India, with support from MANAGE India (formerly the National Institute of Agricultural Extension Management). Participants included 13 senior officials from the federal and provincial government (Box 6). Following positive response from the initial training, MOALD requested KISAN II’s support to organize a similar training in Kathmandu for other government officials, using previously trained officials as resource persons. KISAN II will coordinate with MOALD to develop a training plan in Y4 T2 for a possible training event in T3, depending on the state of the COVID-19 pandemic.

KISAN II Supports Municipal Planning Training (Activity 3.2.3.3) KISAN II collaborated with provincial ministries to plan two trainings on agriculture-related program Box 6. Policy Training for GON Officials – An Important Capacity Building Event planning, investing, monitoring, and evaluation to help In coordination with MOALD and USAID, KISAN local municipalities prepare annual plans and program II worked with MANAGE India to provide a budgets for the 2020/21 fiscal year. The trainings, tailor-made training on agriculture policy scheduled for April 2020, targeted elected formulation review and analysis. The MANAGE representatives and executives of 10 municipalities in India training was attended by participants from nine Asian and African countries, including a large Bagmati Province and Province 5. Because of majority from GON. After the training, the lockdown and restrictions on group programs, the MANAGE team commented that the Nepal trainings were first put on hold, and later cancelled. delegation’s participation was impressive in terms However, considering the importance of this type of level of understanding, knowledge, innovative training in building the capacity of GON officials, the thinking and commitment. The GON has been able to utilize the trained personnel in policy TC recommended during the June 2020 meeting that related works and plans to use learning from the KISAN II organize a similar type of training in Nepal training for future capacity building of GON in fiscal year 2020/21. officials.

Sub-objective 3.3: Improve Systems to Increase Quality of Selected Commodities Development of Industry-Driven Commodity Norms and Standards Joining Hands with SFAN to Promote Industry-Driven Commodity Norms and Standards (Activity 3.3.1) In Y3, KISAN II drafted commodity grading norms for six vegetables (capsicum, okra, broccoli, cauliflower, cabbage, and tomato). The norms aligned with international and regional quality grading practices and were shared with select vegetable producers and wholesale members of SFAN. KISAN II signed an MOU with SFAN to develop and implement a simpler, private-sector-friendly version of the guidelines to address key points in supply chains, including production, harvesting, post-harvest handling, and marketing.

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USAID Projects Jointly Promote Safe Food Practices (Activity 3.3.2) KISAN II is collaborating with Suaahara II to raise farmer awareness about farm-level food safety and gender equality considerations. KISAN II drafted food safety-related messages for Suaahara II to customize and broadcast through its radio program.

KISAN II also developed training content on food safety and grading for post-harvest management of vegetables, rice, and maize. This content will be disseminated through the BLP training for farmer groups. At MOALD’s request, KISAN II supported two government officials to participate in regional training on good agricultural practices (GAP) in South Asian countries. These officials now serve as resource persons for GAP trainings in Nepal.

Sub-objective 3.4: Support Local Government Agencies to Improve Investments in Support of Market System Development Successful Operation of Cooperative-led Cooling System Encourages GON to Replicate (Activity 3.4.1) KISAN II builds the capacity of local governments to invest in increased market access for farmers and increased adoption of private sector or cooperative-led models. After visiting elected officials of Narayan and Bheri Municipalities (of Dailekh and Jajarkot districts respectively), and AKC-Jajarkot, KISAN II interns developed case studies that analyzed the feasibility of cold rooms based on a KISAN II partner’s installed multi-chamber cold room in Surkhet. This study helped convince Narayani Municipality to support Kritidewal Multipurpose Cooperatives with the installation of a pre-cooling system.

Feasibility Study of Agriculture Market in Panauti Municipality Commissioned (Activity 3.4.1.1) In Y3, following a request from the mayor of Panauti Municipality and four partner cooperatives in Kavrepalanchowk district, KISAN II commissioned a feasibility study on the viability of developing an agricultural market in Panauti Municipality. KISAN II shared study findings with municipality officials and the Municipality now plans to allocate resources for developing a cold storage and vegetable market in fiscal year 2020/21. To maximize investment from different stakeholders, the municipality included a market plan in its policy and requested KISAN II’s assistance to procure funds and other technical services from MOLMAC in Bagmati Province. KISAN II is pursuing this request under the newly initiated provincial joint working group.

Provincial- and Municipal-level Consultations Support ADS Implementation (Activity 3.4.2) On the basis of decisions made at the ADS-JSR committee meeting in August 2019, KISAN II and European Union/Technical Assistance (EU/TA) agreed to implement four activities jointly to help MOALD achieve its ADS objectives. In joint meetings, KISAN II agreed to organize provincial- and municipal-level consultations and workshops in all provinces in its ZOI. EU/TA agreed to recruit planning and monitoring and evaluation (M&E) consultants to lead the development of planning guidelines, ADS, and a progress monitoring and reporting system for all three tiers of government.

EU/TA completed planning orientations with municipality officials at the provincial level just before the lockdown began. However, planned workshops/trainings at the municipality level were halted because of the lockdown.

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New Coordination Mechanisms Will Better Align Agricultural Priorities and Joint Action Plans (Activity 3.4.2) KISAN II supported a study in Y2 on strengthening agricultural linkages in the three tiers of government, with the aim of identifying better measures to link organizations in the agricultural sector with the current system of governance. MOALD has initiated several of the actions proposed in the study, including aligning federal and provincial policies, plans, and programs, resulting in such actions as the recently launched three-tier implementation of the JRIP. MOALD has begun the process of forming two coordination mechanisms to align federal and provincial policies, plans, and programs; one at the Ministerial level and one at the Secretary level. The agriculture ministers of all provincial governments and the federal government agreed to develop and implement joint action plans in priority areas of agriculture for fiscal year 2020/21, including programs under the National Food Security Mission and a COVID-19 recovery plan.

Component 4: Increase Vulnerable Communities Ability to Act on Business Opportunities within Selected Markets Systems

Many farmers in the KISAN II ZOI lack the business, marketing, financial, and technical skills needed to initiate or expand agri-enterprises. Under Component 4, KISAN II trains selected households from areas with high commercial agriculture potential, equipping them with the knowledge, skills, and confidence they need to sustainably integrate themselves into the market system, while simultaneously enhancing their business literacy skills. KISAN II offers two types of training packages in its Business Literacy Program. The long course program (5 modules, 10 months) targets 30,000 illiterate or semi-literate farmers. The short course program (1 module, 2 months) targets 40,000 literate participants.

Sub-objective 4.1: Enhance Literacy and Business Skills Collaboration and Field Testing Helps Finalize BLP Materials (Activity 4.1.1) In Y3, KISAN II developed three training modules for the Box 7. KISAN II’s Approach to Business Literacy Program—Module 3 (life skills), Module 4 Improving Business Literacy (entrepreneurship skills), and Module 5 (access to finance)—and Module 1: Literacy and Numeracy adapted these to emerging needs (see Box 7 for all modules). Module 2: Nutrition The project also conducted field testing of these modules with Module 3: Life Skills BLP trainees in seven districts with different literacy levels, Module 4: Entrepreneurship Skills geographies, genders, and ethnicities. To finalize the modules, Module 5: Access to Finance KISAN II consulted with MOALD, AITC, cooperatives, banks, Module 6: Business Development financial institutions, and other projects (e.g., Helvetas, Centre for Microfinance, Safer Migration Project, and Hamro Samman). KISAN II also updated its popular

Module 6 and finalized four facilitator guidebooks to support consistent implementation.

Screening Videos Encourages Adoption of Improved Technologies (Activity 4.1.1.8) To improve learning, KISAN II disseminated videos related to agri-technologies to 10,038 BLP participants (9,031 females, 4,739 DAG) from 459 locations. These videos educated trainees on topics such as market-led production plans, IPM technology, nursery management, soil treatment, post-harvest management, and agri- mechanization. Observing technology demonstrations through video has helped motivate the farmers to adopt improved technologies.

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Building Capacity of Trainers Helps Scale-up BLP Trainings (Activity 4.1.2) In Y3, KISAN II recruited 717 BLP trainers (the plan had been to recruit 1,172 trainers, but this was curtailed due to nationwide lockdown). The project organized 32 TOTs for nine senior master trainers, 64 master trainers, and 644 community trainers to deliver BLP short and long courses. The largest training for master trainers was in October 2019 in Nepalgunj and included 80 trainees implementing the long course in 23 KISAN II districts. Participants learned about Module 1 (literacy and numeracy), Module 2 (nutrition), facilitation skills, proper use of BLP participants during training classroom setting in Krishnapur-2, Kanchanpur in August 2019. Photo credit: Anita facilitator guidebooks, how to handle Singh Madai for USAID implementation issues, GESI norms and approach, and beneficiary registration. Post-test results following the training showed that participants' knowledge and confidence levels increased. Following these trainings, community trainers delivered BLP short course training to 10,457 participants (8,942 females, 3,288 youths) in 18 districts. To help resume BLP courses after the COVID-19-related lag, KISAN II organized an online refresher training for the short course in June 2020.

Engaging Private Sector Partners in Community-level BLP Trainings (Activity 4.1.3) KISAN II engages private sector partners to Box 8. Quote from BLP Participant manage community-level BLP using a standard Gita Thapa, BLP participant of short course from Palpa step-by-step process for identifying suitable sites, district says, as a result of the BLP course, "I believe in preparing logistics, initiating training, and commercial agriculture and I use the latest production reviewing and planning for future sessions. Some technologies to grow a variety of vegetables. I have partner agrovets at training sites have reported a reinvested income into mushroom cultivation and goat boost in sales as a result of increased demand for rearing, which has helped diversify my family’s income.” Gita’s husband, who worked overseas for 11 years, inputs and technologies from Module 6 added, "The positive change in my family’s financial status participants. was possible due to the KISAN II training. Our income from the last two years is equal to that of my past 11 KISAN II, in coordination with grantees, organized years. 1,000 community-level meetings involving 20,000 potential beneficiaries in September and October 2019. As a result, 946 locations from 23 districts were identified and finalized for the long course program. Out of the 20,674 individuals enrolled in the long course, 99.8% completed Module 1 and half of Module 2 before the COVID-19 related lockdown began in March 2020.

KISAN II also conducted two batches of the short course at 480 locations in 18 districts, with 10,457 graduates (8,942 females, 5,858 DAG) and only 13 dropouts. To date, the project has trained 18,760 individuals (15,850 females) in the short course, of which 16,937 (90%) passed the final exam (see Box 8 for a participant’s perspective). Additionally,

KISAN II coordinated with the local government at several training sites to provide agriculture inputs and tools to KISAN II participants. To promote commercial farming among participants, Shivaraj, , and Shitganga Municipalities provided equipment and inputs—including mini tillers, water

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pumps, spray tanks, plastic tunnels, and hybrid seeds—worth NRs. 871,220 (USD 7,260) to 414 BLP participants in in Y3.

After observing BLP trainings, MOLMACs in Karnali and Province 5 have indicated interest in replicating BLP's Module 6 training. As mutually agreed, KISAN II will provide technical assistance.

Component 5: Apply Collaboration, Learning and Adaptation to Market Systems Development

Collaboration, learning, and adaptation (CLA) permeates all KISAN II activities. In Y3, KISAN II gathered information and evidence to answer high-level learning questions, built the capacity of private sector organizations and staff to use adaptive management, and supported the use of CLA in building competitive, inclusive, and resilient agriculture market systems development. Consistent with CLA principles, KISAN II’s CLA activities are integrated into cluster, regional, and central-level events, facilitating a practice of continuous learning and improvement that improves program planning and implementation.

Mid-year Program Review Workshop to Plan Next Steps and Narrow Scope of Learning Objectives In January 2020, KISAN II organized a mid-year review and reflection workshop that included key cluster and central team members, and staff from Winrock International headquarters. The team reviewed Y3 mid-year program progress, discussed key challenges, and planned the next steps in project implementation. The team also reviewed KISAN II learning questions, resulting in a refreshed but narrowed scope of learning objectives.

Learning Agenda In Y3, KISAN II reviewed the 10 project learning questions (LQ) and developed a learning checklist to guide interviews and the collection of information needed to answer these questions. The following sections summarize responses to KISAN II’s learning questions.

Learning Questions on Competitiveness LQ 1: Which implementation business models lead to the best farmer outcomes in terms of yields and incomes? KISAN II implements different business models in partnership with market actors such as agrovets, cooperatives, traders, millers, and goat farmers. Y3 annual survey suggest that different models are effective for different commodities, as shown in Table 16.

Table 16. Y3 farmer yields and income by business model Vegetables Rice Maize Lentils Goats

Business Yield Incomea Yield Income Yield Income Yield Income Offtake Income Model (MT/ (USD) (MT/ (USD) (MT/ (USD) (MT/ (USD) rate (USD) Ha) Ha) Ha) Ha) (kg/ goat) Agrovet 26.2 1,070 5.3 313 4.2 116 1.1 95 7.32 345 Cooperative 6.12 25.7 947 5.1 277 3.8 80 1.0 65 318

Trader 27.1 1,231 5.0 269 3.9 182 n/a n/a n/a n/a Miller n/a n/a 5.4 438 n/a n/a 1.1 170 n/a n/a a Gross income (in USD), as per Y3 annual farm survey results. Income includes sales from commodities per household, without deducting the cost of production.

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Vegetables. Though yields are highest for the trader model (27.1 MT/ha), differences in farmers' yields among the business models are not significant. While the agrovet model supports vegetable farmers with necessary inputs, the trader model is associated with significantly higher annual incomes (USD 1,231) for vegetable farmers, likely because farmer income depends on both production and sales. Farmers working with traders are more likely to have higher sales because: 1) they sell a greater percentage of their produce to Members of Hajari farmers' group learning post-harvest the trader, who can provide relevant market grading practice during refresher training in Kanchanpur. Photo credit: Anup Bam for USAID information for production planning and timely decision-making, and 2) the trader can offer a better price if the farmer’s produce meets demand requirements.

Rice. Rice farmers who work with millers are better off than those who do not, both in terms of yields and incomes. Rice farmers working with millers had an average yield of 5.4 MT/ha and income of USD 438, comparatively higher than that of farmers working with agrovets, cooperatives, or traders. Farmers working with millers were able to sell 53% of their produce, while farmers working with agrovets, cooperatives and traders were able to sell only 42%, 44%, and 42% of their produce, respectively.

Maize. Though farmers working with agrovets had better yields for maize (4.2 MT/ha), the income for farmers associated with traders was 57% higher than those associated with agrovets and 128% higher than those associated with cooperatives. Maize farmers working with traders sold 42% of their produce, compared to maize farmers working with agrovets, who sold 44% of their produce.

Lentils. In the lentil sector, farmers working with rice millers17 and agrovets had the same yields (1.1 MT/ha), but those working with millers had greater income (79% more than agrovets and 162% more than cooperatives). Farmers working with millers and agrovets sold a higher percentage of their produce (70%) than farmers working with cooperatives (58%).

Goats. Goat farmers affiliated with agrovets had both higher yields (7.32 kg/goat) and higher incomes (USD 345) than farmers working with cooperatives. Goat farmers affiliated with agrovets had both higher yields (7.32 MT/hagoat) and higher incomes (USD 345) than farmers working with cooperatives.

In conclusion, model outcomes are commodity specific and should consider factors beyond yield and sales, such as household coverage, EcoRegion, area by households, price, etc., which will be further assessed and reported in Y4 T1. As of now, in the vegetable sector, KISAN II found that traders have the most impact on farmer incomes, given that income depends not only on increased production, but also on increased sales volume and price. In the rice and lentil sectors, millers helped farmers achieve higher yields and income. Similarly, traders boosted farmer income the most in case of maize, and agrovets in case of goat farmers.

LQ 2: How can adoption of post-harvest technologies and practices make enterprises (farmers and firms) more competitive?

17 Rice millers also process lentils. An RFA for lentil market actors, including lentil millers, will be released in Y4 T1.

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KISAN II promotes innovative post-harvest technologies to firms and farmers to help improve the quality of marketed products. Through this work, KISAN II has learned that although farmers in Nepal see little benefit in applying post-harvest practices, traders have a much greater incentive. A study carried out by KISAN II in July 2020 indicated that 95% of KISAN II farmers who participated in a post- harvest training or demonstration program gained some knowledge about post-harvest practices—such as cleaning, sorting, grading, and packaging—that could add value to their products. However, although 80% of surveyed farmers indicated that post-harvest practices gained them between NRs. 3–5 (USD 0.03–0.04) more per kg, 77% said that the extra money paid by traders for cleaned, graded, and sorted products is not enough to cover the cost of post-harvest practices, and therefore, is not cost effective. As traders often hold a monopoly in vegetable markets, farmers are compelled to sell their produce at whatever price is offered, even if the produce is graded. Nevertheless, 85% of farmers said they will continue to adopt basic post-harvest practices because the resulting products are easier to sell and lead to better linkages with traders, allowing farmers to reliably market vegetables, albeit at a minimum premium.

