A REPORT ON CONTRACT FARMING PRACTICE A BEACON OF HOPE FOR MARGINALIZED LANDLESS COMMUNITIES Publisher: SAMARTHYA/ CARE

Disclaimer: CARE Nepal

Paper Environment friendly, wood free paper February, 2019 CONTENTS

List of Abbreviations 4

1. Introduction 5

1.2 Project Context 6

1.3 Objective of the Study 6

1.4 Study Methodology 6

2. Key Findings of the Study 7

2.1 Contract Farming Practice: Key Initiatives and Process 7

2.1.1 Conception of the idea of contract farming 7

2.1.2 Impact group formation and conclusion of land lease deed 8

2.1.3 Policy Initiatives 8

2.2 Significant Changes Brought About by Contract Farming Practice 9

2.2.1 Empowerment of Musahar women in personal, social and economic spheres 9

2.2.2 Changes in Musahar Women’s public engagement and progress in policy initiatives 12

2.2.3 Coordination, collaboration and leverage 15

2.2.4 Return on Investment 17

3. Sustainability 18

4. Key Learning 19

5. Conclusion 20

6. Way Forward 22 LIST OF ABBREVIATIONS

CBR Cost-Benefit Ratio CDO Chief District Officer CEN Clean Energy Nepal CSOs Civil Society Organizations CSRC Community Self Reliance Centre DADO District Agriculture Development Office DDC District Development Committee DLSO District Livestock Office DWFG Dalit Women Farmers’ Group FY Fiscal Year GDP Gross Domestic Product Ha Hectare JTO Junior Technical Officer Li-Bird Local Initiatives for Bio-diversity, Research and Development MoAD Ministry of Agriculture Development MoLRM Ministry of Land Reforms and Management NFGF National Farmers’ Groups Federation NGO Non-government Organization NLRF National Land Rights Forum NPR Nepalese Rupees RM Rural Municipality RtF Right to Food VDCs Village Development Committees

4 CONTRACT FARMING PRACTICE CONTRACT FARMING PRACTICE A BEACON OF HOPE FOR MARGINALIZED LANDLESS COMMUNITIES

1. INTRODUCTION substantial challenges in making this a including the right to food and shelter Land ownership traditionally remains viable livelihood. Only 19.71% Nepali are blatantly denied. Most of them are the main source of wealth, social status, women have the ownership of land living in deplorable condition without and economic and political power in despite the fact that women are the proper house, no or very little arable Nepal. Apart from its productive value ones involved most in agriculture labor. land with very low productivity, which linked to livelihoods and food security, is not enough to feed their families land ownership for the marginalized Despite some progress in poverty year-long. Education, health and other communities often becomes the reduction over the past decades, Nepal basic needs are largely unmet. Women determining factor between a still remains one of the food insecure members of the families are living life with dignity and security, and countries in the world. According to the in even more precarious condition. exposure to different vulnerabilities Ministry of Agriculture Development They lack proper understanding of and uncertainties. Ironically, however, (MoAD), 33 out of the 75 districts of their own rights and entitlements, the richest 5% own 37% of the total Nepal are food deficit (2012/13). About not to talk of income generation and cultivable land leaving only 15% to 60% of the households in Nepal have other livelihood opportunities of their be shared among rest of the 47% sufficient food for only six months choice. On the one hand the Musahars, households. Landlessness is as high as from their own production. Mostly, who totally depend on agriculture for 32.1 %. Over 44% Dalits in the Terai the poor families spend around 70% livelihoods do not have their own land and 22% of those in hills are landless of their household income on food nor do they have access to other’s and, thereby, deprived of their socio- requirements. arable land to produce their food, economic rights. While landlessness is while those who own land are taking very high in the country, over 30 % of Even after ‘legally’ freed from bondage, to alternative professions and leaving cultivable land is estimated to have been various landless and marginalized their land fallow. left fallow for various reasons such as communities such as hill and Terai Dalits increasing out-migration of youth, rapid including Musahars, freed Kamaiya, As per the constitution each farmer urbanization, decreasing competitiveness Haliya and Haruwa-Charuwa families shall have the right to have access to for agricultural produce and use of have not experienced substantial land for agricultural work. Currently, farm land for alternative purposes. Land change in their lives and livelihoods. the country has completed the process owners most often keep their land fallow of establishing local governments with fearing that giving them out for tenant Among such communities, the study the powers to, among others, formulate farming would ultimately rob them of is focusing on the Musahar community their own policies, develop data base their land ownership. of District. According to 2011 of landless and land-poor people and census, out of the country’s total utilize fallow land. Working policies on Available official data show that of Musahar population (234,490), Siraha land-lease are in place at federal level. the total land, about 21% is under district alone is home to 39,929 of If they are implemented, marginalized cultivation. 65% of the country’s them. In Siraha, this community has landless groups can access land on population is dependent on agriculture been compelled to accept a very long-term lease with the government constituting 66% of the labour force. In low daily wage determined by their paying for such lease and bearing 50 % an agro-dominated economy like Nepal, landlords to meet their livelihoods of basic agricultural inputs. But still the where two-thirds of the population is needs. This predicament traditionally wretched condition that the Musahars still dependent upon agriculture for forced them into eating rats for are living in emanates from a lack of livelihood, agriculture’s contribution to survival, hence known as ‘Musahar’ or land use plan, which has led to unequal GDP is declining and farmers are facing ‘rat eaters’. Their fundamental rights land ownership, endemic problem of

1HLCSLR 2012. CONTRACT FARMING PRACTICE 5 landlessness, a lack of optimum use of (RtF) project, the next phase of implementation at local, state and available land resource and denial of CARE Denmark- supported project federal levels around agriculture, food, marginal households’ access to land. (July 2018-December 2021) has land rights and resilience to climate Poor understanding and knowledge of been implemented as “SAMARTHYA change. The third domain of change land related legislative and institutional : Promoting Inclusive Governance and focuses on government and other duty provisions among the people in general Resilience for the Right to Food” in bearers, at federal, state and local levels, as well as their elected representatives the same districts in partnership their responsiveness and engagement in local government have further with National Land Rights Forum with civil society organizations to exacerbated the problem. (NLRF), National Farmers’ Groups implement land, food, agriculture, Federation (NFGF), Community Self climate change adaptation policies and 1.2 PROJECT CONTEXT Reliance Centre (CSRC) and Clean plans taking into account the needs of Against this backdrop CARE Nepal Energy Nepal (CEN). It focuses on the impact groups. devised an appropriate intervention strengthening peoples' organizations to to contribute to the realization of become more effective in engaging with 1.3 OBJECTIVE OF THE STUDY food rights of the economically and government at all levels. The project’s With the aim of showcasing the socially vulnerable small holders and impact group includes: smallholder, programme results including the landless farmers of three districts of tenants, marginal and landless farmer positive changes brought about by the Eastern Nepal. Altogether 27 then households, and labourers; natural successful intervention of contract Village Development Committees resource dependent communities; farming, CARE Nepal/SAMARTHYA (VDCs) in Siraha, Udayapur and groups differentially impacted by aims to generate evidences that create Okhaldhunga were selected as project climate change and disasters; and opportunity to advocate for preparation area. For this purpose, CARE launched people living in geographically remote and implementation of the lease hold a Civil Society Support Project on areas and in poverty pockets. The or contract farming policy at provincial Right to Food (RtF project) 2013- impact goal of the project is that and local levels. The intent is also to 2017 covering the three districts. "Representative people’s organizations institutionalize and share the learning The project aimed at supporting Civil have individually and in alliances or with a wider set of stakeholders. This society Organizations (CSOs) to networks contributed to the realization study on contract farming practice has, become more representative, inclusive, of the right to food for the benefit of the therefore, been conducted to learn legitimate, accountable and effective impact groups in partnership with local about and document the key initiatives in order to demonstrate new ways of and state governments". or process and strategies that have addressing food insecurity and required led to the achievements in terms of policy responses through engagement One of the project’s three domains contract farming in practice and policy, with the government, which contribute of change is: the local, district and the effects to the constituencies and to realization of the right to food, state federations of strategic partners key learning. A return on investment especially among the marginalized representing the impact group analysis was also part of the study. landless communities. Promotion of mobilize and empower communities, contract farming both in practice and expand knowledge, and improve 1.4 STUDY METHODOLOGY policy was a key built-in component their capacities to work jointly This document is an outcome of of the RTF project. CARE together with decentralized governments project literature reviews and a day- with its strategic partners, particularly in developing and implementing long field work which helped collect National Farmers’ Groups Federation inclusive solutions around issues firsthand information through focus (NFGF), piloted the contract farming of land rights, food, agriculture and group discussions (FGD) with the component of the project in then resilience to climate change and impact group, the Musahar community Bhagwanpur VDC of disasters. The next domain envisages at Bhagwanpur Rural Municipality (RM), engaging 40 marginalized and landless that strategic partners representing interaction with the chairpersons and Musahar families. impact group have increased their other officials of Bhagwanpur RM and own representativeness, inclusiveness some of the Wards. Meetings were Building on the experience and and governance and are capable of also held with NFGF officials at the learning from the Right to Food influencing policy formulation and district level as well as at the Centre

