Feed the Future Knowledge-Based Integrated Sustainable Agriculture in Nepal (KISAN) II Project Annual Work Plan Year 3 June 14, 2019

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

ANNUAL WORKPLAN YEAR 3 JULY 15, 2019 – JULY 14, 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.

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TABLE OF CONTENTS Acronyms 4 Executive Summary 6 I. Introduction 10 A. Project strategy 11 B. Implementation approaches 15 B.1 Strong partnerships determine project outcomes 15 B.2 Facilitative, market-driven, private sector-led service delivery 16 B.3 Supporting federal system of public sector governance 18 B.4 Collaborating, Sequencing, Layering, and Integrating with other development partners 18 B.5 Integrating cross cutting issues 19 C. Anticipated constraints and proposed mitigation measures 21 D. Sustainability Plan 23 E. Collaboration with GON 24 F. Project Management 30 II. Planned activities to achieve project objectives 30 III. Grants Under Contract 90 IV. Monitoring, Evaluation (M&E) and Learning 91 V. Operational and Communication Activities 96 Annex A. Activities Table 100 Annex B. Plan For Coordinating With The Government of Nepal Ministry of Agriculture and Livestock Development 109 Annex C. Organizational Chart 114

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 3 AID-367-C-17-00001 ACRONYMS ADS Nepal Agriculture Development Strategy AFSP Agriculture Food Security Project AMT Agriculture Marketing Technician APD Agriculture Productivity Director ASC Agriculture Service Center BDF Business Development Facilitator CEAPRED Center for Environmental and Agricultural Policy Research, Extension and Development CBM Cluster Business Manager CIMMYT International Maize and Wheat Improvement Center CLA Collaborating, Learning, and Adapting COP KISAN II Chief of Party COR USAID Contracts Officer Representative CSC Credit and Savings Coordinator CSISA Cereal Systems Initiative for South Asia DADC District Agriculture Development Committee DADO District Agriculture Development Offices DAG Disadvantaged Group DC District Coordinators DEPROSC Development Project Service Center DIS Development Information Solution EED Enabling Environment Director FINGO Financial Intermediary Non-Governmental Organization FNCCI Federation of Nepalese Chamber and Commerce Industry GESI Gender Equity and Social Inclusion GIS Geographic Information System GON Government of Nepal GUC Grants under Contract HVAP GON High Value Agriculture Project ICT Information and Communication Technology IPM Integrated Pest Management IR Intermediate Result IT Irrigation Technician KISAN II Feed the Future Knowledge-based Integrated Sustainable Agriculture in Nepal II LSP Local Service Provider LSP – Firm Local Service Provider – Firm (Consulting Firm) MFI Micro Finance Institution MOALD Ministry of Agriculture and Livestock Development MPC Marketing and Planning Committee MSD Market Systems Director MUS Multiple Use of Water Systems NARC Nepal Agriculture Research Council

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 4 AID-367-C-17-00001 NASDIC National ADS Implementation Committee NPAC National Project Advisory Committee NRS Nepali Rupees NSAF USAID Nepal Seed and Fertilizer Project OSC Overseas Strategic Consulting, Ltd. PAHAL Promoting Agriculture Health and Alternative Livelihoods PMAMP Prime Minister’s Agriculture Modernization Project PANI USAID Program for Aquatic Natural Resources Improvement PCV Peace Corps Volunteer PIF Partnership and Innovation Fund PO Program Officer RD Regional Director RISMFP GON Raising Incomes of Small and Medium Farmers Project SABAL USAID Sustainable Action for Resilience and Food Security SACCO Savings and Credit Cooperative SBOM Senior Business Opportunities Manager SLI Sequencing Layering and Integrating SPPA Senior Policy and Program Advisor STTA Short-Term Technical Assistance TOT Training of Trainers ZOI Zone of Influence

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 5 AID-367-C-17-00001 EXECUTIVE SUMMARY To grow a competitive, inclusive, and resilient agriculture sector, the Feed the Future Knowledge- based Integrated Sustainable Agriculture in Nepal (KISAN) II project taps into the resources and maturing skills of the private sector to strengthen the agriculture market system and its stakeholders, including smallholder farmers, with increased capacity and incomes (see Box 1 for consortium). Complementary and integrated activities support business literacy skills to promote resilient behaviors and greater inclusion, and support the Government of Nepal (GON) as they develop an enabling environment supportive of agribusiness development. Close collaboration with the GON, especially at the municipality level, will ensure alignment of public and private sector investments, inclusion of poor, marginalized, and currently less-commercial farmers, and provide an opportunity for GON officials to monitor and assess the benefits of a market systems development approach in action.

KISAN II seeks to increase scale of impact at the firm, farm, and sector level, foster sustainable outcomes through private sector-led problem solving and service delivery, and facilitate systemic change through demonstration, replication, and adaptation of new business models. By employing a facilitative, private sector-led implementation approach, KISAN II will strengthen market system actor capacity and relationships through partnerships with buyers, processors, traders, cooperatives, agrovets, and financial institutions, who in turn build the capacity of producers and link end markets to intermediaries, service providers, input suppliers, and smallholder farmers to produce a competitive, inclusive, resilient, and profitable supply response. This will ensure market-driven, sustainable outcomes that support the USAID Feed the Future objectives and attain the Government of Nepal’s Agriculture Development Strategy (ADS) vision: “A self-reliant, sustainable, competitive, and inclusive agricultural sector that drives economic growth and contributes to improved livelihoods and food and nutrition security leading to food sovereignty” (See Box 2). Box 1: Consortium Brings Specialized Skills

Winrock International – Prime contractor; overall direction and management, facilitation of market systems development, agribusiness enabling environment strengthening, CLA CEAPRED - Agricultural productivity DEPROSC - Business literacy, micro-finance Siddharth Inc - Business diagnostics, BDS Digital Green – ICT-based extension solutions OSC - Behavior change analysis, communications

Strategy: Following market analysis and a comprehensive agribusiness mapping exercise in Year 1, KISAN II identifies market opportunities and key private sector partners to serve as change agents for farming households and overall supply chain integration and efficiency. Jointly, with our partners, who often work in multiple commodity chains, the project identifies constraints to take advantage of these market opportunities and develop private sector-led solutions. Tailored technical assistance to these partner firms builds their capacity, while strategic support buys down a portion of risk as new technologies and management systems are deployed, which can include embedded marketing, aggregation, extension, finance, and input supply services. With additional strategic partners – service providers that adopt inclusive business strategies -- KISAN II builds capacity to adapt their

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 6 AID-367-C-17-00001 service offerings to respond to smallholder and firm level needs. These include banking, insurance, mechanization, market information, Business Development Services (BDS), and ICT solutions. During Year 2, KISAN II established 115 partnerships using five categories of business models to empower and assist farming households: processor, trader, cooperative, wholesale agrovet, and retail agrovet. Not every partner performs all market functions; some only focus on input supply and extension and may need KISAN II to help facilitate linkages to financial services and market outlets, yet some cooperative partners attempt to perform all functions from input supply to retail marketing and require a suite of capacity building tools. Collectively these partners currently service and/or buy from 152,150 farming households. There are 7 more partnerships in the pipeline and we anticipate 25 new partnerships in Year 3, ultimately reaching at least 200,000 households. Box 2: USAID KISAN II Alignment with Nepal Agricultural Development Strategy (ADS)

KISAN II Activity Area Agriculture Development Strategy • Strengthen Organizations Profitable Commercialization • Enhance Financial Services

• Enhance Market Infrastructure Increased Competitiveness • Expand Trade, Import Substitution

• Strengthen Input Supply System • Increase Adoption of New and Higher Productivity Improved Technologies • Enhance Literacy and Business Skills

• Strengthen Policy Environment Improved Governance • Support Local Govt Planning, Investment, M&E

Mechanisms for Gender Equality • Adapt Interventions to be GESI Sensitive and Responsive and Social/Geographic Inclusion

Partners can be engaged through a memorandum of understanding (MOU) or through leverage or cost-share grant support with associated technical assistance (TA) and coaching. Relying on this market “pull” approach harnesses the private sector’s resources, skills, and motivation to expand to positively impact livelihoods of both commercially-oriented and vulnerable farmers. Our goal is to move market relationships from extractive and short term, toward inclusive (win-win) longer-term relationships where the benefits of superior market performance are enjoyed by all actors in the market system. Inclusive development also focuses on integrating previously marginalized populations, often less commercially-oriented farmers, particularly women, youth, and disadvantaged minorities. Thus far, through targeted partner selection our business models are successfully integrating these populations, despite the fact that these farmers often can be geographically separated from more commercially connected farming households. KISAN II field staff who support partners with capacity building of their staff and perform mentoring and monitoring functions help partners identify their outgrowers in need of more intensive capacity building. Our business literacy facilitators are integrated into capacity building of 70,000 partner smallholder farmers who are illiterate, semi- literate, or vulnerable to further build farming-as-a-business and resiliency skills that improve household capacity to plan, sell, save, and utilize their diverse set of crops for improved family nutrition, as well as increased incomes.

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To improve agricultural productivity (Component 1), KISAN II is working solely through partners to build the capacity of farmers to access and adopt productivity-enhancing, climate-smart, and improved post-harvest practices and technologies, including those developed by collaborating partners, such as Nepal Seed and Fertilizer project (NSAF) and iDE’s IPM Innovation Lab. During Year 3, KISAN II will coordinate with GON and other donor partners to revise, simplify, and align agronomic and post-harvest training materials to be more responsive to the needs of marginalized, less literate populations. The project will also support public and private sector-developed agronomic video instruction to ensure consistent message delivery – for example through a wholesale agrovet’s retail network. Women and members of disadvantaged groups are already integrated into the video instruction as presenters and facilitators, and will be further targeted for inclusion in the video production training and video development. The project will pivot as necessary to address threats from pests, such as Tuta Absoluta and Fall Army Worm, with joint plant clinics and mitigation measures with GON experts. Mitigation measures will be coordinated with the GON and other development partners. As part of partner firm and cooperative capacity building, KISAN II will strengthen the private sector role in addressing these pests to prevent and treat their crops and the crops of their supplier farming households. KISAN II will encourage partners to participate in GON and other donor trials and demonstration plots. The project will explore opportunities to link partner agrovets to local, regional, or international IPM companies to expand access to appropriate treatment products and provide advisory services to farmers.

To strengthen competitiveness, resilience, and inclusiveness of market systems (Component 2), the project strengthens partner capacity to meet market demands, grow their business, deliver high quality services, and engage farming households through formal or informal outgrower schemes that lead to income growth for both buyers and sellers, including in our newest commodity: goat. To stimulate demand for premium products and pricing, KISAN II will support the GON Buy Nepal, Buy Fresh campaign which dovetails with their new initiatives to promote food safety. KISAN II will support pilot efforts to make the business case for custom hire mechanization services, crop insurance, and aggregation infrastructure, including cold storage, through partners. KISAN II will also roll out a women’s leadership program to cooperatives to strengthen and increase the role of women in organizational governance. To strengthen the service sector, the project will explore new technologies and sustainable business models for delivery of affordable storage, mechanization, and finance.

To strengthen the enabling environment for market systems (Component 3), the project supports public and private sector actors in the policy development process on a demand-driven basis – guided by high level consultations through the Joint-Sector Review process. In Year 3 KISAN II will support food safety regulations, Agribusiness Promotion Rules, an improved goat breeding strategy, and increased GON partnering and engagement with the private sector to promote agriculture commercialization. KISAN II will also provide capacity building assistance to select municipalities as they embark on planning and budgeting for agricultural activities and formulating local policy.

To increase the ability of vulnerable households to act on business opportunities (Component 4), KISAN II continues to update its business literacy programming to align with other implementing

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 8 AID-367-C-17-00001 partners’ messages and ensure responsiveness to market opportunities. A streamlined long course will be rolled out to 31,500 partner-served households in Year 3. A new standalone short course for farming as a business and entrepreneurship for semi-literate, vulnerable school leavers, migrant returnees, and other commercially minded farmers will support 17,710 farmers’ ability to maximize the benefits of working with KISAN II partner organizations and adapt to changing market conditions.

To promote learning and adaptive management, KISAN II pursues Collaborating, Learning and Adaptation (Component 5), including systematic layering and integrating of activities with other USAID projects and the GON Prime Minister’s Agricultural Modernization Program (PMAMP), and provincial and municipality level programming. The project embraces adaptive management, with reflection points built into implementation to examine progress and effectiveness of activities, test methodologies, and modify, as needed. KISAN II builds adaptive management techniques into its partner capacity building activities, as well. Project-wide pause and reflect events were instituted in Year 2, and in Year 3 will be refined, strengthened, and institutionalized and within each component. KISAN II’s learning agenda includes investigation into motivations, barriers, and incentives to ensure inclusiveness and effectiveness of activities and to better understand and mitigate against obstacles to gender equality and social inclusion (GESI).

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 9 AID-367-C-17-00001 I. INTRODUCTION Winrock International received a contract from USAID/Nepal for the KISAN II Project on July 12, 2017. The project’s overall goal is to increase the resilience, inclusiveness, and sustainability of income growth through agriculture development. The project will focus on five commodities: vegetables, rice, maize, lentil, and goats. KISAN II contributes to the objectives of the Government of Nepal’s ADS and the US Government’s Feed the Future Initiative. The project is implemented in collaboration with three Nepali organizations as subcontractors: Center for Environmental and Agricultural Policy, Research, Extension and Development (CEAPRED), Development Project Service Center (DEPROSC), and Siddhartha Connecting Inc. Pvt. Ltd.; and two international subcontractors, Digital Green Foundation and Overseas Strategic Consulting Ltd. (OSC). Our participatory work plan development process is described in Box 3; the project’s ZOI is described in Box 4. The KISAN II Project has five specific components:

Component 1: Improved productivity of selected agricultural market systems Component 2: Strengthened competitiveness, resilience, and inclusiveness of selected agricultural market systems Component 3: Strengthened enabling environment of selected agricultural market systems Component 4: Increased ability of vulnerable communities to act on business opportunities within selected market systems Component 5: Collaboration, learning and adaptation (CLA) applied to market systems development

Box 3: Our Consultative Process to Develop the KISAN II Annual Work Plan

This workplan was designed with input from: USAID/Nepal Senior Government Officials from Ministry of Agriculture and Livestock Development (MOALD), Department of Agriculture (DOA), and National Planning Commission Mayors and deputy mayors from municipalities USAID project staff from NSAF and SUAAHARA II Other partners, such as GON PMAMP KISAN II technical and management staff Feedback from private sector and cooperative partners, farmers, other stakeholders during Year 2

Following individual consultations, a session was held with senior MOALD officials to vet the project’s progress and approaches and obtain feedback. Fifty nine KISAN II technical staff and subcontractor representatives participated in a three-day pause and reflect workshop and a two-day design meeting to develop activities, timelines, and assign resources.

As required in KISAN II’s contract, an overview of the project strategy and implementation approaches is followed by anticipated constraints, sustainability plan, modalities for collaborating with the GON, and activities to achieve the development objectives. Sections addressing Grants Under Contract, Monitoring and Evaluation, Operations, Administration, and Finances complete the narrative. Activities are organized by outcomes that contribute to USAID Development Objectives. For each activity, the work plan provides a brief description of the activity, our Year 3 benchmarks,

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 10 AID-367-C-17-00001 required resources, expected time frame, as well as any critical assumptions. Annex A includes an activities summary; Annex B includes an updated Plan for Coordinating with the Government of Nepal Ministry of Agriculture and Livestock Development; Annex C includes the updated organizational chart; and Annex D includes an updated summary budget.

A. PROJECT STRATEGY KISAN II embraces a market systems development approach. Robust market systems transcend single value-chain development to include a healthy, skilled workforce and business sector. All are critical to meet changing market demands and opportunities, improve value chain efficiency, and manage unexpected shocks. KISAN II will coordinate and collaborate with stakeholders in sectors such as health behavior change (water, sanitation, and hygiene, nutrition), education (business literacy), environment (natural resource management [NRM] and climate smart adaptation), and federal and local government policy agencies to support sustainable, competitive, and inclusive market systems. Working through private sector and GON counterparts in a facilitative manner, KISAN II will use push and pull strategies and adhere to USAID/Nepal’s guiding principles for market development to help men, women, youth, and disadvantaged group members move from non-commercial, subsistence farmers to more resilient market system participants. The project operates in select municipalities in Provinces 5, 6 and 7 which constitutes Zone of Influence (ZOI) 1 and in Province 3, which constitutes ZOI 2 (see Box 4). Box 4: KISAN II Zone of Influence (ZOI)

Selected Metropolitan, Sub-metropolitan areas, Nagarpalikas, and Gaunpalikas in 4 provinces (25 districts in West, Midwest, Far West, and the earth quake affected zone). Province 3: Kavrepalanchok, Nuwakot, Makwanpur, Sindhupalchok Province 5: Kapilbastu, Palpa, Arghakhhanchi, Gulmi, Banke, Bardiya, Pyuthan, Dang, Rolpa, Rukum East Province 6: Surkhet, Dailekh, Jajarkot, Salyan, Rukum West Province 7: Baitadi, Kailali, Kanchanpur, Doti, Achham, Dadeldhura

To increase market competitiveness, the project will facilitate sustainable value chain relationships that produce inclusive, win-win buyer-seller transactions: a supply of commodities responsive to the market’s demands for volumes and quality at a competitive price. KISAN II will underpin this with continuous communication within the market system to adapt private sector-led service delivery to support the supply response. KISAN II will provide support to the public sector to create an enabling environment for sustainable, competitive, and inclusive agribusiness development.

To promote inclusiveness, the project will convey a compelling business case to integrate women, youth, disadvantaged groups and currently less-commercially-oriented farmers. By mapping pockets of previously marginalized, vulnerable, less commercially active populations, KISAN II integrates

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 11 AID-367-C-17-00001 this data into its strategic selection of partners – currently serving or sourcing from these areas or interested in doing so. The project will then provide entry points for women, youth, and marginalized groups to enter and compete in the market through partners’ firms and cooperatives, including developing access to affordable inputs, focusing on aggregation to take advantage of more cost- effective transport, and building capacity of local traders to improve market access. This is supplemented by a business literacy development component that targets unskilled and illiterate farmers and migrant returnees in the project’s households to create more resilient and productive market actors. Through project partners, such as local agrovets and community-based service providers, KISAN II will build the capacity of women, youth, and marginalized groups to demonstrate their ability as productive value chain actors (push approach), linking them to commercial markets (pull approach) to change long-held attitudes and behaviors. KISAN II will also foster resiliency strategies that help households, firms, communities, and market systems diversify and mitigate risk and accumulate assets to prepare for and thrive during economic, political, climate, and natural disaster shocks.

Figure 1. KISAN II - an integrated approach to partnerships

Component 1 TOT for firm’s extension staff, demos, varietal trials and on- going quality control

Component 4 R.H Agrovet Component 2 KISAN II provides Multi-service agrovet Link with traders advanced business experimenting with more for intel and literacy training robust extension service to market outlet for for 100 linked expand and retain client client farmers, farmers base. Currently serving 500 link to loan and farmers crop insurance

Component 3 Municipality will support farmers with funds to support plastic tunnels for off season production

KISAN II’s five components are designed to holistically support market system development addressing issues related to marketing and business capacity (Component 2), productivity (Component 1), policy solutions (Component 3), support for resiliency and integration of poor, marginalized populations (Component 4), and adaptive management to ensure maximum results (Component 5). Figure 1 above illustrates how all components can converge through a single partner, R.H Agrovet, and address multiple constraints.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 12 AID-367-C-17-00001 Since the project launch, KISAN II’s strategy has remained consistent, however with two years of learning, the project recognizes that it is feasible to integrate vulnerable households through partners while continuing with a “market pull,” “light touch” approach. KISAN II’s “push” activities include business literacy training to support vulnerable households to catch up in business skills and lift up in opportunity, negotiation guides and trader directories to empower producers to find their best market opportunity, and women’s empowerment programming to build leadership skills. The recent pause and reflect workshop also informed this work plan and approaches (see Box 5).

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 13 AID-367-C-17-00001 Box 5: Pause and Reflect Process Leads to Adaptation During Year 2, KISAN II undertook a pause and reflect process to test project assumptions; gauge progress, viability, sustainability of implementation models; and identify areas for improvement and potential adaptation. This was conducted at the cluster, component, and project level over a five-month period, culminating in a 3-day workshop in May 2019. The pause and reflect process itself was a learning experience for project staff and will be refined and systematized, based on learning from other projects, as KISAN II incorporates it into its CLA process for Year 3 (refer to Component 5 description). Some findings include: • GESI: The project needs to better integrate GESI in analyses to understand and respond to specific constraints and opportunities and to better foster inclusivity. During KISAN I , by targeting vulnerable households and women and disadvantaged groups specifically, we achieved similar productivity outcomes (e.g., yields) between male and female farmers. With complementary marketing training to farmer groups and participation in business literacy classes we also saw a dramatic change in women’s confidence and value assigned to their knowledge and skills to the point that KISAN impacted their decision making dynamics -- by the end of the project 90% of households’ farm-level decisions were made by women alone or women and men jointly whereas in the baseline year women were involved in only 50% of farm-level decisions. With more robust data from the annual outcome survey and targeted qualitative assessments, staff will delve more deeply into why or why not marginalized populations are experiencing different levels of benefits from value chain or market system improvements compared to other households, and with that information develop strategies for addressing these deficits. • Revisit value chain-specific constraints and assumptions: Staff reassessed the systemic constraints within each value chain to enhance the assumptions underpinning the project’s theory of change. These are listed in the constraints section of Components 1 and 2. • Partnership models: KISAN II needs to reinforce the need for all staff to be active listeners during partnership assessment meetings; capacity building and support must be co-developed and tailored to and responsive to partner needs. KISAN II has partnership models, but support can be innovative or individual – the project should not be “selling a model”. KISAN II should further promote a few principles as it forges ahead with existing and new partnerships: 1) don’t be afraid to fail but make sure lessons are documented; 2) don’t be afraid to “go outside” the current suite of partnership models and try something innovative to better meet the needs of the partner; and similarly 3) don’t be afraid to adjust the terms/scope of the partnership or grant mid-stream if things are not working out as planned, or circumstances have changed. • Organizational strengthening: KISAN II would like to enhance or supplement its tools for assessing and tracking organizational change. The project is using the modified OCAT tool, but supplemental questions or areas of inquiry are often used by staff when working with a more complex, larger partner, such as a financial institution, company, or cooperative. The project needs to document and share these questions or tools to ensure consistency. USAID suggested the project examine components of the Pact OPI tool to better assess needs and target its resources to specific partner constraints and measure if/how support is contributing to changes that will lead to better outcomes and increased sustainability. There is also a resiliency link – firms that meet basic standards of organizational competency will be better able to withstand shocks and stresses. Furthermore, in many of the case studies assessed during the pause and reflect workshops, it was evident that rapid partner growth projections need to be accompanied by simultaneous organizational capacity tracking and, if needed, strengthening to maximize efficiency and quality of service during growth cycles. • Planning: KISAN II will continue to document tools and best practices for common activities, including aids for production planning, which emerged as a much-requested skill among partners. • Foster a culture of learning. Project staff continually assess progress of partnerships, activities, and collaborations throughout the year, in particular during each post season, but a more systematic reflection and documentation process was welcomed and KISAN II will train staff and disseminate guidelines for regular after action reviews. Staff updated their list of learning questions to help measure barriers, motivations, and incentives of partner firms and households, prioritize areas for investment, and foster a participatory process that includes cluster level field staff.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 14 AID-367-C-17-00001 B. IMPLEMENTATION APPROACHES B.1 STRONG PARTNERSHIPS DETERMINE PROJECT OUTCOMES The cornerstone of KISAN II’s approach is to identify and develop strong, savvy, innovative, growth- oriented private sector firms and organizations seeking to improve their business and are committed to a more inclusive, less extractive business strategy to realize their growth goals. In return, KISAN II will support them to develop business plans to address constraints and challenges, such as high costs of production, availability of predictable volumes, and consistent quality of commodities – vegetables, rice, maize, lentil, and goat – as well as efficient supply chain and processing management, access to new markets, and diversification of products to feed an evolving market. KISAN II staff assess each application for partnership and each organization to determine the likelihood of success as a business and as a contributor to USAID outcomes. Weaknesses are identified and assessed to determine the degree of assistance required to address the challenges. Expectations are agreed to: the partner must invest in its plan including any new staff and activities; farmers must benefit too; KISAN II will provide TOT and TA to build capacity of partners and his/her staff, e.g. extension staff; small cost share grant assistance can be included to buy down risk of testing new business models, such as embedded service delivery, or small investments in machinery. After initial partner capacity building, KISAN II staff function primarily in two roles: monitoring and mentoring. KISAN II staff do not interact with the farmers except for monitoring, evaluation, and learning (MEL) purposes and observations for quality control of partners’ service delivery. One exception is the delivery of business literacy training (Component 4) – this is a directly delivered “push” activity. As new issues arise, or challenges emerge in the plan, adjustments can be made, and additional TA provided to co-develop a solution.

During the past two years, six common business implementation models have emerged. However, this is not an exhaustive list of possibilities, and in fact we anticipate other models developing in Year 3 tailored to partner needs, including a commercial goat farm and an agrovet with AI services models. 1. Processor model – Focused mostly on rice and lentil. Their incentive is increased volumes of consistent, higher quality commodities. It often includes productivity enhancing extension services to outgrower farmers; some include provision of seed, and buyback guarantees. 2. Trader model – Most often vegetables but may add goat traders. Their incentive is reliable volumes, consistent quality, and year round availability of commodities. Most include formal links to farmer groups or communities, with different levels of extension and aggregation support built in to improve yields and quality of farmer supply. Often KISAN II brings together organizations performing different market functions and facilitates linkages to agrovet and finance services. (By the end of Year 3, approximately 25 partners will be implementing a processor or trader model). 3. Cooperative model – These vary in size and complexity of services offered, with an incentive to retain and grow their memberships and profit margin. Some primarily focus on productivity enhancing extension services and finance for member farmers. Others are multiservice with input supply and output aggregation and marketing functions. Still, others are developing new profit centers, such as nursery services, providing custom hire mechanization services, and guarantee buyback programs for members. (By the end of Year 3, an estimated 60 partners will be implementing a cooperative model).

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 15 AID-367-C-17-00001 4. Wholesale agrovet – These large businesses often have large networks of branded and independent retail agrovets. Their incentive is to grow their sales through efficient and effective service delivery and sales at the retail level. They recognize that farmers must increase their yields and income to drive an increase in input sales. This model allows for rapid dissemination and distribution of new technologies and practices and how to use them to thousands of farmers. Capacity building of the wholesalers includes strengthening forward and backward linkages and delivery of value added service to retailers, such as instructional videos to enhance their extension and advice offerings, and development of loyalty discount programs. (By the end of Year 3, an estimated 10 partners will be implementing a wholesale agrovet model, which in turn will reach 70 retail agrovets through their networks). 5. Retail agrovets – These also vary in size and complexity of services offered, but often reach the last mile of service provision in more remote areas. Their incentive is to increase sales and clientele. As the example in Figure 1 showed, some larger agrovets provide multiple services – linkages to buyers, extension training, demonstrations, field days, and access to finance. Many focus primarily on client relationships through value added extension advice to adopt better agricultural practices that will allow farmers to get an improved return on their investment in the agrovets’ inputs. KISAN II promotes and facilitates linkages among an agrovet, its producers/clients, and the market buyer, be that a trader or cooperative, for efficient production planning and input inventory control. (By the end of Year 3, an estimated 40 partners will be implementing a retail agrovet model). 6. Strategic partners – All of the above partnerships provide a service to farmers from the partner. Strategic partners are service providers interested in innovating and providing services to partner firms or farmers. They currently include insurance companies, banks, ICT solutions, BDS providers, and Nepal Livestock Breeding Office for training and licensing in artificial insemination services. These are primarily Memoranda of Understanding (MOUs).

We anticipate adding a goat farm model and an agrovet model based on supplying A.I. services in Year 3. Some partnerships are established through a MOU with associated technical assistance (TA), while others apply to our Partnership and Innovation Fund (PIF) for a grant to buy down a portion of the risk of testing a new business model.

B.2 FACILITATIVE, MARKET-DRIVEN, PRIVATE SECTOR-LED SERVICE DELIVERY As described in our models KISAN II will build the capacity of firms and cooperatives to deliver services; where skepticism about the model, or new products, new sourcing zones, or new technologies exists, the project will buy down a portion of the risk to prove the concept, facilitate learning, set them up for sustainable business relationships, and then share knowledge of the models sector-wide. Services can include input supply, demonstrations of new practices, extension advice and training, mechanized land preparation, storage, grading, sorting, and testing, and credit.

Leveraging the market actors. Within the basic market relationships among inputs to consumers, there are several intermediaries (see Figure 2). To avoid donor dependency and foster private sector-led solutions, partner staff will deliver services to farmers. KISAN II staff will work with the market system actors to understand the business value of building the capacity of their supply base (the

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 16 AID-367-C-17-00001 farmers) and provide market-driven services that reduce costs of production, improve quality, and increase productivity to enhance competitiveness. Project staff will monitor and mentor service delivery for quality control and ensure farmers are benefiting fully from the arrangement.