Fluctuations in vegetable prices are often associated with demand and supply. For example, during the rainy season the demand for tomatoes is high, but production is low, and traders buy Nepali tomatoes during this time without considering the quality. Most traders also import vegetables from India year- round, which makes Nepal-produced vegetables less competitive. With traders unwilling to pay premium prices for graded and cleaned Nepali vegetables, farmers are discouraged from adopting post- harvest practices. In contrast, most of the traders KISAN II works with are adopting sorting and grading practices. Generally, the price of clean and graded products is high, and consumers from urban cities (e.g., Pokhara, Butwal, and Kathmandu) will pay more for such products.

One promising post-harvest management technology is the low-cost cooling chamber, which helps retain the freshness of perishable commodities. KISAN II partner, Babu and Shahi traders, in Surkhet demonstrated that by using a cold chamber, perishable vegetables could be stored for up to one week and bring a good market price. Noting its advantages, neighboring traders have adopted the technology in Surkhet and some other districts.

LQ 3: How can irrigation be promoted through a private sector/commercial model? Lack of irrigation water is a frequently reported constraint by farmers in KISAN II’s annual farmer surveys and KISAN II has developed 491 irrigation schemes through private sector partners and local government investment to address this issue. The total contribution to KISAN II’s irrigation schemes to date is NRs. 55,758,750 (USD 486,569). Around 40% of this was financed directly by the project, 38% by municipalities or federal projects such as PMAMP, and 22% from farmers. In total, these schemes have benefited 6,866 households across 20 districts and irrigated 1,247 hectares of land. In Y2 and Y3, KISAN II adapted its irrigation strategy to facilitate more private sector investment by extending support to more commercial wards, with a 50% cost-share arrangement between the project and private sector partners.

Direct irrigation investment by the private sector has not gained traction, as many private sector partners view expensive irrigation facilities as a joint responsibility between government and communities. However, the private sector has promoted irrigation through linkages to local government, which has taken ownership in many communities. KISAN II has observed an increasing trend throughout KISAN II’s ZOI of municipalities investing local government funds into irrigation schemes within their communities. KISAN II concludes that investment in irrigation schemes often comes from multiple sources (i.e., public-private-community-development-partner partnerships). Promoting irrigation solely through a commercial model has not succeeded; leveraging the public

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sector’s demonstrated interest in supporting irrigation has proven a more viable option for improving farmers’ reliable access to irrigation facilities.

Learning questions on inclusiveness LQ 4: Will simple-to-follow, improved management practice training materials and “leave behinds” increase adoption rates among women and farmers from DAGs? A KISAN II analysis of technology adoption among women and disadvantaged farmers conducted in Y1 suggests that using visual aids, materials, and radio messages with simple and clear actions can promote improved practices among those groups. Consequently, the project developed and disseminated simple visual training materials, leaflets, videos, crop calendars, and business literacy manuals.

In July 2020, KISAN II conducted a quick phone survey to seven women and disadvantaged farmers from seven clusters, to better understand the general response to, and effectiveness of, the distributed materials. Four respondents said the materials were good for educated farmers, but somewhat difficult to understand for illiterate and semi-literate farmers, who needed help from their children, friends, or local Junior Technical Assistant to understand the information. Two farmers said the technical information on crop diseases and symptoms (which look similar in various stages), and pesticide names (which were listed in English) were difficult to retain. All respondents confirmed that the pictures used in the materials were easy to understand, as was the information conveyed on farming techniques, such as selecting improved seed, soil treatment, crop spacing, and seed treatments. Most respondents applied the new practices on their fields, citing the training materials as a helpful reference to recall what they learned in farmer trainings. The respondents agreed that the materials helped them apply new skills and technologies, and that they perceive this to have resulted in increased incomes.

KISAN II farmers have mixed literacy levels, and the project will continue to develop more pictorial- based materials and short community videos for farmers—especially women and DAG—with lower literacy levels. Since many depend on Junior Technical Assistants or field staff to comprehend and apply information in the materials, KISAN II will continue to build the capacity of those field staff on inclusiveness, effective communication, and group facilitation skills.

LQ 5: What adaptations to our approach—coaching/training/TA/grants—lead to higher adoption and greater income change among women, youth, and DAGs? Based on learnings from KISAN, KISAN II introduced field-based activities, such as on-site coaching, field trainings, demonstrations, videos, home visits by Junior Technical Assistants, and exposure visits to transfer knowledge on improved agriculture technologies to farmers. To gauge the effectiveness of these approaches at the field level, especially for women, youth, and DAGs, KISAN II conducted a rapid qualitative survey of seven women and DAG farmers from seven clusters who had participated in these types of extension activities.

Respondents agreed that most of the activities were effective in helping them learn new farming techniques. Their adoption and replication of practices was facilitated by observing and then applying techniques such as grading, packaging, and using new tools. All respondents said the skills and techniques learned through these field-based activities have enabled them to double their production compared to the previous season or harvest. “I used to earn NRs. 18,000 (USD 150) by selling bitter gourd grown on 0.03 hectares. By shifting to growing in three tunnels on the same land, I now earn NRs. 60,000 (USD 500),” said Ekrani Rani Rana, in Kanchanpur.

KISAN II partners’ field-based extension activities are particularly effective among women and DAG farmers, as they provide opportunities to see techniques firsthand combined with in-kind support, such as seeds and tools, which encourage farmers to adopt the practices. By scaling up field-based and

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demonstration-type activities, KISAN II partners not only motivate subsistence farmers to move toward commercial farming but also boost their own profits by engaging a solid customer base.

LQ 6: Does business literacy training combined with agriculture training increase the ability of vulnerable and DAG households to act on the right type of business opportunities? KISAN II's BLP training packages are customized to meet the needs of vulnerable and DAG households and help them transform from subsistence to at least semi-commercial farming—especially in terms of production scale and expanded market access. KISAN II conducted a mini-survey on farmer performance in Y3, which revealed that BLP-trained households outperformed non-BLP trained households in terms of land cultivation. BLP households increased cultivation by 743 square meters (33%), and non-BLP households with KISAN II technical training increased cultivation by 383 square meters (23%). Likewise, BLP households expanded produce sales more than non-BLP households: 14 BLP participants explored additional or new markets since partnering with KISAN II versus 12 non-BLP participants. Four of these BLP participants have expanded sales to outside districts, but none of the non-BLP participants have sold to other districts. However, in terms of annual sales, non-BLP participants realized a much larger increase (207%) than did BLP participants (68%). Thus, while BLP training may not help increase annual sales as much as technical training, the results seem to indicate that combined BLP and technical training offer the best results for vulnerable households.

Learning questions on resilience LQ 7: Do KISAN II private sector-led activities buffer or better equip farmers to cope with environmental, economic, and political shocks? KISAN II’s private sector-led activities are designed to strengthen the relationships among farmers and market actors and to ensure that farmers have access to market actors, such as financial institutions, agrovets, cooperatives, and millers. Project data shows that, at baseline, the average number of improved management practices and technologies (MPT) per household was 4.28 across all commodities. Y2 and Y3 annual survey results indicate average annual changes in the adoption of MPTs across all commodities of 81.07% and –18.45%, respectively. This includes a 26% increase in adoption of climate-smart technologies and practices in Y2 as compared to the baseline. The adoption of improved MPTs has led to a marked increase in yields (Table 17). The baseline average yield (metric tons/ha) of rice, maize, lentils, and vegetables was 3.49, 1.96, 0.55, and 9.39, respectively. The average year-on-year increase in yields across all commodities was 50.36% in Y2 and 58.04% in Y3. Improved access to markets enabled farmers to sell 55.84% of their produce across all KISAN II commodities in Y2 and 60% in Y3. The resulting increase in incomes helps provide farmers with the financial flexibility to withstand shocks and stresses.

Table 17. Improved management practices and technologies and yields by commodity Y2 Y3 Commodity Yield Yield MPTs Adopted MPTs Adopted (MT/ha) (MT/ha) Vegetables 11 15.83 6.76 26.33 Rice 11 4.26 7.01 5.2 Maize 6 2.25 6.20 3.97 Lentils 3 0.8 5.30 1.07 Average across commodities 7.75 5.79 6.32

KISAN II cooperative partners also contribute to developing farmer resilience by linking them to insurance products, such as micro-insurance and agriculture/livestock insurance, which protect farmers from sudden shocks and stresses and encourage commercial production. KISAN conducted an insurance

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orientation workshop in Y3 and seven KISAN II cooperative partners are in the process of receiving a corporate agency to operate micro-insurance, which will further expand financial services for farmers.

During the COVID-19 lockdown, farmers struggled to access agri-inputs and markets. KISAN II collected information from all active marketing agents and agrovets across the KISAN II ZOI, linking private actors with farmers in their working areas. In Sindhupalchowk, farmers accessed 20,000 packets of FAW pesticides through KISAN II partner, New Panch Pokhari Kirana Tatha Agrovet Centre. In Dang, 250 commercial farmers were linked to KISAN II trader partner, Lumbini Tarkari, which purchased about 20 MT of produce daily.

By strengthening linkages to local market actors who are permanently embedded in the market system, farmers can access inputs, insurance products, technical services, and marketing facilities—even during an unprecedented global pandemic. This continued access to services allows farmers to increase production and earn income, thus making them more resilient to shocks and stresses.

LQ 8: Does market-led production planning lead to better farmer incomes and enable farmers to withstand market price fluctuation better? KISAN II found that market-led production Box 9. Market-Led Production Earns Premium helps farmers better plan their farm Returns for Farmers production, allowing them to withstand market Ram Belas Chaudhary, a member of the Hajari Farmers’ price fluctuations and maximize profits. Group in Kanchanpur, earned a net profit of NRs. 124,200 Adopting market-led production enables (USD 1,035) in one season after adopting market-led farmers to: 1) analyze price fluctuations and production. After analyzing the market data, Mr. Chaudhary saw the opportunity to maximize his profits by selling produce the right variety, quality, and quantity, bottle gourd in July-August when the price is at its as defined by traders; 2) stagger planting to premium. He took a loan of NRs. 60,000 (USD 500) and extend the harvest period; 3) increase their rented 0.2 hectares of land just to plant bottle gourd. With bargaining capacity; and 4) gain confidence to the right technologies, he managed to harvest a total of 10.2 MT, and traders gathered at his field to directly buy his increase their investment in vegetable farming produce. (see Box 9). “I did not have any problem selling my vegetables. Traders For example, by adopting market-led bought the vegetables from the field itself. I was able to increase production planning and shifting their my profits through this market led approach, by producing vegetables during off-period, when the market demand is high, production pattern by two months, farmers and the production is low." from the Likhu Kisan Krishak Samuha Farmers’ Group in Nuwakot doubled the price per kg for their produce. Farmers in the area usually plant cauliflower during October-November and harvest during December-January, earning about NRs. 30-40 (USD 0.25-0.3) per kg. After discussions with traders, the group realized that if they moved their harvest to September- October, coinciding with the Dashain festival, they could potentially double their prices.

Thus, with the right technical support, they KISAN II partner, Samjhauta Multipurpose Cooperative helped planted cauliflower in July-August, harvested it Ram Belas in Kanchanpur link with the local trader who visits his in September-October, and earned up to NRs. farm to collect the harvest if the volume is met as per the 80/kg (USD 0.70), encouraging them to further market demand and pays the premium price for the quality adopt market-led production. In Surkhet, the produces. Photo credit: Anup Bam for USAID Sunaulo Farmers’ Group used its link to a local trader in nearby Birendranagar to sustain vegetable sales

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during the COVID-19 crisis. Group member, Ms. Khagisara GC stated, “I earned more than before from vegetables during lockdown and received a premium price. I also supplied vegetables to a [COVID-19] quarantine site managed by Bheri Ganga Municipality. Now I realize that we can get premium prices for vegetable if we follow the market-led production plans.”

Learning questions on policy development LQ 9: How can KISAN II best build the capacity of local government units to increase municipality-level investment in an agriculture sector that responds to market and local farmer needs? Over the past three years, KISAN II has observed that engaging in continuous and close coordination with GON organizations at the federal, provincial, and municipal levels results in increased municipal investment in project activities and joint municipal activities with KISAN II grantees. The increased investment from the municipal governments is evident from the funding leveraged by these organizations for installing irrigation schemes. The latest estimate (as of June 2020) shows the amount leveraged by the local governments has been NRs. 4,066,727, compared to KISAN II’s investment equivalent of NRs. 4,291,878 (almost equal to co-investment) through grantees and direct project support.

KISAN II facilitates municipal leaders to engage in agriculture through municipal briefings on KISAN II’s private sector approach; joint monitoring visits; trainings for municipal officials on program planning; and discussions to showcase private sector partners’ contributions to strengthening value chain linkages. KISAN II also encourages private sector grantees to engage with local government to attract and leverage municipal support for agricultural growth. As a result, municipal governments have regularly co- financed KISAN II-supported irrigation schemes and contributed to production inputs and farm machinery for grantees' beneficiary farmers. They also contribute on the marketing side by co-financing small market infrastructure, such as collection centers, cold chambers, storage facilities, and provide material support to BLP beneficiaries. This is a part of a “pull strategy” through which grantees create business cases to attract investment from the municipalities. For example, Panuati municipality’s commitment to invest in market infrastructure building was triggered by the positive findings of a market feasibility study commissioned by KISAN II at the request of the municipality.

As a part of its “push strategy” to advocate for a market system approach and private sector led development model, KISAN II organizes regular joint meetings and field visits to showcase best practices; provides technical and program management training to municipal staff and elected representatives on how the private sector model works; shares local planning and monitoring tools; and offers program prioritization and resource mapping guidance. KISAN II builds the capacity of municipal officials to develop innovative and market-oriented programs in the agriculture sector by involving them in program planning, implementation, and M&E training. Most participating municipalities increase their agriculture budgets. For example, after participating in training, Shivaraj Municipality of Kapilvastu increased its investment in the agriculture sector and began inviting KISAN II staff to meetings to explore new activities for its annual programs. KISAN II partners’ technical support has been valuable, and many municipalities sustain close contact with KISAN II and grantee staff for help on allocating agriculture resources and developing and implementing programs.

Towards the end of Y3, KISAN II and MOALD developed a joint rice implementation program (JRIP). The program is implemented in 20 municipalities of six districts, requiring KISAN II staff to engage regularly with local government officials. For field level collaboration and monitoring, municipalities are designated as members of the JRIP working committee, led by MOLMAC, alongside KISAN II’s partner rice millers and cooperatives. This creates an opportunity for actors engaged in JRIP implementation to forge alliances and ensure complementarity with municipal-executed rice programs (such as those under National Food Security Mission, PMAMP, and COVID-19 Recovery Plan).

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Some municipalities within KISAN II ZOIs are interested in developing marketing infrastructure and requested case studies on successful models and feasibility studies from KISAN II to inform their investment decisions. On the basis of KISAN II studies carried out in Y3, Narayan Municipality in Dailekh and Bheri Municipality in Jajarkot committed to investing in multi-chamber cold rooms through local cooperatives. Similarly, Panauti Municipality of Kavrepalanchowk is developing wholesale markets with satellite collection centers, by integrating its own resources with that of other potential investors.