6 CONTRACT FARMING PRACTICE and CARE team to further discuss the in reality. For example, one member project districts, with NFGF taking field level findings, verify some facts might start thinking that as all share the implementing responsibility. The and collect additional information. The the benefits equally, why should s/ objectives of the piloting were to Musahar settlement and the land they he put more effort, hence s/he might showcase contract farming practice are now cultivating were observed to start to work as less as possible giving in Bhagwanpur-1, Siraha as a model get a feel of the achievements that the rise to frequent conflict among the for productive land use, advocate impact group felt proud of showcasing. group members. This tendency may integration of climate adaptation with The FGD was held at the community lead to nobody really taking serious budgetary provision in government’s meeting place recently built by the responsibility thereby jeopardizing the development plan and for increasing Musahar women of Bhagawanpur community farming practice as such. investment in agricultural development RM-1 with the support of then District However, in contract farming practice, focusing on female small-holder Development Committee (DDC). the assumption is that a group takes farmers by citing return on investment A cost-benefit analysis was also the overall responsibility, while each as evidence. SAMARTHYA, the current conducted to calculate the return on household represented in the group phase of the project has retained investment. takes ownership of its share of land and a strong focus on the contract makes more effort to produce and earn farming intervention, with an added 2. KEY FINDINGS OF THE more. This becomes a big motivating emphasis on building capacity of STUDY factor for the households, hence each local government, particularly around household owns it and also becomes optimum utilization of land resource 2.1 CONTRACT FARMING PRACTICE : a part of a healthy competition for generating employment and improving KEY INITIATIVES AND PROCESS better results. livelihoods of the most marginalized land-poor and landless communities, 2.1.1 Conception of the idea of contract As contract farming was an ‘untrodden and development and implementation farming turf’ CARE and its partners carefully of policy and law for promotion of CARE and its strategic partners were decided to first pilot this practice tested model such as contract farming quite strategic in conceiving contract only in Siraha, one of the three RtF in Bhagwanpur-1. farming practice as part of the RtF project design. It can be safely said that in doing so they took some calculated risk as contract farming had hardly been practiced in the country, hence no practical knowledge and learning existed.

Community farming was practiced in various areas. But general observation and experience in certain communities indicated that this practice was losing popular interest. As per general observation, in community farming practice, all community/group members involved are supposed to work on the same plot of land, work equally and share the benefits equally. However, internal governance in the groups are most often not well defined and collectively understood. In theory, each group member has equal ownership and responsibility but, most often than not, this does not happen Dalit Women Farmers Group implementing a Model Practice of Contract Farming

CONTRACT FARMING PRACTICE 7 2.1.2 Impact group formation and owners, who did not live in the area. authorities and other stakeholders led conclusion of land lease deed NFGF VDC and District Federations to then VDC, DDC, DADO, DLSO, and As envisaged by the project, which then calculated a reasonable lease rate Li-Bird providing various technical inputs. focused on smallholder, tenants, (NPR 2,200/per kattha (0.03 ha)/year) marginal and landless farmer for 10 years. This was followed by NFGF 2.1.3 Policy initiatives households, and labourers and natural VDC Federation’s negotiation with the Right from the beginning, the contract resource dependent communities as land owners. The negotiation led to a farming intervention was aimed at its impact group, CARE and NFGF conclusion but reaching the conclusion not only livelihoods improvement. identified the most marginalized and was not easy. “The land owners were The chief objective was to generate landless Musahar community at Ward not interested to lease out their land evidences from this model and use No. 1, Bhagwanpur RM in Siraha district to us (Musahars) as they (as other them as a tool for lobbying then VDC as the impact group. Most of the male elites) looked down upon us, did not for integrating the contract farming members of the community were trust us and thought that we would provision in local plan and budget. outside the country in search of jobs, either not pay their lease amount or With this purpose NFGF held series of while the women were barely meeting claim tenancy right over their land,” discussions with the VDC officials, who, the families’ daily essentials working said DWFG chairperson Laduvati as a result, were extending all possible as daily wage earners. NFGF started Saday. After long discussion citing the support for the intervention. Contract conversations with the community, law and working policies on land lease farming in Bhagwanpur commenced which included 40 Musahar families. a contract was finally inked between in April 2015. The then Chief District Assessment of the community’s the DWFG chairperson and the land Officer (CDO) formally launched the interest to engage in the piloting and owners. Representatives of NFGF project. The representatives of DADO, required support and cooperation VDC and District Federations, District DLSO, DDC, VDC, District Forest of the government authorities and Agriculture Development Office Office, District Police Office and local key stakeholders was also part of (DADO) and District Livestock Office NGOs, among others, were present on the process. After all stakeholders (DLSO) have also signed the contract the occasion. including the women responded in as witness. Now with the change in the affirmative, NFGF supported formation structure of local government, NFGF is NFGF availed of this opportunity to of a 40-member Dalit Women Farmers’ planning to bring on board the present brief them about what contract farming Group (DWFG) representing all the 40 Bhagwanpur RM as a party to the deed. is all about and how it contributes to families in the Musahar community and After the deed was finalized, the land meeting the immediate livelihood needs formal registration of the group with was divided into 40 plots measuring of the most marginalized community the District Agriculture Development two Katthas (0.06 ha) each, numbered (Musahar), while in the long run leading to Office (DADO). each plot and allocated them to each optimum utilization of natural resources, Musahar families. in this case land lying fallow. It formally This was followed by several rounds presented a concept paper highlighting of discussions with the DWFG on The project has a provision of paying how the country once almost self- availability and identification of land for the lease amount until 2019, the sixth sufficient in food grains has now been lease, while at the same time interacting year of the intervention. It is expected relegated to a country dependent on with the district-based government that by the time the DWFG members food grains imports. The government and non-government stakeholders will be able to access land on contract authorities’ attention was also drawn to seeking their cooperation. Then NFGF and pay the land rental on their own, the fact that on the one hand landless VDC Federation played significant and that Bhagwanpur RM and the and land poor communities do not have role in identifying appropriate land on Wards under it will have policy and land to grow food for their survival long-term lease. NFGF local facilitators budgetary provision to replicate and and livelihood, while on the other large finally identified 80 Katthas or 4 bighas scale up contract farming in the rural swathes of arable land are lying barren (2.6 ha) of land owned by two absentee municipality. The project has also as land owners would not allow anyone land owners. The land was lying barren the provision for bearing the cost of to cultivate the land for fear of having to with no irrigation facility. The NFGF agriculture inputs. However, productive give their land to tenants. VDC Federation traced the land collaboration with various government