Figure 2: Market Relationships

Note: KISAN II project market system entry points are indicated in the dark blue boxes

To improve access to inputs, KISAN II supports agrovets, cooperatives, other buyers as input suppliers, as well as wholesale agrovets who in turn support numerous retail outlets. KISAN II builds their capacity to provide agronomic inputs, tools, extension advice, and often credit through new delivery models to farmer groups.

Similarly, to facilitate market access for farmers, KISAN II develops partnerships with buyers – cooperatives/aggregators, traders, millers, other processors, and end market buyers - who manage the flow of demand information to farmers and input suppliers and manage the output production from farmgate to end market consumers. The objective is to strengthen the relationships and efficiencies between the value chain actors to increase competitiveness and permit smallholder producers to capture a greater portion of the end market price through cost-effective productivity gains, aggregation, and market responsive production. Buyers foster reliable sourcing networks by providing agricultural services to build the capacity of the producers. Collectively, through formal and informal contract farming arrangements, the investment by the buyers in building the capacity of their producers and the investment of the farmers to produce to the quality and volume requirements of buyers leads to a win-win relationship - more efficient production planning, increased incomes, and predictable sales.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 17 AID-367-C-17-00001 Finally, access to finance is a major constraint for farmers and firms to test new technologies and enter new markets and for service providers to scale up new business models. To provide access to finance, KISAN II has initially partnered with two commercial banks ensuring that farmers receive financial services from both the input and the post-harvest side. For the input side, Laxmi Bank is developing the capacity of agrovets to become branchless banking agents, which will enable them to provide savings and credit services to farmers. For the output side, Sanima Bank is scaling up agri- business lending to farmers via cooperatives. In addition, capacity building to cooperatives and microfinance institutions and expanded lending (seasonal delayed payments) through agrovets will expand agricultural financial services options.

B.3 SUPPORTING FEDERAL SYSTEM OF PUBLIC SECTOR GOVERNANCE KISAN II will collaborate with all levels of the new GON governance structures, from national ministry and departmental levels, to new state/province offices, and support newly established and empowered local governmental units – metropolitan, sub-metropolitan, Nagarpalika (municipalities), and Gaunpalika (rural municipalities). Details of collaboration, leverage, and capacity building activities with the GON are described in Section E and Component 3: Enabling Environment. While most of KISAN II’s target municipalities are determined by its private sector partners’ sourcing zones, additional municipalities are determined by partners’ potential sourcing zones, including those with currently non-commercial and marginalized farming households. KISAN II staff with local partner firms and cooperatives will orient GON officials and technical staff to the KISAN II objectives and indicators of success, as well as perform joint monitoring visits to view the partner’s new business approaches and interact with the farmers. KISAN II will engage these officials – elected, administrative, and agriculture focused -- to demonstrate the sustainable benefits from pursuing a private sector-led, market-driven, business model for implementation and discuss how local government can support this approach through complementary investments and creating an enabling environment for increasing farmer incomes and local firm sales.

B.4 COLLABORATING, SEQUENCING, LAYERING, AND INTEGRATING WITH OTHER DEVELOPMENT PARTNERS Numerous USAID, GON, and other development partner programs operate in the KISAN II ZOIs, including Suaahara II, Paani, Sustainable Action for Resilience and Food Security (SABAL), Promoting Agriculture, Health, and Alternative Livelihoods (PAHAL), Hariyo Ban, Prime Minister’s Agriculture Modernization Project (PMAMP), and the upcoming High Value Agriculture Project II. KISAN II will similarly formalize additional partnerships through consultations, joint work planning exercises, joint monitoring, and regular information and data sharing workshops with newly established municipalities and rural municipalities. To ensure proper sequencing, KISAN II will facilitate market linkages for farmers emerging from emergency relief and resiliency project activities, such as SABAL, PAHAL, and Suaahara II to partner sourcing networks able to grow a market compliant surplus for linkage to partner markets. Under an MOU with Suaahara II, the project will link their successful Village Model Farmers (VMFs), homestead food production beneficiaries, and associated groups to market opportunities through buyers, producer groups, and agricultural services providers. Finally, KISAN II will coach lead firms to develop outgrower schemes to make better use of infrastructure developed with GON grants under previous investment projects such as High Value

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 18 AID-367-C-17-00001 Agriculture Project (HVAP), Raising Incomes of Small and Medium Farmers Project (RISMFP), Agriculture and Food Security Project (AFSP), and Kisankalagi Biu-Bijan Karyakram/Improved Seed for Farmers Project (KUBK-ISFP). KISAN II’s collaboration with Suaahara II will integrate their homestead food production beneficiaries that produce a surplus.

The project will layer its activities by complementing NSAF demonstrations of new technologies and capacity building with KISAN II agrovet business development activities. In addition, it will build on Suaahara II household asset management activities with farming-as-a-business training. KISAN II will continue to coordinate with the Civil Society: Mutual Accountability Project (CS:MAP) and their partner the Rural Women Development Center (RWDC) to identify opportunities for KISAN II to provide complementary local government capacity building in planning or process streamlining in response to CS:MAP’s public-private dialogues.

KISAN II will integrate and align Suaahara II, PAHAL, and KISAN II business and financial literacy, nutrition, and life skills modules and approaches and collaborate with other implementing partners and MOALD to assess and revise productivity training materials, identify gaps, and ensure congruent messaging. The project will use Natural Resource Management (NRM), integrated pest management (IPM) and climate-smart approaches adapted from CEAPRED, iDE, and other partners. Through an MOU with USAID NSAF/CIMMYT, KISAN II will also demonstrate soil conservation / soil fertility practices, newly tested and approved seeds, and new fertilizer protocols, and build on their previous mechanization and relay cropping trials.

To foster collaboration, the project will continue to contribute and participate in USAID’s regular coordination meetings among implementing partner technical staff to share knowledge and outcome data and identify opportunities for joint implementation and research. In addition, collaboration among these partners occurs regularly at the national, regional, and cluster level among implementing partner local staff and municipal government staff.

B.5 INTEGRATING CROSS CUTTING ISSUES In addition to contributing to our contractual outcomes, KISAN II’s suite of development activities will also support ten cross cutting issues. Table 1 below describes some examples.

Table 1: Examples of activity integration supporting cross cutting issues Cross cutting Examples of activity integration Issue Targeting women, youth, and marginalized groups (70% of KISAN II beneficiaries) for inclusion in market systems and sourcing networks and increased access to inputs and credit will increase income and sustainable market Gender Equity relationships. But that is just the first step; KISAN II staff will analyze output and Social and outcome data for disaggregated GESI subgroups (women, youth, and Inclusion disadvantaged, marginalized groups) for any discrepancies in benefits accruing (GESI) to GESI groups versus the rest of the population. Focus groups and mini surveys will drill down to determine barriers, motivations, and required incentives to changing behaviors of GESI groups and reveal pathways to improve their access to markets, information, and the means of production. OSC will use these same

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 19 AID-367-C-17-00001 Cross cutting Examples of activity integration Issue methods to assess KISAN II approaches and training materials to determine improvements that better serve our targeted marginalized populations. Practices and technologies will be introduced to reduce the labor/time burden to women, and instructional tools will address the lower literacy rates among women and marginalized groups and will be delivered by their peers. With barriers revealed, solutions and mitigation measures will be designed to narrow the gap. The project will continue to recruit women in leadership positions on staff, as well as in the field, and incentivize partners/grantees to do the same. KISAN II will also develop a women’s leadership program to build the capacity of women cooperative members to prepare them to ascend to leadership positions. See the GESI action plan for more details. Partnerships are at the core of the private sector-led approach which makes the business case for embedded service provision through firms, traders, co-ops, financial institutions and agrovets, to enhance agricultural development that positively impacts farming households (increases sales/income). These services Partnerships include technical extension, input supply, credit, aggregation, transport, grades and standards, etc. Strategic use of cost share mechanisms will buy down risk for innovations and testing of new technical and management innovations and new financial products. Many KISAN II activities contribute to resilience. Component 1 promotes adoption of climate smart technologies (including improved seeds, conservation- oriented cultivation practices, and irrigation) and crop intensification and diversification to mitigate against weather related shocks. Component 2 promotes savings, contract farming, and other forms of improved market linkages. Firm capacity building includes reading market signals for local and Resilience regional trends and potential price fluctuations to adapt and pivot as needed. By integrating elements of adaptive management (CLA) into a firm’s toolkit, it promotes continual check-ins with its supply chain actors to increase responsiveness and transparency of information. Component 4 provides business literacy training to build literacy, numeracy, business and life skills for illiterate, poor, and marginalized groups, including improved food preservation and storage technologies, diet diversification, and nutrition awareness. Based on KISAN results, the majority of the increase in income/incremental sales among beneficiaries will come from an increase in volume of nutrient-rich commodities entering the local market. Adding goats will serve to both increase incomes and offer a source of animal-sourced protein. During KISAN I (waiting on KISAN II data) the project found that unlike many countries, targeted farming households growing nutrient rich crops also increased their consumption of these nutrient rich commodities in addition to selling their crops Nutrition for profit. The project will ensure that through KISAN II training efforts, including delivery of Module 2 of the Business Literacy Component, targeted farming households will retain increased volumes of nutrient rich foods and/or use a portion of increased incomes to purchase nutrient rich foods. Collaboration with Suaahara II and alignment of their nutrition materials with our business literacy Module 3 will further disseminate nutrition information and behavior change activities. As described under resilience, many of the project’s improved agricultural Climate practices deployed through partners to farming households are climate smart, change including flood and drought resistant seed varieties, mulching, water harvesting, adaptation efficient irrigation methods such as drip, and zero tillage for lentil. Given cyclical flooding threat in parts of the ZOI, KISAN II will coordinate with

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 20 AID-367-C-17-00001 Cross cutting Examples of activity integration Issue Hariyo Ban II to share their technologies and practices that have proven successful in mitigating impacts on farmland.

KISAN II, in collaboration with NSAF and CIMMYT, will promote soil conservation practices such as terracing in hills, minimum tillage to retain soil NRM structure, and intercropping and relay cropping with soil rejuvenating crops. Water conservation techniques related to water harvesting and irrigation will reduce overuse of limited resources. Marginalized youth and migrant returnees will be identified, strengthened, and integrated into different functions of the market system. As core participants in Youth the business literacy component, KISAN II will enhance youth business skills development, as well as launch new business development short courses for returning migrants and school leavers. KISAN II builds improved private sector governance into its activities to strengthen farmer groups, cooperatives/SACCOs, and firms, with a particular emphasis on inclusion of women in leadership, and capacity building on formulation and delivery of advocacy messages and involvement of the next generation through youth-focused activities. In Component 3 – strengthening the enabling environment – public sector capacity building will focus primarily on Governance local government planning, increased use of evidence-based decision making via Improvement feasibility and impact assessment to guide investments, and support for analysis to inform development of policies, regulations, and administrative procedures. Strengthening accountability through public-private interactions, such as buyer- seller forums and dialog events surrounding policy reform efforts will contribute to a participatory process and promote accountability and transparency of investment decisions and process. To enhance service delivery and business efficiency, KISAN II through its partner, Digital Green, will expand the use of community-developed extension videos, and pilot supply chain management tools and IT-based business literacy instruction. The project will also explore the use of community radio to increase ICT outreach and reinforce essential messages and practices. KISAN II has begun discussions with NCell for the dissemination of push messages with extension content. The first order of business will be to disseminate information and remediation measures about Tuta Absoluta and Fall Army Worm. GIS mapping is an essential tool for project management, MEL, and collaboration among projects to answer – What is happening where? What is needed? Where are opportunities for SLI and increasing yields and sales? GIS Mapping productive pockets and agribusinesses informs KISAN II targeting for partner selection, identifying underserved populations in non-commercial zones, and informing private sector and input supply expansion plans.

C. ANTICIPATED CONSTRAINTS AND PROPOSED MITIGATION MEASURES New governance structures under federal system. Federalism is defined in law, but the installation and full staffing of local government structures is an on-going process. During the first two years, KISAN II staff have been engaging with municipality leadership to explain its facilitative private sector-led strategy and determine how best to collaborate with new government partners. Preliminary

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 21 AID-367-C-17-00001 results are extremely promising, with the majority of municipalities expressing excitement by the opportunity to collaborate and apply joint resources to promote sustainable, inclusive solutions to expand market access and development. However, where agriculture-focused staff are not yet in place or skepticism remains, project staff have brought along local private sector partners to better explain the relevance and importance of the KISAN II approach and highlight areas for collaboration in implementation, resource allocation, planning, data sharing, and reporting. Engagement with Provincial-level government commenced in Year 2, and as their roles and interests become clearer, KISAN II will go beyond briefings to collaborate on knowledge sharing and capacity building, particularly with the Agricultural Knowledge Centers.

Following the private sector. KISAN II’s private sector-led model will reflect buyer-determined sourcing zones. This could lead to overlap with other programs, but formal collaboration mechanisms (Chief of Party meetings, Steering Committee, Joint Sector Review (JSRs), DCCC meetings, municipality-level coordination meetings) and joint planning at the national and local level with development partners, will integrate empowered and enabled farmer groups from communities through KISAN II buyer partners or link groups from any source to KISAN II’s network of service providers.

Unforeseen political and natural disaster events. Farmer and business capacity building includes skills that enhance resiliency, including the promotion of crop and diet diversity, climate smart agricultural practices, and storage and food preservation modalities; and mobilization and productive use of remittances that enhance planning, enduring, and recovering from climatic stress, input and fuel shortages due to border closures, and unexpected political or social unrest.

At a minimum, the success of KISAN II is based on a few underlying assumptions, listed below. If assumptions do not hold, staff will first attempt to work around obstacles and challenges, coaching project target stakeholders in developing creative solutions, and assessing adjustments to investment choices. KISAN II will keep USAID informed of possible impacts on results. ● The political situation remains relatively stable, however highly vulnerable to the local success of federalism; ● Agriculture sector growth relies on an open input market from India and opportunities for trade in off-season commodities; ● Major infrastructure remains intact in Kathmandu and the ZOI; ● GON, including new municipalities, continues to support KISAN II activities; and ● The agriculture sector cannot completely avoid the adverse effects of weather, natural disasters, pests, or climate change during the life of the project. Nepal is too often plagued by these challenges – often on a cyclical basis – regionally with droughts and floods, and locally through landslides and earthquakes. Therefore, resiliency strategies will be woven throughout KISAN II activities, focusing on production planning, crop diversification, early warning of pest and disease identification (such as Tuta Absoluta and Fall Army Worm) and the safe and effective management of these pests, storage modalities, soil and water conservation, adoption of climate smart technologies, promotion of savings and insurance, and irrigation and water harvesting.

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D. SUSTAINABILITY PLAN KISAN II’s facilitative market systems approach and emphasis on private sector-led service delivery are designed to play a catalytic role in enabling and empowering farming households, cooperatives, firms, and GON agencies to follow market signals, interpret and act upon opportunities, and increase efficiencies to create a more competitive, resilient, and inclusive agricultural market system. Specific implementation strategies within each project component support sustainable outcomes.

Component 1: Agriculture productivity. Working through private-sector market actors, KISAN II focuses on capacity building of farming households. Activities will equip farmers to not only master agronomic productivity and post-harvest practices that increase yields and reduce losses, but the emphasis on fostering business development skills, as well, ensures farmer ability to assess the cost- effectiveness of new practices and technologies and understand the benefits of aggregation, crop diversity, and market responsive production planning. This enables them to better weather unforeseen economic and climatic shocks and be prepared to take advantage of future opportunities.

Component 2: Market systems development. At the core of the private sector-led approach is promoting 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 - - to improve market system efficiency. Through training, technical assistance, and facilitated market linkages KISAN II builds firm and cooperative capacity to develop systems and staff skills that enhance organizational efficiency, bring down costs of production, and equip the partners to read market signals, assess new technologies, and pivot, as needed, to stay competitive in the face of changing consumer demands and competitor pressure. By also buying down risk through strategic grants, KISAN II will demonstrate how embedded services from processors, traders, cooperatives, service providers, and agrovets lead to increased sales, and more reliable, consistent supply – volumes and quality – of target commodities, without continued donor or GON support. Building the capacity of independent agricultural service providers, such as financial institutions, mechanized equipment dealers, and business consultancies further enhances the efficiency and competitiveness of the market system. As in Years 1 and 2, KISAN II will brief and orient GON officials at national, provincial, and local levels to the elements of KISAN II’s approach and the public sector role in supporting private sector development – through services, investments, and policy. Joint planning exercises will align public and private sector priorities and identify leverage points for short-term project support and capacity building. Industry level events and exposure visits will present data and case studies on sustainably business models and innovations to stimulate widespread adoption and adaptation of proven concepts, create spillover, and foster systemic change.

Component 3: Enabling environment. By focusing on GON policy and regulatory reforms at all levels of government that unlock private-sector growth potential, the project will contribute to an enabling environment for long-lasting sector development. Activities will promote USAID’s market systems development approach through capacity building for government agencies via market-supportive planning, service provision, and strategic investments that complement, not crowd out, private sector growth. Demand driven capacity building for new municipality level GON staff on agriculture

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 23 AID-367-C-17-00001 planning and budgeting and joint planning and monitoring of activities will further solidify a collaborative relationship among public and private sector actors and the project and ensure that activities are aligned with local priorities.

Component 4: Business literacy. With a holistic program focused on literacy, numeracy, nutrition, life skills, entrepreneurialism, access to finance, and follow up business support, KISAN II seeks to empower and capacitate some of the most marginalized Nepalese in the project’s operating zone, equipping them with knowledge, skills, and confidence to sustainably pull their families out of poverty through integration into the market system.

Component 5: CLA. Through strategic collaboration among development and GON partners, KISAN II seeks to contribute to greater outcomes in reducing poverty, increasing incomes and sales, and empowering previously disadvantaged populations with comprehensive and complementary innovations in the ZOI. Furthermore, KISAN II will transfer the principles and tools of reflection and adaptive management to its business and farming household partners to foster sustainable expansion and growth.

E. COLLABORATION WITH GON The Plan for Coordination and Collaboration with the GON Ministry of Agriculture and Livestock Development at the Central level and Provincial and Municipal Governments at the Sub-national level details the principles and objectives for GON-KISAN II coordination, followed by methods for collaboration at each level of government, and concludes with reporting requirements. To facilitate collaboration with GON, a Joint National Steering Committee (JNSC) of four USAID-funded projects (KISAN II, NSAF, SABAL, and PAHAL) was formed in 2017/18. This committee is chaired by the Secretary, MOALD, and represented by Joint Secretaries from different ministries and National Planning Commission (NPC), Director Generals from different departments, Nepal Agriculture Research Council (NARC), National Farmers’ Commission, and Federation of Nepalese Chambers of Commerce and Industry (FNCCI). To focus on experience sharing between the technical experts from the GON and KISAN II as well as to address operational issues observed in program implementation, KISAN II convenes a technical committee composed of technical experts from MOALD departments, and other agencies. The activities below summarize the methods for collaboration at each level of Government.

Activity CL 1: Disseminate and deepen understanding of the private sector-led approach. KISAN II will continue to emphasize coordination and collaboration with the GON at all levels: federal, provincial, and municipal. During start up KISAN II staff briefed the Secretary and Joint Secretaries on KISAN II scope and objectives, followed by an undersecretary and director level briefing on the KISAN II strategy, approaches, activity areas, and expected outcomes. This continued over the past two years from the federal to provincial to municipal levels in the past two years. A high level joint GON-USG visit led by Hon. Minister for Agriculture and Livestock Development from the GON side and Ambassador from the USG side was organized in Year 2 to observe activities in the field and interact with value chain actors and field staff. This visit allowed higher authorities of both sides to see a market systems development approach in action and understand how KISAN II is

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 24 AID-367-C-17-00001 helping to bring changes in the field and eventually to the sector. Drawing on participants’ field visits, the private sector-led approach and promotion of sustainable business models was discussed extensively. Each participant provided feedback and probing questions to ensure alignment with GON strategies, objectives, and desired outcomes. In Year 3 KISAN II will collaborate with GON and other donor efforts to develop guidelines for promoting private sector engagement among public sector actors and programs – how to enable and support private sector contribution to sector-wide growth objectives.

KISAN II engages with municipality governments as we add a local private sector partner in their jurisdiction. Regional, cluster level staff conduct the meetings, with mayors, deputy mayors, or agricultural staff to brief them on the project’s approach – light touch through partners; “software” (TA) over “hardware” (construction or equipment); facilitative over direct service; and fostering competitive, inclusive, and resilient business relationships that raise incomes for all stakeholder partners and linked farming households. During the project’s recent pause and reflect workshop, staff universally found it helpful to bring our private sector partners (from that municipality) with us to co- present on the project and explain why it is helpful from their perspective. This seems to put the officials at ease by putting their constituent front and center and supports building sustainable private sector-public sector relationships that will endure after the project closes. It also allowed the private sector partner to explain their other needs for funds, inputs, or services, such as support for irrigation for disadvantaged and youth groups, collection point construction, or other market services. KISAN II staff facilitate discussions about collaboration with other programs and promote availability of subsidized facilities for women and disadvantaged people in the municipality. Joint monitoring visits including municipality staff to project sites allow officials to discuss approaches and outcomes with the beneficiaries. KISAN II encourages local government participation in production planning meetings with buyers, input suppliers, and producers to better understand the market dynamics in their area and integrate GON ideas on addressing challenges. Finally, KISAN II will conduct briefings on its activities and the benefits of the private sector led approach to GON projects too, including PMAMP, ASDP, KUBK, and NLSIP, as part of the collaboration in the ZOI.

Benchmark(s): 30 municipality level briefings/discussions on approach and underlying activities, 30 joint monitoring visits with municipality officials (KISAN II will encourage joint monitoring visits, but this is a strategic target and will be need based); guidelines for promoting private sector engagement among public sector actors and programs co-developed. Contribution to outcomes: Enhanced and effective collaboration, local level buy-in, collaboration and leveraging of resources Integration of cross cutting issues: Improved governance, partnerships, GESI, NRM Collaborative partners: GON and other donors Resources: STTA facilitator/trainer, GESI Adviser, field staff, KISAN II grantee partners Timing: On-going Evolution in Years 4-5: Continuous discussions as part of CLA, identification of enabling environment activity areas for support, on-going onboarding of new municipalities Activity CL.2: Coordination with Government of Nepal. To achieve project goals and ensure sustainability, KISAN II staff collaborate and coordinate with Ministry of Agriculture and Livestock Development (MOALD), Department of Agriculture (DOA), Department of Livestock Services

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 25 AID-367-C-17-00001 (DOLS), Department of Food Technology and Quality Control (DFTQC), provincial Ministry of Land Management, Agriculture and Cooperatives (MOLMAC) and other organizations, municipalities, and local technical officers. KISAN II activities support the implementation of Government of Nepal’s national strategies and objectives and joint activity monitoring visits reinforce the KISAN II private sector-led approach, ensure transparency and identification of opportunities for further collaboration. KISAN II will work with federal, provincial, and municipality government offices to leverage government resources for project activities. The participation in local collaborative platforms improves production and market linkages of the project crop categories. The coordination with the government contributes to achieving the project objectives and for enabling improved agricultural productivity and sustainability in the target local government units. It also helps align public and private sector investments to maximize impact at the local level.

CL2.1 Central level coordination including formal and informal interactions, but the primary vehicles for central level coordination are the Joint National Steering Committee under the chairmanship of the Secretary, MOALD, and the Joint Sector Reviews (see CL. 3 below).

KISAN II will also be convening technical committee meetings composed of experts from MOALD, departments, and other agencies. These experts will focus on areas such as seed and soil management, crop-specific practices, mechanization, post-harvest, irrigation, finance, and/or environmental management, as appropriate, and interact with KISAN II technical experts and senior staff.

CL2.2 Provincial level coordination including formal and informal interactions with the officials working at provincial agriculture ministries and organizations under them, such as Agriculture Knowledge Center (AKC) and Veterinary Hospital and Livestock Services Expert Center (VHLSEC). KISAN II will also coordinate with Provincial level and AKC representatives in making the agricultural extension service more GESI responsive in project districts. These interactions will focus on exerting coordinated efforts to improve production and market linkages of the project crop categories. KISAN II staff will also conduct joint monitoring visits and will explore conducting industry level events or knowledge sharing forums through provincial AKCs.

CL2.3 District level coordination including formal and informal relationships with the District Coordination Committee (DCC) and District Chambers' of Commerce and Industry (DCCI) to facilitate activities performed in more than one adjoining municipality, to monitor performance, and to share information and models of success with GON and other donors operating in that area.

CL2.4 Local/municipality government level coordination including formal and informal coordination with administrative and technical officials to coordinate and prioritize project activities in each local government unit, including productivity, market linkages, enabling environment, and business literacy. Enabling environment activities will include both capacity building efforts for local government staff (including agriculture work planning and budgeting) and policy related support for assessing problems, projecting potential impacts for action or inaction, and drafting assistance for policies and streamlined administrative procedures. Case studies on cost benefit analysis of infrastructure investments, including irrigation, will also inform public sector investment choices.

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KISAN II will develop detailed implementation plans (DIPs) outlining annual proposed activities and expected outputs and outcomes.

Benchmark(s): 2 Steering committee (including annual project review), and 4 technical committee meetings; reports circulated for review; Joint monitoring visits with 15 officials of steering and technical committee members; 4 events of joint monitoring visits for officials working at the provincial agriculture ministry; joint monitoring visits with municipality officials Interactions with 4 Provincial MOLMACs, 20 AKCs, 20 VHLSECs and other organizations; 25 meetings with DCCs and DCCIs. Introductory and successive meetings with municipality officials, orientation to market systems approach in each unit, regular coordination meetings with AKCs, VHLSECs and municipality-level agriculture representatives; participation in local government Block Grant-related meetings; coordination in irrigation; government resources mobilized; joint activities conducted; funds leveraged. Contribution to outcomes: Partnerships, improved governance Collaborative partners: Coordination with other development partners and GON-managed projects in same geographic zone Resources: COP, EED, SPPA, Cluster Managers, field based staff, as required. Timing: Ongoing through the end of project. Local government-level coordination activities to correlate with their Grant timeline Evolution in Years 4-5: Continued by authorities at central, provincial, and local levels

Activity CL.3: Support for Joint Sector Reviews (JSR). As part of the National ADS Implementation Committee (NADSIC) of Agriculture Development Strategy (ADS), MOALD conducts Joint Sector Reviews (JSR) by engaging donors and senior government officials. The JSR Committee serves as a forum for performance assessment and policy guidance, allowing a broad spectrum of stakeholders to understand and influence policy priorities in agricultural sector development. To support the ongoing functions of the JSR Committee, an ADS-JSR Coordination Expert was recruited in the beginning of Year 2 by KISAN II. Three JSR Technical Committee meetings and one National ADS Joint Sector Review were conducted in Year 2. These meetings and reviews provided very good forums for all relevant stakeholders to come together and discuss ADS implementation status and determine ways forward. As determined by continuing conversations with USAID, other donors and the GON, KISAN II will continue providing support for the functioning of JSR committees.

In Year 2, the National ADS Joint Sector Review developed action plans to address gaps and challenges in three thematic areas: 1) Implementation of ADS in federalized system, 2) Agricultural development program planning in federalized system, and 3) Establishment of nation-wide progress monitoring and reporting mechanisms. For every action, targets have been set with timelines and monitoring indicators. Responsibilities have been delineated to different organizations, including KISAN II, to perform these actions. In collaboration with other specified agencies, KISAN II will contribute to performing the following actions as described in Table 2. KISAN II’s exact role, tasks, and degree of involvement for each action is still to be determined.