LQ 10: What are the grain storage options and modalities that would benefit farmers and be financially viable (sustainable)? Grain storage is a critical component of agriculture, as it provides ample benefits to farmers, including food security, quality assurance, post-harvest management and has income and health implications. KISAN II researched different grain storage options available and beneficial to farmers in Nepal and classified them into two types: traditional and modern. Traditional grain storage, popular among farmers for its low cost and ease of management, can store from 3.5–18 MT of grain and can be built to farmer specifications. Popular traditional grain storage options in Nepal include moda,18 munar,19 kothi,20 and madki.21 Modern grain storage options are integrated with technologies to ensure minimum post-harvest losses, health benefits, and higher incomes for farmers. Popular options among KISAN II partner cooperatives, rice millers, and feed millers include self-built silos, hermetic storage, community storage, and warehouses, which can store more than 50 MT of grains and cost about NRs. 2 million (USD 16,667). Farmers prefer traditional storage because of its low cost (NRs. 50,000 (USD 417) and easy management and access; however, farmers who use traditional storage options face high post-harvest losses due to high moisture, pest and rodent infestations, and limited aeration. In recent years, some farmers have adopted lower-cost modern grain storage options, such as hermetic bags, which cost a reasonable NR. 360 (USD 3) and are also durable and accessible. Many farmers remain reluctant to shift to modern technologies and community-managed warehouses because of the lack of policies, unclear benefits, high costs, and unskilled human resources and management systems. This prevents farmers from accessing improved grain storage that could improve grain quality and lead to premium prices

To introduce farmers to the benefits of modern grain storage and grain credit options, KISAN II initiated an inventory credit service among its partner cooperatives. The service encouraged farmers to access grain storage and loans by using grain as collateral. KISAN II approached 10 cooperatives to introduce the new service, but the cooperatives were reluctant to introduce it and were not confident that farmers would embrace inventory credit. After negotiations, Sana Kisan Krishi Sahakari Sanstha Limited agreed to introduce inventory credit to its members. Unfortunately, its members did not respond positively to the idea. The cooperative decided to introduce inventory credit on a small scale by establishing a warehouse with 25 MT capacity to store paddy, and to open credit line options to a small group of members. However, a 25 MT warehouse can serve only one to two farmers; at least 100 MT of storage capacity is needed for the inventory credit mechanism to function smoothly. Thus, KISAN II decided to not promote inventory credit through Sana Kisan Krishi Sahakari Sanstha Limited. Through the process, however, the KISAN II team realized that an inventory credit system requires a cooperative with the managerial, operational, and infrastructural capacity to scale the service and create confidence among its members.

18 A structure made from bamboo, mud, cow dung and hay. 19 Improved form of moda inside the house. 20 Storage room. 21 Pitcher made from mud to store grain.

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In Y4, KISAN II will identify partners to introduce business models for grain storage technologies. In the process, KISAN II will strengthen partners’ capacity—managerial, business, and infrastructure—to introduce concepts, such as warehouse receipts and inventory credit. In the meantime, KISAN II will continue to promote new grain storage technologies to farmers by highlighting potential benefits.

Sub-objective 5.1: Apply CLA to Advance Competitiveness Building GON Interest to Test and Scale Up Market System Development Approach (Activity 5.1.1) In Y3, KISAN II shared information about its objectives, private sector engagement, and market system development approach with government and private sector partners collaborating on Component 2 activities. The project incorporated sessions on market system development into all provincial-, district-, and municipal-level meetings, proving information on topics such as cost-benefit analysis and seasonality to farmers and KISAN II partner firms. A similar sharing meeting was organized for MOLMAC officials, who appreciated the joint agreement between their Ministry, the private sector, and KISAN II to test and scale up the market system development approach. In Province 5, MOLMAC emphasized its interest in working with KISAN II to learn more about market system development.

Review and Reporting Workshops Guide Grantees' Next Steps (Activity 5.1.4) During Y3, KISAN II organized 15 cluster-level pause and reflect workshops. The cluster team reviewed each grantee’s progress and performance, analyzed which activities went well and which did not, and made decisions on which activities to drop or amend. As a result, 51 grantees requested to amend their contracts with KISAN II.

Sub-objective 5.2: Apply CLA to Advance Inclusiveness GESI Mainstreaming Training to Enhance Gender Lens throughout Program (Activity 5.2.1) KISAN II selected a consultant to conduct a GESI mainstreaming workshop for senior management staff and field staff, but the workshop has been postponed until Y4 due to COVID-19. The main objective of the workshop is to enhance project staff and private sector partner (selected cooperatives and agrovets) understanding of GESI norms and constraints in agriculture business development, and thus improve gender and social inclusion integration and mainstreaming in KISAN II programming.

Review and Reflection Workshops Help Integrate GESI in Program Activities (Activity 5.2.3) All seven clusters conducted cluster-level review, reflection, and learning workshops in Y3 to review overall annual targets as well as each grantee’s progress and performance. During the workshops, the KISAN II team discussed issues related to inclusiveness and identified solutions to address key challenges for effective and timely implementation. Practical suggestions to improve inclusiveness included building understanding among private sector partners about GESI norms, providing additional discount rates for poor and vulnerable farmers, and seeking additional support from local government and municipalities for joint interventions for women and vulnerable communities. KISAN II will integrate these solutions into activities and conduct GESI mainstreaming training for business owners to help them realize that prioritizing women and DAGs—both as producers and customers—leads to a more sustainable business model in the long term. In Y4 T2, KISAN II will develop additional GESI tools and a checklist for private sector firms to ensure inclusiveness in their business strategies.

Engaging Directly with USAID and Other USAID Projects (Activity 5.2.2) During Y3, KISAN II coordinated and engaged with USAID and other USAID-funded projects on the activities described below.

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High-level visits allow USAID to see KISAN II achievements firsthand. In Y3, four high-level USAID teams visited KISAN II districts, observed program activities, and interacted with beneficiaries and private sector partners. The visiting team included:

● Kavrepalanchowk district: USAID Assistant to the Administrator and the Deputy Chief of Mission; ● Kavrepalanchowk district: USAID Assistant to the Administrator, Deputy Chief of Mission, USAID Nepal Acting Mission Director, Strengthening Entrepreneurship and Enterprise Development (SEED) Director, Feed the Future coordinator, Bureau of Resilience and Food Security team, and KISAN II Chief of Party; ● Sindhupalchowk and Kavrepalanchowk districts: Bureau of Resilience and Food Security team, USAID Development Outreach Communications representative and KISAN II Chief of Party; and ● Kavrepalanchowk district: U.S. congressional delegation and USAID Nepal team.

Coordination with USAID funded project results in facilitated collaboration. In Y3, the Banke and Surkhet clusters organized two meetings with other USAID projects. Kapilvastu, Dadeldhura, Surkhet, and Banke clusters participated in meetings organized by other implementing partners, including the Suaahara II project, NSAF project, Paani project, and the International Water Management Institute. During these meetings, implementing partners shared information about program activities and identified areas for collaboration. For instance, KISAN II collaborated with NSAF to conduct demonstrations of zinc- and iron-fortified lentil varieties and stress-tolerant rice varieties through KISAN II private sector partners. Similarly, following a partner meeting, KISAN II and Suaahara II agreed to enroll Suaahara II village model farmers into KISAN II BLP Module 6 trainings. Further, KISAN II shared training manuals, a vegetable directory, and informational flier to the Suaahara II team and village model farmers and provided technical support to Suaahara II farmers in overlapping districts. Additionally, KISAN II shared learnings on integrating GESI into IPM interventions with the FTFNIPM project and supported it in developing a survey questionnaire.

Linking with NSAF to develop toolkits, evaluate commodity performance, and for mapping exercise. During this reporting period, KISAN II collaborated with NSAF to develop and disseminate toolkits of best management practices on fertilizer use for rice, maize, cauliflower, and tomato. KISAN II also collaborated with NSAF and its seed company to evaluate the performance of rice and lentil varieties and identified high-yielding varieties for the next season (see Sub-objective 1.3 for details). KISAN II supported NSAF to conduct a mapping exercise on the COVID-19 pandemic's effect on agriculture by sharing information about agro-dealers and locations of FAW infestations.

Development partners jointly combat FAW and locusts. KISAN II, NSAF, and FTFNIPM met to discuss the current FAW status in 25 ZOI districts. The group also discussed a FAW survey and surveillance plan for the upcoming maize season and recognized an ongoing collaboration with the Food and Agriculture Organization (FAO)-FAW project, which is being implemented by PQPMC. KISAN II also collaborated with FTFNIPM to develop locust awareness and management related SMSs and disseminated them to more than 100,000 farmers, in response to the recent locust invasion experienced in the region. a

KISAN II adopts tested GESI tools from other USAID projects. KISAN II participates in USAID’s quarterly GESI Working Group meetings, organized to strengthen USAID’s GESI community of practice and make projects more gender-responsive and socially inclusive. During the COVID-19 crisis, the meetings shifted to bi-weekly frequency to enable participants to share programmatic experiences during the pandemic and discuss specific challenges faced by women and DAGs. Based on learnings from these meetings, KISAN II will adopt Suaahara II's GESI tools supporting women's leadership and training tools for field extension workers. KISAN II also initiated a dialogue with GESI focal points on the USAID

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Sajhedari and Civil Society: Mutual Accountability Project, to collaborate on support for women and DAGs in the COVID-19 response.

Grants Under Contract

The KISAN II grants program buys down partner grantees’ risk for testing new technologies, solutions, or working relationships, crucial elements for unlocking the transformational potential of selected agriculture market systems in KISAN II’s ZOI. The program seeks opportunities to engage women, youth, and disadvantaged groups by targeting them as project participants, working with women and DAG-led organizations. Private sector actors—rice millers, traders, cooperatives, wholesale agrovets, retail agrovets, goat farms, and others—invest a considerable amount of money and effort into the agriculture sector. Through partnerships with KISAN II, these actors can use grant support to implement activities that strengthen linkages between businesses and smallholder farmers. Local and provincial governments may also contribute resources to bolster partners’ activities.

KISAN II has received 448 concept papers from applicants to date, and signed agreements with 150 private sector partners. 22 The agreements are valued at USD 3.4 million; partner cost-share contributions of USD 3.2 million reflect a cost-sharing ratio of 52:38. Jointly, the 150 partners are expected to reach 187,690 farming households by the end of their performance periods. Figure 7 shows the breakdown of partners by type.

During Y3, KISAN II visited 146 grantees to monitor their implementation of grant activities and coach them on reporting. Given the impressive work done by existing private sector partners,

Goat Farms 5 Rice Mills 10 Traders 12 Agrovet/Input Suppliers 58 Cooperatives 65 Active partners by end of Y3 142 Total partners through Y3 150

Figure 7. KISAN II Y3 grant partnerships by type

USAID approved KISAN II’s request to increase the total Grants Under Contract budget from USD 3.5 million to USD 3.8 million.

22 150 partnerships include 146 grantees and 4 contributing MOU partners who provided extension services to local farmers and contributed to grant activities as private sector investment. The 150 partnerships include three new grant awards (approved in July 2020), two dropped partners, and two who ended in mid-2020. Four MOU partner agreements also ended this year, leaving 142 remaining active partners.

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Monitoring, Evaluation, and Learning (MEL)

Sub-objective 5.5: Apply CLA to M&E

Under KISAN II, monitoring and evaluation (M&E) serves multiple purposes and constituencies, including the overall project management, beneficiaries, external stakeholders, and USAID. While testing CLA techniques, data collection, and reporting, the project has evolved to meet programmatic needs and challenges. This process-based learning approach informed an improved monitoring method for data collection and supports the program team in making evidence-based program decisions. As shown in Table 18, KISAN II has identified learnings and adopted appropriate adaptive practices for better outcomes.

Table 18. Major learnings and adaptive management Major Learnings KISAN II's Adaptive Practices • KISAN II's facilitation approach and • Customized M&E system with web based WIKSAN 2.0. data private sector implementation makes management system. M&E and learning more complex. • Rolled out baseline survey of private sector partners and annual organizational census survey of partners whose agreement was signed before each December. • Frequent changes in customized data • Changed from paper-based data collection and data entry system to management system due to new ideas mobile application and web-browser, followed by data verification and from program or project innovation data cleaning by the call center, thus helping to create harmonized data poses a challenge. flow from grantees to the main server. • Private sector is reluctant to collect • Reduced data entry fields in Participant Enrolment Form (PEF) by 80% farm and socio-economic data of the and started collecting only key disaggregation information needed for households in general, specifically USAID reporting such as gender, age, and ethnicity. during the lockdown period. • Annual monitoring household survey • Developed process and protocols for web-based, computer-based by contracted private firm with web- telephonic interviews and conducted annual monitoring farm survey by based, computer-aided in-person phone, after agreement by USAID. interview was not possible during lockdown period.

The following are updates on the application of CLA to M&E activities conducted in Y3.

USAID Approves KISAN II's Updated MEL Plan (Activity 5.5.1) KISAN II updated its March 2018 version of the MEL Plan this year, incorporating recommended changes related to indicators, definitions, and counting. KISAN II conducted two consultative meetings with USAID to update the proposed changes and submitted the revised draft MEL plan to USAID on March16, 2020. The revised plan was approved by USAID on June 1, 2020.

KISAN II Regularly Improves Features and Publishes WIKISAN 2.0 (Activity 5.5.2) KISAN II conducts weekly online meeting with sub-contractor Pathways Private Ltd. for data cleaning and processing to ensure error-free reporting. To allow field staff to devote more time to mentor grantees, a short version of the Participant Enrolment Form (PEF) was developed and introduced in May 2020. To identify security vulnerabilities and software configuration, Winrock International conducted a Pentest23 of WIKISAN 2.0, and subsequently developed terms of reference (TOR) to address the

23 The Pentest method tests areas of weakness in the software systems (in terms of security) to determine if weak points might allow the system to be broken into.

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identified vulnerabilities. In Y4, Pathways Private Ltd. will suggest mitigation measures to rectify these vulnerabilities.

KISAN II Discontinued Use of DevResults (Activity 5.5.3) KISAN II discontinued using DevResults in 2020, as WIKISAN 2.0's data management system fulfills USAID requirements for data disaggregation.

KISAN II Conducts Virtual MEL Training (Activity 5.5.4) On the basis of guidance from the GON and USAID related to the COVID-19 pandemic, a planned internal MEL training for key program staff was conducted virtually through multiple video conference sessions in March 2020.

Field Staff Trained for Better Data Collection (Activity 5.5.5) To improve the data verification process and assist field staff in making corrections in WIKISAN 2.0, the KISAN II MEL team trained 102 participants from 12 districts in four clusters. The trainings covered common critical data collection issues and solutions. Following the training, participants committed to continue the data cleaning process with all grantees.

Incorporated Action Points for Data Quality Assessment (Activity 5.5.6) KISAN II implemented the action plan, incorporating recommendations from USAID's Data Quality Assessment (DQA) held in October 2019. USAID's DQA team recommended the following actions: 1) use USAID prescribed template to update KISAN II MEL plan, 2) help private sector grantees develop and maintain their financial record-keeping system, and 3) develop an action plan immediately following the P (performance) score assessment. By March 2020, KISAN II had updated its MEL Plan, provided 100 financial record-keeping trainings to grantees, and strengthened grantees’ capacity to prepare plans based on the previous year’s performance.

GIS Maps Improve Program Reviews and Updates (Activity 5.5.7) Based on program needs, KISAN II continued to update and share maps related to irrigation schemes, opportunity mapping, and grantee status. KISAN II started reporting activity location data by trimester in USAID Nepal’s common unified web GIS platform.

KISAN II Undertakes Annual Monitoring Farm Survey (Activity 5.5.8) Due to the lockdown, KISAN II developed a process and protocols for web- and computer-based telephonic interviews and conducted its annual monitoring farm survey by phone, as agreed by USAID. The survey measured progress on key program indicators related to production, consumption, and sales of targeted commodities.

Annual Organizational Census Survey Helps Measure Firm Level Outcomes (Activity 5.5.9) KISAN II collected information on the value of sales, access to credit, capital investment, and application of organizational-level management practices and technologies of the 180 eligible firms for the annual organization census survey and performance scoring. The results are reported in Annex 6 (Performance Indicator Tracking Table).

Regular Spots Checks and Internal DQA Enhance Data Quality (Activity 5.5.10) In Y3, the KISAN II MEL team supported all clusters to maintain data quality and enter results into WIKISAN. The team identified data errors and outliers in WIKISAN and shared information with clusters to rectify the errors.

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Updated Project Data Shared with USAID (Activity 5.5.11) KISAN II incorporated feedback from USAID and uploaded final values for 2019 performance indicator results into the Feed the Future Monitoring System. The project also shared its updated Performance Indicator Tracking Table with USAID.

Environmental Compliance (Activity 5.5.12) All project and grantee technical staff were oriented on KISAN II’s Environmental Management and Monitoring Plan (EMMP) and Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP). KISAN II reinforced the importance of safe environmental practices and safe pesticide use at all project events and trainings, in accordance with the approved PERSUAP and EMMP. KISAN II updated the EMMP and submitted it to USAID along with the work plan for Y4 T1.

Operational, Financial, and Communications Activities

During the first two trimesters of Y3, KISAN II activities were implemented near peak capacity. In the third trimester, however, KISAN II’s operations were severely affected by the COVID-19 pandemic, as the GON mandated a nationwide lockdown starting on March 22 and USAID issued a subsequent stop work order (SWO). At Winrock's request, USAID approved an exception to the SWO on March 27 and allowed KISAN II to continue extension services to farmers, facilitating output marketing, and supporting activities to maintain agri-input supply and irrigation-related work. Most project staff continued programmatic project support and desk work during the suspension period, in accordance with Winrock International’s telework policy; 21 support staff were on administrative leave. Field activities, supervision, monitoring, and reporting activities are expected to gain momentum since GON officially lifted the lockdown on July 21, 2020.