8 CONTRACT FARMING PRACTICE The concept paper also outlined CARE and NFGF’s strategy to create a win- win situation for the landless farmers and the land owners. It would be done by guaranteeing the land owners’ ownership of their land and providing them reasonable amount for long- term lease of their land, and supporting the landless farmers to access land on lease to use it as a means of production. CARE and NFGF have therefore initiated contract farming practice as a model with DWFG of them a “position paper” briefing about responsibility of leading on the agenda of Bhagwanpur-1 as the impact group. the contract farming highlighting its promoting contract farming with NFGF The contract farming practice aims to multifaceted benefits. backing. The Municipal Federation played generate evidences of success and call the role of a convener bringing together the government’s attention­ to the need Prince Joachim of Denmark together the newly elected representatives for a for policy provision­ to institutionalize with the Danish ambassador and high civic reception. The event served as a and scale up this practice as a driver ranking Nepal government officials also platform for NFGF to brief the elected of increasing agricultural production visited Bhagwanpur on 3rd March 2017, representatives about the concept of and contributing to national economy interacted with the DWFG members contract farming and lobby for policy in the long-run. The concept paper and observed their work in the field. initiatives to replicate and scale up also highlighted the rationale behind Positive remarks by the prince and contract farming practice. engaging the most marginalized other visitors about the intervention landless Musahar community as impact were expected to spur policy initiatives 2.2 SIGNIFICANT CHANGES group and the multi-stakeholder for promotion of such tested model. BROUGHT ABOUT BY CONTRACT approach to building a wider support NFGF also invited then minister for FARMING PRACTICE base for the initiative. It also included agriculture to its office in 2015, briefed 2.2.1 Empowerment of Musahar women proposition regarding areas of multiple him about the contract farming, its stakeholders’ expected collaboration. in personal, social and economic spheres achievements and potentials, and Before CARE and its strategic partner The concept paper was subsequently emphasized the need for policy NFGF came into contact with the Musahar submitted to the Department of initiative to institutionalize the practice community at Bhagwanpur-1 four years ago, Agriculture. One year after the and ensure government ownership of contract farming was something never heard contract farming started in Siraha the concept. The minister, who had a of in the community. Or they did not have NFGF organized an observation background in promoting agricultural any access to information that could be useful tour of Bhagwanpur, Siraha for the activities, promised to do something for them as they were virtually an isolated Director General of Department of tangible to promote contract farming community. They did not even bother to seek Agriculture and two senior officers during his tenure. Meanwhile, CARE such access and learn about options that could lift them out of the precarious condition from the Social Welfare Council. They partners, especially NFGF, CSRC and as one could feel an untold acceptance among interacted with the impact group NLRF were lobbying both the then them of their “destiny”. “We used to be badly Ministry of Agriculture Development members involved in the project and put off by the treatment meted out to us. We left with positive impressions. NFGF (MoAD) and the Ministry of Land felt extremely sad, wondering why we had to continued its lobbying and follow-up Reforms and Management (MoLRM) for be poor or Dalit. But no matter how much with all agriculture ministers who kept formulation of policies on land lease. trouble we had to put up with or how much on changing as political instability led Immediately after the elections anxiety we felt, what alternative was there in to change of government frequently. concluded under the federal system, the end. We just learnt to live with it. This was a few years ago,” said Shila Devi Saday, DWFG Every time they met the new minister NFGF entrusted the Siraha district-based member. for agriculture, NFGF submitted to NFGF Municipal Federation with the

CONTRACT FARMING PRACTICE 9 Musahar and other Dalit women are often care of the baby, were also not accepted after their first harvest that through sheer not aware of their rights, lack access to as labourers. toil and sweat they transformed into fertility relevant information and knowledge of and greenery the 4 bighas (2.6 ha) of land. “Hum sab maanav rupi pashu samaan chheliyai. emerging issues such as contract farming That empty piece of land started teeming Karaar khetisa hum sab maanab swarup and the need for policy provision to govern with vegetables and other crops, and the praapt keliyei,” said Laduvati Saday, DWFG purses of all the women started filling up as it. Consequently, they do not participate, let chairperson in the Maithili language, her a result. After the second harvest they were alone influence decisions on such issues, mother tongue. She meant to say that the inspired to take more land on lease on while, due to their role, they have crucial God gave the Musahars and other Terai their own. Some portion of their income knowledge of their natural resources Dalits the life of human being but the society goes into the group saving scheme, which including land and agriculture. They worked treated them as animals. With the touching they initiated for a rainy day. The members, for others – almost like bonded labour. For pathos she described, in her expression, who have more than 10 katthas (0.3 ha) of example, a landlord would allow a Musahar land, need to spend a portion of their income the pangs of poverty, exclusion and denial family to cultivate 5 katthas (0.16 hectare) to buy agricultural input such as seeds and of the Musahar community’s human rights. of land. In exchange for that the entire fertilizers on top of what they receive from She, however, immediately added, “contract family had to work free for the landlord the project fund and the government agencies. farming programme introduced by CARE and the whole year. Such practice had received The end result is that the women have had NFGF made us understand the importance of a kind of ‘social acceptance’ including the opportunities to take up gainful employment, being human and our purpose of life.” learn about their rights and show initiative to Musahars themselves. Coming from such gain access to more land on lease. background, the women from Musahar The situation of the Musahar community has community found it too alien an idea to undergone tremendous change after their The women members of the group, who own land and work for themselves. CARE involvement in RtF and the subsequent were initially allotted two katthas (0.06 staff and NFGF had to struggle a lot before SAMARTYHA project. The projects have ha) of land per family, are accessing more finally convincing the women’s group about paved the way for transformational change land investing a portion of their income from contract farming on land rental, and the benefits of contract farming. for the Musahar women directly involved producing and earning more, while marking in the projects through positive change in Champa Devi Saday, Vice-chairperson of the a shift from subsistence to commercial personal, social and political (policy related) group said, “We had no idea whatsoever farming. The project is paying the lease levels. At personal level, the women are about contract farming; we did not have amount of only the 4 bighas (2.6 ha) of land demonstrating increased confidence to the practice of meeting and discussing our divided among the 40 Musahar families. Their act. Politically, they have been able to issues. We had no connection with anybody initial income, which averaged NPR 20,000 effectively interact with informal and formal among the 40 group members, is gradually as we were a community looked down structures such as the informal power increasing. With a boost in their morale and upon by the so called higher caste and well holders, particularly land holding elites, and confidence thanks to the contract farming to do people—almost forgotten by society. formal structures, primarily the Wards and practice, about half of the group members Our connection was limited to those who Municipality. They are influencing change in have added more land on contract to the employed us as daily wage labourers; and the attitude and practice of those in positions initial two katthas (0.06 ha). The following the wage rate depended on their ‘mercy’; of power and demanding policies, laws and list is just an example: we did not have the courage to negotiate.” practice reflecting the needs and interests There was no question of taking care of of marginalized and landless women and Group members Land they are their own health and that of their children. men. In social sphere, the women, who have cultivating Education was far beyond their reach. Good organized as Dalit Women Farmers’ Group, Gauri Devi Saday 4 bighas (2.6 ha) nutritious food was a luxury they could not have demonstrated organizational potential Duliya Saday 2 bighas (1.3 ha) afford. As almost all males in the community for them to unite so as to promote Champa Devi Saday 22 katthas (0.7 ha) have left the country in search of job, even their causes. Meanwhile, their economic women, who gave birth days ago, were Laduvati Saday 15 katthas (0.5 ha) leadership is gradually taking better shape. compelled to earn daily wage, although Ramo Devi Saday 14 katthas (0. 47 ha) they were not potential employer’s choice The women, who initially seemed to be Shila Devi Saday 12 katthas (0.40 ha) as they would not be able to work as much slacking off on their work, difficult as it was Tetri Devi Saday 12 katthas (0. 40 ha) as other women. And even women, who for them to undergo the transition from had to carry their babies to their work- daily wage earners to owners of their own place with nobody else at home to take leased land, burst into such energy and zeal