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Table 2. JSR action plan themes and activities Gaps and Challenges Actions Indicators Targets Timeline Responsibility Theme 1: Implementation of ADS in Federalized System ADS implementation is Establish an ADS ADS One 15 Sept ADSCS, uncertain in absence of coordination coordination coordinat 2019 MOALD; familiarity and mechanism led by mechanism ion MOLMACs; commitment from MOALD and established mechanis municipalities; province and local represented by with m JSR; EU CARD governments, and lack officials from requisite establish TA; USAID of coordination with provincial representati ed KISAN II; ADB sector ministries and ministries and on and TA departments (inadequate selected suggested inter-governmental and municipalities. The areas for inter-sectoral linkages mechanism will adjustments and coordination review ADS, suggest areas for adjustments to align with the changed implementation arrangements and potential and priorities of provinces and municipalities. Prepare provincial Provincial Seven 28 Feb ADSCS, and municipal and provincia 2020 MOALD; ADB agriculture municipal l and TA; USAID development plans ADPs selected KISAN II; EU (ADP) based on prepared municipa CARD TA their potentials and l ADPs priorities and prepared aligning with ADS Theme 2: Agriculture Development Program Planning in Federalized System Agriculture program Prepare draft Annual One 30 Sept P&B Section, planning taking place program planning program 2019 MOALD; separately at federal, guidelines with planning MOLMACs; provincial and municipal separation of guidelines selected levels; lacking linkage, activities to be developed. municipalities; collaboration and implemented at USAID KISAN coordination causing three tires in II; EU CARD absence of consolidated consultation with TA; ADB TA national level agriculture federal, provincial program planning linked and selected local with national priorities governments and local needs; undermining complementary roles and responsibilities of three tires of governments; and resulting in duplication of resources and activities

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 28 AID-367-C-17-00001 Gaps and Challenges Actions Indicators Targets Timeline Responsibility Prepare program Program Three 31 Jan P&B Section, planning capacity planning capacity 2020 MOALD; building plan for capacity building MOLMACs; federal, provincial building plans selected and municipal plan prepared municipalities; governments in prepared EU CARD TA; consultation with separately USAID KISAN governments at all for all three II; ADB TA three tires. tires of government s Consolidated Consolidate One 31 May B&P and annual program d program consolid 2020 ADSCS, plan prepared and plan ated plan MPALD; available for prepared prepared MOLMACs; governments at all selected three levels. municipalities; EU CARD TA; USAID KISAN II; ADB TA Theme 3: Establishment of Nation-Wide Progress Monitoring and Reporting Mechanisms Absence of mechanisms Train relevant staff Concerned Seven 31 EU CARD TA; for agriculture progress on monitoring provincial training December FAO AGRIS; monitoring and reporting agriculture and events 2019 USAID KISAN from local to province program, collecting municipal conducte II; M&E level and province to data in standard staff trained d for Section, federal level, posing questionnaire and on field province MOALD; challenges in collecting, checklist, monitoring, s and MOLMAC assembling and compiling data, data selected Secretaries; maintaining nation-wide and presenting and collection municipa Chiefs of data at federal level. reporting from and lities selected Such data are critical for municipal to compilation municipalities national agriculture provinces and and program planning and provincial to reporting to recording and presenting federal level. higher levels annual and periodic sector progress/achievements Web-based Web-based Database 31 EU CARD TA; database database establish January FAO AGRIS; established in established ed in 2020 USAID KISAN selected accessible at seven II; Secretaries, municipalities, all three MOLM MOLMAC; provincial levels AC and M&E Section, ministries and selected MOALD federal ministry to municipa ease access to data lities at all levels

Benchmark(s): KISAN II will continue support for one ADS-JSR Coordination Expert and functioning of JSR committees; 1 national ADS-JSR coordination meeting and 3 technical committee meetings for review and planning conducted; TBD support to perform actions identified in three thematic areas in collaboration with other agencies Contribution to outcomes: Enhanced and effective collaboration and leveraging of resources in ZOI

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 29 AID-367-C-17-00001 Integration of cross cutting issues: Partnerships identified, collaboration and leveraging of resources to enhance resiliency, improve NRM, mitigate effects of climate change, empower women, youth and disadvantaged groups, identify opportunities to develop ICT solutions, and utilize GIS as a planning tool and point of collaboration on data collection. Collaborative partners: GON, other donors, and USAID projects, including PAHAL, SABAL, PAANI, NSAF, Hariyo Ban II, and CSMAP Resources: COP, EED, ADS-JSR Coordination Expert, SPPA, MOALD officials and other development partners Timing: T1, T2, T3

F. PROJECT MANAGEMENT The KISAN II implementing consortium works as one seamless team – integrated across components and in lines of authority. Chief of Party, Phil Broughton, leads the project team composed of senior specialists in productivity, marketing, private sector development, finance, enabling environment, business literacy, CLA, and Monitoring and Evaluation (M&E). To ensure inclusivity, collaboration, and effective use of data, including spatial data, specialists in GESI, partnerships, GIS, and ICT advise the technical team. The operations and finance teams, led by DCOP/Finance Praveen Baidya, host accountants and experts in procurement, financial oversight, contractual compliance, award and grants management, and program administration. MEL Director, Dr. Sunil Regmi, oversees M&E activities. All staff are responsible for ensuring CLA. GESI Adviser Sangita Budhathoki oversees and assesses ways to better integrate gender equality and social inclusion into all activities. Regional Director, Rabindra Patel, guides the decentralized field team to ensure that a holistic market systems approach is undertaken and success and challenges are shared across the offices.

In the field, seven cluster offices operate in four provinces; community-based area coordinators identify potential partners and liaise with local government officials, firms, service providers, and farmer groups. Their primary roles are capacity building to ensure a sustainable business model, quality control of third party delivered services, monitoring and assessing results, and facilitating learning through a reflective CLA process. Much of the implementation – marketing, value addition, production and aggregation, and advocacy – is conducted through private sector and community- based partners. A series of organizational charts illustrates the relationships among the staff, offices, and lines of reporting (see Annex C).

II. PLANNED ACTIVITIES TO ACHIEVE PROJECT OBJECTIVES Collectively, by strengthening market development, agricultural productivity, business literacy, and supporting an enabling environment for agribusiness development, KISAN II’s market systems development approach will lead to increased resilience, inclusiveness, and sustainability of income growth in the four provinces of the Zones of Influence (ZOI). The starting point for activity development is market demand and the primary implementation methodology is through partnerships with market actors to stimulate and support private sector-led service delivery to farming households. Implementation is carried out through different business models, described earlier in section B1. Currently we are implementing six models but that will likely increase and diversify, depending on new partner activities, such as the launch of goat sector partnerships. The project begins with

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 30 AID-367-C-17-00001 Component 2: Market System Development, but in reality, Components 2 (market development) and Component 1 (productivity) are fully integrated through the partnerships. Table 3 below lists all activities and associated partnership models for Components 1 and 2.

Table 3. Implementation by partnership model Trader Coop- Wholesal Retail Strategic # Activity implemented via → or erative e agrovet agrovet partner Processor 2 Strengthen market systems 2.1.1 Streamline vertical linkages 2.1.2 Build capacity of cooperatives 2.1.3 Empower/link vulnerable farmers 2.1.4 Strengthen horizontal linkages 2.1.5 Add new commodity (goat) 2.2.1 Strengthen lead firms 2.3.1 Expand SME agribusiness lending 2.3.2 Expand access to rural credit 2.3.3 Promote group savings and credit 2.4.1 Expand access to storage 2.4.2 Increased access to mechanization 2.4.3 Improve grading, testing, standards 2.4.4 Improve access to market info 2.4.5 Expand use of business services 2.5.1 I.D. import substitution options 1 Improve productivity 1.1.1 Form inclusive farmer groups 1.2.1 Strengthen agrovet capacity 1.2.2 Enhance input supply via co-ops 1.2.3 Expand adoption of IPM 1.3.1 Coordinate extension messages 1.3.2 Revise training materials 1.3.3 Develop training videos 1.3.4 Conduct demos, field days 1.3.5 Expand access to irrigation 3 Strengthen enabling environment Benefits all; private sector partners inform policy debate 4 Expand business literacy Benefits all; strengthens farmer performance in all models 5 Collaborate, learn, and adapt-CLA Benefits all; expands use of adaptive management

Component 2: Market System Development Lead: Winrock Objective: Strengthen the competitiveness, resilience, and inclusiveness of agriculture market systems Change agents

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 31 AID-367-C-17-00001 ● Partners: Traders, processors, cooperatives (Agrovets addressed in Component 1) ● Equipment dealers, ICT service providers, BDS providers ● Farmer groups ● FNCCI/DCCI, associations ● Financial institutions ● GON, including municipality governments ● KISAN II business development staff and Gender Equality and Social Inclusion Adviser

Activity 2.0 Conduct and update opportunity mapping exercise. In Year 1, KISAN II staff conducted a mapping exercise tied to initial screening interviews with 3,167 agribusinesses in two ZOIs. This tool improved KISAN II’s ability to identify potential partners, locate underutilized productive pockets, and target less commercially oriented farmers to ensure inclusivity. The maps facilitate collaboration with other donor and GON projects, and inform introductory meetings with local government, as KISAN II follows business partner sourcing networks to identify government partner municipalities. To further assist in targeting new partnerships and ensuring support to both commercially active and more vulnerable households, the project designated wards as “commercial” and “less commercial” to track and encourage partner outreach into less commercial areas. A commercial ward designation applies to those areas in: ● PMAMP superzones, zones, blocks, or pockets in KISAN II targeted value chains and ● All wards less than 5 kms from a national and/or feeder road in the terai or less than 3 kms from a national and/or feeder road in the hills. The remaining more remote or less assisted areas comprise the less commercial areas. As a result, approximately 50% of wards in the ZOI are commercial and 50% less commercial. KISAN II partners’ sourcing efforts are integrating less commercial areas (39% of linked producers), as well as historically commercial areas (61% of producers). These maps will further guide Year 3 outreach efforts to increase inclusiveness and proactively identify strategically placed partners.

In Year 3, KISAN II will continue to update these maps as new partners come on board and their farmer suppliers and clients are included. The project will incorporate additional information from GON and GON projects and will also begin adding partners and beneficiaries particularly women, youth, dalit, and disadvantaged groups from new goat activities, including agrovets focused on livestock, and work with NSAF to determine optimal application of their soil maps.

Benchmark(s): updated ZOI maps, collaborative mapping meetings Integration of cross cutting issues: Partnerships, GIS, GESI, Youth Resources: GIS expert, Component leads, GESI and field staff, mapping software/database Collaborative partners: Development partners in ZOI, GON projects Timing: T1, T2, T3 Change over LOP: A living document updated at least every trimester

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 32 AID-367-C-17-00001 Sub-objective 2.1: Strengthen the organization and coordination of selected market systems

Activity 2.1.1 Streamline vertical linkages and select partners. The KISAN II project’s focus is increasing incomes for smallholder farmers (see Table 4 for common market constraints). To accomplish this, the project works through private sector change agents and buyer-seller-service provider relationships. KISAN II Cluster Business Managers (CBMs), Senior Business Opportunity Managers (SBOMs), Agricultural Productivity and Marketing Managers (APMMs), and Area Coordinators (ACs) continually search for, recruit, and accept applications for new strategic partnerships. The partnership development process is described below. Ideal partner firms and cooperatives will have the capacity to meet market demand with increased production, value addition, service delivery, and sales. They will do this by improving the ability of their supply base of farmers to meet the market requirements for increased volumes, improved quality, and timely delivery through production planning and coordinated actions between the buyer, seller, and service providers. KISAN II builds the capacity of the firms to provide needed services and inputs to their supplier farmers.

Many partners under each business model - processor, trader, cooperative, wholesale agrovet, retail agrovet, and strategic service provider -- are experimenting with different types of service delivery mechanisms to strengthen their relationships with their sourcing network of farmer households and backward linkages to input manufacturers and importers, while increasing their productivity and the quality of their commodities. With coaching from CBMs and SBOMs, each partner is calculating the return on their investment in their producers to determine the sustainability of their services. During the partnership, if inefficiencies or cost effectiveness issues arise in the proposed activities, the approach to service delivery can be modified.

Table 4. Value chain systemic constraints and proposed solutions for market development Value Chain Specific Systemic Constraints Proposed Solutions ● Poor VEG production planning and management ● Improve VEG supply chain management by ● Lack of VEG price differentiation based on promoting marketing quality ● Improve VEG supply chain management by ● Lack of proper MAIZE aggregation and storage strengthening backward linkages ● Lack of efficient MAIZE drying technology ● Improve MAIZE aggregation services ● Lack of understanding of the profitability of ● Strengthen backward linkages to encourage farmers to cultivating fine varieties of RICE grow more fine RICE varieties ● Limited use of improved technology and ● Upgrade the managerial, technical and marketing practices in RICE mills capacity of RICE mills ● High price volatility of LENTIL ● Aggregate and promote group marketing of LENTIL ● Lack of LENTIL aggregation ● Target training to GESI groups on GOAT farming and ● Limited access to formal GOAT markets marketing ● Lack of attention to gender in agriculture ● Improve GOAT trade and marketing of breeding stock marketing and lack of recognition of how by creating linkages that streamline the supply chain women receive, process information, harassment ● Protect female ownership and user rights, include of women by market actors and agents small-scale operations, promote small animals (Goat) ● Lack of access to markets and infrastructure, ● Support women, youth and disadvantaged groups for time burdens that constrain women from seeking business expansion, access to finance, and cooperative best prices leadership ● Financial loans are not adequately and equitably ● Invest in market-oriented activities that facilitate addressing women and disadvantaged groups women’s market access and address gender norms while meeting the needs of female, youth, and disadvantaged people

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 33 AID-367-C-17-00001 While some partners, such as larger cooperatives, perform multiple value chain functions (marketing, aggregating, input supply, extension, etc.), in many cases the partner focuses on a limited number of functions, such as an agrovet which may provide inputs and extension advice, but the farmers still need a linkage for marketing their increased volume and quality of produce -- that will require another formal or informal relationship or partner with a trader or processor. A trader will focus on marketing and possibly extension advice to producers but may require a relationship with an agrovet(s) to ensure his/her supplier base has access to the correct inputs to achieve increase productivity. KISAN II staff will facilitate these relationships when necessary and also coach both firms and farmers through a process of mutually beneficial growth, helping to create supply chain efficiency and inclusive, not extractive business relationships.

Partnership development process Step 1 - Potential partners are identified through: ● Opportunity mapping exercise ● Recommendations from our network of market actors ● Advice from meetings at the municipality level ● Referrals from other projects ● Applications to our Annual Program Statement ● Consultation with GESI Adviser

Step 2 – Constraints and opportunities are identified and prioritized ● CBMs and SBOMs conduct initial screening to determine: o Joint identification of problems/constraints and market opportunities o Mutual incentives to work together o Eligibility under our Scope of Work o Potential contribution to our desired outcomes o Motivation to follow through and contribute sufficient resources to cost share o If problems can be solved with resources available and within project timeframe o Return on investment produces sufficient results or replicable innovation o If potential partner presents a particularly complex set of problems, senior staff assist

Step 3 – Application for assistance ● For firms not seeking direct financial support to buy down the risk of new models or approaches, MOUs are negotiated and submitted for approval ● For grants, potential partners submit a concept paper for approval, before invitation to submit an application/proposal o Grants committee reviews o If approved, terms are negotiated by CBM o Grant is submitted to USAID for approval o Conduct pre award assessment to identify risks, conducts checks on partner affiliations, develop plans to mitigate issues

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 34 AID-367-C-17-00001 Step 4 – Activities commence ● Timeline for TA and activities are established from date of agreement ● Targeted farmer households submit form to enter into the MEL system ● Partner invests in activities, hires, and trains additional staff if necessary ● ACs with CBMs provide training of trainers (TOT) to partners and/or line up additional TA or training resources

Step 5 – Monitoring, coaching, reporting ● Partner/grantees communicates progress ● CBM, APMM, AC, and Agriculture Marketing Technicians (AMT) monitor and coach through activities ● Grants and MEL staff coach grantees through reporting and documentation requirements ● Interim review every season or six months. Senior technical staff join CBMs to meet with the partner (owner and KISAN II implementation focal point), to review effectiveness of planned activities, including observations of ACs and AMTs responsible for monitoring and mentoring partner staff. Staff ask “What is working well? What is presenting a challenge or proving less effective? Are there adaptations we should make to the partnership agreement or terms of the grant? General managerial questions will reflect the organizational capacity tool and technical questions will reflect the specific targeted outcomes of the partnership. For example, with a large agrovet in Kavre, the original terms called for the agrovet to hire Junior Technical Assistants (JTAs) - extension workers to enhance productivity and quality of commodities, but given the level of experience of the farmers, the partner determined fewer extension workers but with higher levels of expertise, would be more effective. The partnership terms will be adjusted in response.

Core activities of KISAN II staff: KISAN II field staff perform three vital functions: 1) build technical and GESI awareness capacity of partner staff, often through a TOT model; 2) monitor partner staff- delivered training and TA and ensure quality control of services provided, and 3) mentor/coach all partners and their staff, as needed, to guide them through a problem solving process as they arise, suggest program adaptations, reinforce key skills, and assure that win-win inclusive relationships evolve between buyers, sellers, and service providers. To continually reinforce their role in facilitation, in KISAN II parlance their core tasks are to “monitor & mentor”.

However, a few continuing challenges can still limit market development and efficiency. In Year 3 KISAN II will also focus on:

New and existing buyer forums. As production planning and more integrated supply chains emerge, KISAN II staff will continue to focus on facilitating relationships and fostering communication among buyers (often traders) and producers (often cooperatives) and service providers (often agrovets). Buyers will describe their commodity volume, quality, and timing requirements, and conditions for price premiums. Volume requests will trigger agrovet and service provider discussions on when and where inputs should be available. In turn, farmer groups will describe common constraints and challenges for meeting supply goals of target commodities. To demonstrate, KISAN II

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 35 AID-367-C-17-00001 CBMs and ACs will co-sponsor forums with local chambers of commerce and municipalities for buyers, traders, and cooperative representatives interested in sourcing from both commercial and less commercial zones. In Year 2 KISAN II produced and disseminated a Trader’s Directory with producer negotiation guides for both ZOIs with contacts and guidance for producers on assessing buyers’ offers, which new farmers can use when considering solidifying relationships with buyers.

Linking to retail outlets in Kathmandu. With the addition of ZOI 2 in the earthquake affected areas, new market linkage opportunities opened up with larger processors, wholesale markets, and retail outlets requesting both standard and higher quality goods. However, thus far, most market linkages are still through trader intermediaries, rather than the end market. In fact, despite multiple outreach efforts, the likes of Bhatbhateni, Big Mart, KK Mart, etc., are not interested in direct purchase from producers, claiming it is too burdensome, yet many are contemplating a higher quality or “Buy local” campaign that would require better produce. To address this opportunity, KISAN II will further explore partnership opportunities with Sukalpa – a retail outlet consultant for these channels. They too expressed interest in sourcing from nearby districts with an intent to develop a grading scale for select items. KISAN II will link high performing co-op partners in ZOI 2 with Sukalpa and support development of criteria that differentiates by quality attributes, linked to price differentiation, as well.

Expand partnerships in cereal and pulse value chains: Opportunities exist to expand the number of processor partners. Currently these firms focus primarily on rice milling, but with technical assistance and production planning, many can improve their competitiveness in their secondary crop of lentils, too. For maize, the key constraints are volumes, efficiency, and reliable quality compared to Indian maize which comes from highly mechanized producers with drying capacity to ensure consistent moisture content. Nepalese feed mills are interested in buying local, but the product must be competitive in quality and volume. KISAN II is assessing the cost benefit options for consistency on drying, storage, and aggregation of maize in competitive volumes, including drying technology. In addition, given the anticipated negative impact of Fall Army Worm (FAW) on maize production, KISAN II will promote effective FAW “management” among farmers groups through partners. The management will promote preventive as well as curative measures for Fall Army Worm in Year 3. The lentil value chain presents its own set of challenges. Money can be made, but this weather dependent crop is seen as a “gambling crop” with alternate years bringing bumper crops or high levels of crop loss. In Year 3, SBOMs and CBMs in lentil growing clusters will undertake a re-evaluation of lentil opportunities and technologies, in collaboration with NSAF which is developing improved varieties, to determine pilot partnerships to test new approaches.

Benchmark(s): 25 new partnerships, 45,000 new farming households, including disadvantaged groups (for a total of 200,000 households reached by the end of Y3 through partners1); TOT for partner staff; up to 25 pre/post-season outgrower/new buyer/wholesale market forums, as determined by partner need; re-evaluation of lentil opportunities and technologies Integration of cross cutting issues: GESI, partnerships, GIS Resources: KISAN II field staff, GIS maps

1 By the end of Year 2, 122 partnerships will be in place, serving and linking 155,000 farmers. We anticipate at least 150 partners total by the end of Year 3, but that number depends on outreach by each partner (new and continuing) and may vary.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 36 AID-367-C-17-00001 Collaborative partners: Local government, other market actors Timing: On-going Change over LOP: On-going and expanding as new geographic zones and partners are added. After initial facilitation, it is expected that KISAN II field staff will monitor and mentor, with farmer capacity building managed by the partner.

NOTE: Building partner capacity is an essential aspect of market system development. When partners are initially evaluated KISAN II staff assess their ability and motivation to pursue an inclusive growth trajectory, but the project recognizes that many require support to successfully and sustainably improve their business model and scale up their growth trajectory. Upon intake, each is assessed using an organizational development matrix to identify areas of weakness that could restrict growth. Based on partner assessments and two years of monitoring, the following is a list of common constraints. A tailored package of technical assistance is designed for each partner, as needed – each has different areas of weakness that act as binding constraints, which may include small equipment upgrades to computerize systems or improve processing efficiency. However, for the purposes of reporting against the results framework, these capacity building efforts are divided among four separate activities in three components in Table 5. The numbers in parentheses align with the activity in which they are described. Table 5. Common partner skill gaps Micro-entrepreneur Retail agrovet Cooperative Commercial (4.1.1) (1.2.1) (2.1.2) Enterprise** (2.2.1) Business Literacy trainer Specialized TA or group Specialized TA or Specialized TA instruction improves: training improves: training improves: improves: ● Business start-up or ● Marketing ● Market analysis ● Market analysis expansion ● Business planning ● Financial and credit ● Supply chain ● Market research ● Recordkeeping management* management ● Inventory ● Budgeting ● Cash flow analysis systems management ● Cost of credit ● Demand scheduling ● Forecasting* ● Feasibility studies ● Recordkeeping – from farmers ● Business planning ● Cost-benefit ● Costing services ● Backward linkage to ● Governance analysis* ● Marketing wholesalers ● New profit centers ● Efficiency analysis* ● Farming as a ● Cash flow and credit ● Collection center ● Backward and business management management forward linkages ● Return on ● GESI ● Return on ● Outgrower schemes Investment mainstreaming ● GESI investment ● Retail development ● Women and youth mainstreaming in ● GESI ● Packaging, branding entrepreneurship business mainstreaming in ● GESI integration in skills development production, business expansion marketing, plans leadership *KISAN II staff can provide capacity building in most of these competencies, but for those skills with an asterisk the project will bring in specialized TA **E.g. Processor, large trader, or wholesale agrovet

Activity 2.1.2 Build capacity of farmer groups/cooperatives. Successful farmer groups leverage economies of scale to reduce input costs and access better markets to increase revenues. KISAN II partners with agricultural, multi-purpose, and financial (SACCOs) cooperatives, but all are referred to as “cooperatives” in this document. Some of these organizations, such as Jagaruk Agriculture

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 37 AID-367-C-17-00001 Cooperative in Nuwakot, perform multiple functions and are seeking assistance to build the capacity of their member farmers to increase productivity, expand access to rural credit, establish collection points and storage, improve grading and post-harvest handling, disseminate IPM techniques, and successfully launch a retail marketing outlet in Kathmandu. While other, smaller ones, wish to focus on member extension service and credit and seek assistance with external long-term marketing linkage relationships. During Year 2, KISAN II assessed all current cooperative partners’ capacity in 20 areas of governance and financial management against scoring criteria (1-5) to rank them as A, B, C or D level. Of 43 cooperatives assessed, the percentage in each category is described below: ● A – Excellent (score of 80 and above) – 16% ● B – Good (70-79) – 23% ● C – Satisfactory (60-69) – 35% ● D – Weak (less than 60) – 26%

KISAN II field staff then work with the partners to prepare capacity building plans to address areas of weakness, tailored to their growth projections (scale), business needs (sustainability), and ability to service a model for others in the sector (systemic change). The focus areas are described above in the third column of Table 5. However, as cooperatives will form more than a third of KISAN II partners, there are common weaknesses among many. Therefore, the SBOMs, CBMs, and GESI Adviser will conduct a cooperative boot camp in each cluster focused on best business practices in four core areas of business growth: production planning, financial management, business planning, and development of diversified profit centers, such as product collection, storage, input supply, and nursery services. Challenges and issues related to gender and social disparities will be integrated in the boot camp. Additionally, the project staff will support three cooperatives in ZOI 2 in launching retail outlets for their commodities, coaching them through market analysis, marketing strategy development, and return on investment (ROI).

Promoting inclusive development: In Year 3, during partner performance review sessions, KISAN II staff will coach partner staff to analyze how their GESI sub populations of farmers and staff are performing compared to others. Many cooperatives have targets for women involvement/membership. KISAN II will share the disaggregated outcome data and successful business practices that other partners employ as they strive for maximum productivity outcomes from all supplier farmers, and pathways for increasing the presence of women members in leadership positions. Where deficits exist, KISAN II field staff will suggest cost effective remediation measures and coach partner owners through ROI/cost benefit analysis of such measures. To jumpstart female empowerment in cooperative management, in Year 3 the project will identify a business development service (BDS) provider (see activity 2.4.5) to develop a GESI leadership development program in select cooperatives. This will be demand driven, but recognize that this may require more project support at first, rather than be built in to the partnership agreement, while partners assess the ROI.

Benchmark(s): 60 cooperatives, including 10 new, will receive capacity building based on needs Integration of cross cutting issues: GESI, youth, resilience Resources: Field staff, training materials Collaborative partners: PAHAL, SUAAHARA II, NSAF where involved

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 38 AID-367-C-17-00001 Timing: On-going Change over LOP: Capacity building evolves into monitoring and coaching over time

Activity 2.1.3 Empower and link vulnerable and marginalized groups. As described above, in less commercial zones -- adjacent to or on the fringe of recognized market sourcing networks, including selected SABAL, PAHAL, and SUAAHARA II village model farmers -- KISAN II is successfully incorporating vulnerable and marginalized groups through partners in each implementation business model. The population baseline data indicates that 78% of KISAN II households currently qualify as vulnerable according to GON criteria, including 55% from disadvantaged groups (Dalit, Janajatis, and Muslims), 32% were affected by a natural disaster in past 12 months, and 26% have incomes of less than $1.90/day. 70,000 qualifying vulnerable farming household members linked to partners will be integrated into KISAN II’s business literacy program (Component 4) – either the long course designed for illiterate participants or the short course for semi-literate participants focused on farming as a business.

To further ensure market inclusion, KISAN II will continue to strategically select partners working in or interested in expanding to less commercial sourcing zones that include disadvantaged populations. KISAN II field staff, including ACs and AMTs, will monitor partner extension staff as they scout fields and help them identify struggling, perhaps more vulnerable and less commercially experienced farmers for more intensive assistance or participation in additional training or field days. The GESI Adviser will develop tools such as a checklist and training materials for field staff, informed by focus group testing, to ensure market inclusion. KISAN II MEL and CLA staff will disaggregate annual survey data to provide additional data for targeting vulnerable farmers and according to their performance gaps, develop cost effective remediation activities, including improved training materials, more basic step-by-step instruction at demonstration plots and field days, and based on recent behavior change communication focus groups, improved pictorial “leave behinds” as guides.

KISAN II is taking a two-pronged approach in promoting women, youth and disadvantaged group: 1) Developing partnerships with disadvantaged groups (entrepreneurs and cooperatives); and 2) Developing capacity of such organizations. Some of the activities include, but are not limited to: • Partnership with Federation of Women Entrepreneurs Network of Nepal to reach larger segments of women entrepreneurs • Partnership with Ex-Kamaiyas (ex-bonded laborers) • Promotion of youth council in cooperatives • Creating women-oriented business development services • Developing a capacity building program for women to ascend to leadership positions in cooperatives (see activities 2.1.2 and 2.4.5).

For vegetables, aggregating perishable goods through an organized collection point may prove the best option if it aligns with partner trader’s business model, and begin the farmers’ scale up to more commercial production (See Box 6).

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 39 AID-367-C-17-00001 Box 6: Turn Up the Volume

Where vegetable production volumes are low and trader traffic is less, KISAN II will establish local group collection points to aggregate perishable goods, establish market linkages with increased volumes, and farmers will negotiate sales. The group receives a small management commission for the logistics. In many cases, collection points are a transitional step. As farmer capacity improves to scale up production in response to market demand increases, many farmers formerly linked to collection points graduate to direct sales to local markets and traders. During this transitional stage, successful implementation of this model requires capacity building in management of logistics, price negotiation, production and marketing planning, and financial management.

Business skill development: To complement the productivity enhancing activities and market awareness through partnerships, KISAN II will also enroll (through self-selection) 70,000 partner- linked farmers in the Business Literacy program to enhance their ability to do farming as a business. Enrollees in the long course will also improve their life skills (including nutrition, sanitation, and basic literacy), and better understand the business case for investing in their field. See Component 4 for a detailed explanation of both the long-course and short-course options for these activities.

Benchmark(s): 140,000 vulnerable farmers trained through partners (subset of 200,000 total households); GESI checklist launched; group collection points formed or strengthened, as needed; business literacy participation is listed in Component 4 Integration of cross cutting issues: Climate Change, Youth, resilience Resources: GESI Adviser, Component leads, Cluster Business Manager, Field staff, LSPs Collaborative partners: USAID Food for Peace implementers Timing: On-going Change over LOP: With improved capacity and productivity, the intention is to link these groups to buyers – as much as possible transitioning additional agronomic training to the value chain actors

Activity 2.1.4 Strengthen horizontal linkages. Buyers and processors are competitive, but there are industry-wide issues that require collective action and foster systemic scale up of new technologies, business models and sourcing strategies.

Addressing industry and sector wide issues: KISAN II will help organize and support participatory analysis of issues such as availability of medium-fine and fine aromatic rice seed to supply a growing market demand, opportunities for developing a parboiled rice subsector, condition and mitigation costs of upgrading rice mills to competitive levels, constraints to private sector financing and investment in irrigation technology, and the business case for lentil production under irrigation versus

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 40 AID-367-C-17-00001 wheat. These are in addition to the collective action KISAN II will promote to address policy constraints through national, provincial, and municipality level public-private dialogue events through Component 3. KISAN II will conduct assessments and develop action plans with industry associations or lead/anchor firms in the subsector.