The GON eased the lockdown on June 11, 2020, and USAID cancelled the SWO on June 14. At first, only government offices, non-governmental organizations, and private offices were allowed to open, in two working shifts. KISAN II resumed work at the Kathmandu office, opening at 33%–50% capacity beginning July 14, in accordance with USAID’s approved post-lockdown risk mitigation plan. KISAN II will soon re-open its regional office in Nepalgunj and cluster offices, to ensure continued implementation of field activities.

Progress reports and bi-weekly updates submitted to USAID (OP.1). KISAN II developed and submitted the Y2 Annual Progress Report, Y3 First Trimester Report, and Y3 Second Trimester Report to USAID, all of which were approved by the COR. KISAN II also submitted 13 bi-weekly updates, and an updated Grants Under Contracts Manual to USAID this year.

Other communication highlights include the following:

● KISAN II wins third place in Feed the Future's 2020 Photo Contest. KISAN II submitted four photos for the 2020 Feed the Future Photo Contest. One placed third and another was acknowledged with an Honorable Mention. ● Success story published in Feed the Future's March newsletter. A KISAN II success story highlighting the project’s mechanization support to farmers was featured in Feed the Future's March 2020 newsletter, published in April 2020.

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● Submission to 2020 USAID Digital Development Awards. In early June 2020, KISAN II submitted an entry for the USAID 2020 Digital Development Awards. This award program recognizes activities that use digital technology to sustain open, secure, and inclusive digital ecosystems that improve measurable development and humanitarian-assistance outcomes. The submission highlighted KISAN’s Branchless Banking service, which partners with private banks to bring much-needed digital financial services to farmers’ doorsteps. KISAN II also developed a flier on ● the project’s Branchless Banking activity to showcase this work. Award winners have not yet been announced.

Fixed Price Subcontracts Issued (OP. 2) In Y3, the following subcontracts were issued, completed, or amended.

● Obligations for CEAPRED, DEPROSC, Digital Green, OSC, and Pathway Technologies and Services subcontracts were increased to implement Y3 activities. ● The Pathway Technologies and Services subcontract remained operational to maintain KISAN II’s WIKISAN2 M&E system, which will continue throughout the life of the project. Under a separate fixed price award, the subcontractor completed development and implementation of WIKISAN2.0 and continues to provide web hosting and operations and management support to KISAN II. ● MountDigit Technology, which was contracted to organize workshops/events and orientation programs on agriculture and agribusiness related policies in Provinces 3, 5, 6, and 7, completed its assignment. The final report has been submitted and approved by Winrock International. ● Full Bright Consultancy Pvt. Ltd. submitted its 2019 final report for the farmer survey assignment and began a computer-aided telephonic interview survey for the Y4 farmer survey in June 2020. ● Business Promotion Research and Communication Pvt. Ltd., which was subcontracted to conduct a landscape analysis of Nepal’s rice milling industry, submitted the final report for the study. The accompanying workshop, originally planned for February or March 2020, is now scheduled for Y4 T1. ● FWEAN was contracted to undertake a policy assessment, organize policy advocacy events for empowering and capacitating women agri-entrepreneurs, and make policy recommendations to GON for creating favorable enabling environments to attract women and other potential entrepreneurs in agribusiness. FWEAN has submitted the final report. ● NARMA Consultancy initiated its assignment of drafting PSE guidelines in May 2020. ● PACE Nepal Pvt. Ltd. was awarded a subcontract to provide technical support to develop food regulations for export-import inspection, certification of food and food products, and licensing and registration of food businesses. Winrock International approved the inception report submitted by PACE in February 2020.

New Staff Recruited and Trained (OP.4) During Y3, KISAN II recruited key positions, including Chief of Party and Deputy Chief of Party/Agriculture, and welcomed two new Cluster Business Managers (CBMs) and a Senior Communications and Outreach Manager. The project trained all staff on the Code of Conduct in June 2020.

Short-Term Technical Assistance Engaged During this year, KISAN II engaged short-term technical assistance (STTA) for technical assignments, including an internal DQA, feasibility assessment of vegetable wholesale market, study of wholesale and auction market, rapid assessment of the lentil sector, guidelines for vegetable pack house, and a training

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manual on AI in the goat sector. The project also acquired STTA support for technical guidance on a rice milling study, photography support, and developing project communications materials.

Standard Operating Procedures Updates Underway (Activity OP.6) The KISAN II employee handbook is being updated to comply with the GON Labor Act. In response to Winrock International's request, USAID approved a lump-sum payment for unused annual leave to each Cooperating Country National staff member.

Consultative Meetings Conducted (Activity OP.7) KISAN II conducts regular meetings with three tiers of governments, donors, and other Feed the Future projects to ensure collaboration, avoid duplication of efforts, and build synergies where possible. These stakeholders are invited to all sector-wide events and regular meetings are held to coordinate on multiple joint activities, especially in Components 1, 2 and 4. In January and March 2020, USAID and the KISAN II team traveled to four provincial capitals (Hetauda, Dhangadi, Surkhet and Butwal) and met with senior provincial GON officials from MOLMAC and the Planning Commission. During the meetings, both parties outlined key priorities and discussed and agreed on opportunities for partnership and collaboration.

Emergency Management Preparedness Documents Developed (Activity OP.8) KISAN II submitted its post-lockdown COVID-9 risk mitigation plan in May 2020, which was approved by USAID. The project also updated the security management handbook this year.

KISAN II Review and Annual Planning Workshops (Activity OP.10) Due to the unpredictable nature of COVID19-related restrictions and future effects, KISAN II requested USAID to allow submission of a Y4 T1 work plan. USAID approved the request and KISAN II conducted the work planning process virtually, including a series of discussions to draft Y4 T1 activities based on an analysis of Y3 achievements and active scenario planning. The team also discussed details, such as validation of interventions, assumptions, and potential innovations. KISAN II submitted the Y4 T1 work plan to USAID in June 2020 along with a coordination plan with GON, GESI plan, and EMMP; the work plan was approved by USAID on July 13, 2020. Annex 4 lists select activities to be undertaken in Y4 T1. The work plan for Y4 T2 and T3 will be submitted on October 16, 2020.

PARTNERSHIP, COLLABORATION, AND KNOWLEDGE SHARING KISAN II meets regularly with a wide range of organizations, including USAID partners, private sector representatives, associations, GON agencies and projects, other development partners, and civil society representatives and organizations. These meetings help inform KISAN II’s implementation. Below are highlights from key collaboration activities in Y3; these activities are discussed in more detail under Sub- objectives 1.3 and 5.2, above.

● KISAN II coordinated with NSAF project on the following: 1) lentil varietal demonstrations in Banke and Bardiya districts; 2) seed production activities for a new lentil variety; and 3) promotion of the Rampur Hybrid-10 maize variety. ● KISAN II attended a virtual meeting of the FAW Task Force on July 3, which covered the current field status of FAW and recent Desert Locust invasion An FTFNIPM expert also gave a presentation during KISAN II weekly staff meeting on the current status of FAW in Nepal and possible control measures to implement during the nationwide lockdown. ● The F2F program organized a two-day virtual training on FAW on May 22, 2020, for KISAN II senior level staff and cluster business managers. Participants discussed how other countries are managing FAW and a viable management strategy to control it in Nepal. A similar training was

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conducted on May 29, 2020, for field-level staff on the surveillance, identification, and management of FAW. ● The USAID SEED MEL Working Group—a platform for USAID and implementing partners to collaborate and share ideas, lessons learned, and challenges related to monitoring, evaluation and learning—organized a meeting in June 2020. The objective of the meeting was to share experiences and learn how different partners are monitoring field programs in the constrained operating environment due to COVID-19. KISAN II gave a presentation on how it is monitoring field activities and adopting technologies, such as telephonic surveys, to conduct its annual monitoring survey.

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ANNEXES Annex 1. Success Stories

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Upgrading from Coarse Rice to Premium Rice Pays Off Success Story Before 2019, Jiledar Tharu, a 42-year-old farmer from Nepal’s Banke district, cultivated coarse rice and lentils using traditional methods. His yields were low and, because he Helping Nepali rice millers lacked market linkages, he sold his meager rice harvest to intermediaries rather than

enable farmers to shift to high- directly to mills. Consequently, he lost about NRs. 3,000 (USD 25) per metric ton in value rice varieties profits. Jiledar’s lack of knowledge on how to cultivate fine rice varieties, access needed inputs, and link to market actors who would pay premium prices for high-quality rice caused him—and many farmers like him—to miss an opportunity to earn a better living. The USAID Knowledge-based Integrated Sustainable Agriculture in Nepal II (KISAN II) project works with 150 private agribusinesses, including 10 rice mills. These firms support 187,000 farming households with technical assistance to increase farm yields and incomes. In 2019, Jiledar joined the Laligurans Farmers’ Group formed by KISAN II partner Sunil

Rice Mill. Through this group, he learned the benefits of fine rice production and observed improved cultivation practices firsthand at demonstrations and farmer field days. Sunil

Rice Mill linked Jiledar to Gorkha Seed Company in Dang and GATE Nepal in Banke to Jiledar Tharu, a Nepali rice farmer, earns premium procure fine rice seeds. Jiledar began to cultivate fine rice on one hectare of land, while returns by selling fine rice varieties, after receiving continuing to cultivate one hectare of coarse rice. That year he realized a 42% increase in

for USAID training and technical guidance from KISAN II overall rice production from the previous year. Further, his direct link to the rice mill partner, Sunil Rice Mill. through the farmers’ group enabled him to cut out the middleman. As a result of the new

linkages and improved practices, he doubled his combined income from rice and lentils from NRs. 9,600 (USD 80) per month to NRs. 20,000 (USD 167) per month. Jiledar realized the benefits of shifting to fine rice. “I used to cultivate coarse rice using

Tuk Narayan Aryal traditional knowledge. Learning from Sunil Rice Mill, I started producing fine rice varieties using improved techniques. Now, I earn extra income due to both increased yield and premium price.” credit: credit:

s In June 2020, Jiledar skipped coarse rice altogether and planted 1.5 hectares of fine rice and 0.5 ha of medium-fine rice, knowing the pay-off would be worthwhile. With his Photo increased income, Jiledar purchased inputs to help expand his cultivated area and paid off

one-third of his children’s educational loan. The shift to fine rice production benefits mills as well as farmers. Mills prefer to source Sunil Rice Mill now sources 25% more fine and quality rice directly—and reliably—from local rice growers instead of from higher-priced medium-fine rice, which has increased the value of sales by 45%. intermediaries. Before partnering with KISAN II, Sunil Rice Mill purchased 70% of its rice from intermediaries - 75% coarse rice and 25% fine (and medium-fine) rice. This season, the mill increased its overall purchase of fine (and medium-fine) rice to 50%. As a result, its annual sales increased by 45%, from NRs. 87.5 million (USD 729,448) to NRs. 127 million (USD 1.06 million) respectively. The mill now plans to install a silky polisher machine to double its processing capacity from 2 to 4 metric tons per hour. Through the Joint Rice Intervention Program (JRIP) led by KISAN II and the Government of Nepal, Sunil Rice Mill now helps 400 farmers in Banke produce fine rice on 348 hectares. The mill procured 11 metric tons of high-yield fine rice seeds from Gorkha Seed Company and sell this directly to farmers with no mark-up to enable farmers to cultivate fine rice for the mill. “I used to purchase most of the paddy from middlemen and the production of fine rice in my coverage area was nominal. After partnering with KISAN II, I now

work with more than 2,500 farming households, including 400 associated with JRIP, promoting fine rice varieties and providing technical assistance to farmers so that both farmers and the mill benefit from the growing consumer demand for fine rice,” says Jit Bahadur Khatri, owner of Sunil Rice Mill. Since 2018, KISAN has partnered with 10 rice mills and reached over rice 15,222 farmers, who had an average yield of 5.28 metric tons/ha and earned USD 320 in fiscal year 2020.

www.feedthefuture.gov

Boosting Nepal’s Goat Sector with More Productive Breeding Success Story

Technical training and support With goats contributing about 21% to the national meat production, Nepal’s goat sector help boost goat ’s has the potential to thrive. Unfortunately, this potential is limited by the poor genetics of current breeds and the use of traditional breeding practices. The USAID Knowledge- success rate from 15% to 89% based Integrated Sustainable Agriculture in Nepal II project (KISAN II) is helping to in just six months. strengthen Nepal’s goat sector by promoting artificial insemination (AI) to introduce more productive goat breeds, such as the Boer breed. In December 2019, Balaram Chaulagain, a veterinary technician from Chaulagain Vet Center just outside Kathmandu Valley, took the first step to accelerate his goat breeding business: he enrolled in a KISAN II-supported goat AI training conducted by the Ministry

of Agriculture and Livestock Development’s (MOALD) Agricultural Information and Training Center (AITC). Although Balaram had used AI on cattle, his success rate was

(bottom) only 10–15% instead of the typical 70% success rate. He was also not sure how to apply

AI to goats. After gaining specialized knowledge on goat AI through the training, Balaram put his new skills to use and inseminated 72 goats in six months. The procedure led to successful conceptions in 64 goats on the first try, and six goats have already given birth to healthy kids. Balaram is thrilled with his new 89% success rate. Goat breeder and vet technician, Balaram Balaram began offering breeding services to local farmers to help them produce better Chaulagain, checks the supply of liquid nitrogen kids that fetch higher prices. He uses Boer-buck (premium) seed stock sourced

used to preserve semen for the AI breeding for USAID Chaulagain Balaram process. from Nepal’s National Livestock Breeding Office, a division of the Department of Livestock Services. (top),

Mrs. Sita Neupane, a smallholder goat farmer, is one of Balaram’s satisfied customers. She

earned NRs. 90,000–100,000 (USD 750–835) selling half-Boer kids bred through Balaram’s AI services. The nominal fee of NRs. 200–400 (USD 1.70–3.30) for a single AI breeding service was much lower than the NRs. 300,000 (USD 2,500) she would have paid to buy a purebred Boer goat. Mr. Kedar Dhital, another goat farmer, is another of

USAID for Rai Ganga

: Balaram’s happy customers. His purchase of the AI service resulted in the birth of a large

male kid that weighs an impressive 12 kgs at 45 days old. Mr. Dhital says, “It's credit amazing…We can generate more income by using AI. When [Balaram] does AI, we hardly need

Photo to repeat it again.” Balaram’s happy customer Sita Neupane shows off Chaulagain Vet Center offers embedded goat husbandry services, along with breeding her 50% Boer breed twin goat kids, conceived via AI through Balaram’s KISAN II-supported services. Its carefully stored supply of Boer semen, as well as referee and buck semen, are veterinary center. preserved with liquid nitrogen. Although AI is new to goat farmers, Balaram’s impressive results have demonstrated its benefits to farmers and brought him many new customers.

Balaram is pleased that his new skills save time and gain the trust of farmers. “Now, with a success rate of about 89%, I occasionally have to repeat AI in the same goat. The training in December helped me a lot.”

To strengthen the country’s goat sector, KISAN II coordinated with the Nepal Agricultural Market Development Project to support the MOALD in developing a goat breeding strategy and to engage members of the government-formed Goat Working Group. KISAN II has created a goat AI manual, in collaboration with the AITC, to help standardize and commercialize goat breeding in Nepal. In the past year, KISAN II held 31 AI trainings; participants have since inseminated 322 goats with a 53% success rate. KISAN II has 15 grantee partners in the goat sector, which work with 6,850 households in eight districts. www.feedthefuture.gov

Annex 2. COVID-19 Impact on Crops and Farmer Coping Strategies24 During Nepal’s lockdown period, the ability of farmers to buy inputs, and harvest and sell produce differed by commodity. Thus, farmers adopted different coping strategies, as discussed below.

Input Availability 66% 60% Figure 8 illustrates how 54% COVID-19 affected 41% input availability for 30% 30% various crops. 25% 27% 27% 21% 21% 20% 20% ● Rice: 66% of 13% 10% 10% 9%10% surveyed farmers 6% 0% could buy some necessary agri- Not able to buy Able to buy some Able to buy Not Applicable inputs from necessary Agri Agri-inputs required Agri inputs inputs suppliers, but only 9% could access Rice (208) Maize (90) Lentils (10) Vegetables (485) Goat (33) the full quantity of

inputs needed. Figure 8. Impact of COVID-19 on input availability ● Maize: 54% of farmers could buy some agri-inputs, but only 10% could buy the full quantity of inputs needed. ● Lentils: 60% of lentil farmers harvested their crop before or around the lockdown period (April– June 2020), and thus were not affected. ● Vegetables: Though 41% of farmers could buy some agri-inputs from agrovets and suppliers, only 27% could buy the inputs needed for specific vegetable crops. ● Goats: 30% of farmers could buy some necessary veterinary medicines and feed supplements, but 27% had no access to required inputs from agrovets.