10 CONTRACT FARMING PRACTICE the agency role they can play for their own development. Contract farming led to good economic gains (at least by their standards), which also served as a morale booster for them. By supporting the development of the group members’ confidence and voice the project seems to be adopting a strategy for unlocking significant economic advantages for the marginalized women.

The community women no longer feel isolated, scorned and purposeless. Rather they have an increased sense of dignity and self-respect, and feel they Product of Contract Farming are gradually enjoying better social If any group member for some reasons government agencies to approach for recognition. As an example, Champa is not able to pay the lease amount for their required services. They frequently Devi Saday of DWFG proudly shared the additional land, other members meet the Junior Technical Officer (JTO) that the provincial minister felicitated extend their support. This has also to discuss issues of pest control and her on the occasion of NFGF district helped foster closer unity among quality seeds of vegetables and other convention in appreciation of her good the women. Fortuitously, most of the crops, and access agriculture extension work to bring change to her own life males of the community are either in service provisioned by the local and the example she has set for others India or the Gulf countries in search government. On top of that they have to emulate. They are earning enough of jobs. Needless to say it has added also set an example to others what to meet their daily essentials. They are to the drudgery and responsibility of leadership should be like. conscious about health, sanitation and the women. They have to earn, take education for their children, “who even care of children and elders, more so “Until now, we had no idea of what speak English these days”. They do not when they are not in good health, income is all about and how it is made, have to sleep with empty stomach or and all other household chores. At except for the daily wage we earned,” eat just bread as before. Their meal the same time their involvement in said Gauri Devi Saday, Treasurer of today includes fresh vegetable, curd contract farming has hugely increased the group, adding, “now we know the and occasionally fish and meat. As their responsibility, which also includes ‘taste’ of income; we will continue against their earlier conviction that their engagement in public affairs. our contract farming practice.” She they are controlled by their destiny and However, as a boon in disguise, it appreciated CARE and NFGF’s role in that there is nothing much they can is the women who are today in a supporting them to organize, engaging do to change their ‘fate’, the DWFG position to take decisions at family and in contract farming, connecting the members today see the brighter side community levels, influence decisions women’s group to various relevant of their lives. They have their own at Ward and Municipality level, and are government agencies such as DADO, land to cultivate, hence no need to be accessing, controlling and managing DDC and Ward and Municipality office compelled to work for a meager daily resources including the income they bearers thereby facilitating leveraging wage. “If we have some free time after are making from contract farming. They of additional resources and inputs. finishing work in our own field, and if are taking decision related to their we feel like doing it, we work as daily children’s better education, household RtF, the CARE project, which has been wage earners for others but, unlike requirements, investment in additional titled SAMARTHYA in the current before, now we are able to negotiate land on contract and so on. As a group phase, has empowered the Musahar the wage rate,” said Laduvati Saday, the they discuss the issues affecting group community through several tailored group chairperson. They have been able members as well as issues related to capacity building support thereby to negotiate an increase in the wage farming. Unlike before, they know which making them aware of their rights and rate from 5 kg to 10 kg of paddy a day.

CONTRACT FARMING PRACTICE 11 The visible change in attitude the federal structure. DWFG vice- Given these changes, it can be safely and behaviour of the women at chairperson Champa Devi Saday is an argued that contract farming practice Bhagwanpur-1 has now become a topic example. Although she did not win, is not limited to improving the DWFG of interest and inquiry for women she, most importantly, challenged the member’s livelihood; it has rather elsewhere also. Sarita Ram of NFGF status quo by contesting the election been a gate way to building active district working committee spoke about for the position of deputy chairperson citizens –empowering the women to the efforts the committee is making to of Bhagwanpur RM and secured 400 exercise their citizenship, influencing have the contract farming programme votes. local governance and holding the duty replicated in other municipalities as bearers to account. well. In this connection, she added, the The Musahar community members, committee is lobbying for replication especially women, who would never In course of this study an interaction of the Bhagwanpur model in talk to anyone, have now become was held with a group of about 15 rural Municipality. To start with the local confident enough to come out openly municipality level key stakeholders. NFGF committee has been able to interacting with formal and informal They included the Bhagwanpur RM and convince chairperson of Ward No. 14 power structures not only on issues Ward chairpersons, NFGF Municipal Mahesh Shrestha, who has expressed related to them particularly but also Federation representatives and local his commitment to replicate the about issues affecting the society as a activists at the municipal office. contract farming practice in the Ward. whole such as roads, drinking water, However, it is yet to be included in the quality education in schools etc. Now A deduction was made from Ward level plan and budget. According they are invited to formal meetings of the interaction that Musahars in to Sarita Ram, as the government school management committees, Ward Bhagwanpur, who used to be despised officials from other municipalities have committees and other public forums. by ‘elites’ and people in power, are also closely observed the change in Previously, even if they sneaked into today earning their respect and Bhagwanpur-1they are impressed by such meetings, the organizers would appreciation for their effort for the results and have expressed interest simply ignore them, not to talk of change. Change in perception, attitude to promote the practice. allowing them to speak and listen to and practice among the people in them. “But today, we are welcomed to positions of power at the municipal 2.2.2 Changes in Musahar Women’s such meetings and interactions, and also level is quite obvious. “Thanks to the public engagement and progress in listened to,” said DWFG chairperson visioning of CARE and NFGF, the most policy initiatives Laduvati Saday. Asked what prompted marginalized community reeling under The present change trajectory that the change, she explained, “They are abject poverty with a deep sense of Bhagwanpur-1 is witnessing has the impressed by the progress we made social inferiority is today witnessing the potential to trigger a positive shift in quite a short period. They know dawn of social, economic and political in the existing power relationship. we are well organized and have better transformation”, said Bechan Yadav, The DWFG members have increased access and network up to the central chairperson of Bhagwanpur RM. He was sense of self-worth, self-knowledge (Federal) level.” of the view that living standards of the and self-confidence (power within), Musahars involved in contract farming which has resulted in their enhanced That these women are not inferior programme is gradually improving. capacity to decide and act (power to) in any way to the other community Currently, almost all Musahar families at so as to shape their lives. This has led members is borne out by the stride Bhagwanpur have their own toilets, the to joint action, or power with by way they have made over the last four years settlement is kept clean, their children of collective strength based on mutual or so. They have also started seeking are going to school and the community support, solidarity and collaboration. an equal share in public resources, members have started demonstrating Empowerment at personal level has a say in local governance and in the great level of enthusiasm and planning led to their increased interaction opportunities for development. It for better future as against their usual and participation in public sphere has also been brought home to them tendency. “Musahars did not bother thereby enhancing their confidence that there is no alternative but to to go for work as long as they had to the extent that some of them even organize themselves and press their saved for a day’s meal,” said the RM contested the recent elections under case if they are to secure their rights. chairperson, Mr. Yadav. But now they