Develop and launch “Buy Local/Nepal Fresh” umbrella campaign. The goal of the campaign, with the Buy Local/Nepal Fresh working title, is to promote cultivation and consumption of locally grown produce by clearly differentiating its local origin. There is a clear preference for local produce be it because of taste and freshness, national pride, or cultural and familial ties. KISAN II conducted a premium market study in Year 2 which found that Nepalese produce can command a 7% to 20% premium price over equivalents imported from India or China. While many stakeholders have suggested or supported this idea, it must be more fully discussed and ultimately endorsed by the government and business community. KISAN II will select a partner organization as the home for this campaign and co-design and develop its strategy. Seeking a brand neutral body, possible contenders include the Federation of Nepalese Chambers of Commerce and Industry AEC, PMAMP, Safe Food Alliance, and the Nepalese Youth Entrepreneurs Forum (NYEF).

Coordination with GON MOALD’s Department of Food Technology and Quality Control (DFTQC) will continue under this activity and Component 3 to integrate food safety into the campaign messages. The proposed initiative is an umbrella campaign, seeking to promote the agricultural sector in Nepal as a whole. The vision is to allow for co- and sub-branding be it a specific product or a more localized place of origin, such as Jorayal rice. Many products and locales are already informally known to consumers, and the goal of Nepal Fresh/Buy Local is to unify the market through promoting the overall sector.

Based on stakeholder inputs, KISAN II will further revise the concept to address stakeholders’ additional inputs and concerns and continue individual and group consultations with the identified stakeholders and look to include additional market actors in the development of the campaign. KISAN II will support the home agency to convene regular stakeholders’ meetings. Following finalization of the concept note, KISAN II will engage a graphic designer and a public relations firm to develop and test visuals and taglines to represent the campaign. The initiative will be led by subcontractor, OSC, in close coordination with KISAN II designated staff.

Expand the market for local rice. Similarly, there is a preference for locally-produced varieties of rice, particularly the Jorayal basmati variety from Doti. In the Western region in Year 3, KISAN II will work with four rice millers of Jorayal rice to develop a unifying brand and packaging that promote local produce and solidifies the market with consistent quality and available volumes. With technical assistance for marketing nationally, the local CBM will encourage market growth in line with demand through investments in increased production to meet increasing demand, and, importantly, unify market actors with a common look, feel, and goal of creating stronger and lasting business relationships.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 41 AID-367-C-17-00001 Share findings from studies and experience: In Year 3, KISAN II will prepare a cost benefit analysis of cold store technology for vegetables, based on success in Surkhet and with guidance on factors to consider and sample return on investment scenarios (see activity 2.4.1). Similarly, KISAN II will support pilots of custom hire businesses through three multipurpose cooperatives. Reviews of viability and feasibility for expansion of the model will be conducted before the end of Year 3 (see activity 2.4.2). Dissemination of these findings will include presentations at agriculture sector meetings and events at the province and municipality level and be shared through DCCs and the Market Development Forum Nepal (MDFN) to share with other donors.

Promoting systemic change: KISAN II analyzes and addresses constraints and market failures at both the firm and sector levels. With partner organizations, the project develops new business models to address systemic constraints among buyers-sellers-service providers at the business relationship level, then will facilitate learning among partners and industry level players to promote successful models for replication and adaptation across value chains. By also engaging with strategic partners, such as service providers (e.g. multi service agrovet hubs, financial institutions, including insurance companies, business development service providers, ICT solutions, etc.) KISAN II also seeks to address sector wide constraints and effect systemic change. By the end of Year 3, equipped with disaggregated outcome data and the post-grant performance of our initial partners, KISAN II will have data and sustainable models to demonstrate new ways of doing agribusiness at industry and sector-wide events. The project will seek to collaborate with provincial Agricultural Knowledge Centers in this dissemination effort.

Benchmark(s): “Buy Nepal, Buy Fresh” campaign launched, 3 industry-wide learning events conducted; marketing strategy for Joyaral basmati rice completed Integration of cross cutting issues: Partnerships, business resilience, GESI, governance improvement Resources: OSC Communications, Component 2, GESI local/regional STTA Collaborative partners: Issue industry association, such as Vegetable Exporters Association, feed miller’s association; MOALD, FNCCI Timing: T2-3 Change over LOP: Implementation of action plans may require additional TA or PIF support

Activity 2.1.5 Include an additional commodity for commercialization. After consultation with USAID on the potential impact to both commercial and resilience activities, KISAN II selected goats as an additional target commodity. During Year 2, SBOMs and the Goat Sector Advisor conducted an analysis on market opportunities throughout the project ZOI and approaches of other goat development projects, such as Heifer International and IFAD-funded GON projects, for potential collaboration. In this year’s annual work plan KISAN II describes the goat activities under activity 2.1.5 but beginning next year they will be incorporated under similar activity areas with all other commodities; these associated activities are denoted below in parentheses.

With inbreeding of local populations of goats reducing quality and thereby sales, and traditional goat rearing focused on community level marketing and use of goats as savings on the hoof, commercialization needs to address multiple channels of production and marketing. KISAN II will

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 42 AID-367-C-17-00001 approach goat commercialization through a multi-pronged effort including activities targeting: improved goat breeding policy, breeding practices, feed and feeding practices, health and husbandry, and trade and marketing. As with all KISAN II activities, goat commercialization will focus on partnerships and strengthening the capacity of market actors, including government, goat producers, goat traders, and leaders in the feed and vaccine supply chains. That said, addressing these constraints will also improve the breeding stock at large and with local cooperative groups launched that include poorer and less commercial goat raisers, who are often women and youth. Relative benefits to marginalized groups will be analyzed and mitigation activities deployed in response. Apart from the activities below, KISAN II will initiate a goat sector working group among all agencies (GON and donors to start) to share experience in the goat sector and identify collaboration mechanisms to complement each other. To date KISAN II has already received 15 concept paper applications for partnering in the goat sector, including from commercial farms, cooperatives, and agrovets, from all target provinces.

To improve the goat breed and breeding system, KISAN II will ● Work through Component 3 staff to support the National Animal Science Association (NASA), IFAD, and MoALD, to develop a goat breeding strategy (3.1.1), integrate input through public private dialogue events, and provide technical support. ● Strengthen the capacity of commercial goat farms to produce quality pure bred (Boer, Khari, Barberi, Shannon) and cross bred seed stock (2.2.1). This model will focus on a three-tier breeding system (pure breed goat farm, commercial goat farm, buck service providers). ● Partner with pure bred goat breeding farms (2.1.1) to produce and multiply pure-bred breeding stock and link them with commercial goat breeder farms for multiplication of cross- bred goats. These commercial goat breeder farms will be further linked with buck service providers (2.4) for supplying quality breeding bucks at the smallholder farmer level. Information and advice on good husbandry practices will also be disseminated through buck service providers (1.3.2). ● Improve the efficiency and dissemination of Artificial Insemination (A.I.). This will include signing an MoU with the National Livestock Breeding Office (draft under review) to strengthen its capacity through training, TOT, and TA for production, processing and supply of semen from different lines of Boer buck (Australian, African, and Indian), and to conduct training in goat A.I. to potential agrovets (preferably women agrovets – 1.2.1) who are conducting A.I. in cattle and buffalo. These agrovets will also be linked with KISAN II partners working on other interventions in the goat sector (production, feed, and marketing) to provide a holistic set of services to farmers.

To improve the goat feed and feeding system, KISAN II will ● Improve the production, distribution, and adoption of growing and feeding adequate quality forage and fodder based on the physiological need of the herd. KISAN II will partner with forage production centers (suppliers of foundation resources and nurseries -- seed, rootstock, sapling, cutting) to supply and market annual, perennial forage and fodder crops (see Box 7) to various goat farmers, though agrovets (1.2.1) and traders (1.2.2) for production and

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 43 AID-367-C-17-00001 utilization of the forages for the goat farmers. The Goat Sector Advisor will work with Digital Green to produce video instruction on improved goat feeding and husbandry practices. ● Increase the production, distribution, and adoption of a supplement feeding system by partnering with supplement feed producers (e.g. Biosa) (2.1.1) to efficiently supply and market their products through commercial goat farmers, agrovets and traders; and provide embedded services. Box 7: Fodder for discussion

Examples of goat forage crops include • Summer forage crops seeds (Teosenti, grass, along with legumes, e.g. cow peas) • Winter forage crops (Berseem, Lucern, vetch) • Perennial forage grasses cuttings/root stock or seed if available (Napier, Paspalum, Mulato, Setaria, Rye grass, Molases Amriso, etc) and legumes (Badame, clover, Stylo, Kote,) • Tree saplings (Ipilipil, Badahar, Tanki, Bakaino, etc.)

● Collaborate with Livestock Innovation Lab to disseminate an ICT application to promote improved feeding, developed with Heifer. The feed app (L-FST) will help goat farmers develop a balanced diet based on the available local resources, as well as link to traders and collection points (2.4). ● Collaborate with Livestock Services Section of Municipalities to ensure compliance, demonstrate the private sector led model, and secure leverage funds for testing new practices (CL 2.4).

To improve information and advice on goat health and husbandry practices, KISAN II will ● Strengthen the linkage (and explore partnerships) among pharmaceuticals, vaccination producers, veterinary hospital, livestock expert center (2.1.1) and agrovets to ensure increased adoption of health management and good husbandry practices. ● Partner with vaccination manufacturers (e.g., Hester) (2.1.1) to efficiently supply and market their products through commercial goat farmers, agrovets and traders; and provide embedded services. (1.2.1)

To improve goat trade and marketing, KISAN II will ● Partner with regional goat traders (e.g., in Surkhet) to promote humane transport of live goat in government-approved standardized vehicles with a two-tier system and strengthen their collection system through improved loading and unloading facilities including a weighing mechanism while buying goat from farmers to increase transparency (2.1.1).

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 44 AID-367-C-17-00001 ● Link these regional traders with national traders to expand their market; and build their capacity to provide embedded services, or partner with agrovets that will provide extension advice to goat farmers or aggregators (2.1.1 or 1.2.1). ● Partner with a local slaughterhouse (2.1.1, 2.4) to improve downstream linkages with smallholder goat farmers and to improve upstream linkages with processors at Kathmandu and Pokhara.

Benchmark(s): 5 partnerships established, 3,000 households linked, 2 videos produced, 30 agrovets trained in AI Integration of cross cutting issues: GESI, Youth, ICT Resources: Component 2 senior staff Collaborative partners: End market, research, breeding and input supply firms, development partners, such as Heifer International, IFAD, GON Timing: On-going Change over LOP: Year 3 will establish partnerships, test new technologies and business models through partners, and evolve with learning from reflecting and analyzing results

Sub-objective 2.2: Strengthen lead firms and other SMEs to support selected market systems.

Activity 2.2.1 Strengthen partner firms and other SMEs to support selected market systems. As described above, promising partner firms will be assessed for potential contribution to KISAN II results, target subsectors/commodities, and farmers, as well as business weaknesses requiring capacity building plans. We will use the PIF and TA to help partners develop sustainable business models that offer embedded services and other innovative solutions to market constraints. KISAN II AC and AMT staff will conduct TOTs for partner staff on farmer productivity training, as needed.

Data from regular partner check-ins, field staff monitoring, and evidence collected during pause and reflect sessions at cluster and project levels, indicated that a renewed emphasis on partner business strengthening is required to achieve objectives of scale, sustainability, and systemic change. Many partners developed growth strategies that are taxing their existing systems (governance, supply chain management, logistics, and financial and credit management, etc.). See illustrative skill deficits in Box 8 (cooperative, retail agrovets and microentrepreneur partners are described elsewhere - 2.1.2. 1.2.1 and 4.1.1 respectively). Depending on skills required, KISAN II staff will deliver the technical assistance, tapping into specialized expertise as needed, for example for efficiency analysis.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 45 AID-367-C-17-00001 Box 8: Business Development Needs of Commercial Enterprises/Lead Firms (Processors, Traders, Large Service Providers)

Specialized TA will improve: • Market analysis • Supply chain management systems • Feasibility studies • Cost-benefit analysis • Efficiency analysis • Backward and forward linkages • Outgrower schemes • Retail outlet feasibility and development • Packaging, branding • Mainstreaming female empowerment and gender disparities

Improve and systematize production planning. A consistent problem among traders, their associated input suppliers (agrovets and municipality fertilizer depots), and farmers is calculating year-on-year demand and the need to mobilize sufficient and appropriate inputs and financing in a timely fashion to meet market volume demand and requirements. KISAN II CBMs and SBOMs will build the capacity of traders to develop and communicate demand schedules with farmer groups/cooperatives, develop partnerships with nearby agrovets, and run post-season reviews and pre-season production planning sessions with all implicated stakeholders, including municipality staff. During each first attempt, KISAN II staff will assist with meeting organization, to later be internalized by the partner.

Foster partner adaptive management skills (linked to CLA Component 5): The SBOMs will also help develop partner organizations’ stakeholder engagement skills and encourage all partners to conduct pre- and post-season forums with both backward and forward linkages to stakeholders (end market buyers, service providers, and producers) to solicit feedback on their business practices and results: what worked well and did it work better for some (e.g., farmers) than others, and why; learn from what did not satisfy all parties; and adapt by introducing possible solutions for the following seasons. These skills may include continuous market trend analysis, maintenance of client relationships, addressing gender and social norms and communication, coordination and timing of planning, or overall ability to adapt and respond to new and emerging pests, such as FAW.

Promoting inclusive development: As with cooperatives, during partner performance review sessions, KISAN II staff will coach partner staff though analyzing how their GESI sub populations of farmers and staff are performing compared to others. We will share our disaggregated outcome data and share successful practices from other partners. Where deficits exist, KISAN II field staff will suggest cost effective remediation measures and coach partners’ owners through ROI/cost benefit analysis of such measures. KISAN II will also solicit feedback from women business owners on methods for promoting increased inclusion at the International Trade Fair in Kathmandu in collaboration with Federation of Women Entrepreneurs Associations of Nepal (FWEAN) and FNCCI-AEC.

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Benchmark(s): 25 processor, trader, and SME partner firms assessed, and capacity building plans and associated activities delivered (This cohort is 25 of a total of 150 partners) Integration of cross cutting issues: Partnerships, ICT, youth, firm governance Resources: Component 2 staff, GESI, consultants, accelerators, Collaborative partners: Partners Timing: On-going Change over LOP: On-going with firms graduating from PIF assistance, TA, and coaching will continue

Sub-objective 2.3: Enhance financial services markets that serve selected market systems

Activity 2.3.1 Expand SME agribusiness lending and investment. Formal SME agricultural credit faces a history of challenges in Nepal due to lack of collateral, small-scale enterprises, poor repayment history, and high risk, because most agriculture is rain-fed. Non-bank credit continues to flow through multipurpose cooperatives, savings and credit cooperatives (SACCOs), lead firms to outgrowers, and agrovets to clients. Yet access to sufficient, affordable credit to expand agribusinesses and farm-based enterprises is a constraint for 42% of Nepalese.2 By prioritizing lending to women and members of marginalized groups, KISAN II beneficiaries will gain access to credit through new bank SMEs and agriculture windows, input supply credit, new microfinance products, SACCOs, and wholesale credit through lead firms as value chain finance. KISAN II will continue to work with RMDC, FMDB, and other financial institutions to facilitate and promote wholesale finance to partner cooperatives and also fund value chain finance opportunities through firms.

Facilitate farmer credit. In Year 2, KISAN II established a new partnership with Sanima Bank to explore expanding farmer credit through the 6% subsidy for agricultural credit to producers. In Year 3, KISAN II will work with Sanima to develop a methodology for extending farmer credit through partners to their farmers as a pass through service. This will create efficiencies and ease the management burden on the bank, while reaching smallholder farmers.

Pilot crop insurance products for our target commodities, including as embedded services within MFIs or other credit products. Crop insurance has previously been subsidized through programs managed by DADOs. As the GON determines a new home for the program, KISAN II will continue to collaborate with MOALD. In Year 3, the project will also select sites for piloting products with two strategic partners, Shikhar and Phoenix Capital Insurance companies, for a variety of crops. This will build on the foundation of work conducted by University of California at Davis, which recommended four potential crop insurance models. KISAN II will continue to collaborate with University of California at Davis during pilot efforts and their assessments.

Promote use of digital finance. During Year 2, KISAN II established an MOU with Laxmi Bank that linked three agrovets to their new branchless banking agency model, enabling them to supply inputs to farmers through loan packages. In Year 3, the project will expand coverage to five new agrovets

2 National Sample Census of Agriculture Nepal 2011–12

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 47 AID-367-C-17-00001 and then assess viability and opportunities for further scale up. The project will support expansion of agency banking through agrovets and other vendors, as a precursor to increased use of mobile transfer payments. To further explore this dynamic space, KISAN II will convene a digital finance forum with key stakeholders, including GON agencies, donor projects, software developers, and KISAN II partners providing credit services, including representatives from A and B level cooperatives. During Year 3, KSIAN II will also explore opportunities to expand digital finance through commercial banks and through commercial bank-cooperative linkages. This will identify opportunities for using existing technologies to streamline payment and credit processes, develop partnerships for pilot efforts, and determine modalities for collaborating and cost sharing investment among GON, donors, and the private sector.

Benchmark(s): 5 wholesale loans; 1 MOU with a new bank partner or MFI to expand agricultural lending, at least 1 digital finance event, pilot of agency banking with 5 new agrovets; pilot at least one type of crop insurance with partners Integration of cross cutting issues: Partnerships, ICT, GESI Resources: Senior Business Opportunities Advisor, Financial Services Advisor, International and local STTA Collaborative partners: Banks, partners Timing: On-going Change over LOP: Depending on demand and uptake, expansion of new products, troubleshooting and TA for agriculture lending units, expansion of mobile money

Activity 2.3.2 Expand access to rural credit. Many of KISAN II’s beneficiary farmers access some credit through their respective multipurpose cooperatives and/or SACCOs, but according to conversations with SACCOs, demand outstrips supply. Insufficient access to wholesale lending to SACCOs and weak financial management skills within cooperatives restrict expansion of credit services (see previous activity). In Year 3, where opportunities exist to expand cooperative credit in target production zones and to beneficiaries, KISAN II will provide needs-based training to cooperatives/SACCOs based on the PEARLS assessment tool3 to strengthen agricultural loan analysis, accounting, business plan development, organizational strengthening, and installation of computerized accounting software (often with assistance from Prabhu Management Services). Specific attention will be given to improving the capacity of cooperatives to expand services for rural women and marginalized groups. A targeted workshop will link more cooperatives with remittance providers and insurance providers (e.g. E-BEEMA) to expand access to these services to farmer groups. In addition, the project will facilitate exposure visits to strong examples of cooperative management and expansion of financial services. The divisional Department of Cooperatives will assist target cooperatives with reviewing and updating policies to ensure compliance with the new cooperative act and local government laws. KISAN II will also assess the feasibility of using digital tools to link savings and credit groups to SACCOs and SACCOs to MFIs.

3 PEARLS is a set of financial ratios employed to assess the financial stability of microfinance institutions originally developed by WOCCU. The ratios are grouped under six crucial areas of performance: Protection, Effective financial structure, Asset quality, Rates of return and costs, Liquidity, and Signs of growth.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 48 AID-367-C-17-00001

Conduct gap analysis on rural credit supply and demand. SBOMs will conduct a roundtable with Microfinance Development Banks and partner cooperatives to discuss other opportunities for agricultural lending. From the roundtable, KISAN II will conduct a gap analysis between available savings and credit products with the needs of commercializing farmers – terms and ceilings for credit that allow farmers to invest in improved, market driven inputs and new technologies. A regional workshop will be conducted bringing together financial institutions and cooperatives to explore how to expand wholesale lending to SACCOs.

Benchmark(s): 40 cooperatives receive tailored TA; 1 exposure visit of cooperatives completed Integration of cross cutting issues: GESI, partnerships, youth, governance improvement, GIS Resources: FSO, CSCs, PIF Collaborative partners: Department of Cooperatives Timing: On-going Change over LOP: Introduction of more innovative credit products, scaling of outreach to include more clients, especially those previously excluded from access

Activity 2.3.3 Promote group savings and credit activities and link to MFIs, SACCOs. KISAN II will continue to promote savings as a core resiliency strategy to cushion vulnerable farmers from shocks and smooth over stresses. The project will foster a commitment to savings through two main channels: 1) in the Business Literacy long course, part of the curriculum includes formation of savings and credit groups at the community level, particularly among women and disadvantaged groups; and 2) Many partners include the employment of extension staff to provide productivity enhancing training and demonstrations, but with KISAN II cooperative partners, these extension agents will play a secondary role in mobilizing savings among members. KISAN II AMTs and Financial Service Officers will support cooperative staff in this effort. Even after project completion, these extension staff, often JTAs, will provide guidance in agriculture as well as in savings and credit. It is assumed that the added value of this double skill set of extension staff will further cement the cooperative’s commitment to sustainable embedded service delivery.

Benchmark(s): 60,000 people begin or increase savings Integration of cross cutting issues: GESI, resilience Resources: Finance and AMT staff Collaborative partners: cooperatives, MFIs Timing: On-going, T1-T3 Change over LOP: On-going

Sub-objective 2.4: Enhance market infrastructure and other services to support selected market systems

Activity 2.4.1 Expand access to safe and cost-effective storage and warehousing. Properly managed temporal storage to aggregate for sale and arbitrage for a future higher price will increase profits for cooperatives and lead firms but is underutilized in Nepal. To increase storage capacity in

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 49 AID-367-C-17-00001 the ZOI through new construction or rehabilitation of existing structures, KISAN II will facilitate links to banks for financing and consider cost sharing feasibility studies. In Year 3, the project will pilot an inventory credit scheme with a partner cooperative or firm.

Pilot cold storage: For vegetables, a trader in Surkhet, Babu & Shahi, piloted a cold room in its wholesale collection center. Results were so favorable for short term storage of vegetable that the owner is expanding to more m3 of cold storage with no subsidy. In Year 3, KISAN II’s CBM and SBOM for that cluster will prepare a case study and investment guide for expanding the model for cold storage, including the parameters of its ROI in different settings, and priority commodities for storing. An exposure visit to Surkhet for 15 partners will be organized later in Year 3 to discuss operational challenges with Babu and his innovative way to integrate and support women collection agents with bicycles.

Collection point and pack house investments: Multiple partner cooperatives are developing plans for improving their vegetable shelf life, quality, and logistics through investments in collection points or pack houses. Intent on removing field heat and shielding vegetables while sorting, grading, and packing for pick up or delivery through trader networks or their own retail outlets, CBMs and ACs will facilitate linkages to financing and leverage cost share from interested municipalities, many of whom are enthusiastic about co-investing in this type of infrastructure. Results and ROI will be assessed and shared with the industry through provincial AKC-sponsored events.

Benchmark(s): Cost benefit and guidelines on cold storage completed; exposure visit for up to 15 partners to understand operation of a vegetable cold chamber; 1 inventory credit scheme piloted, 20 collection point/pack house investments established Integration of cross cutting issues: Partnerships, GESI, Youth Resources: Cluster leads, Local STTA, leverage local funds, PIF Collaborative partners: Lead firms Timing: On-going Change over LOP: On-going, scale up of successful models

Activity 2.4.2 Increase access to mechanized services. Labor shortages from migration and overburdened female-headed households create a strong pull for mechanization and processing— primarily power tillers, mini-tillers and attachments, including small milling, shelling, and threshing machines—so farmer groups or entrepreneurs can add value to production or rent out services. Promotion relies on equipment demonstrations by dealers and their clients. To promote strategic investment in mechanization, in Year 2 KISAN II established strategic partnerships with two agri- machinery dealers: Modern AgroFarm in Bardiya and Om Satya Sai in Kavre to demonstrate the cost benefit of such investments and provide custom hiring and after sale services respectively. In Year 3, KISAN II will enhance capacity of technicians for after sales services. KISAN II will also seek partnerships with TVET institutions to increase the number of mechanics and field level mechanics to better service the vast fleet of older machines. KISAN II will work with the private sector to identify women-friendly and cost-effective tools so that vulnerable or disadvantaged groups can easily buy the

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 50 AID-367-C-17-00001 machines. The project will also coordinate with local municipalities, PMAMP- super zone, and pocket zone to leverage the funds for it.

Many of KISAN II’s partners, particularly cooperatives, have received significant subsidies for mechanized equipment in the past. This has crowded out sales and financing of full cost investments. However, these organizations are often not effectively using their equipment to its full capacity or utilizing it as a cost center for the organization. In Year 3, in collaboration with PMAMP, KISAN II will work with at least two cooperatives to develop custom hire services with existing equipment for their memberships and nearby non-member farmers. Short video testimonials on social media will reinforce demand for services.

In the maize subsector, in the face of steep competition from subsidized, mechanized Indian maize exports, Nepalese producers need to achieve consistent market-determined moisture levels for maize for feed industry production. In Year 3, KISAN II will collaborate with CIMMYT/NSAF to test and pilot cost effective drying technologies in the maize superzone. The project will also collaborate with PMAMP in testing inputs with machineries support for spring rice in Bardiya.

Benchmark(s): 2 equipment/mechanization firm partnerships established; one TVET-type organization partnership established; 2 pilots for cooperative-based custom hire business model Integration of cross cutting issues: Partnerships Resources: GESI, Cluster leads, communications and outreach, PIF, BDS provider Collaborative partners: NSAF/CIMMYT, NAMEA Timing: T1-T3 Change over LOP: Exposure visits to highlight return of investment and mechanized services business development process

Activity 2.4.3 Improve grading, testing, and standards adherence services. At this stage in Nepal’s domestic agriculture sector development, grading, testing, and standards are underdeveloped and primarily restricted to higher value export crops, such as tea or coffee. In most commodities, the market pull for premium quality, standards, testing and grading, is weak. In Year 2, KISAN II conducted a demand study on premium quality foods to determine if the quality attributes require testing and standards, and if price premiums make such services cost effective. The study found that for premium markets, such as hotels and caterers, premiums are paid for consistent quality – primarily preferred size and color of vegetables. Even in Kalimati and Balkhu markets some clients will pay for these same attributes, but in the wholesale market in general with smallholder production, few receive any price premium for quality and none require testing – yet. KISAN II remains poised to support new service providers and promote DTFQC’s new food safety regulations as they rollout (see Component 3) and re-examine demand for pesticide free commodities as awareness becomes more acute. The project will also disseminate PQPMC regulations on safe pesticide use through partners, including agrovets.

In Year 3, the Senior Business Opportunities Manager will continue discussions with Sukalpa, a major wholesale vegetable distributor to supermarkets, related to a partnership focused on sourcing

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 51 AID-367-C-17-00001 graded fresh vegetables at a premium price from partner cooperatives in ZOI 2. Together KISAN II and Sukalpa will develop market driven norms/standards for suppliers and producers. Additionally, the project will support its cooperative partners supplying the higher end markets in Kathmandu to develop their own grading and sorting guidelines to perform this service at collection points and pack houses before transport to the trader or retailer.

Benchmark(s): 10 partners developed grading guidelines Integration of cross cutting issues: ICT, nutrition/food safety, partnerships Resources: Component 2 senior staff, local or international expert (AVRDC) on testing technologies and processing mapping Collaborative partners: Partner firms and cooperatives Timing: T1-T3 Change over LOP: Still evolving

Activity 2.4.4 Improve access to market information services. These services consistently face sustainability problems. Price information changes hour-to-hour if not minute-to-minute and inaccuracy of price information affects demand and a willingness to pay. Even with reliable information, most smallholders have little means to take advantage of these differences given volume and logistical constraints. However, among traders and cooperatives, there is interest in using crop calendars based on historical prices per week and integrating that into production planning with buyers. In Year 3, KISAN II will conduct cluster level workshops with traders, wholesale market leaders, and farmer groups/cooperatives to collect historical price information by agro- climatic/elevation zones and required productivity enhancing varieties and practices and set up an alert system within the sourcing networks for price shock information, such as those experienced recently with tomato during the Indian border closure for the election. The application of this information with crop calendars will be piloted in two clusters and the findings will be disseminated through the provincial Agricultural Knowledge Centers and municipalities.

KISAN II is in discussions with NCell about providing agricultural extension information through push messages through their client network (the project would only supply content). KISAN II will also seek out a private partner to test SMS and e-extension platforms, building on the example set by Unique agrovet’s Facebook posts, for alerts and data collection on pests and disease outbreaks, such as Tuta Absoluta and Fall Army Worm. KISAN II coordinates with the GON Plant Quarantine and Pesticide Management Centre and participates in the Fall Army Worm (FAW) management task force and will disseminate new information and techniques to safely and effectively manage FAW and other pests through its network of partners, including agrovets. An informative brochure on FAW and its management, as well as other dissemination tools, will be developed and circulated widely among the farming households through partners. Strategic partner Development Voyage’s BLOOM application also has functions for traceability of production, but without standards in place it is not cost effective for most of KISAN II’s partners. If traceability becomes required, it will be piloted with Supalka and their sourcing network of larger cooperatives.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 52 AID-367-C-17-00001 Benchmark(s): 2 pilot efforts on ICT solutions to market information; 2 workshops held at cluster level Integration of cross cutting issues: ICT, GIS, GESI, climate adaptation, partnership Resources: Senior Business opportunities staff, local subcontractor or international STTA, as needed Collaborative partners: MOALD, telecoms, development partners, ICT firms Timing: T1-T3 Change over LOP: Dependent on pilot findings, identifying a champion home

Activity 2.4.5 Expand availability and use of business and training services. When donors and the GON offer business services and training, it can crowd out private sector fee-based services. Through cost-share PIF funding, KISAN II will demonstrate the value of local business development assistance to partner systems development (see subcomponent 2.2), and its ROI. Component 2 staff will coach firms through the procurement process to evaluate quality technical assistance – a check list will be provided. Where local service providers are weak but viable, a regional expert will mentor the local firm.