Harvesting Crops Figure 9 shows the effect of COVID-19 on the harvesting of specific types of crops. ● Rice: Harvesting was not an 95% 86% issue for 95% of farmers, as the main season rice was 55% 40% 40% harvested well before 30% lockdown. 20% 10% 10% 13% 15% ● Maize: Because the harvest 0%1% 0%0% 0% 4%

season is August–October, Not able to Able to harvest Able to harvest all Not Applicable 86% of farmers could harvest partially harvest their full crop as Rice (208) Maize (90) normal. Lentils (10) Vegetables (485) ● Lentils: While 50% of Goat (33) Linear (Vegetables (485)) farmers harvested during lockdown, 40% did so Figure 9. Effect of COVID-19 lockdown on crop harvest before lockdown, and 10% could not harvest at all and experienced crop damage from waterlogging.

24 This is based on perception of farmers on COVID 19 lockdown impact from March 22- July 21, 2020; findings should not be generalized to whole reporting period.

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● Vegetables: Harvesting was not an issue for farmers who harvested winter vegetables crops before lockdown (51%). After lockdown, 27% harvested partially and for 20% farmers, it was not applicable as there was not enough volume to sell. 2% of the farmers were affected as they could not sell as planned. Overall, this did not affect much the total harvested amount. ● Goats: Only 15% of farmers sold goats during the lockdown period. More than 55% raised goats to sell during September–October.

Sales Figure 10 shows the effect of COVID-19 on the sales of specific types of crops. ● Rice: 94% of 94% farmers sold their paddy well 80% before lockdown period and were 48% not affected. 36% 40% 39% ● Maize: 84% of 30% 29% 20% farmers sold 15% 9%10% 12% 12% 8% 5% 8% their harvest 0% 0% 3% before the Not able to sell Only able to sell Able to sell Not Applicable lockdown some of them period and were Rice (208) Maize (90) Lentils (10) Vegetables (485) Goat (33) not affected. ● Lentils: 40% of Figure 10. Effect of COVID-19 lockdown on sales farmers sold all of their lentils before lockdown, and 10% could not sell at all during lockdown. ● Vegetables: 29% of farmers sold all their produce, 48% sold some produce, and 8% could not sell any because of their remote locations. Soon after lockdown, local municipalities began facilitating vegetable marketing and some cooperatives helped farmers use agriculture ambulances and government vehicles to increase sales in months two and three of lockdown. ● Goats: 24% of farmers sold goats during lockdown and 36% could not sell. More than 39% of farmers raised their goats for sale during September–October.

Coping Strategies As shown in Figure 11, most (85%) of the 1,022 farmers KISAN II sampled used savings to cover living expenses during the COVID-19 pandemic. Many also borrowed money (14%) or relied on family (13%) to cover living expenses

Sold assets to cover living expenses 2.5

Change groups 5.6

Find another earning occupation 6.7

Left in farm fallow 7.5

Relied on the help of [extended] family members 13.4

Borrowed money to cover living expenses 14

Spent savings to cover living expense 85.5

0 20 40 60 80 100 Figure 11. Farmer coping strategies Figure SEQ Figure \* ARABIC8. Farmer coping strategies KISAN II PROJECT YEAR 3 ANNUAL REPORT Page 3 AID-367-C-17-00001

Annex 3. Summary of Signed Memoranda of Understanding KISAN II signed 14 MOUs with strategic partners during Y3. Summaries of the MOUs added in Y3 T3 are provided below.

1. eSewa During the COVID-19 pandemic, all types of businesses needed to find ways to conduct business remotely, adopt social distancing measures, and adapt to a restrictive business environment that limited. public movement and operating hours. Given this context, KISAN II signed an MOU with eSewa to introduce digital financial service applications to staff, grantee partners, and grantee customers, building capacity to use digital wallets and banking applications. By shifting to digital financing and payment services, KISAN II partners can reduce costs and overheads, and switch to lean management, all while ensuring safe social distancing.

2. DV Excellus Pvt. Ltd. DV Excellus is an agri-tech company that developed a digital platform called Kheti for vegetable sales. Using this platform, the firm managed to conduct door-to-door vegetable sales in Kathmandu and Pokhara during the COVID-19 lockdown when many other businesses were shut down. KISAN II signed an MOU with Kheti to strengthen its capacity to supply fresh vegetables and link it to KISAN II cooperative and trader partners to ensure stable market access. KISAN II will also help Kheti establish a vegetable storage unit and strengthen its management and supply system through a demand schedule and by sourcing vegetables from KISAN II partner farmers in the Kathmandu cluster.

3. Foodmandu The national lockdown impacted the agricultural sector heavily, restricting farmer access to agri-inputs and markets, and slowing the supply of vegetables from nearby districts to Kathmandu. Nepal’s popular food delivery service, Foodmandu, expanded its business by adding a new vertical Foodmandu Fresh service that collects and supplies fresh produce based on customer demand. KISAN II signed an MOU with Foodmandu to strengthen its capacity to supply fresh vegetables and link them with KISAN II cooperative and trader partners to ensure secure and stable market access.

4. Mutual Undertaking between Non-resident Nepalese and Agriculture Authority (Munaa) To ease the currently strained supply of fresh vegetables resulting from the national lockdown, social enterprise Munaa signed an MOU with Bagmati Province to establish collection points and processing units within its districts. Munaa facilitates vegetable collection from farmers, cooperatives, and the largest wholesale market in Kathmandu, to meet urban consumer demand. To support this effort, KISAN II collaborated with Munaa to link farmers, cooperatives, and traders from adjoining districts to Munaa’s supply chain and to support Munaa’s supply chain logistics and the establishment of five supply centers in Kathmandu.

5. Department of Livestock Services (DOLS) – Nepal Livestock Breeding Office Goat farming in Nepal is characterized by scattered production, low productivity, and low farm offtake, primarily because of the poor genetic makeup of existing goat breeds and haphazard breeding practices by farmers. Using frozen semen from selected high-quality breeds, especially Boer goats, proper artificial insemination (AI) practices can significantly improve the genetic makeup of current goad breeds. KISAN II signed an MOU with DOLS to execute a collaborative pilot program to develop and implement a standard operating procedure for producing frozen buck semen. This will improve goat productivity through the adoption of an improved rotational insemination model using AI technology.

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6. Hester Biosciences Nepal Private Ltd. (HBNPL) Although the GON has planned to eradicate the Peste des Petits Ruminants (PPR) disease by 2030, access to goat health management services and availability of PPR vaccinations are major constraints for rural goat farmers. KISAN II collaborated with HBNPL to enable KISAN II goat farmers and breeders to access a thermostable PPR vaccine. HBNPL is one of the few private sector entities in Nepal that produces thermostable vaccines, which are suitable for remote areas where refrigeration facilities suffer due to lack of electricity. This MOU will help strengthen the disrupted supply chain of PPR vaccination caused by COVID-19, complement GON's PPR eradication program, and increase adoption of PPR at the farm level.

7. Heifer Project International KISAN II established 15 goat sector partnerships—including commercial goat farms, agrovets, and cooperatives—that currently serve 6,860 households. The lockdown hampered the supply of goat medicines, concentrated feed, and supplements, and reduced the demand for chevon. Farmers are encouraged to develop their own balanced goat feed with locally available inputs, but they have limited knowledge to ensure their herds are fed a balanced diet. KISAN II and Heifer Project International signed an MOU to increase the adoption of Heifer’s Livestock Feeding Support Tool (L-FST) and mobile-based Virtual Collection Center (VCC) among KISAN II beneficiaries. L-FST guides farmers in developing a balanced ration for their animals using locally available feed and feeding resources. VCC systemizes channels for effective collection and marketing of chevon, which saves farmers time and resources.

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Annex 4. Select Activities for Y4T1 The approved work plan for Y4 T1 includes the following activities:

Collaboration with GON ● Conduct Steering Committee and Technical Committee meetings and conduct joint monitoring visits with committee members. ● Conduct ADS-JSR Technical Committee and National ADS-JSR Coordination Meeting. ● Conduct meetings with provincial-level officials and conduct joint monitoring visits with personnel from those provinces. ● Conduct meetings with AKC, VHLSEC, PMAMP, DCCI, and private sector partners. ● Conduct assessments of two municipalities on the effects of COVID-19 and help develop recovery plans, especially for vulnerable groups. ● Conduct municipal-level briefings and discussions, and joint monitoring visits with selected municipalities where JRIP is implemented.

Components 2 and 1 ● Conduct trainings for AKC, municipalities, and PMAMP in JRIP districts. ● Build capacity of municipal extension staff. ● Establish three new ICT and three new goat partnerships. ● Organize input-partner meetings. ● Conduct market analysis on changing demand. ● Launch a virtual KISAN information site. ● Link five cooperatives to retail outlets. ● Develop COVID-19 relief instructional materials. ● Build capacity of cooperative board members. ● Conduct training for or provide technical assistance to 90 partners. ● Conduct TOTs and refresher TOTs to grantees’ extension staff. ● Provide extension services to 192,090 households through partners. ● Pilot establishing safe vegetable collection points with “safe selling” guidelines and video. ● Conduct virtual industry-wide learning events. ● Develop warehouse management and hygiene guidelines, and standard operating procedures. ● Disseminate information on savings and credit through SMS, social media, radio, and KISAN II virtual platform. ● Facilitate wholesale loans and help cooperatives obtain licenses for microinsurance. ● Pilot pedigree recording system for goat breeding. ● Pilot ICT solutions to market information/e-extension and establish one ICT forum. ● Coach firms through BDS procurement and assessment process. ● Develop and implement women’s leadership program. ● Conduct district-level awareness program on FAW in 21 districts. ● Print and distribute FAW identification and FAW/locust control brochures. ● Develop new training materials. ● Conduct demonstrations and field days for farmers. ● Install irrigation schemes.

Component 3 ● Develop food safety regulation and PSE guidelines. ● Conduct PPDs required for food safety regulations and to finalize rice landscape study. ● Conduct rapid assessment of relief utilization and post-COVID-19 recovery measures.

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● Develop campaign to promote safe food practices. ● Finalize a menu of proven post-harvest technologies and infrastructure. ● Finalize ADP ADS for Bagmati Province. ● Identify interested municipalities to leverage funds to replicate successful market system development models.

Component 4 ● Update modules 1 and 6 and print modules. ● Develop videos. ● Conduct needs assessment of migrant returnees. ● Conduct TOTs and refresher TOTs to for master trainers and community trainers. ● Provide technical assistance to Province 5 and Karnali Province MOLMACs to adapt Module 6. ● Continue Business Literacy Training.

Component 5 ● Conduct assessments to answer the following learning questions: o What factors have enabled private companies to remain competitive in response to the COVID- 19 pandemic? o How has market demand changed due to consequences of COVID-19 pandemic? o How is the COVID-19 pandemic affecting the resilience, inclusiveness, and competitiveness of women and DAG? ● Conduct pause and reflect workshop. ● Develop policy briefs. ● Develop concept note on the assessment of COVID-19 impacts on women, youth, and DAGs. ● Train staff on data collection and regular checks.

Grants Under Contract (GUC) ● Establish three new partnerships and amend cost modification of 10 existing grants.

Operation, Finance, and Communication ● Submit deliverables and bi-weekly updates to USAID. ● Amend SOWs of partners.

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Annex 5. Detailed Implementation Plan Table 19. Detailed Implementation Plan Table Activit Component, Sub-objective, Y3 Y3 y Unit % Remarks Specific Result/Output, Activity Target Achievement No. Collaboration with GON - CL 1 & 2 Disseminate and deepen understanding of the private CL.1 sector-led approach Municipality-level briefings/discussions on approach and CL.1.1 underlying activities Briefings/discussions on approach and underlying activities in sub- CL.1.1.1 Event 4 0 0 Discussed during informal meetings. metropolitan area Briefings/discussions on approach and underlying activities in CL.1.1.2 Event 26 21 80 Could not achieve target due to COVID-19. municipality Municipality-level briefings/discussions on approach and CL.1.2 Event 13 These meetings were done by grantees. underlying activities and progress Joint monitoring visits with municipality officials (1 day) (by CL.1.3 Event 30 15 50 Could not achieve target due to COVID-19. KISAN II) Joint monitoring visits with municipality officials (1 day) (by CL.1.4 Event 31 These meetings were done by grantees. grantee) CL.2 Coordination with the Government of Nepal CL.2.1 Central-level coordination CL.2.1.1 Conduct steering committee meetings Event 2 2 100 CL.2.1.3 Conduct technical committee meetings Event 4 2 50 Joint monitoring visits with steering and technical committee CL.2.1.3 Person 20 0 0 Could not achieve target due to COVID-19. members (3 days) CL.2.2 Provincial-level coordination Conducted four meetings formally and two virtually. Also CL.2.2.1 Conduct meeting with provincial-level officers Event 4 6 150 conducted five informal meetings. Joint monitoring visits with the officials working at the provincial CL.2.2.2 Person 40 15 37 Could not achieve target due to COVID-19. agricultural ministry (2 days) CL.2.2.3 Meeting with AKCs, VHLSEC, and PMAMP Event 20 31 155 KISAN II did not organize all meetings this year but participated in meetings organized by DCC. To date, at CL.2.2.4 Conduct meeting with DCC Event 25 6 24 least one meeting has been organized with each of 25 DCCs. CL.2.2.5 Conduct meeting with DCCI and private sectors Event 25 7 28 Could not achieve target due to COVID-19. CL.3 Support for Joint Sector Reviews (JSR) CL.3.1 National ADS-JSR coordination meeting Event 1 0 0 Could not conduct due to COVID-19.

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Activit Component, Sub-objective, Y3 Y3 y Unit % Remarks Specific Result/Output, Activity Target Achievement No. CL.3.2 ADS-JSR technical committee meeting for review and planning Event 3 3 100 Component 2: Strengthen the Competitiveness, Resilience, and Inclusiveness of Selected Agricultural Market Systems 2.0 Conduct and update opportunity mapping exercise No. 16 To date, 3,814 organizations are mapped. Sub-objective 2.1: Strengthen the organization and 2.1 coordination of selected market systems 2.1.1 Streamline vertical linkages and select partners 32 established through Annual Program Statement and 2 2.1.1.1 Establish new partnerships No. 25 34 0 through rice RFA 2.1.1.2 TOT for partner staff Conduct pre/post-season out grower/new 2.1.1.3 buyer/wholesale market forums Conduct pre-season out grower/new buyer/wholesale market 2.1.1.3.1 Event 50 132 132 forums Conduct post-season out grower/new buyer/wholesale market 2.1.1.3.2 Event 50 forums Develop the capacity of traders, buyers, and output marketing Conducted in Kavrepalanchowk, Nuwakot, 2.1.1.4 actors to prepare demand schedule and production plan and Event 14 10 71 Makwanpur, Sindhupalchowk, Dailekh, communicate these to farmers and cooperatives. Surkhet, Salyan, Kailali, Kanchanpur and Banke. Piloting the integration of traders-farmers cyclic production 2.1.1.5 Event 1 3 300 With Foodmandu, Kheti, and Munaa planning implementation (Market led) Workshop to link grantees with agri-input suppliers to improve 2.1.1.6 Event 1 0 0 Could not conduct due to COVID-19. access to new and improved agri-inputs Workshop to link grantees with agri-input suppliers to improve 2.1.1.7 Event 1 0 0 Could not conduct due to COVID-19. access to new and improved agri-inputs KISAN II provided comments on draft report submitted 2.1.1.8 Re-evaluation of lentil opportunities and technologies Report 1 1 100 by consultant, and consultant is revising the report. 2.1.2 Build capacity of farmer groups and cooperatives For BOD and/or manager (organization level) of cooperatives 2.1.2.1 Person 60 60 100 30 cooperatives (two staff per cooperative) (up to 3 days) Technical training to extension workers of coops integrating 2.1.2.2 Person 50 71 142 behavior change communications (BCC) and GESI (5 days) Refresher technical training for previously trained extension 2.1.2.3 Person 175 33 18 Could not achieve target due to COVID-19. workers of cooperatives integrating BCC and GESI (3 days) 2.1.3 Empower and link vulnerable and marginalized groups