12 CONTRACT FARMING PRACTICE have developed the habit of working All five Ward chairpersons and the RM that three Wards (Wards No. 1, 3 and in their own piece of lands. Economic chairperson of Bhagwanpur RM were 5) have already allocated NPR 150,000 gain has prompted them to explore unanimous in the need for preserving each in their budgets for supporting new alternatives of progress. They are land resources and promote their contract farming practice in the Wards expanding their agricultural activities productive use. They appreciated the is the evidence of our commitment.” also to livestock and fisheries. significant contribution of CARE, This is indicative of growing realization NFGF and Li-Bird for supporting among the RM officials about the “The Musahars, who make up the most the Musahars to have the concept importance of contract farming in down trodden and marginalized section of contract farming materialized lifting the marginalized landless families of society, are undergoing tremendous successfully in Bhagwanpur. Inspired out of poverty through utilization of change,” said ward No. 1 Chairperson by the tangible results of the piloting land left fallow and paving the way for Badri Narayan Yadav. They are pretty the elected representatives of the socio-economic progress. conscious about their identity. They rural municipality have expressed their no longer cower away from talking commitment to giving continuity to the The effort of CARE and its partners with even government officials. “They practice. They have realized that they including NFGF to have a government talk to me without any hesitation, need to formulate necessary policy to policy on contract farming in place put across their views and demand make sure no cultivable land remains dates back to 2012/2013. As an services.” He also said that inspired by barren and no landless and marginalized outcome of their tireless advocacy and the change taking place in Bhagwanpur, community is denied access to land lobbying MoLRM and MoAD came up other disadvantaged communities are for commercial farming. At the same with two separate working policies also demanding support for engaging time, the elected representatives on land lease. MoLRM’s 2014/2015 themselves in contract farming. Ward feel constrained by a lack of clear working policy provides for leasing out No. 5 chairperson Amar Lal Yadav policy direction from the Federal and government land to landless and land- talked about how the Bhagwanpur Provincial levels about formulation of poor farmers’ groups, cooperatives success story is spreading out to land related policy and law. “However”, and companies, for farming for five to other Wards. When people from other the RM Chair said, “when we are in 30 years. As provisioned by MoALD’s Wards come to visit their relatives a position to formulate such policy working policy 2015/2016 marginalized or for other purpose at Ward No. 1 and law, we will make the policy and landless community groups interested Bhagwanpur, they get to see and feel planning process inclusive and contract in commercial farming can access land the change – the way the women there farming will be one of the key policy on lease with the government paying are cultivating leased lands, growing issues we will take into account, and 100 per cent of the lease amount, paddy and vegetables and making income by selling the surplus grains and vegetables in the twice a week fairs in Bhagwanpur, and the change in their way of life. “Inspired by this, the people AS AN OUT­COME OF TIRELESS ADVOCACY in my Ward are requesting my support for them to follow suit,” he said adding, AND LOBBYING BY CARE AND PARTNERS “If organizations like CARE and NFGF came to our support, it would be really TO HAVE A GOVERNMENT POLICY ON great. But even if it did not become possible, I will try my best to support CONTRACT FARMING; MoLRM AND MoAD the landless and marginalized groups CAME UP WITH TWO SEPARATE WORKING in my Ward to replicate the contract farming practice.” POLICIES ON LAND LEASE.

CONTRACT FARMING PRACTICE 13 providing free of cost technical support DADOs in the districts, which were contract farming one can conclude and bearing 50 per cent (not exceeding the responsible government line that had the working policies been NPR 100,000) of the agricultural input agencies for ‘test-implementation’ of implemented, they would significantly cost. The objective of this working these policies, were not sure whether contribute to landless and land-poor policy is to encourage marginalized this scheme would continue or not families’ access to land and discourage landless and land-poor groups including as new schemes of this kind face high absentee land owners from leaving Dalits, freed Kamaiya (bonded labour), degree of uncertainty, more so when their land fallow as these working Haliya and landless squatters to access the country witnesses frequent change policies assure landowners’ full right land on lease for commercial farming of government. Therefore, the new over their land if they are leased out. and support them to rid themselves scheme was not publicized widely, of poverty through income generation. hence needy groups lacked adequate Unfortunately, however, these working information about it. And the eastern policies remain unimplemented. The districts were not the working areas working policies were meant to be of organizations like NFGF; hence implemented first in the eastern NFGF also could not do much. Given hill districts. As NFGF recalls, the the successful Bhagwanpur model of

Members of Dalit Women Farmers Group having group discussion

14 CONTRACT FARMING PRACTICE 2.2.3 Coordination, collaboration and concerned in the previous regime the same time they together with leverage as well as the office bearers elected the impact group are advocating for CARE and NFGF’s commitment to under the federal structure about the duty bearers’ accountability in terms multi-stakeholder approach to the concept of contract farming and its of providing services, and formulating contract farming intervention and potential for all-round development and implementing necessary policy the vision and values they aspire for of the most marginalized and landless and laws regarding contract farming to help create lasting solutions to Musahar community. The government at all levels of government. With the the denial of landless farmers groups’ officials today sound convinced about good practice and achievements of right to land and food security the contribution contract farming can Bhagwanpur initiative spreading out, through policy intervention holds make in optimum utilization of land all Wards in the RM are pressing for the edifice of leverage. Coordination resources, employment generation their elected Ward officials to support and collaboration is at the heart of and the country’s socio-economic for replication of the model. There has everything they are doing. This has development in the long run. been some initial success as Wards created two-way flows of tangible No. 3 and 5 have already allocated benefits such as funding or material The project seems to be gaining budget for supporting contract farming support as well as intangible flows such leverage through convening, initiatives replicating the Bhagwanpur as knowledge, credibility and influence introduction of new model, awareness model. Landless farmers in the through two-way engagement between raising and capacity building, advocacy, , Ganeshpur and Golpur areas rights holders and duty bearers. Ward-to-Ward adoption and have started replicating the initiative. replication. As mentioned above, the The project is laying ground for the NFGF itself and the impact group project’s multi-stakeholder approach local government to take ownership of members have demonstrated the is self-explaining that CARE and NFGF the contract farming intervention. As a ability to influence situations or are able to bring a wide range of actors pointer to this, the local government people so that they can control together to work collaboratively. This and other government agencies have what happens. The CARE project has has contributed to making contract committed their support for the established an effective collaboration farming in Bhagwanpur, cost effective, continuation of the successful venture and coordination mechanism among replicable and scalable. Increased in future. The government agencies those directly involved in the project awareness among the impact group have recognized the existence of the and government and non-government members as well as the duty bearers rights groups, responded to the rights agencies. NFGF has linked the DWFG has led to change in their attitude issues and are meeting the genuine to various relevant government and behavior. DWFG members are demands of the needy. agencies and NGOs to leverage service invited to official meetings of various and resources, and lobby for legislative government and public agencies, where Coordination and collaboration with arrangements to institutionalize, they put across their views and are various government and public agencies replicate and scale up contract farming listened to. The impact group members and non-government stakeholders has practice. are challenging the status quo; one of paid off well. After Li-Bird installed them even stood for municipal level the solar system, DWFG started In the meeting held in connection with election, for example. They have been using solar power to pump out water this study, the municipal office bearers provided tailored capacity building for irrigation. This helped them stop rightly pointed out that ‘leverage’ is the support through training, exposure paying the tariff of electricity used for most critical sustainability imperatives and exchange visits. SAMARTHYA irrigation purpose. They are currently that the project has achieved. CARE also aims to support the elected using electricity only for household and NFGF have built an atmosphere of representatives at local government purpose. working with others and collaboration level to effectively deliver on the areas among the impact group, and of access to land and other support government and non-government for the landless communities living stakeholders. Right from the beginning in poverty, optimum utilization of they played a connecting role. They land resources, and formulation and briefed the government officials enforcement of policies and laws. At