In Year 3, based on success of the L-FST app for goats, KISAN II will conduct a regional ICT forum to provide exposure to existing ICT applications to stimulate adoption of cost effective ICT productivity and marketing applications to solve a variety of constraints, including e-extension, pest surveillance, inventory tracking and ordering of inputs, accessibility and availability of mechanized land preparation and harvesting services, and trader transport logistics. KISAN II will assist with cost benefit analysis and support for pilot efforts, where feasible.

As described above, KISAN II in Year 3 will promote leadership training for GESI subgroups in select cooperatives. The project will seek a service provider and consider bringing in expert STTA to help the provider develop and test the program – developing a replicable model.

Benchmark(s): 3 firms coached through BDS procurement and assessment process; development of a women’s cooperative leadership program; 1 ICT forum held Integration of cross cutting issues: Partnerships, possibly ICT Resources: Component 2 cluster staff, PIF, local STTA Collaborative partners: BDS firms, lead firms Timing: On-going Change over LOP: Disseminate success stories and a checklist tool to stimulate demand

Sub-objective 2.5: Expand trade in domestic and regional markets to support agricultural market systems development

Activity 2.5.1 Identify opportunities for import substitution. A large percentage of KISAN II’s increase in gross margins was due to “off season” vegetables sales, but production planning was general and demand opportunity is not fully quantified. Similarly, the Nepal Trade Integration Strategy also cited offseason production as a pre-condition for competitiveness in fruits and vegetables, in addition to strengthening SPS compliance. In Year 3, CBMs and their staff will assist

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 53 AID-367-C-17-00001 traders and producers in Kailali and Kanchanpur to collect and analyze source/origin of vegetables over time in the Attariya and Mahendranagar markets and compare local and imported quality and volumes to determine windows of opportunity for local off-season production.

Benchmark(s): Assessment of at least 2 wholesale markets Integration of cross cutting issues: Climate adaptation Resources: Local subcontractor Collaborative partners: Market managers Timing: T2 Change over LOP: Will influence lead firm and farmer groups’ activities to scale up off season production and avoid overproduction.

Component 1: Agriculture Productivity Lead: CEAPRED Objective: Improve the productivity of selected agricultural market systems Change agents ● Partner firms and their agents, cooperatives ● Wholesale and retail agrovets ● GON extension agents ● Other productivity enhancing projects

The clear majority of smallholder farmers in Nepal are characterized by relatively low productivity and commodity quality in KISAN II’s target commodities compared to neighboring countries. The KISAN II private sector-led implementation strategy shifts the burden of productivity enhancing activities to its partners to promote both sustainable business models and linkages that will ensure market responsive production techniques and inputs are continually updated and adopted.

Productivity related activities will be conducted by partners through their own staff or agents, with support from KISAN II in the form of TOT in production planning, agronomic skills, and post-harvest techniques; how to conduct demonstrations and field days; and how to scout the fields during key points of cultivation and early identification of pests and disease. KISAN II field staff will continue to monitor and mentor, oversee quality control, and coach partners through the process with ad hoc follow-up trainings to ensure farmers benefit from the activities.

Partners joined KISAN II for several reasons, but primarily to increase sales (of commodities, services, or input products), increase productivity and efficiency (to reduce costs of production and increase competitiveness), and improve quality (of production in response to market demand). Most of KISAN II’s partnerships include a focus on enhancing productivity. This is accomplished through several means, including the hiring of extension staff (often JTAs as full time, part time, or commissioned agents), connections with lead farmers among farmer groups, through demonstrations and field days, or a combination of these approaches. Component 1 activities largely focus on productivity enhancing technologies and practices and the role of input supply in productivity (see Table 6 for list of constraints). So, while all implementation models – processor, trader, cooperative, wholesale agrovet, and retail agrovet include productivity activities – agrovets are explained in more detail here.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 54 AID-367-C-17-00001 Table 6. Value chain systemic constraints and proposed solutions for agriculture productivity Value Chain Specific Systemic Constraints Proposed Solutions ● Non-competitive VEG productivity due to ● Improve harvest, post-harvest and transport poor post-harvest practices and limited techniques and technologies availability/accessibility of quality inputs ● Improve VEG production planning and ● Farmers lack access to quality VEG extension management service ● Increase access to hybrid MAIZE seed ● Limited supply and adoption of quality ● Improve knowledge of and access to modern MAIZE seed RICE inputs and technologies ● Low productivity and high cost of RICE and ● Improve knowledge of and access to modern LENTIL production LENTIL inputs and technologies ● Limited use of improved technology and ● Improve GOAT breeds, breeding system practices in RICE mills ● Improve GOAT feed and feeding practices, ● Poor quality GOAT breeding stock and feed/forage production ● Lack of access and information on quality ● Target business literacy classes to GOAT feed and fodder illiterate/semi-literate GESI populations ● Lack of proper irrigation for all crops ● Develop and encourage small scale water ● Women are the main users of water, but have management technologies, linkages with restricted rights and irrigation typically targets municipalities for the resources male farmers ● Increase number of female agri-extension ● Lack of attention to gender in agricultural service providers and train male extension extension systems and lack of recognition of agents on effective engagement techniques how women perceive, process info with women and other marginalized people ● Low productivity of women’s labor in ● Introduce labor-saving technologies that agriculture and market reach reduce drudgery, enhance women’s roles

Sub-objective 1.1: Facilitate intensification and diversification of male and female farmers and socially excluded groups into higher-value commodities

1.1.1 Form farmer groups, inclusive of women, youth, and marginalized groups. Capacities and market environments vary for farmers in different parts of KISAN II’s ZOI. To be successful, most smallholder farmers benefit from being part of groups to learn from peers, purchase inputs in bulk, and aggregate their goods for collective sale, or to be linked to other business entities to perform these functions. The project began assuming that private sector firms were less concerned with farmer group organization, and some are, but the vast majority of partners ended up organizing their farmers in groups to some degree as a means of efficient delivery of services and communication, coordinated production planning, and streamlining logistics of collection and transport. However, as KISAN II’s models have evolved, the project does not “form” groups; sometimes partners do. Thus, no targets are being set for group formation. Descriptions of how the project targets and includes women, youth, and marginalized groups in less commercially-oriented zones is described in Activity 2.1.3.

Sub-objective 1.2: Strengthen the capacity of input supply systems to deliver timely and affordable productivity-enhancing technologies. KISAN II’s capacity building will focus on strengthening local businesses to improve access to timely, affordable, high-quality inputs via cooperatives, lead firms, and intermediate traders (as part of outgrower schemes), and local agrovets.

Activity 1.2.1 Strengthen capacity of agrovets to deliver quality inputs and other services. Startup opportunity mapping in Year 1 identified existing agrovets and productive zone gaps in input

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 55 AID-367-C-17-00001 supply services. KISAN’s 2016 agrovet study confirmed that when agrovets provide extension services, it leads to increased sales, expanded clientele, and repeat business. However, many agrovets are not trained agronomists. Strengthening and standardizing their agronomic extension skills is essential, including on the use of bio products, pesticides, and climate-smart technologies. The project will build on KISAN’s modular agrovet training guide to deliver tailored instruction to vendors at different levels of business development and agronomic skill. Digital Green’s community-designed extension videos (described in Activity 1.3) will form a library of standardized messages that agrovets can use to reach farmer groups in the field or individuals at the point of sale. To address agrovets’ need for staff to provide extension as their client base grows, different approaches are employed: a small grant can temporarily lower the risk of hiring staff to conduct outreach until increased sales support the new hire; or others may choose a commissioned agent model, or part time staff with a commission. KISAN II will engage experienced agrovets, such as Siddhartha Agrovet, to coach new entrants in business plan development, incorporating additional services, such as mechanization rentals, systematized inventory control, and vendor-client feedback loops.

As part of the strategy for increasing the participation of women and marginalized groups and less commercially oriented farmers, KISAN II will support agrovets with an enhanced package of capacity building and where required, provide grant support, to deliver productivity training, conduct demonstrations, and field days for their potential new clients. In more vulnerable and remote areas, where sales are not at the level of terai agrovets, this model is succeeding thus far as a method to promote inclusive agribusiness growth.

One level up: KISAN II is implementing an additional model for agrovet capacity building through wholesale input suppliers with their own retail network of agrovets (KISAN II had nine at the end of Year 2, reaching 74 retailers). Productivity enhancing training materials and input supplier-developed videos will ensure consistent messaging. During the pause and reflect workshops, this model appears to be working very well in some zones, while less so in others. In Year 3, KISAN II will analyze and compare the success factors, market conditions, and levels of competition in each case to refine the model. Given the potential for large outreach with the refined and targeted model, KISAN II will continue to identify potential wholesale partners.

Capacity building for sustainable business models: Wholesale agrovets’ business capacity needs track along the SME/Commercial enterprise gaps identified in 2.2.1 and include forward and backward linkages to strengthen the entire supply chain, retail outlets’ service packages and loyalty/discount programs for return and early order customers, demand analysis and scheduling, packaging, and branding and marketing. Retail agrovet capacity gaps vary by maturity and size of the vendor, but KISAN II has identified several common deficits (See Box 9). In Year 3, KISAN II field staff, including the GESI Advisor, SBOMs, APMMs, and ACs will deliver capacity building through training, technical assistance, or coaching, depending on the complexity of the need.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 56 AID-367-C-17-00001 Box 9: Capacity Building for Retail Agrovets

Specialized TA or group training will improve: • Marketing and forward linkages • Business planning • Recordkeeping • Inventory management • Demand scheduling – from farmers • Backward linkage to wholesalers • Cash flow and credit management • Return on Investment calculations

Promote inclusivity. To offer a full complement of products and services, an agrovet requires several registrations and licenses to provide certain livestock products and services, and stocking, selling, and handling pesticides and seeds. To increase the number of agrovets who are women, youth, and from disadvantaged groups, in Year 3 KISAN II will support training and licensing for these entrepreneurs to expand their service and product offerings particularly in underserved areas. The project will cost share these costs for cooperatives starting with an agrovet function which serves large numbers of GESI subgroups.

As described above, CBMs will facilitate meetings among buyers, producers, input suppliers/agrovets, and local government to improve production planning to align with market forecasts. The meetings will cover topics such as what to grow and when, how to grow it, what inputs will be needed and when, when to collect and sell it, and how municipality agricultural staff can support the growth of these plans with strategic advice and investments.

Analyzing systemic constraints: In Year 3, KISAN II will examine the input supply system by focusing on the wholesale agrovet. The project will map the forward and backward linkages to track the flow of inputs from importer to wholesaler to retailer to farmer, analyzing efficiencies in communicating, ordering, delivering, and options for streamlining and to ensure that timely demand communication and supply of inputs is enhanced. These findings will be shared in an industry forum and KISAN II will seek partners to pilot improved ICT solutions.

Benchmark(s): 110 retail agrovets receive capacity building assistance (40 partners, and 70 through partner wholesale agrovets); 1 study on input supply value chain analysis completed Integration of cross cutting issues: Partnership, climate adaptation, NRM, ICT, youth, GIS Resources: Component 1, GESI, Field staff, input suppliers, lead firms, municipality to inform targeting Collaborative partners: NSAF, other USAID productivity projects Timing: On-going Change over LOP: Intensity of support declines over time, additional services can be provided as their market and ambition grow

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 57 AID-367-C-17-00001

Activity 1.2.2 Enhance input supply to farmers through outgrower schemes and cooperative membership. In an effort to diversify channels for access to inputs, in Year 3 KISAN II will leverage MOUs and grant mechanisms to support partner firms as they conduct diagnostic plant clinics with GON agencies, provide technical assistance, and potentially pilot ICT solutions to streamline agrovet access to inputs. This will include setting up inventory control systems, promoting discounts for pre- ordering, providing safe storage and application training, and setting up aggregation and buyback guarantee schemes to justify the forwarded inputs. Many cooperative partners are interested in developing an input supply/agrovet function within their organization, as a profit center, but also as a service in demand from their members. For others, KISAN II facilitates relationships among cooperatives, buyers, and agrovets to complete the farmer service chain through linkages – every partner does not need to perform all functions. During partnership discussions and capacity assessment reviews, KISAN II CBMs and SBOMs will help partners assess the viability of pursuing an input supply function and the infrastructure and registration required, and build their capacity to operate, distribute products and how to use them safely and effectively.

Benchmark(s): 40 cooperatives develop or strengthen input management systems (determining demand, ordering, delivering) Integration of cross cutting issues: GESI, Climate adaptation, NRM, partnership Resources: Cluster leads Collaborative partners: Private sector service providers Timing: T1-T3 Change over LOP: These service providers will add additional services on a fee-for-service basis

Activity 1.2.3 Expand development, dissemination, and adoption of IPM. During KISAN and as part of the FAO IPM program, hundreds of groups of farmers were trained in the preparation of bio- pesticides to reduce use of chemical pesticides. While IPM is a key to sound environmental stewardship, much of our previous initiative was predicated on the incentive assumption that IPM cultivated crops could also receive a price premium, especially in Kathmandu. Currently, however, when the farmers have sent the reduced-pesticide crops to the wholesale market they usually get mixed together with the conventional crops and the farmers receive no premium.

While under development, the Department of Food Technology & Quality Control (DFTQC) has not established any maximum residual limits (MRL) for agrochemicals, therefore overuse of agrochemicals is common in Nepal, often as a cure-all for non pest related issues, such as fungus. In fact, IPM and the promotion of Nepali GAP are intertwined and self-supporting. In Year 3, KISAN II will support DFTQC’s GAP initiative (see Activity 3.3.2). There is demand in urban areas for safe food, including fresh food with less pesticide residue. Yet, consumers lack trust in the labelling: what is truly safe? And who claims it is? And if no one is enforcing standards, why should I pay more? As with IPM, GAP requires farmer investment and attention to detail. With consumers not trusting the label there is no price premium or incentive for this extra effort. KISAN II welcomes the GON’s initiative to break this impasse by not just promoting safe food, but developing a system of enforcement and an infrastructure of testing, auditing and certifying safe food production. This may

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 58 AID-367-C-17-00001 incentivize a change in farmer production practices, consumer demand, and price differentiation. KISAN II will link its IPM activities to these changes.

KISAN II seeks to develop a market-demand based program to facilitate the implementation of farm- level safe and good agricultural practices and include IPM training. This also addresses the project’s objective of promoting sound natural resource management. The project will promote IPM practices to reduce agrochemicals and the use agrochemicals only when needed to get an economical kill of pests and disease to reduce crop and quality losses. In Year 3, KISAN II will continue to collaborate with iDE’s IPM program and seek their cost/benefit analysis to share with farmers to demonstrate the cost effectiveness of embracing IPM. This will enhance the adoption arguments.

As the GON’s actions to improve food safety take hold coupled with increasing awareness among consumer of the dangers of overuse and late application of pesticides, KISAN II is already identifying wholesalers serving the supermarkets, hotels, restaurant chains, and other significant buyers of vegetables in ZOI 2 with a willingness to pay more for GAP/IPM assured fresh produce. KISAN II will connect the buyers and the farmers directly so that the GAP/IPM-assured produce does not lose its identity in the supply chain, and increased volumes in response to market demand make such transactions more efficient. The premium promised by the buyers will be the “pull” that provides incentives to the farmers to go to the trouble to learn about and implement GAP and IMP training. Then, the project will evaluate farmers with a GAP checklist and encourage farmers to track pesticides, herbicides, and fertilizers using log forms to assure ongoing compliance with the program and proper use of agrochemicals.

Benchmark(s): 150 private sector extension agents trained in IPM from community-based IPM master trainers trained last year Integration of cross cutting issues: GESI, NRM, partnerships Resources: APD, Senior Productivity and Marketing Manager, APMM Collaborative partners: NARC Timing: T1 and ongoing Change over LOP: This approach will be repeated according to demand and market pull for IPM compliant commodities

Sub-objective 1.3: Increase adoption of profitable, productivity-enhancing, and climate-smart technologies by all groups, including youth, women, and disadvantaged groups

Activity 1.3.1 Continue consultations and coordination with NSAF, iDE and other donor and GON projects to catalogue and share training materials. The wide scale adoption of productivity enhancing technologies and practices across the KISAN II ZOI requires implementers to adopt a consistent and coordinated messaging strategy targeting farmers. Throughout KISAN and KISAN II, project staff have developed a suite of recommended practices, technologies, and inputs with market demand and requirements, yet also aligned and approved by GON MOALD. During Year 1, KISAN II consulted with other USAID projects and where possible, have aligned or adopted existing materials, such as SUAAHARA lessons for nutrition and water, sanitation and hygiene for the

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 59 AID-367-C-17-00001 business literacy modules. In Year 3, KISAN II and NSAF will continue to collaborate on several activities. KISAN II AMT staff will receive trainings on integrated soil fertility management, pH management, efficient use of fertilizers, crop management, and seed drill calibration from NSAF and, in turn, integrate this into their TOTs for partner staff, including agrovets. The project also shares extension materials and previously co-developed rice and maize materials with CIMMYT. KISAN II and NSAF previously developed a video on rice production and are collaborating on a new maize production video, which will be completed during Year 3. NSAF will also continue to support establishment of demonstrations (including new paddy variety) and new lentils trials in KISAN II partners’ areas. This informs Activity 1.3.2.

Activity 1.3.2 Revise safe and better agricultural practices training materials to align with private sector demand, other projects, and GON. Following the consultative meetings with ZOI implementers, in Year 2 KISAN II focused on updating training materials on improved agricultural practices; 20 are in draft form. Key challenges that revised materials need to address include low soil fertility, poor quality planting material, unsafe pesticide application to counter pests and diseases, field heat during harvest, and rough handling during transport. These materials can be updated and supplemental materials produced and disseminated, as needed. For example, in response to FAW, KISAN II -- through its staff and partners -- will implement and disseminate the recommended practices from the National FAW taskforce.

Regarding production techniques, in Year 2, KISAN II narrowed its focus for recommended agricultural practices from a large menu of practices and technologies (>60) to a strategic focus on fewer essential actions that, if implemented properly, will still double yields. These are adapted to specific buyer requirements as needed and will continue to be deployed in Year 3. They include:

For cereal crops and pulses (rice, maize, and lentil): 1. Use of improved, climate resilient seeds appropriate for the growing environment. For maize, use hybrids. For lentil and rice, pre-treat seeds 2. Apply balanced formula of fertilizer in the right amount, at the right time 3. Plan plant population – line sowing, spacing and timing. For lentil, use a seed drill. 4. Balanced use of irrigation at critical stages. Light irrigation for lentil. 5. Weed management through hand weeding or herbicide 6. For rice, care selection and transplanting of seedlings

For vegetable: 1. Use of improved, climate resilient hybrid seeds 2. Adopt improved nursery practices 3. Plant young seedling (3-4 leaf stage) in raised beds with line sowing and proper spacing 4. Weed management 5. Apply IPM practices, e.g. Trichoderma, bio pesticides and lures and traps 6. Balanced application of fertilizers and micronutrients 7. Irrigation at critical times, including fertigation through drip systems 8. Use improved staking practices for tomato, beans, and cucurbits

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 60 AID-367-C-17-00001 9. Protected cultivation (plastic house or tunnel), plastic mulch for off season production

While these practices are welcomed and meet market demand for most partners, partner staff trained through KISAN II TOTs are equipped with an expansive supplementary menu of improved practices and technologies to adapt to partner and market needs, including advanced seed treatments, erosion control, net houses, specific land preparation techniques, such as cross ripping, disking and subsoiling, and drying, cleaning and sorting of grains, and other post-harvest practices. In Year 3 these will be transferred to partners as appropriate to their crop, market demand, or field agronomic profile.

Fostering inclusiveness: To ensure a demand-driven, human-centered approach to revise the training materials, our subcontractor, OSC, previously conducted a barrier analysis focused on adoption rates for vegetable production by women, youth, and marginalized populations. This analysis concluded that higher rates of adoption for women, youth, dalit and other disadvantaged groups are possible with a revision of productivity-enhancing training materials to include more visual aids -- pictograms, photographs, and “leave behinds” -- instructional protocols to serve as reminders, particularly the timing of specific steps.

In Year 3, KISAN II will conduct additional focus group discussions with partner firms, cooperatives, and farmers to identify key barriers to the uptake of improved and safe practices by farmers, deficiencies in the current training material, and ensure alignment of material with end market requirements. Women will be included in depictions of required actions. Based on this consultative process, KISAN II will facilitate discussions with MOALD to develop and endorse agricultural practices toolkits that are not only responsive to end market requirements, but also to the profiles, behaviors, and risk tolerance of farmers at different levels of development. All these tools build on and supplement “the book” which was produced by KISAN for farmer groups, and which includes simple instructions for cultivating and harvesting all target commodities, differentiated by practice, variety, and cropping calendar based on agro-ecological zones. In Year 3, KISAN II will adapt and simply materials, as needed, to ensure inclusivity and market responsiveness. In addition, KISAN II will be scaling up the production of community-developed instructional videos (see 1.3.3).

Building business skills: The project’s goal is to sustainably increase incomes, but also to prepare partner farmers and firms on how best to use their new increase in funds. While obviously a personal choice, KISAN II aims to guide participants on a growth trajectory that exceeds the life of the project. As a result, in Year 3, starting in collaboration with cooperative partners, KISAN II will develop a menu of investment options based on cooperative commodities and production and marketing goals. These will include investment options in improved inputs, land preparation and harvest techniques, post-harvest handling and storage, and irrigation, and will also be shared with agrovets and municipalities. For each investment the project will develop the local budget, return on investment in value and time at a range of commodity prices, and how to access new inputs and technologies. After testing the tools and uptake, KISAN II will disseminate these on a larger scale through Agricultural Knowledge Centers and MOALD events.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 61 AID-367-C-17-00001 Benchmark(s): Improved training materials for 20 practices will be completed by end of Year 2, 10 new ones completed in Year 3 aligned with private sector demand and particularly focused for women and disadvantaged groups Integration of cross cutting issues: Climate adaptation, partnerships, GESI Resources: Component 1 staff, OSC, GESI, Communications, field staff Collaborative partners: SUAAHARA II, SABAL, PAHAL, NSAFP, MOALD/DOA, private sector Timing: On-going Change over LOP: Private sector and donor programs adopt and adapt training material

Activity 1.3.3 Develop locally-produced training videos. Following the refinement of the KISAN II improved agricultural practices training material, the next step is ensuring dissemination and its adoption by farmers. To ensure quality control of productivity and post-harvest extension messaging and to engage disadvantaged and marginalized populations, KISAN II will expand on the instructional videos that partners and community videographers completed in Years 1 and 2. The project will continue to work with partner firms to develop locally produced short extension videos (see Box 10) with a focus on cooperatives and wholesale agrovets for maximum outreach (50,000 farmers in Year 3). Each video focuses on a small set of required practices – “essential actions” – to scale up productivity and reduce post-harvest losses. The global success of this approach rests on its contextualized content; use of instructors from the target audience, including women and youth; human facilitation to reinforce key messages; and capacity building that does not replace, but strengthens existing extension systems. KISAN II will collaborate with NSAF/CIMMYT researchers and Suaahara II on content and share videos. These extension videos will form a library of standardized messages for farmers in the field or individuals at the point of sale.

Box 10: Seven Times More Effective

Use of Digital Green’s low-cost, participatory video approach in India increased adoption of agriculture practices seven-fold over a classic training and extension model, according to evaluation data. On a cost per adoption basis, it was shown to be 10 times more effective.

Supporting private sector dissemination. Locally-produced videos will incorporate communication best practices and clear messages for behavior change, to increase smallholder adoption of the promoted practices. The videos are a sales mechanism for private sector actors to expand their business and strengthen their supply chain or customer base, so it is expected that they will play the lead role in designing the content and financing the videos, with some facilitation support from KISAN II. As noted above, many agrovets are not trained agronomists; strengthening and standardizing their agronomic extension skills is essential. The videos address this challenge by ensuring consistency and quality in the messaging going out to farmers. To ensure sustainability and cost-effective implementation, wholesale agrovets will continue to be a core partner for video

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 62 AID-367-C-17-00001 extension. This strengthens their relationships and service offerings to their networks of retail agrovets. KISAN II will promote the use of women, youth, and marginalized group as instructors in videos aimed at those populations. Agrovets can show the videos on their mobile phones during field visits, or when farmers come visit their shops.

KISAN II and its partners will develop the content of those videos and use the grant funds as a mechanism for dissemination to other partners. The content will be reviewed and integrate gender and social inclusion aspects from the GESI Adviser. Three types of private sector videos will be supported: 1) standard 5-8 minute videos on production enhancement, pest and disease management, post-harvest loss prevention, etc., 2) Product/Service videos that are firm/cooperative specific, advertising and instructing farmers and clients about a specific product or service, and 3) brief social media ready testimonials and demonstrations to lure consumers to more detailed instruction or purchase options. These would be targeting Facebook, messenger, and Viber.

Involving the public sector: During implementation in municipalities that include both Service Centers and KISAN II partners, the project will orient the municipality agriculture focal point and Service Center staff to the KISAN II implementation approach and the community video model and share the videos with Service Center staff for further outreach and invite them on joint monitoring visits to see video instruction in use. Based on their response, KISAN II will pilot a public sector collaboration with two municipalities to cover specific topics of particular interest to the municipal authorities. During preliminary discussions, several municipalities claimed they had very few agriculture staff with deep technical skills, so detailed “how to” video content would be welcome.

Enhancing video production skills and dissemination. KISAN II and Digital Green will conduct at least two 5-day video production trainings with representatives of new wholesale agrovets and municipalities. The training addresses pre-production planning, production, and post production editing. Two 2-day dissemination trainings for field agents and agrovet staff will cover facilitation techniques and operation of the battery operated pico projectors. Proper adoption relies on effective dissemination and facilitation to answer questions and create feedback loops for future training enhancements or adjustments in approach. Follow up focus groups with partners, facilitators, and farmer participants will ensure all types of farmers in each value chain are receiving maximum benefits and any barriers to adoption or participation in the instruction are addressed in subsequent trainings or videos.

Benchmark(s): 47 videos produced either through the private or public sector (includes two previously mentioned for goat). Out of 47 videos, 8 videos will focus on a gender-specific topic such as; female entrepreneurship development, access to resources, decision-making process, the importance of mainstreaming GESI in agri-business, youth involvement, encouraging young women in agribusiness, etc. (The GESI Advisor will work with the team to finalize the videos); 30 people from agrovets, municipalities and other private sector groups trained in video production Integration of cross cutting issues: Partnership, GESI, ICT, NRM Resources: Digital Green, GESI, Field staff, local/international STTA, partners, grants

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 63 AID-367-C-17-00001 Collaborative partners: International STTA through Digital Green, agrovets and private businesses, local media company Timing: T1-T3 Change over LOP: Private sector plays increasing role in content development

Activity 1.3.4 Conduct demonstrations, field days, and exposure visits. To increase adoption of new technologies and practices, KISAN II will supplement video-based extension messaging with business-to-business interactions consisting of demonstrations, field days, and exposure visits. Private sector partner extension staff and agrovets will conduct demonstrations and field days after KISAN II-delivered TOTs to their staff. Demonstration with NSAF will offer additional venues. In Year 3, KISAN II will continue to focus on agronomic and irrigation demonstrations and field days to meet market demands, lower labor burdens, conserve natural resources, and increase land under cultivation. Farmer training will take place during important stages of production, e.g., establishing a nursery, transplanting, application of inputs, harvest, and post-harvest. All demonstrations and field days will be conducted and managed by partners. In Year 3, a standard GESI checklist and guidelines to conduct these activities in effective manner for women, youth and disadvantaged group will be developed. KISAN II and partner staff will be trained in its use and delivery, and distributed to ensure GESI mainstreaming in these activities.

KISAN II technical staff in cluster offices will coach private sector buyers, service providers, and lead farmers to conduct demonstration plots on well-travelled routes for maximum viewing. Demonstration plots may be co-located with offices, sites (markets), or services frequented by women and youth to increase their exposure, or in conjunction with campaigns to reach these beneficiaries. As part of farmer group capacity building efforts under KISAN II to increase participation and leadership roles by women, the project will promote women setting times and locations for demonstration plots, field days, and trainings. KISAN II will explore community-based child care options for women to attend exposure visits. Juxtaposing new and traditional practices highlights dramatic yield and quality improvements. Exposure visits showcase sustainable models for outgrower schemes, mechanized production, and post-harvest techniques.

Benchmark(s): 3 guidelines on how to conduct demonstration, field days, exposure visit, GESI Checklist, Grantees established 2,000 demo plots, conducted 500 field days and 25 exposure visits. Integration of cross cutting issues: GESI, Climate adaptation Resources: Agriculture Technical managers, GESI, Communications, Field staff, partners, LSPs, grants Collaborative partners: Private sector and private sector associations, MOALD/DOA, UNDP, FAO Timing: On-going by season Change over LOP: New technologies rolled out through private sector partners

Activity 1.3.5 Expand access to irrigation. KISAN farmer surveys cited access to water as the top constraint. KISAN II will promote proven technologies – shallow tube wells, lift irrigation, canal maintenance and rehabilitation, high-density polyethylene pipe irrigation, drip irrigation, sprinklers, solar pumps, water harvest tanks, and multi-use water systems. Given the network of existing

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 64 AID-367-C-17-00001 demonstrations and success of KISAN irrigation grantees, KISAN II will prioritize privatizing irrigation through financing packages and private sector partnerships.