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Activit Component, Sub-objective, Y3 Y3 y Unit % Remarks Specific Result/Output, Activity Target Achievement No. Of 154,084 trained, 96,723 were vulnerable based on 2.1.3.1 Train vulnerable households Person 140,000 96,723 69 ethnicity (15,383 Dalit, 70,369 Janjati, 1,688 Muslim, 9,283 Others) 2.1.3.2 Develop GESI tools (checklist) and training materials Report 1 1 100 Form or strengthen group collection points in coordination with In Sindhupalchowk, Kavrepalanchowk, Makwanpur and 2.1.3.3 No. 2 4 200 grantee. Gulmi. 2.1.4 Strengthen horizontal linkages 2.1.4.1 Launch “Buy Nepal, Buy Fresh” campaign Event 1 0 0 Dropped this activity. 2.1.4.2 Conduct industry-wide learning events Event 3 0 0 Could not conduct due to COVID-19. 2.1.4.3 Prepare/complete marketing strategy for Jorayal basmati rice Report 1 0 0 Could not conduct due to COVID-19. 2.1.5 Include an additional commodity for commercialization Establish partnerships with private companies and/or 2.1.5.1 No. 5 17 340 14 grants and 3 MOUs cooperatives. 2.1.5.3 Produce community video Event 2 2 100 2.1.5.4 Train agrovets on AI No. 30 31 103 Sub-objective 2.2: Strengthen the organization and 2.2 coordination of selected market systems Strengthen lead firms and other SMEs to support 2.2.1 selected market systems TOR to hire consultant was drafted to develop training For owner/manager (organization level) of processor, trader, and 2.2.1.1 Person 25 0 0 module and conduct TOT and trainings. Could not SME partner firms conduct due to COVID 19. Technical training to extension workers of processor, trader, 2.2.1.2 Person 30 3 10 and SME partner firms integrating BCC and GESI (5 days) Refresher technical training to previously trained extension 2.2.1.3 workers of processor, trader, and SME partner firms integrating Person 30 10 33 BCC and GESI (3 days) Sub-objective 2.3: Enhance financial services markets 2.3 that serve selected market systems 2.3.1 Expand SME agribusiness lending and investment 2.3.1.1 Ensure 5 wholesale loans No. 5 6 120 Establish 1 MOU with a bank or MFI to expand agricultural 2.3.1.2 Event 1 0 0 lending 2.3.1.3 Conduct digital finance event Event 1 0 0 2.3.1.4 Pilot agency banking with 5 new agrovets No. 1 5 500

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Activit Component, Sub-objective, Y3 Y3 y Unit % Remarks Specific Result/Output, Activity Target Achievement No. Of 13 cooperatives trained, 8 are in process to get 2.3.1.5 Pilot crop insurance with partners No. 1 0 0 corporate agency and provide insurance services. 2.3.2 Expand access to rural credit Conducted 4-day financial management training for 19 persons from 19 cooperatives; conducted 1.5-day micro 2.3.2.1 Train cooperatives Person 40 41 102 insurance for cooperative agency training for 22 persons from 11 coops (2 persons per coop). 2.3.2.2 Conduct exposure visit of coops (3 days) Person 20 21 105 Promote group savings and credit activities and link to 2.3.3 microfinance institutions and SACCOs 2.3.3.1 Individual/farmer begin or increase savings Event 60,000 13,865 23 Sub-objective 2.4: Enhance market infrastructure and 2.4 other services to support selected market systems Expand access to safe and cost-effective storage and 2.4.1 warehousing 2.4.1.1 Prepare cost benefit and guidelines on cold storage Report 1 1 100 Conduct exposure visit for partners to understand operation of 2.4.1.2 Person 15 27 180 15 from Kathmandu cluster and 12 from Kailali cluster a vegetable cold chamber (3 days) 2.4.1.3 Pilot inventory credit scheme No. 1 0 0 2.4.1.4 Establish collection point/pack house investments No. 20 0 0 Pilot/demonstrate pre-force cooling system (zero energy cooling 2.4.1.5 1 4 400 1 in Arghakhanchi, 1 in Nuwakot, and 2 in Baitadi chamber) 2.4.2 Increase access to mechanized services 2.4.2.1 Establish partnership with equipment/mechanization firm No. 2 1 50 With Krishi Tech 2.4.2.2 Establish partnership with TVET-type organization 1 0 0 In process. Published an application for interested and 2.4.2.3 Pilot cooperative-based custom hire business model No. 2 0 0 qualified KISAN II partners. 2.4.2.4 Piloting demo of rice drying technology No. 1 0 0 2.4.2.5 Piloting demo of maize drying technology No. 1 1 100 Improve grading, testing, and standards adherence 2.4.3 services Signed MOU with Safe Food Alliance Nepal. In process of 2.4.3.1 Ensure partners developed grading guidelines No. 10 0 0 hiring consultant to develop guidelines. 2.4.4 Improve access to market information services

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Activit Component, Sub-objective, Y3 Y3 y Unit % Remarks Specific Result/Output, Activity Target Achievement No. Initiated piloting of mass SMS in collaboration with Laxmi 2.4.4.1 Pilot efforts on ICT solutions to market information No. 2 1 50 agrovet (Surkhet). KISAN II also supported all partners by sending mass SMS during COVID-19 crisis. Plan to disseminate learning from Laxmi Agrovet in T3 2.4.4.2 Conduct workshops at cluster level Event 2 0 0 could not take place due to lockdown. Expand availability and use of business and training 2.4.5 services Received application from interested firms. In process of 2.4.5.1 Coach firms through BDS procurement and assessment process Event 3 0 0 shortlisting and selecting to provide BDS services. 2.4.5.2 Develop women’s cooperative leadership program Report 1 0 0 Could not conduct due to COVID 19. Planned for Y4T1. 2.4.5.3 Conduct ICT forum Event 1 0 0 Could not conduct due to COVID 19. Planned for Y4T1. Sub-objective 2.5: Expand trade in domestic and 2.5 regional markets to support agricultural market systems development 2.5.1 Identify opportunities for import substitution KISAN II provided comments on draft report submitted 2.5.1.1 Conduct assessment of wholesale markets Report 2 2 100 by consultant, and consultant is revising the report. Component 1: Improve Productivity of Selected Agricultural Marketing System Sub-objective 1.1: Facilitate intensification and 1.1 diversification of male and female farmers and socially excluded groups into higher-value commodities Form farmer groups, inclusive of women, youth, and 1.1.1 Event 0 5,250 marginalized groups Sub-objective 1.2: Strengthen the capacity of input 1.2 supply systems to deliver timely and affordable productivity-enhancing technologies Strengthen capacity of agrovets to deliver quality inputs 1.2.1 and other services 12.1.1 Capacity building of agrovet TOR to hire consultant was drafted to develop training 1.2.1.1.1 For owner/manager (organization level) of agrovet (up to 3 days) Person 110 0 0 module and conduct TOT and trainings. Could not conduct due to COVID-19. Technical training (TOT) for extension workers of agrovets 1.2.1.1.2 Person 55 68 123 integrating BCC and GESI (5 days) Refresher technical training (TOT) for previously trained 1.2.1.1.3 Person 220 210 95 extension workers of agrovet integrating BCC and GESI (3 days) 1.2.1.1.4 Pesticide retailer training (agrovet and coop) (6 days) Person 25 36 144

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Activit Component, Sub-objective, Y3 Y3 y Unit % Remarks Specific Result/Output, Activity Target Achievement No. Activity dropped. Similar study conducted during KISAN 1.2.1.2 Conduct study on input supply value chain analysis Report 1 0 0 will be referred. Enhance input supply to farmers throughout grower 1.2.2 schemes and cooperative membership. Train/coach agriculture or multipurpose to develop or Combined with activity 1.2.1.1.1. TOR to hire consultant 1.2.2.1 strengthen input management and delivery systems (2 days Person 40 0 0 was drafted to develop training module and conduct TOT residential) and trainings. Could not conduct due to COVID-19. Expand development, dissemination, and adoption of 1.2.3 IPM 1.2.3.1 Train private sector extension agents in IPM (2 days residential) Person 150 122 81 Could not achieve target due to COVID-19. Sub-objective 1.3: Increase adoption of profitable, productivity-enhancing, and climate-smart technologies 1.3 by all groups, including youth, women, and disadvantaged groups Facilitate consultative meeting with donor projects and 1.3.1 GON catalogue training material, identify, and develop a coordination strategy Continue consultations and coordination with NSAF, iDE and 1.3.1.1 other donor and GON projects to catalogue and share training material Develop/revise safe and good agricultural practices training DFTQC was reviewing the contents before the lockdown. 1.3.1.2 materials s to align with the private sector demand, other Report 1 0 0 Will continue in Y4T1. projects, and GON Print safe and good agricultural practices training materials to 1.3.1.3 Copies 10,000 0 align with the private sector demand, other projects, and GON Print 20 safe and good agricultural practices training materials to 1.3.1.4 Copies 200,000 250,000 125 align with the private sector demand, other projects and GON. 1.3.1.5 Print leaflet on safe use of pesticides Copies 10,000 10,000 100 1.3.1.6 Print manual for GAP Copies 10,000 0 Linked with 1.3.1.3 1.3.1.7 Compilation of 30 technologies and print in a book form Copies 5,000 0 Not required. 1.3.1.8 Revise and print existing training manual Copies 5,000 0 Could not conduct due to COVID-19. Coordinated with NSAF, iDE, GON and conducted 2 1.3.2 Support to FAW management Event 6 province level TOTs and 4 district level TOTs on FAW identification and management. Training on video production; and video production and 1.3.3 dissemination 1.3.3.1 Conduct training on video production and dissemination

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Activit Component, Sub-objective, Y3 Y3 y Unit % Remarks Specific Result/Output, Activity Target Achievement No. 1.3.3.1.1 Conduct training on video production (5 days) Person 30 34 113 1.3.3.1.2 Conduct training on video dissemination (2 days) Person 50 52 104 1.3.3.1.3 Refresher training on video production and dissemination Person 15 0 0 Could not conduct due to COVID-19. 1.3.3.2 Produce videos Event 51 55 107 To date, 86 videos have been produced. Disseminated through Business Literacy classes. Demand 1.3.3.3 Dissemination of produced videos to farmers No. 50,000 90,931 181 for videos were high. 1.3.4 Conduct demonstrations, field days, and exposure visits Prepare guidelines to conduct demonstration, field days and 1.3.4.1 Report 3 3 100 exposure visits 1.3.4.2 Conduct demonstrations No. 2,000 4,425 221 Demand for demos were high. 1.3.4.3 Conduct field days No. 500 669 133 1.3.4.4 Conduct exposure visits No. 25 3 12 Could not achieve target due to COVID-19. 1.3.5 Expand access to irrigation 1.3.5.1 Installed irrigation through KISAN project No. 305 145 47 Could not achieve target due to COVID-19. Training to irrigation groups (through project) on operation and 1.3.5.2 Event 305 140 45 management 1.3.5.3 Installed irrigation schemes through partners 1.3.5.3.1 Shallow Tube-well No. 95 106 111 1.3.5.4 Training to irrigation groups (through partners) Event 95 106 111 Component 3: Strengthen the Enabling Environment of Selected Agricultural Market Systems Sub-objective 3.1: Build capacity for streamlining, 3.1 harmonizing, & coordinating GON policies & regulations 3.1.1 Develop policy support agenda with GON Draft food safety regulation (licensing and registration of food 3.1.1.1 Report 1 1 100 business) Draft food safety regulation (import-export inspection and 3.1.1.2 Report 1 1 100 certification) Bill has not been submitted in parliament and awaiting to 3.1.1.3 Draft Agribusiness rule Report 1 0 0 pass through to proceed for rule. Draft one sub-sector development strategy documents (could be 3.1.1.4 Report 1 0 0 support for ADS or organic ag. strategy) Technical support to MOALD/DFTQC in the process of 3.1.1.5 implementation of the National Food Safety Policy and Food Event 2 Safety and Standard Act

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Activit Component, Sub-objective, Y3 Y3 y Unit % Remarks Specific Result/Output, Activity Target Achievement No. In process. Received inception report. Situation analysis is 3.1.1.6 Draft one national level guideline for PSE Report 1 0 0 in progress. Support MOALD through PPD to develop and draft goat 3.1.1.7 Event 1 1 100 breeding strategy Conduct meeting for goat development strategy in partnership 3.1.1.8 Event 1 1 100 Draft goat breeding strategy is prepared. with other development partners 3.1.1.9 PPD for food safety regulations (for two regulations) Event 4 0 0 Delayed due to COVID-19. 3.1.1.10 PPD for national level guidelines for PSE Event 1 0 0 Will be conducted once draft is prepared. Engage private sector advocacy groups in policy 3.1.2 dialogue 3.1.2.1 Organize PPD Event 3.1.2.1.1 With ANROPI Event 1 0 0 Final draft is prepared. Will conduct PPD in Y4T1. 3.1.2.1.2 Study and PPD with FNCCI (tentative) No. 1 0 0 Sub-objective 3.2: Improve investments, management, 3.2 and governance (e.g. standardization) of infrastructure Develop a menu of proven postharvest technologies and 3.2.1 infrastructure Develop a menu of proven post-harvest technologies and 3.2.1.1 Report 1 0 0 Delayed due to COVID-19. Will finalize in Y4T1. infrastructure Dissemination of case studies on cold storage (see Activity 3.2.1.2 Report 2.4.1) Assess enabling environment for public and private 3.2.2 sector investment in infrastructure Pilot program to facilitate any cooperatives which agrees to 3.2.2.1 move forward with new and innovative approach (see activity Report 2.4.1) Support participatory administration of infrastructure 3.2.3 and planning 3.2.3.1 Train senior GON officials for policy analysis Person 10 13 130 In MANAGE, Hyderabaad, India. Pilot a public sector extension program using agronomic 3.2.3.2 extension videos in 1-2 municipalities as a test of effectiveness in Event filling technical gaps at the municipality level. (see Activity 1.3.3) 3.2.3.3 Conduct training for municipalities on planning Person 40 0 0 Could not conduct due to COVID-19. Sub-objective 3.3: Improve systems to increase the 3.3 quality of selected commodities Development of industry-driven commodity norms and 3.3.1 standards

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Activit Component, Sub-objective, Y3 Y3 y Unit % Remarks Specific Result/Output, Activity Target Achievement No. Draft illustrated commodity norm and disseminate for two 3.3.1.1 Event 1 1 100 Commodity norms prepared. Will disseminate in Y4T1. vegetables 3.3.2 Promote safe food practices Conduct information campaign

Could not conduct due to COVID-19. Will be conducted 3.3.2.1 Event 1 0 0 in Y4T1.

DFTQC informed that witness audits will be done by 3.3.2.2 Support for witness audits of Nepali GAP auditors Person 1 0 0 FAO support. Exposure visits to Nepali auditors and GON officials to India to Instead, supported two GON officials to participate in 3.3.2.3 Person 4 0 0 observe GAP adoption and certification regional training on GAP in India. Sub-objective 3.4: Support local government agencies to 3.4 improve and rationalize spending in support of market systems development Increase understanding and adoption of market systems 3.4.1 development strategies Two case studies (Narayan Municipality of Dailekh and Conduct case studies with municipalities on private sector Bheri Municipality of Jajarkot) and one feasibility study 3.4.1.1 Event 2 3 150 /cooperative management in irrigation/market development (Panauti Municipality) finalized and shared with respective municipalities. Build capacity of local government units to align 3.4.2 investment strategies to support increased market access for farmers Support was not required, but on the basis of Support on two tasks identified by Government in the process of recommendation of three-tier study commissioned by 3.4.2.1 establishing effective, functional linkages among the three tiers of Report 2 0 0 KISAN II, GON established two coordination government (federal, provincial, and municipality) mechanisms, one at the minister level and another at the secretary level. 3.4.3 Launch internship program 3.4.3.1 Recruit interns No. 5 15 300 Component 4: Increase vulnerable communities’ ability to act on business opportunities within selected market systems (Business Literacy and

Development) 4.1 Sub-objective 4.1: Enhancing literacy and business skills 4.1.1 Develop and adapt business literacy training materials 4.1.1.1 Conduct field test for Modules 3, 4, and 5 No. 3 3 100

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Activit Component, Sub-objective, Y3 Y3 y Unit % Remarks Specific Result/Output, Activity Target Achievement No. Consult relevant stakeholders for their feedback on Modules 3, 4.1.1.2 No. 3 3 100 4, and 5 4.1.1.3 Finalize Modules 3, 4 and 5 No. 3 3 100 Modul Printing services were not available during lockdown. Will 4.1.1.4 Print Modules 2, 3, 4, 5 and 6 5 3 60 e print in Y4T1. 4.1.1.5 Translation of Modules 3, 4, and 5 to English Event 3 3 100 Modul Printing services were not available during lockdown. Will 4.1.1.6 Develop and print facilitator's guide for Modules 2, 3, 4, and 5 4 4 100 e print in Y4T1. Encourage and/or support private sector/grantees to develop 4.1.1.7 Event 7 0 0 Will conduct in Y4T1. low-cost videos covering some content of Module 6 Prepare/support low-cost video documentary for women 4.1.1.8 entrepreneurship, nutrition, and life skills in coordination with No. 1 0 0 GESI unit Disseminate videos on agri-technologies, women 4.1.1.9 entrepreneurship, nutrition, and life skills through BLT and other Event 350 459 131 activities. 4.1.2 Recruit and train trainers Select five new master trainers (MTs) and 200 CTs for short 4.1.2.1 Person 205 156 76 Could not recruit for last batch of short course. course Conduct two master TOT refreshers for MTs for short course 4.1.2.2 Person 36 36 100 Conducted virtually in June. (two times) Conduct 12 district level orientation meetings with existing CTs 4.1.2.3 Event 12 12 100 for third batch short course Could not be organize community TOT for fifth batch 4.1.2.4 Conduct community TOTs for short course Person 7 4 57 (short course). Conduct orientation meetings with CTs for short course - fifth 4.1.2.5 Event 0 0 Could not organize. batch (need based) 4.1.2.6 Recruit nine new senior master trainers (SMTs) for long course Person 9 9 100 Could not recruit 31 MTs for second batch of long 4.1.2.6 Recruit 90 new MTs for long course Person 90 59 65 course. Conduct master TOTs for SMTs and MTs for long course (5 4.1.2.7 Person 69 80 115 Few other staffs also attended this master TOT. days) for first batch Conduct master TOTs for MTs for long course (5 days) for 4.1.2.8 Person 30 0 Could not conduct due to COVID-19. second batch Conduct master TOT refreshers for SMTs and MTs for long 4.1.2.9 Person 69 0 Could not conduct due to COVID-19. course (5 days) for first batch (6 days) 493 were enough for first batch. Could not recruit CTs 4.1.2.10 Recruit new CTs for long course Person 868 493 56 for second batch.