CONTRACT FARMING PRACTICE 15 Solar Irrigation installed in Bhagwanpur with technical support from LIBIRD

Fiscal Year Collaborating organizations Additional resources and inputs leveraged Cost in NPR 2071-2072 BS CARE Nepal Preparation of the land for cultivation, compost ferti- 118,460 lizers, pump set for irrigation, electricity wire, plastic pipes etc. Land lease amount. 151,429 District Agricultural Develop- Summer vegetable seeds. 5,500 ment Office, Siraha Li-Bird Winter vegetable seeds. 4,600 VDC Office, Bhagwanpur, Siraha Five sets of sprayer. 11,000 2072-2073 District Agricultural Develop- Deep tube well and one pump set for irrigation pur- 59,000 ment Office, Siraha pose. Funding for groups support programme. 58,000 Subsidized power tiller 100,000 Dalit women Farmers’ Group Cost sharing for the power tiller. 13,000 Nepal Electricity Authority Four electricity poles and equipment for extending 15,000 2-phase power line to the Musahar settlement and the land cultivated by DWFG for pumping water from the deep tube well for irrigation. CARE Nepal Land lease amount 113,000 2073-2074 Nepal Electricity Authority Installation of 40 electricity meters in the houses of 14,000 each DWFG members free of cost. CARE Nepal Land lease amount 151,000 2074-2075 Li-Bird Installation of solar system for pumping out water for 300,000 irrigation purpose. CARE Nepal Land lease amount 113,571.75

16 CONTRACT FARMING PRACTICE 2.2.4 Return on investment CBR = Discounted value of benefits/ lease cost; (b) cost of agriculture input The return on investment analysis of the discounted value of costs including preparation of land for cultivation, contract farming is calculated using the A CBR equal to one suggests a cost- compost fertilizers, pump set for irrigation, cost-benefit ratio (CBR) method. It is a neutral project, whereas a CBR greater electricity wire, plastic pipes, sprayer, technique designed to determine whether than one is a positive return and the vegetable and cereal seeds, etc.; and (c) an intervention should be continued business should consider moving forward operation and maintenance costs (electricity, or do the benefits outweigh the cost with this intervention. diesel etc). incurred in executing the intervention. It is assumed that a household has practiced If the cost outweighs the benefits, the In the case of contract farming in Siraha contract farming in 2 katthas (0.2 ha) of project does not deliver value for money district, the benefit is the income from land leased for 10 years. It is also assumed under the assumed conditions. The CBR the sale of agriculture products including that the discount rate or the inflation rate has two elements: the cost and benefits vegetable and other cereal crops. It is is 8% for 2017 (Source: World Bank Group, of an intervention. The CBR is calculated assumed that there will be a 10% annual 2018 ). From the desk review and field by dividing the discounted value of the increase in the revenue from sale of the interaction, the revenue generated and the benefits by the discounted value of the produce. The costs of contract farming costs incurred in the contract farming per costs: include three main components: (a) land household are given below:

Items Amount (NPR) Remarks Benefits Revenue from the sale of 22,423.00 Source: Model Contract Farming for Policy Intervention: a successful prac- vegetables and cereal crops tice, NFGF Costs Land lease cost 4,400.00 NPR 2,200 per kattha (0.03ha). Assumption: the farmers will be supported with this cost.The farmers have to pay: nothing for the first year, only 10% in the second year, 35% in the third year, 75% in the fourth year, 95% in the fifth year and 100% in the sixth year and onwards. (Source: Exit Plan of Contract Farming Practice in Bhagwanpur-1, Siraha, NFGF) Cost of agricultural inputs 3489.00 Assumed to be increased by 10% each year Maintenance cost 1,000.00 Assumed to be the same for the leased period of 10 years

Table: Calculation of present value of benefits and costs of contract farming Year Benefit (NPR) Cost (NPR) Benefit or Present Land lease Land lease Agricultural Mainte- Total Cost Present Revenue from Value of (with subsidy) Input nance cost Value of sale of produce Benefit Costs 1 22423 20762 4400 0 3489 1000 4489 4156 2 24665 21147 4400 132 3838 1000 4970 4261 3 27132 21538 4400 1540 4222 1000 6762 5368 4 29845 21937 4400 3300 4644 1000 8944 6574 5 32830 22343 4400 3300 5108 1000 9408 6403 6 36112 22757 4400 4400 5619 1000 11019 6944 7 39724 23178 4400 4400 6181 1000 11581 6757 8 43696 23608 4400 4400 6799 1000 12199 6591 9 48066 24045 4400 4400 7479 1000 12879 6443 10 52872 24490 4400 4400 8227 1000 13627 6312 Total 225805 59809

CONTRACT FARMING PRACTICE 17 Institutional sustainability: The strategy of investing in social capital like the THE RETURN ON INVESTMENT ANALYSIS OF THE formation of DWFG comprising 40 Musahar women, effective coordination CONTRACT FARMING PUTS THE COST-BENEFIT and collaboration with government and non-government agencies which RATIO AT 3.77; MEANING THAT EXECUTING helped the contract farming intervention CONTRACT FARMING WOULD RETURN NPR 3.77 IN achieve leverage and DWFG’s association with NFGF, which has strong networks BENEFITS FOR EACH RUPEE SPENT. from the local to federal level, will promote institutional sustainability. All key government and non-government From the Table above, the cost-benefit enabling the farmers to pay the cost on stakeholders are fully involved at every ratio is 3.77, which means that the their own completely from 2019. The stage of implementation of the contract benefits of contract farming under focus is on building human and social farming model so that local ownership of the assumed conditions significantly capital and using advocacy as a tool, project interventions is firmly established. outweigh its costs; i.e., executing DWFG members are expected to access As the intervention has been designed contract farming would return NPR government services and resources. based on the needs and expectation 3.77 in benefits for each rupee spent. Some of the Wards in Bhagwanpur RM of the Musahar women, they have a Intensifying agricultural production per have already allocated budget for this strong sense of ownership. The social kattha of land would further increase the purpose, while other municipalities respect, self-esteem, and a strong sense profitability of the contract farming. Thus, and Wards in Siraha are expressing of dignity that they have experienced contract farming is not only facilitating their interest and initial commitment today have served as a shot in the arm change in the women’s individual, social to replicate the Bhagwanpur model. for them to continue their good work. and political lives, it is equally suitable for Should it happen, these government Today, the women are taking decisions at the economic development of the poor resources/services will remain in place family and community levels, having their landless farmers. after the project. The project seems to say in decisions at Ward and Municipality be orienting the DFWG to working for levels, and are accessing, controlling and 3. SUSTAINABILITY market-based contract farming. However, managing resources including the income Financial sustainability: The project is if contract farming expanded through they are making from contract farming. In currently providing the lease amount massive replication, traditional local fairs addition the tangible benefits realized from for 4 bighas (2.6 ha) of land for the would not be sufficient as a market for the contract farming is likely to strongly ongoing contract farming practice at the increased production. Stronger and encourage sustainability of knowledge, Bhagwanpur, Siraha. However, there is reliable market linkages and related processes and the institution. a strategy to gradually cut down on advocacy efforts for this become all the project’s support for the land rental and more critical.