KISAN II’s Irrigation Specialist and technicians will provide technical services for installation of equipment at 400 sites in Year 3 based on farmers’ needs in collaboration with municipality priorities to leverage funds. In collaboration with Department of Irrigation officials, KISAN II irrigation experts will evaluate potential sites based on need, productivity potential, technical feasibility, cost share by the community, low degree of possible conflict, and scale of impact. The project will prioritize less commercial zones while also leveraging municipality cost share for irrigation investments. Irrigation technicians will train irrigation groups in repair and maintenance.

Maximizing return on investment. The irrigation assessment conducted under KISAN identified untapped potential to scale-up commercial production and fully take advantage of the irrigation technology. Therefore, AMTs will focus on agricultural techniques to maximize productivity with the new technology and integrate non-KISAN II irrigation beneficiaries to adopt new practices to improve their livelihoods. To improve market access, AMTs will link irrigation sites in maize growing regions to feed mills requiring high-quality off-season production.

Why not? Farmers using irrigation almost universally acknowledge dramatic increases in yields, quality, and profits due to adjustments to seasonal growing. In short, it reduces many climatic risks; primarily inconsistent rainfall patterns. Yet, even among farmers who agree with its benefits, very few take the next step in investing in expanding their irrigation plot. Cost-effective financing can be found, but there is reluctance to move forward without donor or GON support. KISAN II will conduct qualitative research to determine the barriers, motivations, incentives, and perceptions regarding this issue and make recommendations to increase adoption of irrigation (described further in Component 5, CLA learning questions).

Benchmark(s): Increased areas under irrigation – 400 schemes installed, including specific sites that serve disadvantaged groups/households Integration of cross cutting issues: GESI, Climate Adaptation, Partnership, Governance Resources: Irrigation Specialist, Irrigation technicians, AD, RD, CBM, AC, APOs, AMTs, grants Collaborative partners: Municipality GON, Private Sector, Department of Irrigation Timing: T2, T3 Change over LOP: Private sector plays increasing role in irrigation schemes

Component 3: Enabling Environment Lead: Winrock Objective: Strengthen the enabling environment of selected agricultural market systems Change agents ● Associations, private sector partners, commodity associations (e.g., ANROPI), FNCCI/ DCCI/PCCIs), civil society organizations (CSOs) ● Local Service Providers (LSP) – research, business development, policy analysis ● International, regional and local short-term technical assistance (STTA) ● KISAN II Sr. Policy and Program Advisor (SPPA), Enabling Environment Director (EED), GESI Adviser and Specialists

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 65 AID-367-C-17-00001 Sub-objective 3.1: Build capacity for streamlining, harmonizing, coordinating GON policies and regulations

Activity 3.1.1 Develop policy support agenda with GON. In Year 2, after extensive discussions with different agencies within the GON KISAN II initiated activities in two policy areas: support for the Food Law, by drafting regulations, and support for the Agribusiness Promotion Bill, by assisting with development of rules. These activities will continue into Year 3. KISAN II also established two additional priorities for Year 3, specifically in developing a goat breeding strategy to further the commercialization of that commodity, and support for public-private sector cooperation in the commercialization of agriculture.

Food law. To support the Department of Food Technology and Quality Control (DFTQC), KISAN II initiated the drafting of two food safety technical regulations required for effective implementation of the Food Law consistent with international practices: ● licensing and registration of food business; and ● import-export inspection and certification

However, the project is still recruiting an international expert and local service provider to lead the drafting of the regulations which will continue into Year 3 and will be completed by T2. Currently, a draft National Food Safety Policy is in process for approval by the Cabinet of federal government and the draft Food Safety and Standards Bill is also in process for registering in the Federal Parliament for approval. KISAN II will consider extending its technical support to MOALD/DFTQC in the process of implementation of the Policy and The Act once approved/passed.

Agribusiness promotion: After much time, the Federal Government (GON/MOALD) is committed to getting the Agribusiness Promotion Bill approved by the Federal Parliament in the ongoing Parliament Session. Therefore, in consultation with MOALD officials, as a priority agenda item, in Year 3 KISAN II will include technical support for drafting Agribusiness Promotion Rules required for implementation of Agribusiness Promotion Bill, once passed. These include: ● Roles and responsibility of Agri market Operation and Management Committee and Agribusiness Promotion Committee (Federal) ● Special Production Zone declaration ● Agribusiness Promotion Fund Management ● Contract models and guidelines ● Contract registration ● Compensation mechanism ● Arbitration guidelines of dispute settlement mechanisms

In the process of drafting of the Agribusiness Promotion Rules, KISAN II will also support and help organize public and private dialogue events (PPDs), as needed.

Goat breeding. Rampant in-breeding of goats in local populations has diminished the commercial value of goats in Nepal. There is a need for an improved breeding strategy and associated guidelines,

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 66 AID-367-C-17-00001 standardization of quality breeding goat stock and quality of meat goat for the promotion of the goat sector. Since KISAN II is also promoting the goat value chain in its ZOI, working together with SAHAJ Project Nepal Agricultural Market Development Programme (NAMDP), KISAN II is currently preparing to organize a PPD focused on the goat breeding policy requirement towards the end of Year 2. Incorporating the recommendations from the PPD on breeding policy requirements, the MOALD is also seeking to develop a National Strategy for Goat Development to address improvements required in veterinary and livestock services, methods for coping with diseases, feed and forages, new technology, institutional finances, and facilitating linkages between goat farmers, particularly female and disadvantaged farmers, and urban markets. In collaboration with other development partners, such as Nepal Livestock Innovation Project (NLSIP), KUBK-ISFP, Heifer International, and the Goat Association, KISAN II will assist MOALD to develop and draft the goat breeding strategy in Year 3. KISAN II will coordinate with GON and the International Livestock Research Institute (ILRI) as they develop the GON’s Livestock Master Plan, particularly as it relates to KISAN II’s work on a goat breeding strategy

Private sector engagement. In keeping with the USAID’s Private Sector Engagement (PSE) Policy to increase collaboration with the private sector, KISAN II is committed to support the GON in engaging the private sector as a strategic partner for commercialization of agriculture for greater sustainability and effectiveness. In Year 3, KISAN II will request the Federal Government (GON/MOALD) to create or revive a Policy Focal group/committee (PFG or PFC) that will support policy, regulatory, and institutional reform and capacity building requirements and support. KISAN II will then support the PFG/PFC to review existing policies for PSE in agricultural value chains and help draft national level guidelines to promote PSEs. KISAN II private sector development activities are already engaging with municipalities and linking private sector partners to leverage complementary public sector agribusiness investments and conducting joint monitoring of private sector-led agriculture development activities.

Benchmark(s): 2 draft food safety regulations, 1 draft agribusiness rule, 1 subsector development strategy documents and 1 national level guideline for PSE will be prepared and a series of PPDs organized as required to garner inputs and refine drafts Integration of cross cutting issues: Partnerships, governance improvement Resources: Component 3 staff, LSP - Firm, regional STTA, technical committees Collaborative partners: DFTQC, DLS, ILRI, and MOALD; Commodity associations/FNCCI/AEC; Consumer Forums, partner firms; and Development partners (SAHAJ/NAMDP, KUBK, NLSIP, Heifer International, etc.) Timing: On-going Change over LOP: KISAN II TA support in the early stage of policy formulation/reform process will be very valuable for drafting of Policy/Act/Regulations and will contribute in the capacity building of the policy makers in decision making. TA support in developing the technical standards/regulations, Rules and Strategy will speed up the process of implementation of such standards more effectively.

Activity 3.1.2 Engage private sector advocacy groups in policy dialogue. As a part of engaging the private sector in policy dialogue, in Year 2, KISAN II supported two evidence-based dialogues with

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 67 AID-367-C-17-00001 the private sector organizations by providing technical support, such as assessing the impact of existing policies, regulations, and administrative procedures or for advocating for needed policies and legal frameworks. These PPDs are linked with policy assessments to identify: 1. Specific gaps and constraints limiting women’s engagement in agribusiness in collaboration with Federation of Women Entrepreneurs Association of Nepal (FWEAN) 2. Goat Breeding Policy Requirements in collaboration with Goat Entrepreneurs Association and Development partners.

In Year 3, KISAN II will continue its support to these groups as necessary and other collaborating partners like the Association of Nepalese Rice, Oil and Pulses Industries (ANROPI) to conduct evidence-based PPD on issues impeding the enabling environment for expanding/upgrading rice mills (see activity 3.2.2 for landscape analysis). It will also support FNCCI to initiate a national debate/panel discussion on the current agriculture environment. KISAN II will disseminate outcomes of PPDs and support follow up sessions, if requested, and collaborate with local Chambers of Commerce and Industry (DCCIs) and Provincial Chambers of Commerce and Industry (PCCIs) at the local and provincial levels.

Benchmark(s): 2 public-private dialogue events Integration of cross cutting issues: Partnerships, governance improvement Resources: Component 3 staff; GESI Adviser, local STTA or LSP, and/or logistics supports for event organization Collaborative partners: private-sector organizations (ANROPI and FNCCI/DCCIs/PCCIs), GON agencies Timing: On-going, one in T2 and one in T3 Change over LOP: Outputs of the evidence-based dialogues/PPD meetings are expected to trigger the policy reform processes and will be useful inputs for policy makers at the Federal, Province and municipality levels in designing and developing policy reform measures (new or for revision or amendment)

Sub-objective 3.2: Improve investments, management, and governance (e.g. standardization) of infrastructure

Activity 3.2.1 Develop a menu of proven post-harvest technologies and infrastructure. After discussions with private sector, rather than a menu, KISAN II will focus on more substantial case studies, analyses, and practical guides and budgets for specific post-harvest technologies over the life of the project In Year 3, this will include examining cost benefit of cold storage and a pilot effort utilizing drying technologies for improved warehousing of grains later in Year 3 or Year 4.

Benchmark(s): Dissemination of case study on cold storage (See Activity 2.4.1) Integration of cross cutting issues: Partnerships, governance improvement Resources: International and local STTA for related post-harvest technology; Communications Team Collaborative partners: CCDAC/DOA, CIMMYT, IRRI, and Private sector supplier/fabricators Timing: T1 and T2

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 68 AID-367-C-17-00001 Change over LOP: After publication, TA transitions to promoting private sector infrastructure management models, institutionalization of productive pocket forums to develop local public-private dialogue on infrastructure need and appropriate technologies.

Activity 3.2.2 Assess enabling environment for public and private sector investment in infrastructure. In Year 2, KISAN II planned to commission a national level warehouse situational analysis on the current policies, issues, constraints, and other requirements for creating an environment for increased investment from both the Government and private sector. However, in the course of the RFA preparation, it was realized that there is an insufficient number of warehouses (public and private) directly providing services to the farmers and it is too early to plan for a national level situation analysis. However, in Year 3 KISAN II will consider a targeted assessment to determine the role the enabling environment plays as a constraint on expansion of public and private sector investment in development and operation of service warehouses. Instead, KISAN II examined the prospect of establishing and operating community/cooperative level grain warehouses for providing services to farmers including inventory credit facilities in KISAN II’s ZOI. KISAN II will initiate a pilot program to facilitate interested cooperatives to move forward with new and innovative approaches in Year 3 (see Activity 2.4.1).

In Year 2, KISAN II also initiated a study to develop a comprehensive landscape of the existing rice mills of Nepal to identify issues they face in upgrading and diversifying their milling facilities and recommend reform measures required to promote, upgrade, and enhance competitiveness and viability of existing rice milling industry. The study is underway and will be completed in Year 3 T2.

Benchmark(s): 1 assessment completed. Integration of cross cutting issues: Partnerships, governance improvement Resources: Component 3 staff, National and International STTA Collaborative partners: MOALD, DoA directorates, Municipalities, ANROPI Timing: T1 and T2 Change over LOP: Dependent on assessment findings, likely promotion of private sector-friendly local government investment enabling environment

Activity 3.2.3 Support participatory administration of infrastructure and planning. Provincial/municipality level. In Year 2, four 3-day trainings/orientation programs were organized at the province level for provincial and municipality officials on agriculture-related program planning, approving, investing, monitoring and evaluation so that the programs implemented in municipalities will help to bring desirable changes in the agriculture sector (see Box 11 for curriculum). In Year 3 officials from 10 municipalities will receive similar training. As a follow-up action, measures to house this activity in the appropriate Government organization (e.g., provincial training centers or AKCs) will be explored for sustainability.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 69 AID-367-C-17-00001 Box 11: Municipality Agriculture Staff Capacity Building Curriculum – Planning

Theoretical learning Program planning and budgeting: select activities on the basis of local needs and priorities of federal, provincial and local Governments; priority setting and budget allocation Provisions of program planning guidelines (consider targeted programs for women, youths, and other aspects of inclusion), standards, norms and rules Completing forms, calculation, compilation, and submission to concerned authorities for approval Program implementation: inputs/materials management, timing, involvement, and payment procedure Monitoring and evaluation: Implementation status, problems and issues, addressing problems, changes brought by the intervention (outputs, outcomes, impacts) Progress reporting: reporting agencies, frequency, filling out formats, calculation, compilation and submission.

Practical application Selecting program activities, budgeting, and priority setting Preparing program implementation guidelines; their components Completing program planning forms, calculation, and compilation Completing progress reporting forms, calculation, and compilation Synthesizing the all inputs to develop a complete annual plan of the municipality

In addition to the above training programs, KISAN II is assisting DFTQC in organizing provincial level orientation programs for related elected representatives and province/municipality officials to inform them of their food regulatory and food safety promotional roles and responsibilities.

Federal level: In continuation from Year 2, KISAN II initiated the process for organizing a tailor- made training program on agricultural policy analysis for ten senior officials at MOALD and explored the possibility of organizing it in India or Thailand. KISAN II is communicating with MANAGE India, who is responsible for the Feed the Future Triangular Training (ITT) program for the region, to help organize this specialized training program. It is expected that this training program will now be completed in Year 3.

Benchmark(s): 10 senior officials trained for policy analysis, follow up agriculture program planning training (Video benchmarks in Activity 1.3.3.); Planning training delivered to 10 municipalities Integration of cross cutting issues: Governance improvement Resources: Arrangements for training/study visit in institutions like MANAGE in India under the Feed the Future India Triangular Training (ITT) program or any other reputed Policy Research Institutes Collaborative partners: MOALD Timing: T1-T2 Change over LOP: Depending upon the progress, KISAN II will train more officials at the federal and provincial level for future policy analysis efforts.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 70 AID-367-C-17-00001 Sub-objective 3.3: Improve systems to increase quality of selected commodities

Activity 3.3.1 Development of industry-driven commodity norms and standards. In Year 2, KISAN II envisioned developing commodity norms/standards (private/voluntary) for two potential premium vegetables that would be identified by the Premium Market Assessment Study commissioned as a Component 2 activity. The task was conducted in collaboration with government agencies, FNCCI, and associations of vegetable traders. The study identified three premium vegetables (mushroom, broccoli, asparagus) and identified capsicum/chili peppers as emerging premium vegetables with increasing demand. For all these premium vegetables identified, their production and sales volumes are low, therefore efforts to make commodity grades and standards for these products at this stage will not be worthwhile. The KISAN II team, however, has started compiling the commodity norms adopted elsewhere for some important vegetables in high demand in low value and higher value markets including those for capsicum, okra, cauliflower, tomato, and carrot. In Year 3, working together with the interested value chain actors, voluntary commodity norms will be developed and market tested for at least two popular vegetables and marketing activities will be pursued that help define price differentials by grade.

Benchmark(s): 1 illustrated commodity norm drafted and disseminated for two vegetables completed. Integration of cross cutting issues: Partnerships Resources: Component 3 and Component 2 staff Collaborative partners: Private Sector value chain actors and market operators Timing: Initiated in T1 and completed in T2 Change over LOP: Depending on effectiveness, farmers of commercial production pockets will be encouraged to adopt the grading norms and recommended GAPs and link them to the traders of the wholesale/satellite and specialized markets in Province 3

Activity 3.3.2 Promote safe food practices. In Year 2, KISAN II began developing campaign messages/content (food safety and hazard-related messages) to be included in a planned GON information campaign, which will now be incorporated into the “Buy local/Nepal Fresh” campaign mentioned in Component 2. The messages will be focused on practices to produce safe food and be broadcast in radio programs and disseminated via the business literacy curriculum. Due to extensive discussions on content, the start of the campaign was delayed into Year 3.

In Year 3, KISAN II will also assist DFTQC/MOALD in its capacity development programs particularly linked with the implementation of the National GAP certification and/or food safety risk assessment. The UN Food and Agriculture Organization (FAO) and GON recently trained Nepali GAP auditors, but KISAN II will support their next phase of certification – a practicum on auditing. A master trainer in GAP (regional/India STTA) will observe the trainees in action in the field (witness audits). KISAN II will also sponsor exposure visits to three National GAP certified commercial farms and will explore sending abroad two to three qualified officers for further food safety risk assessment training to build that capacity in country. KISAN II will coordinate with USDA food safety programs and other food safety programs funded by USAID, such as the Post-harvest Loss Innovation Lab’s work on mycotoxin prevalence, and other development partners to ensure complementarity.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 71 AID-367-C-17-00001 Benchmark(s): 1 information campaign; one training/exposure visit, support for witness audits of Nepali GAP auditors Integration of cross cutting issues: Nutrition, partnerships Resources: Component 3, GESI Adviser, communication staff; Local STTA, International STTA, Extension agents of partner firms, Collaborative partners: SUAAHARA II, MOALD/AITC, DFTQC Timing: T1 for campaign content development, T2-T3 for delivery of messages; T2 for witness audits Change over LOP: On-going support to food safety regulatory framework will be demand driven upon approval of a food safety policy. KISAN II will explore support to regulations, such as food safety licensing for processing facilities.

Sub-objective 3.4: Support local government agencies to improve investments in support of market system development

Activity 3.4.1 Increase understanding and adoption of market systems development strategies. In Year 2, as a part of collaboration with local government entities, KISAN II oriented local government officials and elected representatives to the principles of market systems development and KISAN II’s private sector-led implementation model and conducted exposure visits to other municipalities to demonstrate the impact of combined private and public sector investment in agricultural produce collection centers and markets operated by cooperatives and the private sector. In Year 3, KISAN II will continue to facilitate two municipalities to focus their plans and programs in irrigation/market development/storage facilities by helping them prepare case studies and conduct exposure/observation visits to successfully implemented sites within Nepal. In addition, KISAN II will support PMAMP to integrate more firms (e.g. buyers and input suppliers) into their super zone activities in the ZOI. This builds on KISAN II Year 2 activities in Bardiya that incorporated business partners into the PMAMP community farming model. As the World Bank launches its next project, Rural Economic and Enterprise Development (REED), to support decentralization, KISAN II technical experts will provide input on the design to integrate elements of a market systems development approach to GON agriculture interventions.

Benchmark(s): Two case studies will be conducted with municipalities on private sector/cooperative management in irrigation/market development. One learning event will be conducted, bringing together public and private sector stakeholders to review the PMAMP community farming model and integration of public and private sector resources via video instruction to complement human resources. Integration of cross cutting issues: Partnerships, governance improvement Resources: Cluster Manager/staff, communications staff, local STTAs for assisting municipality officials for short case studies, if required Collaborative partners: Selected Municipalities; partners Timing: Awareness in T1-T2, study in T2 Change over LOP: After Year 3 of collaboration, new local government units will be co-oriented by field staff with leaders from municipalities that have embraced the private sector-led approach.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 72 AID-367-C-17-00001 3.4.2 Build capacity of local government units to align investment strategies to support increased market access for farmers. In Year 2, KISAN II assisted MOALD by commissioning a study to assess the current situation and suggest measures for establishing effective, functional linkages among the three tiers of Government (federal, provincial and municipality). The report had a series of recommendations and action plans for the Governments to consider. In Year 3, after discussions with MOALD, to the extent possible, KISAN II will extend follow-up support to the Government to undertake tasks specified in the action plan. These will only be pursued in coordination and collaboration with the GON. These could include one or two of the following: ● Joint program planning and review meetings with Municipalities so that Provincial AKC/VHLSSC program activities do not compete or overlap with those of the Municipalities ● Develop and implement a plan for outsourcing of expert services and facilities to enable AKC/VHLSSC to draw on the expertise available with OPASS, NGOs, private sector, and other sources within the province/ district program areas ● Conduct sensitization and awareness raising programs with provincial stakeholders and municipalities about the importance of agricultural database, agricultural program planning, and ADS implementation at the municipal level ● Assess training needs and conduct capacity development training programs for municipal agricultural staff ● Assess the capacity development needs and feasibility of DCCs in coordinating (or facilitating the coordination among) agricultural programs within their respective districts.

Benchmark(s): 2 tasks identified by Government in the process of establishing effective, functional linkages among the three tiers of Government (federal, provincial and municipality) Integration of cross cutting issues: Partnerships; improved governance and functional linkages Resources: Cluster managers/staff and occasionally SPPA; Logistic costs for transportation/visits, meeting organization; STTA and LSPs for assessment works, if required. Collaborative partners: MOALD, Municipality/ Provincial Governments, Timing: T2-T3 Change over LOP: Strong coordination and direct administrative and technical links at the operation levels amongst three tiers of Governments will be visible in the area of agricultural extension services

Activity 3.4.3 Launch internship program. In Year 2, KISAN II developed internship guidelines and signed a MOU with Himalayan Institute of Agriculture Science and Technology (HICAST) to recruit post-graduate interns. Two were placed. KISAN II will recruit MBA or agronomic graduates to work on food safety curriculum and message development and agribusiness skill support for KISAN II partner firms and cooperatives. KISAN II will continue to explore the prospect of receiving interns who could be available for six months or full term, and will be reaching out to other universities/colleges and Council for Technical Education and Vocational Training (CTEVT) as well. KISAN II will prioritize candidates who are young women/youth, or from disadvantaged groups.

Benchmark(s): Partner firms identified, and recruitment process of interns initiated; maximum of 5 interns recruited and placed. Integration of cross cutting issues: Youth, GESI, Partnerships

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 73 AID-367-C-17-00001 Resources: Component 1, 2 and 3 staff, student and professor stipend/travel costs Collaborative partners: Partner firms, universities/colleges Timing: T1-T3 Change over LOP: Based on Year 3 results, the program will be adjusted or expanded

Component 4: Business Literacy and Development Lead: DEPROSC Objective: Increase vulnerable communities’ ability to act on business opportunities within selected market systems Change agents ● Community-based instructors ● KISAN II business and literacy skills staff ● KISAN II agricultural productivity and business development staff ● Coordination with SUAAHARA II

The literacy rate of Nepalese has increased in recent years. The GON is also making progress in achieving 100% literacy. So far 48 districts have declared that they are 100 percent literate and another 12 districts are in the process of declaring it. Only Achham and Kanchanpur (among the KISAN II ZOI) continue to require interventions before declaring to be illiteracy free districts.4 The KISAN II database also verifies that, in fact only 13.92% of KISAN II’s total beneficiaries are illiterate at present. The project noticed that a majority of these beneficiaries recognize Nepali letters and try to speak letters slowly, but their capacity to form words and sentences and use mobile devices and calculators is limited. In addition, they also lack business, financial, and technical skills which are restricting their opportunities to lower paid jobs, often overseas. This is causing a rapid feminization in agriculture. KISAN II also observed that many youth and educated people shun a future in agriculture. It is not perceived as lucrative, nor exciting, so youth, in particular, are not motivated to launch a career in agriculture. For these reasons we are proposing to streamline the business literacy long course from 13 months to 10 months (see Box 12).

Agriculture in Nepal has good prospects and potential if people approach farming as a business, as KISAN II promotes through Component 4. Subcontractor DEPROSC is coordinating this effort to improve the literacy and business acumen of at least 70,000 members from farming households linked to project partners. There are two tracks within the program: Track 1 will be a 10-month long curriculum delivering five modules (see Box 13), which targets less literate, more vulnerable individuals (see criteria below in Table 6). Over the years of Business Literacy programming, DEPROSC found that including life skills, savings, and nutrition training further helps participants cope with stresses and adversity – making them more resilient. Track 2 is a new offering, a two-month short course (Module 6) that was very well received in Year 2 by more than 8,000 participants so far. It covers three major areas in agro-entrepreneurship and farming as a business: agriculture technologies, business management, and marketing skills. These include units on agri-resource mapping, business feasibility, marketing, business planning, recordkeeping, ROI, agricultural apps, improved production technology, risk reduction, and IPM. During Year 2, many KISAN II field staff were integrated into Module 6 instruction which helped link coursework with the market development

4 GON Department of Education, January 18, 2019

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 74 AID-367-C-17-00001 activities through partners in Components 1 and 2. Officials from local municipalities also visited, sat in, and showed great interest in the relevance of the course content and objectives. The details of the two courses are described in Activity 4.1.1. Box 12: Rationale for Streamlining the Business Literacy Long Course

KISAN II proposes to shorten the long course in business literacy to make it more relevant to the current context: dropping rates of illiteracy, and complementarity of some farming practices applied during farmer training, demonstrations, and field days under Component 1 activities. • The illiteracy rate is high among aged, average among adult and low among youth – our target audience. The GON’s own literacy course to transform illiterate into literate is 3 months long with 150 hours. This includes senior citizens, but in KISAN II, the project targets youth and adults with years of business development ahead, and supports new and existing businesses, including farming as a business. • Over the past few years, staff have observed that a large number of KISAN II’s targeted youth and adult population already recognize Nepali letters, so they are already advanced over fully illiterate populations and not in need of the full 13-month course. • Module 6 is two months long which proved itself to be effective in its first round. Based on business literacy experts’ experience, all modules aiming for a 2-3 month long duration can still achieve goals and reduce drop-outs. We believe it will foster participant focus and concentration in a short period with some basic skills already in hand. • Two modules lend themselves to a streamlined delivery. During the BLP project delivering the long course the entire cycle required around 15 months including MTOTs and CTOTs to complete, which is quite long in the present context. • KISAN II is re-designing the long course from 13 months to 10 months by reducing the length of Module 1 (Literacy and Numeracy) and Module 4 (Entrepreneurship skills) from 4 months each to 2.5 months each (see Box 13 below). The modified Module 1, for example, will be adjusted to apply to illiterate and semi-literate participants at the same time. • Revised curriculum will not be necessary, the teaching guide will be adapted to specify certain methods and exercises in the guidebook and explanations during MTOTs and CTOTs.

Box 13: Revised Business Literacy Long Course Delivery Schedule No. Name of Module Original Proposed months months 1 Literacy and Numeracy 4 2.5 2 Nutrition 2 2 3 Life Skills 2 2 4 Entrepreneurship Skills 4 2.5 5 Access to finance/ 1 1 financial literacy 13 10

Participant types and selection criteria: By mandate from USAID, Component 4 will reach vulnerable families through both courses. The project will encourage these beneficiary households to enroll and be given preference. After ensuring that nobody else from vulnerable communities (both eligible and interested) are left out, the project will fill in the class size of 20-25 by registering beneficiaries from other segments of societies. However, it should also be noted that participants will

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 75 AID-367-C-17-00001 learn better if they are from diverse backgrounds and particularly learn more if there are some aspiring agri-entrepreneurs in the classroom. Presence of some commercially-oriented farmers or participants with exposure to enterprise management will make the training more interesting, and more vulnerable participants will learn more than participating solely in homogenous groups. Since KISAN II beneficiary households were selected by private sector grantees, consequently, participation from more diverse communities is expected in the short course. Specific criteria for both courses are described in Table 6.

Table 6. Business literacy course participant criteria Area of Long course (Module 1-5) Short course (Module 6) selection Literacy level Not functionally literate – it covers Literate – those who can read and write illiterate and those who recognize simple Nepali statements and can Nepali letters and digits, but their calculate simple mathematics, often literacy and numeracy skills are not at school drop outs a functional level for farm enterprise management Vulnerability They are additionally vulnerable due Many of them will be from vulnerable to living in remote areas, less households but it is assumed that their commercial wards, having limited level of vulnerability is at decreasing exposure and business strength. Most trend as they are engaged in some agri- participants for this course will be commercial activities. However, KISAN vulnerable women and from II will still prioritize women, youth, disadvantaged groups. Dalit and other disadvantaged household participants. In the remaining seats, participants from other segments of societies will also join so as to make the classes interesting. Age From youth to adult, who are Preferred youth, who have interest in economically active modern agricultural practices, potential to learn ICT for agri-enterprises Status of Subsistence farming or semi- Commercially-oriented or semi- enterprise commercial level, less knowledge of commercial farmers and collectors who enterprise management including need some additional business skills literacy, numeracy, nutrition, life skills and financial literacy Geographic Less accessible areas Less commercial, semi-commercial and area more commercial areas Other Members from vulnerable households BLP graduates and migrant returnees. If criteria get top priority more members are interested in joining the class, vulnerable individuals will be given priority. Commitment Complete the course with little or no chance of drop out Are ready or willing to apply knowledge and skills to initiate a new agri- enterprise and/or expand the ongoing enterprise, including a farm.