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Activit Component, Sub-objective, Y3 Y3 y Unit % Remarks Specific Result/Output, Activity Target Achievement No. 4.1.2.11 Conduct community TOTs for long course (5 days) Person 868 493 56 Could not organize for the rest due to COVID-19. 4.1.2.12 Conduct community TOT refreshers for long course (7 days) Person 567 0 Could not organize for the rest due to COVID-19. Deliver business literacy training to poor, marginalized 4.1.3 communities 4.1.3.1 Graduate 17,367 households through short course BLT Event 805 480 59 Organized at 480 locations and 10,457 were graduated 20,639 participants completed Module 1 and halfway of 4.1.3.2 Graduate 30,000 households through long course BLT. Event 1432 946 66 Module 2 Component 5: Collaborate, Learn and Adapt (Objective: Apply CLA to Market Systems Development) 5 Learning Questions 5.0.1 Learning questions on competitiveness LQ 1: Which implementation business models lead to the best 5.0.1.1 Report 1 1 100 farmer outcomes in terms of yields and incomes? LQ 2: How can adoption of post-harvest technologies and 5.0.1.2 practices make enterprises (farmers and firms) more Report 1 1 100 competitive? LQ 3: How can irrigation be promoted through a private 5.0.1.3 Report 1 1 100 sector/commercial model? 5.0.2 Learning Questions on Inclusiveness LQ4: Will simple-to-follow improved management practice 5.0.2.1 training materials and “leave behinds” increase adoption rates Report 1 1 100 among women and farmers from disadvantaged groups? LQ5: What adaptations to our approach— 5.0.2.2 coaching/training/TA/grants—lead to higher adoption and greater Report 1 1 100 income change among women, youth, and disadvantaged groups? LQ 6: Does business literacy training combined with agriculture 5.0.2.3 training increase the ability of vulnerable and DAG households Report 1 1 100 to act on right type of business opportunities? 5.0.3 Learning Questions on Resilience LQ 7: Do KISAN II private sector led activities buffer or better 5.0.3.1 equip farmers to cope from environmental, economic, and Report 1 1 100 political shocks? LQ 8: Does market led production planning lead to better 5.0.3.2 farmer incomes and are they better able to withstand market Report 1 1 100 price fluctuations? 5.0.4 Learning Questions on policy development LQ 9: How can KISAN II best build the capacity of local 5.0.4.1 Report 1 1 100 government units to increase municipality level investment in

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Activit Component, Sub-objective, Y3 Y3 y Unit % Remarks Specific Result/Output, Activity Target Achievement No. agriculture sector that respond to market and local farmer needs? LQ 10: What are the grain storage options and modalities that 5.0.4.2 Report 1 1 100 would benefit farmers and be financially viable (sustainable)? Sub-objective 5.1: Apply CLA to advance the 5.1 competitiveness Conduct workshop on market systems development, sector 5.1.1 Event 2 2 100 level information, and interlinkages 5.1.2 Opportunity mapping 5.1.3 Conduct training/workshop on partnership modalities Event 1 1 100 5.1.4 Conduct cluster-level review, reflection, and learning workshops Event 7 6 85 5.2 Sub-objective 5.2: Apply CLA to advance inclusiveness Conduct workshop on GESI mainstreaming in inclusive market Could not conduct due to COVID-19. Will conducting 5.2.1 Event 2 0 0 systems development (3 days) Y4T1. Conduct coordination meetings with other USAID projects on 5.2.2 what and how external collaboration among USAID projects is Event 2 2 100 determined 5.2.3 Conduce cluster-level review, reflection, and learning workshops Event 7 7 100 5.3 5.3 Apply CLA to strengthen resilience 5.3.1 Conduct cluster-level pause-and-reflect workshops Event 7 0 0 5.3.2 Develop real-time feedback loop No. 1 1 100 Created a platform for feedback loop in WIKISAN.NET. 5.3.3 Conduct MEL data sharing workshops Event 1 1 100 5.4 Apply CLA to policy development Prepared policy brief on factors limiting women’s access Prepare policy issue specific technical committee 5.4.1 No. 4 1 25 in agribusiness; processing efficiency of rice millers and meetings/dialogues two technical regulations on food safety are underway. Conduct sensitization workshops for municipalities on planning 5.4.2 and governance skills and principles of USAID’s market system Event 10 Could not conduct due to COVID-19. approach Two case-studies prepared, and one feasibility study 5.4.3 Identify technical evidence-based case studies/assessments No. 3 3 100 prepared and handed over to three municipalities. Conduct central-level validation workshop on case studies and 5.4.4 Event 1 0 Could not conduct due to COVID-19. assessments 5.4.5 Conduct central-level pause-and-reflect workshop Event 2 0 Could not conduct due to COVID-19. Conducted series of technical meetings to effectively 5.4.6 Conduct technical forums/network meetings Event 2 1 50 manage FAW.

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Activit Component, Sub-objective, Y3 Y3 y Unit % Remarks Specific Result/Output, Activity Target Achievement No. III Grants Under Contract (GUC) Update Grants Under Contract Manual to support program GUC.1 Report 1 1 100 activities Issue an Annual Program Statement and/or RFA to identify GUC.2 No. 1 1 100 potential grantees GUC.3 Assess applications and award grants No. 25 32 128 GUC.4 Coach and monitor recipients No. 150 146 97 GUC.5 Market System Contribution Conduct coordination meeting with CBMs, Cluster Accountant GUC.6 No. 1 1 100 and M&E Associates and Grants Accountants (2 days) Conduct interaction meeting with CBMs, CAMEAs, and Grants GUC.7 No. 1 0 0 Could not conduct due to COVID-19. Accountants (1 day) IV Monitoring and Evaluation (M&E) Sub-objective 5.5: Apply CLA to monitoring and 5.5 evaluation 5.5.1 Update and submit MEL plan to USAID/Nepal Report 1 1 100 Updated. New features added. Shorter version of PEF 5.5.2 Upgrade and operationalize WIKISAN 2.0 Event 1 1 100 added. 5.5.3 Customize DevResults Event 1 0 0 Discontinued from Year 3. 5.5.4 Training on theory of change (TOC) and performance indicators Event 2 1 50 Conducted virtually. Train data entry field staff on data collection and regular checks 5.5.5 Event 2 2 100 (1 day) 5.5.6 Conduct spot checks and internal DQA Event 1 1 100 USAID's DQA action point implemented. 5.5.7 Identify mapping priorities and produce maps No. 5 5 100 Design and conduct an annual farmers survey to measure Designed and conducted computer aided telephonic 5.5.8 Event 1 1 100 outcomes interview (CATI). Design and conduct an annual organizational census survey to 5.5.9 Event 1 1 100 measure outcomes Design and implement a baseline household panel survey to Information on resilience will be narrated using results of 5.5.10 Event 1 0 measure changes in resilience capacities over the LOP household survey. 5.5.11 Submit project data to USAID and GON Report Submitted as required. Update the KISAN II Environmental Management and Monitoring 5.5.12 No. 1 1 100 Plan (EMMP) V Operational, Financial and Communication Activities (OP) OP.4.4 SBCC and GESI TOT to existing KISAN II staff Event 7 7 100 Conducted two in persons and five virtually.

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Activit Component, Sub-objective, Y3 Y3 y Unit % Remarks Specific Result/Output, Activity Target Achievement No. Orientation for local media/journalists to document/highlight OP.9 practices adopted by partner firms and farmers OP.9.1 Conduct orientation program (1 day) Event 10 0 Dropped this activity. Conduct exposure visits for journalists to collect and present OP.9.2 Person 10 0 Dropped this activity. KISAN II stories (3 days) OP.11.1 Conduct bi-annual review workshop Event 1 1 100 OP.11.2 Conduct annual review and Y4 planning workshop Event 1 1 100

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Annex 6. Performance Indicator Tracking Table Table 20. Performance Indicator Tracking Table Indicator KISAN II Code No. in Y3 Percent (with disaggregated information as Baseline Deviation Notes Code No. M&E Plan Target Actual (%) mentioned in PIRS) K1 EG. 3-1 Number of households benefiting directly Data not 180,000 166,022 92 from USG assistance under Feed the available Future (DNA) K2 EG.3-2 Number of individuals participating in USG DNA 198,250 179,111 90 food security programs [IM-level] K3 EG.3.2-1 Number of individuals who have received DNA 191,200 154,084 81 K3 fell short by 19% due to nationwide USG supported short-term agricultural lockdown. sector productivity or food security training [IM-level] K4 EG.3.2-24 Number of individuals in the agriculture 122,854 155,100 145,035 93 system who have applied improved management practices or technologies with USG assistance [IM-level] K5 EG.3.2-306- Average number of improved management 3.83 CUST practices or technologies applied per household with USG assistance. Type of Commodities: Rice 5.25 11 7.01 64 Denominator (8) was taken from Feed the Future category classification, which brought achievement down to 64%. Percentage on total 8 categories is 88%. Type of Commodities: Maize 2.94 6 6.18 103 Denominator (8). Revised achievement is 77% Type of Commodities: Lentil 2.51 4 5.30 132 Denominator (8). Revised achievement is 67% Type of Commodities: Vegetables 6.40 11 6.75 61 Denominator (8). Revised achievement is 68% Type of Commodities: Goats 2.03 3 2.0 66 Denominator (3). Revised achievement is 67% K6 GNDR-2 Percentage of female participants in USG- 73 70 82 118 Women accessing loans increased from 18% assisted programs designed to increase in Y2 to 25% in Y3, which is reflected in 18% access to productive economic resources achievement over target. (assets, credit, income, or employment) K7 YOUTH-3 Percentage of participants in USG-assisted 2 15 15 99 programs designed to increase access to productive economic resources who are youth (15-29) [IM-level]

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Indicator KISAN II Code No. in Y3 Percent (with disaggregated information as Baseline Deviation Notes Code No. M&E Plan Target Actual (%) mentioned in PIRS) K8 EG.3.2-25 Number of hectares under improved 39,685 51,021 DNA DNA Not collected by phone survey due to management practices or technologies with COVID-19 pandemic. USG assistance [IM-level] K9 EG. 3.2.-307- Total farm-level volumes (metric tons) 180,218 522,074 676,907 130 Increase in number of producers and yield CUST produced of targeted agricultural resulted in more production. commodities with USG assistance (rice, maize, lentil, vegetables, goats) Producer: Smallholder Agricultural commodities Commodities: Rice 101,894 135,292 171,244 127 Yield increase of 6% is due to favorable climatic conditions. 46% more farmers cultivated rice on 19% more land than targeted. This resulted in 27% more production than targeted. Commodities: Maize 22,885 18,244 28,491 156 26% more farmers grew more maize than anticipated due to additional support from agrovets and cooperatives. This resulted in 23% increase in production. These factors resulted in 56% more production than targeted. Commodities: Lentil 2,753 2,046 4,568 223 Area increase of 107% and yield increase by 8% (due to use of improved varieties) resulted in 123% increase over target. Commodities: Vegetables 48,448 366,463 472,488 129 Area per producer increased by 78% resulting in total area increase of 12%. 15% yield increased due to use of hybrid varieties (90% hybrids used) resulted in 29% increase over target. Commodities: Goats 4,239 30 116 386 KISAN II expedited grant activities on goat sub-sector and increased the number of goat farmers by 220%. The number of stock per household increased by 41%, however, the yield (offtake) was lower by 14%. Overall, the total production exceeded the target by 286%. K10a EG.3-10 Yield of targeted agricultural commodities among program participants with USG assistance per hectare [IM-level] Crops: Smallholder

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Indicator KISAN II Code No. in Y3 Percent (with disaggregated information as Baseline Deviation Notes Code No. M&E Plan Target Actual (%) mentioned in PIRS) Crops: Rice 3.49 4.97 5.28 106 # of households 36,764 53,803

# of male 39,872 24,734 # of female 21,262 29,069 Total Production (MT) 101,894 135,292 171,244 Unit of Production (ha) 29,173 27,205 32,452 Crops: Maize 1.96 3.27 4.04 123 26% more farmers grew maize than # of households 25,339 32,830 anticipated due to additional support from # of male 34,479 10,309 agrovets and cooperatives. This resulted in # of female 23,472 22,521 an increase in production area of 23% and yield increase of 23% above target. Total Production (MT) 22,885 18,244 28,491 Unit of Production (ha) 11,687 5,575 7,053 Crops: Lentil 0.55 1.00 1.08 108 # of households 9,300 19,044 # of male 17,770 6,500

# of female 8,841 12,544

Total Production (MT) 2,753 2,046 4,568 Unit of Production (ha) 5,001 2,046 4,229 Crops: Vegetables (All Veg) 9.39 22.38 26.05 116 Area per producer increased by 78%, # of households 212,960 121,733 resulting in total area increase of 12%. A # of male DNA 34,323 16% yield increase (above target) is due to use of hybrid varieties (90% hybrids) and # of female DNA 87,410 adoption of improved management Total Production (MT) 48,448 389,263 472,487.7 practices. These factors resulted in Unit of Production (ha) 5,158 17,395 18,137.5 achievement 16% higher than target. Crops: Tomato 14.37 33 37.85 115 11% increase in area per household and use # of households 66,610 60,407 of hybrid varieties contributed to yield # of male 10,123 10,830 increase of 15% above target. # of female 6,144 49,577 Total Production (MT) 9,459 86,104 86,698.9 Unit of Production (ha) 658 2,609 2,290.9 Crops: Cauliflower 11.59 23 22.06 96 # of households 91,989 85,579 # of male 11,891 14,797

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Indicator KISAN II Code No. in Y3 Percent (with disaggregated information as Baseline Deviation Notes Code No. M&E Plan Target Actual (%) mentioned in PIRS) # of female 7,868 70,782 Total Production (MT) 10,834 60,012 86,564.6 Unit of Production (ha) 935 2,609 3,923.2 Crops: Cabbage 14.42 25 32.51 130 Cabbage farmers allocated more area per # of households 113,907 67,577 household (154%) resulting in more cabbage # of male 9,946 10,830 production per household (95%). This # of female 7,691 56,747 resulted in an 30% increase above target. Total Production (MT) 7,740 65,230 98,117 Unit of Production (ha) 537 2,609 3,018 Crops: Cucumber 11.70 24 30.49 127 Farmers allocated more production area per # of households 46,427 44,543 household (40%) and produced 70% more # of male 4,951 7,474 cucumber, resulting in a 27% increase above # of female 5,083 37,069 target.