2The World Bank Group, 2018. Available from: https://data.worldbank.org/indicator/NY.GDP.DEFL.KD.ZG

18 CONTRACT FARMING PRACTICE only after their first harvest (short- term gain) that they got motivated to transform into fertility and greenery the 4 bighas (2.6 ha) of land. After the second harvest they were inspired to take more land on lease on their own, engage with RM and Ward level officials as well as other relevant government agencies such as DADO, DLSO etc. inquiring about and demanding their services. Now they are looking at access to land and food, and improvement of their livelihoods more from rights points of view rather than only need and at the same time Policy level sustainability: The contract and owned the concept, committed creating pressure on local government farming intervention has applied an themselves to making it a vehicle for lifting to formulate and implement policies on evidence-based advocacy model using themselves out of poverty as well as for promoting contract farming practice. a multi-stakeholder approach to policy their entry into public arena. Today, they intervention. As two working policies have been able to bring out impressive Multi-stakeholder approach, if adopted and on land lease and utilization of fallow results at individual, social, economic and implemented strategically, helps achieve land are in place at federal level, not in political levels. leverage: This approach of contract implementation, though, and elected farming practice has strengthened representatives in Bhagwanpur RM are Short-term achievements are the key to the collective action needed to shift expressing commitment to taking policy sustaining efforts for long-term objectives: structural, attitude and resource barriers initiatives for promotion of contract Although policy intervention was the to ridding the marginalized landless farming by replicating the Bhagwanpur long-term target of contract farming, communities (Musahars) of poverty and model, there is strong ground for CARE and NFGF chose what is most injustice. The CARE project has adopted being optimistic about formulation of important now, and it was to support the this approach strategically thereby linking favourable policy regarding contract most marginalized Musahar community the impact group to multiple government farming in the RM. The local government women to have access to land on lease, and non-government actors. They have, in officials, who are fully aware of the results grow vegetables and other crops, make recognition of the good practice and its of the Bhagwanpur model of contract income and improve their livelihood. If high potentials, supported the intervention farming are expected to be further they had, for example, directly jumped with additional input and resources, which enthused by the favourable return on into the women’s engagement in local is indicative of their ownership of contract investment as shown by the analysis governance, it would most probably not farming practice. With positively changed in this report. The empowerment of work. The evidence is: the women initially attitude and behavior, Bhagwanpur RM and the impact group, the increased space seemed to be slacking off on their work Ward Chairpersons, some of whom have created for advocacy, positive remarks even after having access to land. It was already allocated budget for supporting of elected representatives, and the strong support of networks like NFGF all combined create a solid ground for BHAGWANPUR RURAL MUNICIPALITY (RM) successful policy intervention. AND WARD CHAIRPERSONS HAVE AL­READY 4. KEY LEARNING ALLOCATED BUDGET FOR SUPPORTING Interventions reflecting the real needs and interest of appropriate impact groups CONTRACT FARMING AND HAVE PLEDGED TO help bring the expected results: Contract farming was conceptualized to benefit the TAKE POLICY INITIATIVE FOR REPLICATION AND most marginalized landless groups. The SCAL­ING UP THE GOOD PRACTICE. Musahar community, therefore accepted

CONTRACT FARMING PRACTICE 19 contract farming, have pledged to take 5. CONCLUSION cultivable land and keeping lands fallow. policy initiative for replication and scaling At a time when ‘community farming’ was The new constitution 2015 guarantees up the good practice. too knew a concept due to the absence each farmer’s right to have access to of adequate existing knowledge base land for agricultural work. The local Evidence-based advocacy and lobbying and practical experience and learning in governments are supposed to identify leads to successful policy influencing: this area, CARE and its partner NFGF and keep record of landless groups and Throughout the RtF project period took a calculated risk and piloted it in manage their settlement and livelihoods, CARE and its partners including NFGF and keep record of land under private, Bhagwanpur-1, Siraha. This proved to be generated and used empirical evidences to government and public ownership. It the right decision. The choice of the most bring about a number of policy responses is also the authority to lease out land needy community of Musahars as the including the working policies on land lying fallow or used minimally to landless impact group, which helped secure the lease. Following the same practice, they and land-poor farmers for agricultural community’s buy-in for of the concept, piloted contract farming in Bhagwanpur, activities for long periods. Working effective collaboration with multiple Siraha to improve the livelihoods of the policies on land-lease are in place government and non-government Musahar community and promote the awaiting effective implementation. If they stakeholders, which leveraged additional practice among wider community of are implemented, marginalized landless inputs and resources from all quarters marginalized landless farmers in general groups such as Dalits, Haruwa-Charuwa concerned, and effective advocacy for and to generate evidences and press for including Musahars and freed kamaiyas policy initiative at local government level the local government to make policy can access land with the government are showing promising results. Livelihoods arrangements to own, support and scale paying for such lease and bearing 50 % of the impact group is improving, the up contract farming practice in particular. of basic agricultural inputs. Well aware positive changes the model contract Three wards have already allocated of this context, SAMARTHA project farming practice is bringing about in NPR 150,000 each for this purpose or CARE, NFGF and the impact group individual, social, economic and political and the Bhagwanpur RM has expressed in Siraha are effectively engaging with lives of the DWFG members is inspiring commitment to making policy provision the local government citing all these for wider community of marginalized for promoting this practice. policy provisions and advocating for land poor and landless farmers to policy provisions at local government emulate them. Some key factors that Existence of policy provisions may not level for scaling up contract farming contributed to the significant changes are mean implementation of these policies: practice. Initial success in influencing summarized as follows: Although the government formulated the local government has manifested in working policies on leasing land for 5.1 Favourable political and policy Bhagwanpur RM pledging to emphasize commercial farming with promising environment: The country has completed contract farming practice when they provisions such as the government the process of establishing local initiate policy making, and three Wards paying for such lease and bearing 50 % governments under the federal structure. already allocating budget for supporting of basic agricultural inputs and even They have the powers to, among others, contract farming. factored in budget for this purpose in FY formulate their own policies, develop (2015/2016), it was never spent. As per 5.2 Rights based approach: The strength data base of landless and land-poor government policy should such budget of the contract farming practice, which people, properly utilize fallow land, remain unspent for two years, it lapses. is an integral part of SAMARTHYA regulate land plotting for commercial The budget in question shared the same project, lies in its human rights approach purposes and so on. However, majority fate. The government first introduced this emphasizing non-discrimination, of the elected office bearers do not have policy in eastern districts where NFGF empowerment, participation in local adequate knowledge of critical land and did not exist. However, the DADOs there governance process and accountability. food rights issues which are particularly held back, purportedly, to avoid the risk CARE and NFGF are working closely affecting the most marginalized land poor of discontinuity as such new government with the most marginalized landless and landless communities. The Land Use schemes more often than not are fraught Musahar community empowering them to Policy-2015 provides good opportunity with uncertainties. However, thanks engage with local government authorities for the local, provincial and federal to NFGF and impact group’s effective and other key local actors, claim their governments the authority to develop advocacy Bhagwanpur RM and several rights and entitlements including access and implement land use plans ensuring Wards under it are allocating budget for to land resource and public services, and optimum use and protection of arable supporting contract farming. hold the duty bearers to account. lands, discourage non-agricultural use of