Sub-objective 4.1 Enhance literacy and business skills

Activity 4.1.1 Develop and adapt business literacy training materials. In Year 2, KISAN II revised Module 1, Module 2 and Module 6. Modules 3, 4, and 5 are under review and will be completed in

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 76 AID-367-C-17-00001 Year 3. Key contents of all modules are specified in Table 7. KISAN II will also develop eight short videos in coordination with Digital Green on women and social disparity issues and disseminate in the long course Module 3: Life Skills.

Table 7. Business literacy course content Name of # Key contents module This includes examples from KISAN II commodities, how to read input package instructions, crop calendars, preparing for next modules. Revision of devanagiri scripts, word formation, sentence formation, paragraph Literacy and 1 making and letter writing. Similarly, in numeracy – reading and writing of Numeracy 1-100 (English and Nepali), addition, subtraction, multiplication and division. English alphabets- small and capital, more English words to practice, short messages in mobile. Use of mobile devices and calculators. KISAN II has prepared a two-month module on nutrition in collaboration with and technical assistance from Suaahara II so this module is aligned with Suaahara II messages. Topics included are: types of food, golden- 2 Nutrition 1000 days, breastfeeding, healthy eating and drinking habits, hygiene and sanitation, top behaviors for change, safe water, nutrition sensitive kitchen gardening, food preservation, family planning. This addresses those life skills required for enterprise management, such as – a family’s financial plan, interpersonal skills, gender awareness, empathy, 3 Life skills goal setting, decision making, effective communication, stress management, self-assessment, problem solving, critical thinking. This looks at agriculture’s prospects in Nepal, feasibility, women entrepreneurs, marketing, record keeping, market-based production 4 Entrepreneurism planning, improved production technology, seasonal calendar, trader producer relation, post-harvest, IPM, good breeding and feeding for goat, shed management Access to This module instructs on savings, credit, productive use of remittances, finance/ insurance, savings and credit group, cooperative, MFIs, BFIs, choosing 5 financial right service provider for deposit and loan, family budget and proper literacy financial behavior. This new short course was very well received in Year 2 with very few dropouts. Business skills - agricultural resource mapping, feasibility, SWOT analysis, business planning, good production decision making, risk mitigation, compliance, cost of production. Business 6 Marketing skills - how market system functions, alternative marketing, development costs associated for different markets, use of agri apps for technology and networking, producer trader relationship, aggregation and group marketing. Agriculture technologies – improved production technologies, agri mechanization, IPM, value of post-harvest production such as: cleaning, grading, sorting, packaging, storage, and distribution.

Benchmark(s): Revised and developed curricula (Module 3, 4, 5); all modules and guidebooks printed Contribution to outcomes: Increased literacy and business skills will contribute to farming as a business and microenterprise growth, which in turn leads to sales and income gains. Integration of cross cutting issues: GESI, youth, marginalized group targeted, curriculum adapted to GESI needs and priorities Collaborative partners: Suaahara II, private sector firms (grantees)

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 77 AID-367-C-17-00001 Resources: Component 4 lead, Curriculum Development Manager, Regional Literacy and Business Skills Coordinator, selected KISAN II staffs of different levels Timing: T1, T2, T3 Changes over LOP: CLA methods, constant interaction with participants and potential participants on what they need to learn and how, field testing, interaction with stakeholders

Activity 4.1.2 Recruit and train trainers. DEPROSC has a proven strategy for identifying effective trainers (master and community) for the business literacy component. Both types of trainers will have some exposure in agri-enterprises and community level training management. Community Trainers will be among locals representing the same linguistic background of participating communities with some exposure to the local agribusiness situation, are also inclined to using ICT. KISAN II staff will organize review and interaction meetings to update training methodologies.

Benchmark(s): Short course- 18 Master trainers via 2 MTOT refreshers; 13 district level review and orientation to Y2 Community Trainers – 3rd batch; 200 Community Trainers (CTs) via 8 CTOTs and required no. of CTOT refresher (need based); Long course- 9 Senior Master Trainers (new), 90 Master Trainers via 5 MTOTs; 868 Community Trainers (CTs) via 38 CTOTs and 25 CTOT refreshers Contribution to outcomes, cross cutting issues, and collaborative partners are the same as Activity 4.1.1 Resources: Component 4 lead, Training Manager, CBMs, Component 4 staff, including Master Trainers, ACs, training venues, training guides Timing: T1, T2, T3 Changes over LOP: Will lead to refinements in long course methodologies in the 2nd lot.

Activity 4.1.3 Deliver business literacy training to participants in commercial and non- commercial areas. Component 4 field staff with support of other component staffs will identify self- selected, qualified participants (including illiterate, poor, marginalized groups, youth and women who are also members of KISAN II farming households) through recommendations of private sector staffs and local government social agencies. Entry is based on a literacy pre-test. After applications are reviewed, the Literacy and Business Skills Officers will hold community meetings on training procedures and will finalize the participants (an average of 22 persons per class). Classes are two hours a day, six days a week. Monitoring of instruction by Master Trainers observations ensure quality. The short course will reach to 17,710 in three lots (assumed that 17,367 will graduate in Year 3) and the long course will reach to 31,500 in two lots (assumed that 30,000 will graduate in Year 4).

Benchmark(s): short course –31,500 farmers will be enrolled in the long course (graduations in Year 4) ; 17,710 participants will enroll in the short course program. This will include Suaahara II village model farmers Contribution to outcomes: Same as training materials Integration of cross cutting issues: GESI, youth Collaborative partners: Local governments, grantees

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 78 AID-367-C-17-00001 Resources: Component 4 lead, Component 4 staffs, 108 (18+90) Master Trainers, Area Coordinators, 1068 (200+868) Community Trainers, training venues, training materials, Timing: T1, T2, T3

Component 5: Collaborate, Learn, and Adapt (CLA) Lead: Winrock Objective: Apply CLA to market systems development Change agents ● Lead firms ● KISAN II MEL Director; M&E staff; Accounts, and M&E Associates ● KISAN II technical staff

Collaborating, Learning and Adapting (CLA) encompasses all KISAN II activities and those of our partners. It is the responsibility of all staff to continually reflect, analyze, and contribute to project level collaboration, learning, and adaption and foster its adoption in KISAN II partners. In Year 3, KISAN II will: 1. Gather information and evidence to answer the higher-level learning questions, pause and reflect on progress, challenges, and successes to glean learning and test our assumptions and overall theory of change; 2. Build the capacity of private sector organizations and staff on understanding adaptive management and its role in competitive business development and the development of the overall market system; and 3. Support application of CLA to build competitive, inclusive, and resilient agriculture market systems development.

The CLA approach recognizes the importance of collaboration and learning which requires not only private and public sector engagement in market systems development, but also active participation of USAID, Feed the Future implementing partners, academia, and other stakeholders. Real time information and data analysis in CLA can potentially draw from a range of sources from performance monitoring data to action research, studies, and on-the-ground observations. USAID and KISAN II will regularly test the logic underpinning the KISAN II theory of change, challenge assumptions, generate reflective learning questions, investigate how and why the results were achieved, and how should we modify approaches to maximize project outcomes.

The application of CLA in strengthening market system development is centered around four themes: 1) Competitiveness of agricultural market systems and gaps in productivity, 2) Inclusiveness of agricultural market systems and beneficiaries and scaling up proven techniques, 3) Resilience of market systems, and 4) Policy development and implementation for a supportive enabling environment for market development.

The activities under CLA will come from learning questions, capacity building of project and partner staff, and transferring CLA knowledge and skills to selected private sector organizations to monitor the market change dynamics and understand factors contributing to and impeding business growth. The project staff will develop revised guidance for documenting learning, with improved tools, and formats (observation diary, etc.).

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 79 AID-367-C-17-00001

By working collaboratively with the MEL team, each technical Component team has identified learning questions that serve as the foundation for activity monitoring, evaluation, and learning. KISAN II indicators and methods have been structured to support the activity by helping the technical team continuously learn and improve via trimester result analysis and reflection on short term outputs and longer term outcomes, and building evidence for collaboration, learning, and adapting matters for better development results. The learning questions are designed to test the assumptions that underpin the KISAN II theory of change and may extend into out years of the project. They are described below.

Learning questions on competitiveness

LQ 1: Which implementation business models lead to the best farmer outcomes in terms of yields and incomes? In Years 1 and 2, KISAN II established private sector partnerships interested in new business models to better integrate producers, service providers and buyers/processor into a more efficient market relationships. Many of these, for example, provide extension services to farmers to aid them in increasing their yields and income. Answering this learning question, we will be able to compare farmers’ yields and income outcomes in different implementation business models, assess options for adapting others, and compare results across geographies and among different household profiles.

Benchmark: Information gathered and compiled Expected outcome: Better implementation models identified and contributing to a strengthened market system Learning activities: Annual report, annual survey and study reports Resources: Component directors Responsible: COP and Component 2 lead Timing: T2-T3

LQ 2: How can adoption of post-harvest technologies and practices make enterprises (farmers and firms) more competitive? In previous years, many project interventions were focused on educating and applying improved post-harvest management practices and technologies. This adoption of technologies is expected increase saleable production and income and improve quality to contribute to competitiveness.

Benchmark: Information gathered and compiled Expected outcome: Enterprise/organization competitiveness increased Learning activities: Annual report, annual survey and study reports Resources: Component directors Responsible: COP and Component 1 and 2 leads Timing: T1-T2

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 80 AID-367-C-17-00001 LQ 3: How can irrigation be promoted through a private sector/commercial model? Access to water has been the number one constraint in adopting high value cash crops in last two annual monitoring surveys. KISAN I and II invested in irrigation technologies, but demand far outstripped demand. To scale up use of the technology requires private sector investment in irrigation. The project is examining what combination of incentives and communication strategies are required by the private sector to stimulate non-subsidized investment in irrigation.

Benchmark: Mechanism to encourage private sector investment in irrigation identified. Expected outcome: Climate smart technologies adopted, enterprises competitiveness increased Learning activities: Annual report, annual survey and study reports Resources: Component Directors Responsible: COP and Component 1 Lead Timing: T1-T2

Learning Questions on Inclusiveness

LQ4: Will simple-to-follow improved management practice training materials and “leave behinds” increase adoption rates among women and farmers from disadvantaged groups? Based on SBCC focus groups and surveys conducted in Years 1-2, these populations indicated a need for simpler step-by-step instruction and more visual training aids. This question will determine if these improved materials, including videos, lead to improved outcomes.

Benchmark: Role and characteristics of training and training materials to promote technology adoption will be established. Expected outcome: Training materials updated and aligned with private sector knowledge needs, will increase adoption rates and farmer incomes, particularly for previously marginalized populations. Learning activities: Field visit, Focus groups discussion, training Resources: Component directors, GESI advisor Responsible: COP and Component 1 lead Timing: T1-T2

LQ5: What adaptations to our approach – coaching/training/TA/grants -- lead to higher adoption and greater income change among women, youth, and disadvantaged groups? Different approaches may lead to different adoption rates and thus different income results. KISAN II will seek to identify which approaches (or combination of approaches) and which adaptations focusing on GESI groups results in higher adoption and greater income change among women, youth, and disadvantaged groups.

Benchmark: Better approach adaptations established Expected outcome: Best adaptations will be identified for greater income change among women, youth, and disadvantaged groups. Learning activities: Field visit, Focus groups discussion, training Resources: Component directors and GESI Adviser

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 81 AID-367-C-17-00001 Responsible: COP and Component 1 lead Timing: T1-T2

LQ 6: Does business literacy training combined with agriculture training increase the ability of vulnerable and DAG households to act on right type of business opportunities? Business literacy training is a core project activity focused on lifting up vulnerable communities. The training modules are expected to develop farming as a businesses and agri-entrepreneurs, who will initiate or expand their business. By analyzing results of the Business Literacy participants compared to non-participants will test our assumption that farmers receiving combined training on literacy and agriculture will enhance their ability to act on business opportunities.

Benchmark: Assumption tested Expected outcome: Capacity of the vulnerable households to act on business opportunities enhanced Learning activities: Training reports, annual report, annual survey and study reports Resources: Master trainers, Community trainers and Component director Responsible: Component 4 lead Timing: T1-T2

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? Through the project’s facilitative approach, private sector actors take the lead in equipping farmers with better management practices and climate smart technologies (and savings in cooperatives), but is this effort enough to increase farmers’ capacity to adapt, cope, and recover from environmental, economic, and political shocks? This question will test our assumption that incentives exist for sustainable private sector involvement in helping farmers attain better results.

Benchmark: One study conducted Expected outcome: Increasing income and better linkages with market network enhances farmers’ capacity to cope with shocks and stresses. Learning activities: Training reports, annual report, annual survey and study reports Resources: Master trainers, Community trainers and Component director Responsible: Component 1 lead Timing: T1-T2

LQ 8: Does market led production planning lead to better farmer incomes and are they better able to withstand market price fluctuations? Over production and under production causes prices to fluctuate and many times farmers are discouraged to adopt new technologies and management practices. KISAN II has been emphasizing market led production from the very start. This study will test our assumption that proper planning for market-based demand (with coordination among producers, service providers and buyers) will lead to better farm incomes.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 82 AID-367-C-17-00001 Benchmark: One study completed Expected outcome: Proper market led planning leads to higher farm incomes Learning activities: Review meetings, reports and studies Resources: Cluster managers and Component leads (1 and 2) Responsible: Component 2 lead Timing: T1-T2

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 agriculture sector that respond to market and local farmer needs? Local governments’ capacity to understand market dynamics by commodity and farmers’ needs and invest in the agriculture sector is crucial to enhance agriculture productivity in the Municipalities. KISAN II builds capacity of local governments in agriculture development and planning. The project will assess the optimal way to coordinate and work with and support local Municipalities for better results.

Benchmark: One Mechanism to capacity building identified Expected outcome: Local authorities play an increasing role in identifying and facilitating investment opportunities in markets, storages, irrigation etc. Learning activities: Site observation, Municipality meetings and reports Resources: Cluster managers and Component 3 lead Responsible: Component 3 lead Timing: T1-T2

LQ 10: What are the grain storage options and modalities that would benefit farmers and be financially viable (sustainable)? Rice farmers sell their rice immediately after harvest at low price as they lack proper storage facilities. Supporting them with proper storage facilities and modalities will be a great help to earn higher price for their products. This study will analyze the cost-benefit of different storage modalities.

Benchmark: Storage options and modalities identified Expected outcome: Improved farmer-centric dry facilities identified Learning activities: Site observation, Municipality meetings and reports Resources: Local consultant or consulting firm Responsible: Component 3 lead Timing: T1-T2

CLA Activities The CLA activities listed below are a preliminary list. Consistent with CLA principles, KISAN II anticipates that CLA activities will evolve over time as the project identifies strategic opportunities, tests new approaches, and improves implementation. Several meetings and workshops are described below. For efficiency, many will piggyback on other regular cluster and regional level gatherings.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 83 AID-367-C-17-00001 The activities that follow are organized by area of focus -- competitiveness, inclusiveness, resiliency, and policy development – to show specific attention to each. Table 8 organizes them by function with their associated activity numbers. Table 8. CLA activities Activity Area of focus Activity number Implementation modalities and collaboration Market Systems follow up workshop Competitiveness 5.1.1 Opportunity mapping Competitiveness 5.1.2 (Aligned with 2.0) (and inclusiveness) Partnership modalities workshop Competitiveness 5.1.3 GESI mainstreaming Inclusiveness 5.2.1 Coordination meetings Inclusiveness 5.2.2 Development of real time feedback loop Resiliency 5.3.2 MEL Data sharing Resiliency 5.3.3 Policy issues at technical committees Policy 5.4.1 (Aligned with CL1, CL 2) MSD sensitization workshop for GON Policy 5.4.2 (Aligned with 3.2.3) Technical forums/networking All 5.4.6 Learning and Adapting Central level pause and reflect All, policy 5.4.5 Cluster level pause and reflect will include Competitiveness 5.1.4 separate sessions or workshops addressing Inclusiveness 5.2.3 factors contributing to or hindering Resiliency 5.3.1 competitiveness, inclusiveness, and resiliency Case studies, assessment and validation Policy 5.4.3 (Aligned with 3.4.1) workshops 5.4.4 (Aligned with 2.1.4)

Sub-objective 5.1: Apply CLA to advance competitiveness

Activity 5.1.1. Workshop on Market Systems Development (MSD), sector level information, and interlinkages. While these concepts were introduced and reinforced during the Year 1 boot camp and Year 1 and 2 annual work planning sessions, in Year 3 staff will delve into specific MSD follow up based on the findings in the learning questions and implications of data trends from the annual survey. This activity will allow the technical team and other staff to develop a common understanding of KISAN II’s market systems development dynamics, commodity and sector specific information update, and connections among components.

Benchmark(s): 2 workshops on understanding and updating MSD approach Link to CLA matrix: Internal collaboration Resources: DCOP/Agriculture, MSD, APD, and RD Collaborative partners: N/A Timing: T1 -T2 Change over LOP: The team will invest their time in raising the understanding of MSD in Year 3 and support continuous improvement in using the knowledge in activity implementation as needed

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 84 AID-367-C-17-00001 Activity 5.1.2. Opportunity mapping (This will be conducted with Activity 2.0). In Year 1, market systems maps were developed detailing agriculture organizations and service providers, production pockets, government agriculture service centers, overlaid with road, land use, research stations, and other agriculture related infrastructure. This information will be continuously updated in Y3 and will be used to create a repository of private sector actors working in KISAN II’s ZOI, their scale, and reach. This activity will help the private sector to further identify production areas where they can support farm production and marketing.

Benchmark(s): ZOI maps, collaborative mapping Link to CLA matrix: Learning - Evidence base Resources: DCOP/Agriculture, MSD, APD, RD, SBOMs, and CBMs Collaborative partners: Private sector actors in ZOI Timing: T2-T3 Changes over LOP: Opportunity mapping will be updated every year as new actors emerge

Activity 5.1.3. Workshop on partnership modalities. In Year 2, training was provided to staff on engaging private sector partners. In Year 3, KISAN II will continue to train staff members on engaging private sector partners, including different partnership modalities (agrovet, wholesaler, trader, etc.), how to help partners to assess their progress, and how to help staff adapt partnerships terms and types of investments in response to progress observations and reports.

Benchmark(s): 1 training/workshop conducted Link to CLA matrix: Learning - Theory of change Resources: DCOP/Agriculture, MSD, APD, RD, SBOMs, CBMs, grants Collaborative partners: N/A Timing: T2 Changes over LOP: Partnership modalities will be shared and discussed

Activity 5.1.4. Cluster-level review, reflection and learning workshops. This review, reflection, and learning activity at the cluster level will review the annual work plan and detailed implementation plan; and provide a forum for discussion of what worked and what did not, and adjustments to be implemented as required to achieve the targets. The MEL Team will support these events with planning, identifying participatory methods, synthesizing findings, and soliciting feedback and recommendations on these review, reflection, and learning events. This will lead to established feedback mechanisms, ongoing CLA capacity building, and documentation of project learning to strengthen competitiveness. If more than one day, this workshop will also likely include a focus on factors contributing to inclusiveness and resiliency (5.2.3 and 5.3.1).

Benchmark(s): 7 events - one in each cluster with 20 or more participants each. Link to CLA matrix: Learning scenario planning Resources: DCOP/Agriculture, MSD, APD, RD, SBOMs. and CBMs Collaborative partners: Grantees, and other Implementing Partners. Timing: T1-T3

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 85 AID-367-C-17-00001 Change over LOP: No specific changes anticipated; however, approaches will likely evolve as part of feedback and continuous improvement.

Sub-objective 5.2: Apply CLA to advance inclusiveness

Activity 5.2.1. GESI mainstreaming in Inclusive Market System Development workshop. KISAN II will conduct two workshops on GESI integration to educate the technical team and other staff in GESI integration using a market systems development approach. The methodology will include case studies and guided discussion based on qualitative and quantitative data analysis. This workshop will identify, document, and encourage adapting GESI best practices applied in market systems development.

Benchmark (s): 2 workshops for technical team and other staff Link to CLA matrix: Internal collaboration Resources: KISAN II senior management including regional director, cluster business managers, GESI Adviser and thematic experts Collaborative partners: N/A Timing: T3 Change over LOP: The GESI Team will invest heavily in raising the understanding of inclusive MSD in Year 3 and support continuous improvement in using the knowledge in activity implementation as needed in subsequent years

Activity 5.2.2. Coordination Meetings with other USAID projects. KISAN II will conduct coordination meetings with other USAID and Feed the Future projects to communicate the inclusive MSD approach. It will include working through partnership modalities and areas of collaboration among USAID projects, and will include sharing of tools and materials, data including maps, and exploring opportunities for sequencing, layering, and integration.

Benchmark(s): What and how of external collaboration among USAID projects determined Link to CLA matrix: External Collaboration Resources: GESI adviser, DCOP/Agriculture, MSD, APD, RD, SBOMs, and CBMs Collaborative partners: USAID and Feed the Future implementing partners Timing: T1-T3 Changes over LOP: External collaboration, partnership modality, and areas of collaboration are expected to evolve throughout LOP

Activity 5.2.3. Cluster-level review, reflection and learning workshops. This pause and reflect activity at the cluster level will review annual work plans and detailed implementation plans on what worked and what did not contribute to inclusiveness and adjust as required to achieve targets. This can be conducted with 5.1.4, which is focused on competitiveness.

Benchmark(s): up to 7 meetings, evidence and findings will be documented and shared

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 86 AID-367-C-17-00001 Link to CLA matrix: Learning Resources: GESI Adviser, Area Coordinators, CBM, MSD, APD, RD, and DCOP/Agriculture Collaborative partners: PIF Grantees, GON, and other Implementing Partners Timing: T1-T3 Change over LOP: Adaptation of activities as needed

Sub-objective 5.3: Apply CLA to strengthen resilience

Activity 5.3.1. Pause and Reflect workshops (cluster level). This Pause, Reflect and Learn workshop at the cluster level will review the annual work plan and detailed implementation plan. It will also be used to discuss what worked well and what did not and adjust as required to achieve desired results and contribute to resiliency. It will also document learning to inform better adaptive management. This can be conducted with 5.1.4, which is focused on competitiveness, and 5.2.3 which is focused on inclusiveness.

Benchmark(s): 7 events. Evidence and findings will be documented and shared Linkage to CLA matrix: Adapting- Pause and Reflect Resources: Area Coordinators, CBM, MSD, APD, RD, and DCOP/Agriculture Collaborative partners: PIF Grantees, GON, and other Implementing Partners Timing: T1-T3 Change over LOP: No changes anticipated.

Activity 5.3.2. Development of real time feedback loop. Feedback mechanisms can function as part of broader monitoring practices and can generate information for decision-making. Feedback mechanisms collect information for a variety of purposes, including to initiate corrective action in improving implementation. This feedback loop strengthens accountability to participating households. The development of a feedback loop will enhance the capacity of the organizations to better monitor their activities and to continuously improve their performance.

Benchmark(s): Feedback mechanism documented and tested. Linkage to CLA matrix: Culture – Continuous learning and improvement Resources: Component Lead, KISAN II staff, partner organizations, and lead firms. Collaborative partners: Partners, producers, and other value chain actors Timing: T2-T3 Change over LOP: Ongoing improvement of feedback loop mechanisms

Activity 5.3.3. MEL data sharing workshops. The MSD and APD teams will work with the MEL team during annual work planning sessions to use MEL data, synthesized sector data, relevant research findings, feedback, and ongoing project learning to provide evidence for strategic interventions, setting targets, and documenting risks, assumptions, context, and the theory of change.

Benchmark(s): Evidence and findings will be shared and reflected in annual work plans and the MEL Plan

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 87 AID-367-C-17-00001 Link to CLA matrix: Learning scenario planning Resources: CBM, MSD, APD, RD and MELD Collaborative partners: PIF Grantees, GON, and other Implementing Partners Timing: T3, thereafter work plans will be updated July 15th each year Change over LOP: No changes anticipated

Sub-objective 5.4: Apply CLA to Policy Development

Activity 5.4.1. Policy issue specific technical committee meetings/dialogues (This will be conducted with Activities CL1 and CL2). KISAN II will organize policy issue-specific committee meetings to allow stakeholders to express their interest and opinions on certain policy issues.

Benchmark(s): 4 Specific policy-related briefings prepared Link to CLA matrix: External Collaboration Resources: EED, SPPA, MSD, APD, RD, SBOMs, and CBMs Collaborative Partners: KISAN II partners Timing: T3 Change over LOP: External collaboration, partnership modality, and areas of collaboration for policy making processes are expected to evolve throughout the LOP

Activity 5.4.2. Sensitization workshops for municipalities on planning and governance skills and principles of USAID’s market system approach. (This will be conducted with Activity 3.2.3.) This activity is aimed to sensitize and build the capacity of newly elected municipality authorities and agriculture focal persons on planning and governance and the market systems approach.

Benchmark(s): 10 Workshops in Municipalities Link to CLA matrix: External Collaboration Resources: EED, SPPA, MSD, APD, RD, SBOMs, and CBMs Collaborative Partners: KISAN II partners Timing: T2-T3 Changes over LOP: On-going

Activity 5.4.3. Technical evidence-based case studies/assessments. Evidence-based case studies and assessments will be conducted to gather evidence and feedback for policy development and improvement. (This activity will be conducted with Activity 3.4.1.)

Benchmark(s): 3 cases/assessments identified, and technical evidences gathered. Link to CLA matrix: Learning - Technical evidence base Resources: EED, SPPA, MSD, APD, RD, SBOMs and CBMs Collaborative partners: N/A Timing: T2-T3 Change over LOP: As technical evidence is gathered, it will inform decision making

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 88 AID-367-C-17-00001 Activity 5.4.4. Validation workshops (central level) on case studies & assessments. (This will be conducted with 2.1.4) KISAN II will share the case studies and assessments to stakeholders and request their feedback to validate the findings and suggestions.

Benchmark(s): One validation workshop conducted. Link to CLA matrix: Learning - MEL for learning Resources: EED, SPPA, MSD, APD, RD, SBOMs, and CBMs Collaborative partners: Central-level GON officials Timing: T2-T3 Changes over LOP: Technical evidence validated, helping to inform decision making

Activity 5.4.5. Pause and Reflect workshops (central level). This central level pause and reflect workshop will share learning on the policy development process with staff, experts, and other stakeholders. An annual formal pause and reflect workshop will be conducted before annual work planning sessions to inform that process. These pauses and reflect workshops will consider the findings and recommendations from the previous year’s after action-review report and discussions on the pause and reflect workshop. The cluster level pause and reflect findings will be synthesized by Component leads to provoke a compare and contrast exercise to learn how output and outcomes results can differ by geography and population characteristics. Studies and findings from the learning questions activities will also be integrated into the learning and adapting process and come together to test project wide assumptions and the theory of change.

Benchmark(s): Two central level pause and reflect workshops organized; one focused on policy development and one for project wide reflection Link to CLA matrix: Adapting - Pause and reflect Resources: EED, SPPA, MSD, APD, RD, SBOMs and CBMs Collaborative partners: External stakeholders Timing: T3 Change over LOP: Technical evidences validated, helping to inform decision making.

Activity 5.4.6. Technical forums/network meetings. KISAN II will conduct technical forums/network meetings to share technical, contextual, and practical experiences with experts and impacted stakeholders to receive feedback and streamline ongoing and future efforts.

Benchmark(s): Two technical or network meetings organized Link to CLA matrix: Culture - Openness Resources: EED, SPPA, MSD, APD, RD, SBOMs, and CBMs Collaborative partners: External stakeholders Timing: T2-T3 Change over LOP: Technical evidences validated, helping to inform decision making

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 89 AID-367-C-17-00001 III. GRANTS UNDER CONTRACT The grants program will catalyze complex, multi-stakeholder collaborations that address bottlenecks by offering multiple mechanisms or windows that buy down risk for testing new technologies, solutions, or working relationships. The Partnership and Innovation Fund (PIF) will seek opportunities to engage women, youth, and marginalized groups through smart subsidies to stimulate microenterprise development and new technologies and business models in Components 1, 2, and 4. Project monitoring and coaching of awardees will support CLA as new challenges arise and lessons are learned. By the end of Year 3, KISAN II anticipates awarding $4 million in grants (This is inclusive of all awards from Years 1-3). Grants support the implementation models described above: processor, trader, cooperative, wholesale agrovet, retail agrovet, and two new models: goat farm and boat agrovet delivering AI services.

Activity GUC.1 Update the Grants Under Contract Manual to support program activities. In Year 1, KISAN II developed a grants manual which describes and explains the approach to grants management, the purpose, target beneficiaries, funding rules, procedures for decision making, relevant application and review forms, and a monitoring plan. The manual describes eligibility criteria for organizations, special considerations for inclusion of women, youth, and marginalized populations to ensure their participation and opportunities for demonstrating sector leadership and innovation, the process and format for applying for a grant, the establishment of a small grants committee, the criteria (including GESI considerations) for evaluating grants for award, the responsibilities of grant beneficiaries, and the processes and other requirements for managing and reporting on grants. It outlines the process for designing, selecting, and disbursing the grants. Safe workplace and sexual harassment policies will be included in the manual.