Total Production (MT) 4,011 33,398 56,893.2

Unit of Production (ha) 343 1,392 1,866.2 Crops: Bitter gourd 12.87 17 24.45 144 Bitter gourd farmers allocated more area # of households 71,373 40,119 per household (291%) and increased # of male 4,111 7,474 production per household by 319% resulting in a 44% increase above target. # of female 3,846 32,645 Total Production (MT) 1,811 14,786 34,822.2 Unit of Production (ha) 141 870 1,424.3 Crops: Bottle gourd 15.27 22 28.21 128 Bottle gourd farmers allocated more area # of households 51,186 24,864 per household (331%) and increased production per household by 453%, # of male 2,741 4,271 resulting in a 28% yield increase above # of female 4,553 20,593 target. Total Production (MT) 905 7,654 20,543.2 Unit of Production (ha) 59 348 728.2 Crops: Eggplant 14.99 30 27.63 92 # of households 17,593 6,101

# of male 1,680 1,678 # of female 1,415 4,423 Total Production (MT) 629 5,218 4,092.3 Unit of Production (ha) 42 174 148.1

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Indicator KISAN II Code No. in Y3 Percent (with disaggregated information as Baseline Deviation Notes Code No. M&E Plan Target Actual (%) mentioned in PIRS) Crops: Chili pepper 2.06 10 17.58 176 Number of farmers producing chili pepper # of households 31,866 39,509 increased by 24%. Farmers allocated more # of male 4,288 7,169 area per household (567%) and production per household increased by 898%, resulting # of female 2,475 32,340 in a 76% yield increase above target. Total Production (MT) 1,784 1,739 21,512.7 Unit of Production (ha) 864 174 1,223.5 Crops: Onion 5.44 12 23.80 198 Farmers allocated more area (131%) per # of households 61,711 17,237 household, thus production increased by # of male 4,862 2,593 160% and resulted in a 98% yield increase above target. # of female 5,393 14,644 Total Production (MT) 856 12,524 9,097.9 Unit of Production (ha) 157 1,044 382.3 Crops: Green bean (French Bean) 5.26 8 13.86 173 Farmers allocated more area (123%) per # of households 18,315 13,271 household, thus production increased by # of male 2,431 1,678 113% and resulted in a 73% yield increase # of female 3,271 11,593 above target. Total Production (MT) 868 2,783 4,291.6 Unit of Production (ha) 165 348 309.6 Crops: Other vegs 17 17.60 104 # of households 60,408 # of male 16,475 # of female 43,933 Total Production (MT) 99,815 49,746.46

Unit of Production (ha) 5,908 2,820.06 K10b EG.3-11 Yield of targeted agricultural commodities 6.29 6.61 6.4 105 among program participants with USG assistance per animal [IM-level] Live animals kg: Total 1,977,616 596,400 115,804 Unit of Production: Maximum number of 90,219 18094 herds K11 EG.3.2-26 Value of annual sales of input suppliers 816,118 10,180,096 9,966,356.47 98 disaggregate receiving USG assistance (IM-Level) Firm: Microenterprise 816,118 5,876,959 7,369,175 Product: Inputs: seeds and planting material 415,116 3,020,638

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Indicator KISAN II Code No. in Y3 Percent (with disaggregated information as Baseline Deviation Notes Code No. M&E Plan Target Actual (%) mentioned in PIRS) Product: Inputs: other non-durable inputs, 93,277 3,623,469 such as fertilizer and pesticides Product: Inputs: durable equipment and 119,253 725,068 machinery Firm: Small and medium enterprise 0 4,303,137 2,597,182 Product: Inputs: seeds and planting material 819,255 Product: Inputs: other non-durable inputs, 1,529,972 such as fertilizer and pesticides Product: Inputs: durable equipment and 247,955 machinery K12 EG.3.2-28 Number of hectares under improved 22,670 20,888 DNA DNA Could not be collected due to COVID-19 management practices or technologies that lockdown. promote improved climate risk reduction and/or natural resources management with USG assistance [IM-level] K13 EG. 3.2-308- Average number of climate-smart 1.59 3 1 33 There is only one category for climate-smart CUST technologies or practices applied per technologies out of 10 in Feed the Future household with USG assistance. classification of improved management and technologies. Target was estimated based on KISAN II number of subcategories (number of technologies – 3) and so % of achievement was reduced to 33% as value for denominator decreased. Revised achievement is 100%. K14 EG.3.2-4 Number of for-profit private enterprises, DNA 200 243 122 producer organizations, water user associations, women's groups, trade and business associations, and community- based organizations (CBOs) receiving USG food security related organizational development assistance Type of organization: For-profit private 227 enterprise Type of organization: Disaggregate not 16 available Duration: New 41 Duration: Continuing 202

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Indicator KISAN II Code No. in Y3 Percent (with disaggregated information as Baseline Deviation Notes Code No. M&E Plan Target Actual (%) mentioned in PIRS) K15 CBLD-9 Percent of USG-assisted organizations with DNA 90 99 110 increased performance improvement [IM- level] Numerator = number of organizations of 180 178 this type with improved performance Denominator = number of USG-assisted 200 180 organizations of this type receiving organizational capacity development support K16 EG.3.2-20 Number of for-profit private enterprises, DNA 200 180 90 producer’s organizations, water user associations, women's groups, trade and business associations and community-based organizations (CBOs) that applied improved organization-level management practices or technologies with USG assistance Type of organization: For-profit private 176 enterprise K17 EG.3.2-26 Value of annual sales of producers and 39,324,926 107,836,313 176,486,205 164 firms receiving USG assistance (USD)

Producer: Smallholder 28,361,517 95,304,881 147,939,015 155

Agriculture commodities: Rice Rice: Value of sales (USD) 6,789,764 11,719,871 17,216,944 147 Rice sales totaled USD17,216,944, which was 47% higher than the target. Yield increased by 6% due to favorable climatic conditions, and 46% more farmers cultivated rice on 19% more area than targeted. As a result, 27% more rice was produced than anticipated, and sellers increased by 65%, Volume of sales (metric tons) 26,872 56,822 77,258 resulting in 36% more rice sold. Price of rice Number of participants producers 61,134 36,764 53,803 was 8% higher than projected. Therefore, target was exceeded by 47%. Agriculture commodities: Maize

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Indicator KISAN II Code No. in Y3 Percent (with disaggregated information as Baseline Deviation Notes Code No. M&E Plan Target Actual (%) mentioned in PIRS) Maize: Value of sales (USD) 769,592 1,520,340 3,405,239 224 Maize sales totaled USD3,405,239, which was 124% above the target. The major factor contributing to this over-performance is that 26% more farmers grew maize than anticipated due to additional technical support from agrovet and cooperatives. This led to 23% more land area being planted and a yield increase of 23% over the target, resulting in total production increase of 52% Volume of sales (MT) 3,340 5,473 12,340 over target. In addition, a greater percentage Number of participants producers 57,951 25,339 32,830 of producers (154%) sold more maize (119%) than anticipated. Therefore, the target was exceeded by 124%. Agriculture commodities: Lentil Lentil: Value of sales (USD) 590,976 549,389 2,039,258 371 Lentil sales totaled USD 2,039,380, which was 271% above the target. Lentils were grown by 105% more producers than targeted, as many private sector grantees serviced the lentil growers and rice farmers. This led to an increase in area of 107%, and a yield increase of 8% (due to better varieties), resulting in a total production increase of 123% over the target. In addition, a 26% price increase (especially in Volume of sales (MT) 1,119 1,023 3,009 the Hills), 194% increase in quantity sold, Number of participants producers 26,611 9,300 19,044 and a greater number of sellers (190%) all led to a sales increase by 271% above target. Agriculture commodities: Vegetables

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Indicator KISAN II Code No. in Y3 Percent (with disaggregated information as Baseline Deviation Notes Code No. M&E Plan Target Actual (%) mentioned in PIRS) Vegetables: Value of sales (USD) 11,901,397 81,436,160 124,764,749 153 Vegetable sales totaled USD124,609,685, 53% more than the target. Given the potential for farmers to earn more from vegetable production and sales, farmers were supported to increase their vegetable production area. As a result, total growing area increased by 12%. A 15% yield increase due to hybrid varieties (90% hybrids were used) resulted in total production increase by 29%. Increased price (by 10%) and quantity sold (by 39%) resulted in a sales increase per household by143%. Due to the national lockdown, vegetable supply chains Volume of sales (MT) 39,343 293,170 407,948 from India were disrupted and farmers took Number of participants producers 58,968 192,960 121,733 advantage of this gap. Therefore, target was exceeded by 53%. Agriculture commodities: Goats Goat: Value of sales (USD) 8,309,787 79,121 512825 648 KISAN II expedited grant activities in the goat sub-sector and increased the number of goat farmers by 220% and the number of stock per household by 41%, although yield (offtake) was lower by 14%. Total production was 288% of the target. The price of goat meat was 35% more than anticipated (a lower estimated price was Volume of sales (MT) 1,969 30 116 used when targets were set) and the, quantity sold increased by 243%, resulting in Number of participants producers 58,968 500 1,603 a sales increase of 548% above target. Producer: Non-smallholder Firm: Microenterprise 1,285,299 7,412,735.73 12,577,914 170 Of the 120 microenterprises targeted, 34 new additional microenterprises partnered with KISAN II this year, thus the average sales of microenterprise increased by 32% (to USD 81,675 against the anticipated average sales of USD 61,773). This led to an increase in total firm sales of 70% above target.

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Indicator KISAN II Code No. in Y3 Percent (with disaggregated information as Baseline Deviation Notes Code No. M&E Plan Target Actual (%) mentioned in PIRS) Firm: Small and medium enterprise 9,678,110 5,118,696 15,969,276 312 11 SMEs were targeted; 15 new additional SMEs partnered with KISAN II this year, thus the average sales of SMEs increased by 32% (to USD 614,203 against anticipated average of USD 465,336). This led to an increase in total sales of 212% above target. K18 EG.3.2-2- Volume of annual sales (MT) of farms 70,675 356,518 500,671 140 Same as in EG. 3.2-26 smallholders. CUST receiving USG assistance (rice, maize, lentil, vegetables, goats) K19 EG.3.2-24 Number of Individuals who have applied 32,094 89,900 142,870 159 Grantees focused more on improved disaggregate improved management practices or management practices and technologies this technologies with USG assistance – related year, which led to a greater number of to marketing and distribution farmers applying at least one technology or management practice. K20 EG.3.2-309- Percentage of USG-assisted Household 14.57 60 DNA DNA Could not be collected due to COVID- 19. CUST accessing information on improved technologies and practices through improved ICT channels or content K21 EG.3.2-310- Percentage change in the number of DNA 55 43 78 Number of palikas not having market access CUST municipalities (palikas) in the ZOI that have increased by 9%, reducing the overall access to markets achievement. K22 EG.4.2-2 Number of financial intermediaries serving DNA 65 70 108 poor households and microenterprises supported by USG assistance K23 EG.3.2-27 Value of agriculture-related financing DNA 31,404,860 46,639,065 149 accessed as a result of USG assistance [IM- level] (USD) Size of recipient: Smallholders 6,808,306 28,569,600 30,728,777 108 Number of recipient Size, Sex and Age 11,152 Size of recipient: 11,152 1,563,500 2,922,182 187 Number of microenterprises increased by Individuals/microenterprises 13% (70 versus 62 targeted) and the average loan size also increased by 66% (from targeted USD 25,218 to USD 41,745), which increased the total loan amount by 87% above target. Size of recipient: Small and medium 1,271,760 12,988,106 1021 18 new additional SME partners in Y3 enterprises resulted in increase of 550% against the anticipated 4 SMEs (4 targeted, 22 joined). The average loan size also increased by 86%

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Indicator KISAN II Code No. in Y3 Percent (with disaggregated information as Baseline Deviation Notes Code No. M&E Plan Target Actual (%) mentioned in PIRS) above target (from targeted USD 317,940 to USD 590,368). Similarly, 32 cooperatives out of total 92 organizations (35%) took 71% of the total loan amount, all of which contributed to a 921% achievement over target. K24 EG.4.2-7 Number of individuals participating in USG- 63,520.81 54,250 DNA DNA Could not be collected due to COVID-19. assisted group-based savings, micro-finance or lending programs [IM-level] K25 EG.3.2-311- Value of household savings deposits of DNA 15,186,900 DNA DNA Could not be collected due to COVID-19. CUST USG-assisted smallholders K26 EG.3.2-312- Value of the outstanding balance on DNA 18,119,500 17,197,058 95 CUST agriculture loans of USG-assisted households K27 EG.3.1-14 Value of new USG commitments and DNA 2,192,581 1,648,802 75 private sector investment leveraged by the USG to support food security and nutrition [IM-level] K28 EG.3.1-12 Number of agricultural and nutritional DNA 3 3 100 enabling environment policies analyzed, consulted on, drafted or revised, approved and implemented with USG assistance [IM- level] K29 EG.3.2-20 Number of for-profit firms and DNA 18 57 317% 39 additional firms applied improved Disaggregate organizations that applied improved organization level technologies or organization level technologies or management practices, resulting in a higher management practices with USG assistance than anticipated achievement. – for effective management and governance of infrastructure (market, storage, and agro-processing) K30 EG.3.2-1 Number of individuals who have received DNA 80,000 82,195 103 disaggregate short-term training – on food grading or safety K31 EG.3.2-24 Number of farmers and others who applied DNA 60,000 130,964 218 Grantees’ focus on improving management disaggregate improved technologies or management practices and technologies this year resulted practices – on food grading or safety in a greater number of farmers applying at least one technology or management practice, including food grading and safety.

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Indicator KISAN II Code No. in Y3 Percent (with disaggregated information as Baseline Deviation Notes Code No. M&E Plan Target Actual (%) mentioned in PIRS) This resulted in higher than expected numbers. K32 EG.3.2-4 Number of for-profit firms and DNA 162 170 105 disaggregate organizations receiving USG organizational assistance – related to food grading or safety K33 EG.3.2-20 Number of for-profit firms and DNA 150 136 91 Disaggregate organizations that applied improved organization level technologies or management practices with USG assistance – related to food grading or safety K34 EG.3.2-313- Number of investment feasibility studies, DNA 5 5 100 CUST exposure tours, and/or guidance documents produced that promote evidence-based local investment in market systems K35 EG.3.2-1 Number of individuals who have received DNA 200 225 113 15 additional participants from the public USG supported short-term agricultural sector were supported to participate in sector productivity or food security training in India, resulting in higher than training – related to appropriate public and targeted achievement. private sector roles and support for market systems development K36 EG.3.2-305- Number of people trained in DNA 22,078 10,457 47 Business Literacy Training could not be CUST entrepreneurial skills through USG conducted due to COVID-19. supported programs K37 4.5 ZOI Number of people trained in life skills DNA 20,146 DNA DNA Business Literacy Training could not be EG.3.2-301- through USG supported programs conducted due to COVID-19. CUST K38 EG.3.2-303- Number of people trained in access to DNA - DNA DNA Business Literacy Training could not be CUST financial services through USG supported conducted due to COVID-19. programs K39 EG.3.2-314- Percentage of business literacy trainees DNA 90 90 100 CUST that pass a competency test K40 EG.3.2 302- Percentage of entrepreneurial literacy DNA 90 86 96 CUST trainees who initiate or expand sales of good and services

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Indicator KISAN II Code No. in Y3 Percent (with disaggregated information as Baseline Deviation Notes Code No. M&E Plan Target Actual (%) mentioned in PIRS) K41 G.3.3-11 Quantity of nutrient-rich value chain 2,066 13,076 13,561 104 commodities produced by direct beneficiaries with USG assistance that is set aside for home consumption (MT) K42 EG.3.2-1 Number of individuals who have received DNA 22,078 20,605 93 short-term training on adaptive management K43 EG.3.2-4 Number of for-profit firms and DNA 80 76 95 Disaggregate organizations receiving USG organizational assistance related to CLA or monitoring shocks and stressors K44 EG.3.2-20 Number of for-profit firms and DNA 40 44 110 Disaggregates organizations that have applied CLA or have a mechanism in place for monitoring shocks and stressors K45 EG.3.2-1 Number of people trained in climate DNA 55,448 51,516 93 change adaptation supported by USG assistance K46 EG.11-6 Number of people using climate DNA 37,200 37,092 100 information or implementing risk-reducing actions to improve resilience to climate change as supported by USG assistance K47 STIR - 10 Number of innovations supported through DNA 5 5 100 USG assistance K48 STIR - 11 Number of innovations supported through DNA 2 2 100 USG assistance with demonstrated uptake by the public and/or private sector K49 DR.4.3-304- Percent of leadership positions in USG- 57 53 49 92 CUST supported business entities that are filled by a woman or member of a vulnerable group K50 EG.5-3 Number of microenterprises supported by DNA 200 227 114 USG assistance on agriculture and food security related development

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