CONTRACT FARMING PRACTICE a BEACON of HOPE for MARGINALIZED LANDLESS COMMUNITIES Publisher: SAMARTHYA/ CARE Nepal
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A REPORT ON CONTRACT FARMING PRACTICE A BEACON OF HOPE FOR MARGINALIZED LANDLESS COMMUNITIES Publisher: SAMARTHYA/ CARE Nepal 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 Siraha 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