20 CONTRACT FARMING PRACTICE 5.3 Multi-stakeholder approach: By the model and its support for replication 5.5 Capacity building support to impact adopting the multi-stakeholder approach of the practice at scale benefitting the group: After identification and formation to promoting contract farming practice marginalized landless communities of the impact group, CARE and NFGF as a means of addressing the denial of the throughout the district. Musahars in equipped the group members with Musahar community’s right to land and Bhagwanpur, who used to be derided technical skills of cash crop production food security through policy intervention, by people in power, are today earning and crop selection. Other capacity SAMARTHYA project has been able to their respect and appreciation for their building supports including training, leverage additional funding and technical effort for change. Change in perception, exposure and observation visits enhanced support and enhanced the impact group’s attitude and practice among the people the members’ leadership and advocacy credibility and influencing ability through in positions of power at the municipal skills. They are successfully mobilizing the increased two-way engagement between level is quite obvious. Three Wards have group and managing group savings. Most the rights holders and the duty bearers. already allocated some budget each for importantly, the impact group members CARE and NFGF have been able to bring this purpose and the Bhagwanpur RM has have gained ‘power within’ or sense a wide range of actors together to work expressed commitment to making policy of self-worth, self-knowledge and self- collaboratively. NFGF has effectively provision for promoting this practice. confidence. They have gained the capacity facilitated linkage between the DWFG to decide and act so as to shape their members and various government As an advocacy tactic, NFGF invited lives. This has further empowered them agencies concerned and NGOs, and senior representatives of the Ministry to take collective action based on mutual lobbying together with the impact of Agriculture and Ministry of Economic support, solidarity and collaboration. The group for legislative arrangements to Affairs of province 2, which also covers women, who would never talk to anyone, institutionalize, replicate and scale up Siraha district, to celebrate this year’s are today confidently interacting with contract farming practice. The project “Rice Day”. The government officials formal and informal power structures on seems to be gaining leverage through together with the DWFG members issues affecting them as well as the society convening, introduction of new model, and NFGF representatives planted rice at large. Now they have a say in public awareness raising and capacity building, on the land being cultivated by DWFG decision making and are recognized for advocacy, Ward-to-Ward adoption and members. They also interacted with the their active citizenship. replication. The municipal office bearers Musahar women inquiring about what recognize that ‘leverage’ is the most process they followed to access the 5.6 Encouraging return on investment: critical sustainability imperatives that land, how they are feeling about the With the return on investment analysis the project has gained. The government progress they have made so far and so showing a favourable cost-benefit officials today sound convinced about the on. NFGF has already started lobbying ratio (3.77) or clearly indicating that contribution contract farming can make the provincial government for policy the benefits of contract farming under in optimum utilization of land resources, provisions for promoting contract the assumed conditions significantly employment generation and the farming in the province. According to outweigh its costs, it is economically country’s socio-economic development NFGF, initial response of the officials viable, replicable and scalable for in the long run. at this level is quite positive. It has economic empowerment of landless and planned to strengthen NFGF structure land poor farmers’ groups. 5.4 Evidence-based advocacy: One of the at provincial level and add vigour to its most effective strategies of the CARE advocacy and lobbying at the level. project is advocacy and lobbying based on evidence. There are clear examples of CARE and its partners including NFGF CONTRACT FARMING PRACTICE OPENED UP CRUCIAL contributing to formulation of various policies including the working policies OPPORTUNITIES FOR THE DALIT MUSAHAR WOMEN’S on land lease. The purpose of piloting model contract farming practice at INDIVIDUAL EMPOWERMENT, IMPROVEMENT IN THEIR Bhagwanpur-1, Siraha is also to create a LIVELIHOODS, AND THEIR INCREASED ENGAGEMENT IN replicable and scalable model and generate empirical evidence for effective advocacy THE PUBLIC SPHERE. and lobbying for policy initiatives that ensures local government’s ownership of

CONTRACT FARMING PRACTICE 21 6. WAY FORWARD would not suffice as the market for the • As the working policies related to Contract farming practice opened up hugely increased produces. Therefore utilization of fallow land and grant crucial opportunities for the Musahar it is imperative: provision for contract farming are women’s individual empowerment, § on the part of the local government to still in place, it is imperative on the improvement in their livelihoods, and plan out appropriate infrastructure part of NFGF and other CARE their increased engagement in the related to production including partners to advocate and lobby public sphere. Such engagement has led market, agriculture development at the federal, provincial and local to the women having a say in decision strategic plan and declaration of government levels for implementation making, experiencing positive change pocket areas for special produce of the working policies. There is also in the attitude and behavior among the through contract farming, buy the good opportunity to advocate for people in power, and enjoying effective products for a year or two until preparation and implementation of collaboration with multiple actors. such infrastructure is in place and lease hold farming working policies by Meanwhile, it also points to a way establish market linkage, using the existing working policies as forward. § on the part of CARE and NFGF reference at provincial and local levels • For women’s participation and to immediately initiate discussions as these two tiers of government hold leadership to be effective with regard to with the local government on this significant executive power in the achieving the objectives of the contract highly crucial issue and support the federal structure. farming practice (from individual, government to develop integrated • It is advisable for CARE, NFGF and economic, social to political levels), plan reflecting the SAMARTHYA the impact groups to make sure that more effort is required to increase concept in the plan, and women’s voices are an integral part of their knowledge of relevant legislative § on the part of CARE and NFGF, it the process of making policies, plans and institutional arrangements that are is equally important to prioritize and decisions at local and provincial existing and yet to be advocated for, and promote food diversity by government level, if these polices and and further enhance the level of their supporting the impact group to plans are to be truly effective. confidence and influencing capacities. diversify their products, and to • There is also an opportunity for CARE • It is but natural that DWFG members lobby local government to design and NFGF to build the capacity of do not have equal level of required agriculture development plan newly formed local governments on knowledge, capacity and confidence. accordingly for food and nutrition these issues thereby enabling them But a scatter gun approach of targeting security in future. to formulate such legal and policy all members to bring them all on • The return on investment analysis frameworks, and include scaling up par will lead nowhere. Therefore, it indicates a return of NPR 3.77 on each of contract farming practice in their is advisable to identify a couple of rupee spent. Intensifying agricultural annual plan and budget. highly potential members and make production per kattha of land would • It is advisable to implement the long-term support plan for them to further increase the profitability of NFGF exit plan for a smooth exit be effective as leaders, change agents contract farming. It is advisable to use and sustainability of contract farming and role models, and for sustainable this evidence as a tool for advocacy practice, which stipulates that with a benefits. and lobbying at government level for view to making the impact group self- • The CARE project has the ambition to replication and scaling up of this model dependent, NFGF will cut down on the have contract farming practice widely of contract farming. lease amount that it is paying to land replicated and scaled up. The Local • That the Bhagwanpur RM chairperson owners on behalf of the impact by 25 Government seems to be buying this has expressed commitment to make % thereby enabling the group to bear idea. DWFG members have already planning and policy processes inclusive, the cost from 2019. started accessing more land and and has, meanwhile felt constrained by landless communities in other areas a lack of clear policy direction from of the district are eagerly looking for the federal and provincial levels about support for them to engage in contract formulation of land related policy and farming practice. While this is an law, provides CARE and NFGF’s the encouraging progress, it entails some opportunity to lobby the federal and risk. If the contract farming practice provincial governments for facilitating is scaled up as per the ambition, the the policy and planning process at local traditional local haatbajaar or fairs government level.

22 CONTRACT FARMING PRACTICE

CARE Nepal Central Office 4/288 - SAMATA Bhawan Dhobighat (Opp. DAV School) P.O. Box 1661, Lalitpur, Nepal Tel: 977-1- 5522800 Fax: 977-1- 5521202, [email protected], www.carenepal.org