Benchmark(s): Grants manual updated; RFA released for partnerships including inclusive business models and GESI population outreach Resources: Component leads, GESI Advisor, Grants Timing: T2

Activity GUC.2 Issue an Annual Program Statement and/or RFA to identify potential grantees. KISAN II will prepare, publish, and circulate an Annual Program Statement (APS) and/or RFA to promote the KISAN II PIF. In addition, KISAN II’s Component 2 team will seek out promising grantees that can advance the objectives of the project through a variety of means, including tapping into the extensive network of field staff and LSPs, private sector associations, and District Chambers of Commerce and Industries (DCCI), among others. KISAN II will specifically seek out groups led by or focused on serving women and minority groups. Finally, KISAN II will leverage the multiple stakeholder forums held under Components 1 and 2 to promote the PIF.

Benchmark(s): Annual Program Statement and/or RFA Released Resources: KISAN II staff Timing: Ongoing

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 90 AID-367-C-17-00001 Activity GUC.3 Assess Applications and Award Grants. Proposals will be reviewed on a rolling basis as per the GUC Manual. Guidance will be provided to potential applicants on an on-going and as-needed basis by KISAN II’s Grants Team and Components 1 and 2 staff.

Benchmark(s): 25 new partnerships approved Resources: Partnership and Innovation Fund Advisory Committee (PIFAC), PIF Team Timing: Ongoing; based on the Grants under Contract Manual Activity GUC.4 Coach and monitor recipients. KISAN II will provide post award training to ensure that grantees comply with the required policies regarding financial management, monitoring, and activity implementation. The Grants Team will also confirm the scope of the activity, implementation plan, and timetable (milestones and schedule of disbursement) with the recipient. Field staff will provide technical assistance and monitor quality of technical implementation.

Benchmark(s): 150 grantees, total Resources: Grants team, technical field staff Timing: Ongoing

Activity GUC.5 Market System Contribution. KISAN II will train grantees to ensure adaptive learning and implementation and engage other value chain actors.

Benchmark(s): Grants monitored (TA to partners described in Components 1 and 2) Resources: KISAN II staff time Timing: From grant kick off to close out (Ongoing)

IV. MONITORING, EVALUATION (M&E) AND LEARNING

Sub-objective 5.5: Apply CLA to Monitoring and Evaluation. KISAN II’s revised MEL Plan includes a Theory of Change result framework, detailed guidance on indicators, data collections and reporting requirements, and CLA plan. In the MEL and CLA plans, MEL is listed as a sub-objective 5.5 – following the CLA activities.

Activity 5.5.1: Update and submit MEL plan to USAID/Nepal. The MEL Team prepared the KISAN II MEL plan in consultation with USAID/Nepal to reflect new GFSS indicators, project activities, contractual requirement, and targets. USAID approved the MEL Plan on October 05, 2017. Following an orientation on CLA on January 17, 2018, the MEL Team worked closely with Technical Leads to prepare a CLA Plan based on four themes of CLA application: Competitiveness, Inclusiveness, Resilience and Policy Development. The revised MEL Plan was approved by USAID on March 20, 2018.

In Year 3, target setting adjustments will be made for outcome level indicators after the FY19 annual survey is completed. Modification to CLA activities based on learning from Year 1 and 2 will be documented in detail and submitted to USAID for approval.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 91 AID-367-C-17-00001 Benchmark(s): Revised MEL plan submitted to USAID/Nepal Resources: MEL Consultant, COP, MEL Director, and Component leads. Timing: T1 Change over LOP: The MEL plan will be updated annually along with the Annual Work Plan

Activity 5.5.2 Upgrade and operationalization of WIKISAN 2.0. In Year 1, KISAN II contracted a Nepali firm (Pathway Technologies) to develop an on-line database to support the collection, storage, processing, and reporting of performance indicators through a competitive bid. The primary objectives for developing the database are to obtain data from households/farms, individuals, and firms/organizations along the targeted value chain, develop a data management system, and enter error free data to report on 22 selected individual and organizational level indicators. The system is designed to capture, archive, and retrieve information from over 200,000 HHs; 250,000 individuals; 10,000 training groups; 60,000 activities; 1,000 irrigation schemes; and other infrastructure segregated by gender, ethnicity, farmer diversity, intervention types, and partners.

In Year 2, KISAN II conducted weekly meetings with Pathway Technologies to relay information on the 43 indicators (including the 22 selected WIKISN indicators), variables, workflows, use cases, and actors to design the data structure and develop the software application. Sample data and forms were shared, and questionnaires were collectively discussed during the meetings and through email correspondence. WIKISAN 2.0 is now fully operational. All individual related indicators are disaggregated by sex, ethnicity, caste, and age.

In Year 3, focus will be placed on ensuring the system to be user friendly and consistent in reporting. The MEL team will organize separate pause, review and learning workshops among target users to further upgrade the design and operationalize the system. During the pause and reflect workshops, lessons learned from call center/management, mobile app use, organization (rolling baseline and census) and DQA will be discussed. What worked well will be documented and shared with management. This will guide upgrades and priorities for system improvement.

Published modules (organization, agreement, training and other activities, reporting by indicators and Business literacy) will be revisited to bring more user-friendly features. In addition, new modules, such as ways for partners (agrovet, cooperative, millers, etc.) to send technical and managerial messages to farmers on weather forecast, price information, supply and demand situation in specified market, will be piloted. Modules on DG developed videos, irrigation modules, and partners’ yield modules will also be added in consultation with the program team. The indicator reporting module and Dashboard will be improved as per the KISAN II reporting format so that users will have snapshot information at a glance.

The WIKISAN 2.0 system will track organizations, activities/trainings, and participant data as it happens. Field staff will update the data in WIKISAN 2.0 regularly. Data is collected through mobile apps and an online browser by a contracted firm which is stored on a server. Staff then follow cleaning and data quality assurance protocols. The cleaned data will then be uploaded to DevResults for further aggregation, analysis, and visualization Reporting will be done as required by indicators,

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 92 AID-367-C-17-00001 targets vs achievements, and reported every trimester. Summary queries will be developed as requested by users.

Benchmark(s): WIKISAN 2.0 system is fully operational (user friendly) Resources: Data system consultant, COP, MEL director, and Component leads Timing: Ongoing Change over LOP: The WIKISAN 2.0 will be maintained and improved for efficient use Activity 5.5.3 Customize DevResults. DevResults is a best-in-class software application for data management. DevResults is hosted on Microsoft’s Azure Infrastructure as a Service Cloud (IaaS). Database administration, maintenance, backups, operating system upgrades, and server deployments will be carried out by a DevResults’ team of software engineers, who understand USAID’s data security requirements (security and privacy statements are available upon request). WIKISAN 2.0 will export indicator-based data to DevResults for storage, aggregation, analysis, and visualization. DevResults is customized to consolidate and manage results data. The MEL Plan specifies user requirements related to indicators and disaggregation requirements.

In Year 1, the MEL team filled in the template required to set-up the DevResults site for KISAN II. The site includes project activities, result framework, indicators, disaggregation, locations, users, activity indicator linkages, activity administration, activity users, reporting cycles, and reporting periods. In Year 2, the MEL team sent the data for “Number of individuals participating in USG food security programs (IM- Level)” indicator. In Year 3, the MEL team will upload clean data into DevResults in consultation with Winrock HQ.

Benchmark(s): DevResults customized and operational Resources: MEL director, DevResults staff, HQ staff, and MEL team. Timing: Ongoing Change over LOP: DevResults will be updated as needed to reflect changes in data requirements and compatibility with WIKISAN 2.0

Activity 5.5.4 Training on theory of change (TOC) and performance indicators. In Year 1, the MEL team shared KISAN II’s Theory of Change, development hypothesis, and the KISAN II results framework during the boot camp. Staff and partners discussed how activities related to performance indicators and how data will be tracked in the online data collection system (WIKISAN 2.0) and data management and reporting system (DevResults), FTFMS, and DIS (Development Information Solution). In Year 2, the MEL Team conducted staff training on the theory of change and performance indicators to ensure managers understood the project design and “who” and “what” count for each performance indicator (which participants and which activities) at both the aggregate and disaggregate levels. In Year 3, the MEL team plans to organize two refresher workshops on the TOC, assumptions and performance indicators for KISAN II staff before the next central level pause and reflect workshop. Regular discussion among staff members on Theory of Change and assumptions made is crucial to understand casual links between interventions and results.

Benchmark(s): Two events with 50 KISAN II staff trained

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 93 AID-367-C-17-00001 Resources: MEL Director, MEL team, and Component leads. Timing: T2 Change over LOP: Refresher trainings as needed during annual work plan and target setting exercises

Activity 5.5.5 Train data entry field staff on data collection and regular checks. In Year 2, WIKISAN 2.0 database was operational, and the MEL team conducted a two-day practical session on data collection and spot checks for regional and cluster-level managers. The training and reference guides ensure they understand the data quality requirements for paper, e-copy, and mobile application data sources. The project staff assigned in remote and vulnerable communities were encouraged to participate in this training. In Year 3, the MEL team plans to organize a two-day WIKISAN 2.0 practical session on data collection and spot checks for regional and cluster-level staff entering data through mobile apps and browsers as requested.

Benchmark(s): Approximately 22 field staff trained on data collection and 28 field staffs on refresher training. Guides on data quality requirements updated. Resources: MEL Team Timing: T2 Change over LOP: Refresher trainings annually

Activity 5.5.6 Conduct spot checks and Internal DQA. In Year 3, the central MEL Team will conduct an internal DQA for selected indicators (specified in the MEL Plan) and provide follow-up training as needed. The central MEL Team will develop a DQA checklist adapted from the template used by USAID to assess its monitoring systems. Central, regional, and cluster level staff will conduct spot checks on an ongoing basis.

Benchmark(s): Annual DQA of selected indicators Resources: KISAN II and lead partners’ technical and MEL staff Timing: On-going spot checks. Annual (T3) internal DQA Change over LOP: Adjustments/refresher trainings as needed based on DQA findings

Activity 5.5.7 Identify mapping priorities and produce maps. KISAN II mapped many of the private sector organizations working in the project’s targeted value chains across 25 focus districts. Through the end of the Year 2, KISAN II had mapped and gathered information on 3,167 private sector actors. In Year 3, KISAN II will continue collecting geo-referenced data on a wide range of factors necessary for assessing market potential, targeting beneficiaries, and tracking project activities.

Benchmark(s): At least five maps will be prepared and used for planning and/or storytelling Resources: GIS Expert, DevResults, GIS, and sector data from GON, USAID/Nepal, and other Implementing Partners. Timing: T1-T3 Change over LOP: Maps will be created/tailored in Years 2-5 based on information for planning, communications, and other purposes as needed.

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Activity 5.5.8 Design and conduct an annual farmers survey to measure outcomes. In Year 2, KISAN II contracted Full Bright Consultancy to conduct the FY19 sample survey to collect data related to the effectiveness and reach of KISAN II. Field data will be collected in June/July 2019. The survey data will be stored separately and processed and presented in the Year 2 annual performance report.

In Year 3, the data will be exported to DevResults. The FY19 Survey Report will be submitted to the COR for review prior to upload into FTFMS.

In third trimester of Year 3, KISAN II will start preparatory work (sampling frame and sample design, list of beneficiaries, etc.) for the Year 3 farm-level survey. Learning from the FY19 annual survey will be incorporate in the FY20 survey and the annual survey for FY20 will be conducted.

Benchmark(s): Annual survey data for DIS, FTFMS, and DevResults Resources: Third Party Survey Firm, MEL Team, MS Access Database Consultant, and MEL Consultant Timing: T1 and T3 Change over LOP: Changes to the annual survey, as required in subsequent years

Activity 5.5.9 Design and conduct an annual organizational census survey to measure outcomes. In the Year 2, KISAN II conducted an organizational census survey to collect the data related to the effectiveness and reach of KISAN II partners. Field data will be collected during June 2019. The survey data will be stored separately and processed and presented in the Year 2 annual performance report. In Year 3, the data will be exported to DevResults. The FY19 Survey Report will be submitted to the COR for review prior to upload into FTFMS.

In the third trimester of Year 3, KISAN II will again start preparatory work for the Year 3 organizational survey. Learning from the FY19 organizational survey will be incorporate in the FY20 survey and the annual survey for FY20 will be conducted.

Benchmark(s): Annual organizational survey data for DIS, FTFMS, and DevResults Resources: Project staff MEL Team, MS Access Database Consultant, and MEL Consultant Timing: T3 Change over LOP: Changes to the annual survey, as required in subsequent years

Activity 5.5.10 Design and implement a baseline household panel survey to measure changes in resilience capacities throughout the LOP. In Year 1, KISAN II, in discussion with USAID, developed a methodology and tools for a Recurrent Monitoring Survey (RMS). In Year 2, PMEL conducted a resilience survey along with the baseline survey. Some information is still useful for 3-5 years and more can be extracted from annual monitoring survey. In Year 3, KISAN II will discuss and identify which resilience information needs to be surveyed again. Based on the discussion, the MEL team will create a panel household and conduct the resilience survey as required.

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Benchmark(s): HH panel survey design, baseline data, and analysis for resilience monitoring Resources: Third Party Survey Firm, MEL Team, MS Access Database Consultant, and MEL Consultant Timing: T2 and T3 Change over LOP: Survey design and methodology improvements based on Year 1 data collection

Activity 5.5.11 Submit project data to USAID and GON. In Year 2, the MEL manager entered the following data: annual results data into FTFMS; data in accordance with the GON triannual reporting schedule, including output and budget data in the GON reporting system; training-related data in USAID’s TraiNet; indicator-related data in USAID’s MRR; and geo-referenced sector and project data to the USAID Mission’s GIS Specialist.

In Year 3, the MEL manager will enter the annual results data into FTFMS, training-related data in USAID’s TraiNet, enterprise indicator-related data in USAID’s MRR and geo-referenced sector and project data to the USAID Mission’s GIS Specialist.

Benchmark(s): Data entered in relevant GON and USAID databases in accordance with the agreed reporting schedule Resources: MEL Director, MEL Manager, Data expert. Timing: Triannual reports due four weeks after the end of each trimester, approximately December 15th, April 15th, and August 15th. Change over LOP: No changes anticipated.

Activity 5.5.12 Update the KISAN II Environmental Management and Monitoring Plan (EMMP). An EMMP was submitted on August 30, 2017 and approved by USAID. The KISAN II Environment focal person oriented project staff on the EMMP during the boot camp organized in December 2017. In Year 3, USAID-approved EMMP tasks will be incorporated into detailed implementation plans (DIPs) and MEL systems. The KISAN II Environment focal person will train project and partnered (grantee) staff on EMMP requirements to ensure proper implementation.

Benchmark(s): Updated EMMP and both project and partnered staff trained Resources: KISAN II Environment focal person, Component 1 and 2 leads, and lead firms Timing: Training and monitoring will be conducted throughout the year Change over LOP: The EMMP will be updated on June 15th each year, along with the annual work plan.

V. OPERATIONAL AND COMMUNICATION ACTIVITIES Years 1 and 2 included multiple start-up and mobilization activities. Using a participatory planning methodology, KISAN II conducted a participatory work planning process with staff, incorporating project partners such as CIMMYT, SABAL, and SUAAHARA II, and consultations with MOALD, and other agencies.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 96 AID-367-C-17-00001 Activity OP.1 Submit Key Deliverables to USAID/Nepal. During Y3, Winrock will develop and submit all required deliverables, including the Year 3 workplan and annexes, update the Environmental Mitigation and Management Plan (EMMP), the Emergency Preparedness and Response Plan (EPRP), and the Plan for Coordinating with the GON MOALD. Tri-annual progress reports and the Year 2 Annual Report will be submitted in accordance with the project deliverable schedule.

Benchmark(s): Approved deliverables Resources: KISAN II Staff and partners; International Consultant Timing: On-going, in accordance with the project deliverable schedule. Change over LOP: Updated EMMP, GESI Plan, and Plan for Coordinating with the GON MOALD will be submitted along with the annual workplans in Years 3-5.

Activity OP.2 Establish Agreements with Subcontractors. Winrock sought USAID approval for and executed subcontracts with five partners. Each year Winrock will work with partners to establish tailored and detailed workplans for each subcontractor in accordance with the approved Year 3 workplan. Winrock will orient subcontractors to KISAN II Y3 and life of the project targets and objectives, policies and procedures, including gender and conflict sensitive approaches, and USAID environmental policies.

Benchmark(s): Subcontractors consulted for activity input for Year 3 annual work plan and oriented to Year 3 activities. Resources: KISAN II staff time Timing: July-September 2019 Change over LOP: No changes anticipated.

Activity OP.3 Implement Branding and Marking Plan. Winrock and its subcontractors will adhere to the branding and marking policy as provided to USAID.

Benchmark(s): Correct USAID project branding and marking Resources: KISAN II staff and partner time Timing: Ongoing Change over LOP: No changes anticipated.

Activity OP.4 Staff Recruitment and Training. KISAN II will recruit new staff as required to fill vacant positions in the organizational chart for each office (see Annex C). KISAN II will orient or train staff on Y3 and life of the project targets and objectives, policies and procedures, including gender and conflict sensitive approaches, and USAID environmental policies.

Benchmark(s): KISAN II and partner staff hired and trained Resources: KISAN II staff and partner time; requires USAID approval for all P1 level staff and higher Timing: As required during the project period Change over LOP: No changes anticipated.

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Activity OP.5 KISAN II Procurement. Per the procurement plan in the approved budget, KISAN II staff will procure necessary equipment for project’s program and administrative activities.

Benchmark(s): Equipment procured Resources: KISAN II staff time Timing: As required during the project period Change over LOP: The procurement plan will be updated and submitted to USAID for approval as needed

Activity OP.6 Update Standard Operating Procedures. KISAN II will review and update its field accounting procedures, employee handbook, and emergency preparedness and response plan in accordance with USAID and Winrock policies and regulations, and will train staff in updated standard operating procedures.

Benchmark(s): KISAN II and partner staff trained in applicable, established standard operating policy and procedures Resources: KISAN II staff time in coordination with Winrock Operations staff Timing: As required during the project period Change over LOP: Policies and procedures will be reviewed annually and updated as needed

Activity OP.7 Consultative Meetings. KISAN II will continue to conduct meetings with GON (see Section E Activities), donors operating in Nepal, 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. Regular meetings are conducted to coordinate on multiple joint activities, especially in Component 1 and Component 4.

Benchmark(s): Meetings completed, and any follow-up action tasks carried out Resources: KISAN II staff and partner time, USAID, and other Feed the Future projects Timing: As required during the project period Change over LOP: No changes anticipated.

Activity OP.8 Emergency Management Preparedness and Training. Project Operations staff update KISAN II staff about the contents of the Emergency Preparedness and Response Plan through training and drills or other similarly effective methods. The emergency communications tree is always up to date, staff are trained on its use, and periodic tests are carried out to ensure it can function during an incident or emergency. Equipment related to safety and security upgrades will be procured and tested and security briefings delivered to all in-country and visiting staff. Emergency management training will occur with all new staff that join the project and at least once annually to maintain staff knowledge and skills.

Benchmark(s): Staff trained on emergency preparedness as they join the project and all staff trained once annually

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 98 AID-367-C-17-00001 Resources: DCOP/Finance, Security Focal Person Timing: Ongoing Change over LOP: Safety procedures will be updated as needed

Activity OP.9 Orientation to local media/journalists to document/highlight practices adopted by partner firms and farmers. KISAN II will conduct an orientation for local media on reporting and highlighting a success stories on women entrepreneurs, youth involvement in agriculture, economic empowerment of marginalized groups, inclusive business development, opportunities for women and disadvantaged groups. The project will engage with local media channels such as television, newspapers, FM radio stations, etc. to highlight and publish best agricultural practices adopted at the local level and successful and expanding businesses. After the orientation, the project will facilitate local media to visit partner sites, provide background information and data required to encourage publishing stories.

Benchmark(s): 1 orientation program, then exposure visit to project sites for up to 10 journalists Resources: Communications, MEL, GESI Timing: Ongoing Change over LOP: No anticipated changes.

Activity OP.10 KISAN II Review and Annual Planning Workshops. After annual survey data is collected, analyzed, and disaggregated, there will be a mini- pause and reflect with staff to adapt the Theory of Change and activities based on outcome results thus far. KISAN II will conduct a mid-year review workshop in December 2019/January 2020, followed by a review and planning workshop in May/June 2020. Area Coordinators and/or Officers from all districts as well as cluster, regional, and central office staff will participate in these workshops. These workshops will review grants and commodity chain activities and will allow staff to share lessons learned and engage in teambuilding.

Benchmark(s): Review and planning workshops conducted, work plan for Year 4 produced. Resources: Staff time, travel cost, international consultant time Timing: T2 and T3 Change over LOP: No anticipated changes

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 99 AID-367-C-17-00001 ANNEX A. ACTIVITIES TABLE Activities Human Resources Benchmark(s) Collaboration with the Government of Nepal 30 municipality level briefings/discussions on approach and Activity CL.1: Disseminate and STTA facilitator/trainer, underlying activities, 30 joint deepen understanding of the GESI Adviser, field staff, monitoring visits with municipality private sector-led approach KISAN II grantee partners officials; guidelines for promoting private sector engagement among public sector actors co-developed 2 Steering committee (including annual project review), and 4 technical committee meetings; reports circulated for review; Joint monitoring visits with 15 officials of steering and technical Activity CL.2: Coordination with committee members; 4 events of joint Government of Nepal monitoring visits for officials working at the provincial agriculture ministry;

joint monitoring visits with municipality CL.2.1: Central level coordination officials Interactions with 4 Provincial MOLMACs, 20 AKCs, 20 VHLSECs COP, EED, SPPA, Cluster CL.2.2 Provincial level and other organizations; 25 meetings Managers, field-based staff, coordination with DCCs and DCCIs. Introductory as required and successive meetings with CL.2.3 District level coordination municipality officials, orientation to market systems approach in each unit, regular coordination meetings with CL.2.4 Local/municipality AKCs, VHLSECs and municipality- government level coordination level agriculture representatives; participation in local government Block Grant-related meetings; coordination in irrigation; government resources mobilized; joint activities conducted; funds leveraged KISAN II will continue support for one ADS-JSR Coordination Expert and functioning of JSR committees; 1 COP, EED, ADS-JSR national ADS-JSR coordination meeting Activity CL. 3: Support for Joint Coordination Expert, SPPA, and 3 technical committee meetings for Sector Reviews (JSR) MOALD officials and other development partners review and planning conducted; TBD support to perform actions identified in three thematic areas in collaboration with other agencies Component 2: Strengthen the Competitiveness, Resilience, and Inclusiveness of Selected Agricultural Market Systems GIS expert, Component 2.0 Conduct and update Updated ZOI maps, collaborative leads, GESI and field staff, opportunity mapping exercise mapping meetings mapping software/database Sub-objective 2.1 Strengthen the organization and coordination of selected market systems

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 100 AID-367-C-17-00001 Activities Human Resources Benchmark(s) 25 new partnerships, 45,000 new farming households, including disadvantaged groups (for a total of 200,000 households reached by the end 2.1.1 Streamline vertical linkages KISAN II field staff, GIS of Y3 through partners5); TOT for and select partners maps partner staff; up to 25 pre/post-season outgrower/new buyer/wholesale market forums, as determined by partner need; re-evaluation of lentil opportunities and technologies 60 cooperatives, including 10 new, will 2.1.2 Build capacity of farmer Field staff, training receive capacity building based on groups/cooperatives materials needs 140,000 vulnerable farmers trained through partners (subset of 200,000 GESI Adviser, Component total households); GESI checklist 2.1.3 Empower and link vulnerable leads, Cluster Business launched; group collection points and marginalized groups Manager, Field staff, LSPs formed or strengthened, as needed; business literacy participation is listed in Component 4 “Buy Nepal, Buy Fresh” campaign OSC Communications, 2.1.4 Strengthen horizontal launched, 3 industry-wide learning Component 2, GESI linkages events conducted; marketing strategy local/regional STTA for Joyaral basmati rice completed 5 partnerships established, 3,000 2.1.5 Include an additional Component 2 senior staff households linked, 2 videos produced, commodity for commercialization 30 agrovets trained in AI Sub-objective 2.2 Strengthen lead firms and other SMEs to support selected market systems 2.2.1 Strengthen partner firms and 25 processor, trader, and SME partner Component 2 staff, GESI, other SMEs to support selected firms assessed, and capacity building consultants, accelerators market systems. plans and associated activities delivered Sub-objective 2.3 Enhance financial services markets that serve selected market systems 5 wholesale loans; 1 MOU with a new Senior Business bank partner or MFI to expand 2.3.1 Expand SME agribusiness Opportunities Advisor, agricultural lending, at least 1 digital lending and investment International and local finance event, pilot of agency banking STTA with 5 new agrovets; pilot at least one type of crop insurance with partners 40 cooperatives receive tailored TA; 1 2.3.2. Expand access to rural credit FSO, CSCs, PIF exposure visit of cooperatives completed 2.3.3. Promote group savings and credit activities and link to MFIs, Finance and AMT staff 60,000 people begin or increase savings SACCOs Sub-objective 2.4 Enhance market infrastructure and other services to support selected market systems Cost benefit and guidelines on cold storage completed; exposure visit for up 2.4.1 Expand access to safe and to 15 partners to understand operation Cluster leads, Local STTA, cost-effective storage and of a vegetable cold chamber; 1 leverage local funds, PIF warehousing inventory credit scheme piloted, 20 collection point/pack house investments established 2.4.2 Increase access to GESI, Cluster leads, 2 equipment/mechanization firm mechanized services communications and partnerships established; one TVET-

5 By the end of Year 2, 122 partnerships will be in place, serving and linking 155,000 farmers. We anticipate at least 150 partners total by the end of Year 3, but that number depends on outreach by each partner (new and continuing) and may vary.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 101 AID-367-C-17-00001 Activities Human Resources Benchmark(s) outreach, PIF, BDS type organization partnership provider established; 2 pilots for cooperative- based custom hire business model Component 2 senior staff, local or international expert 2.4.3 Improve grading, testing, and 10 partners that develop grading (AVRDC) on testing standards adherence services guidelines technologies and processing mapping Senior Business opportunities staff, local 2 pilot efforts on ICT solutions to 2.4.4 Improve access to market subcontractor or market information; 2 workshops held information services international STTA, as at cluster level needed 3 firms coached through BDS 2.4.5 Expand availability and use Component 2 cluster staff, procurement and assessment process; of business and training services PIF, local STTA development of a women’s cooperative leadership program; 1 ICT forum held Sub-objective 2.5 Expand trade in domestic and regional markets to support agricultural market systems development 2.5.1 Identify opportunities for Assessment of at least 2 wholesale Local subcontractor import substitution markets Component 1: Improve the Productivity of Selected Agricultural Market Systems Sub-objective 1.1 Facilitate intensification and diversification of male and female farmers and socially excluded groups into higher-value commodities 1.1.1 Form farmer groups, inclusive of women, youth, and -- No longer valid marginalized groups Sub-objective 1.2 Strengthen the capacity of input supply systems to deliver timely and affordable productivity-enhancing technologies 110 retail agrovets receive capacity Component 1, GESI, Field 1.2.1 Strengthen capacity of building assistance (40 partners, and 70 staff, input suppliers, lead agrovets to deliver quality inputs through partner wholesale agrovets); 1 firms, municipality to and other services study on input supply value chain inform targeting analysis completed 1.2.2 Enhance input supply to 40 cooperatives develop or strengthen farmers through outgrower input management systems Cluster leads schemes and cooperative (determining demand, ordering, membership delivering) 1.2.3 Expand development, 150 private sector extension agents dissemination, and adoption of International/regional STTA trained in IPM from community-based IPM IPM master trainers trained last year Sub-objective 1.3 Increase adoption of profitable, productivity-enhancing, and climate-smart technologies by all groups, including youth, women, and disadvantaged groups. 1.3.1 Continue consultations and coordination with NSAF, iDE and other donor and GON projects to -- Informs 1.3.2 catalogue and share training material 1.3.2 Revise safe and better Improved training materials for 10 new agricultural practices training OSC, GESI, practices completed in Year 3 aligned materials to align with the private Communications, Field with private sector demand and sector demand, other projects, and Staff particularly focused for women and GON disadvantaged group

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 102 AID-367-C-17-00001 Activities Human Resources Benchmark(s) 47 videos produced either through the private or public sector (includes two previously mentioned for goat) Out of 47 videos, 8 videos will focus on a gender-specific topic such as; female Digital Green, GESI, Field entrepreneurship development, access to 1.3.3 Develop locally-produced staff, local/international resources, decision-making process, the training videos STTA, partners, grants importance of mainstreaming GESI in agri-business, youth involvement, encouraging Young women in Agri- business, etc.; 30 people from agrovets, municipalities and other private sector groups trained in video production 3 guidelines on how to conduct Agriculture Technical demonstration, field days, exposure 1.3.4 Conduct demonstrations, managers, GESI, visit, GESI Checklist, Grantees field days, and exposure visits Communications, Field established 2,000 demo plots, conducted staff, partners, LSPs, grants 500 field days and 25 exposure visits Increased areas under irrigation – 400 ITs, AD, SRM, CM, DC, schemes installed, including specific 1.3.5 Expand access to irrigation APOs, CM, AMTs, Grants sites that serve disadvantaged groups/households Component 3: Strengthen the Enabling Environment of Selected Agricultural Market Systems Sub-objective 3.1 Build capacity for streamlining, harmonizing, and coordinating GON policies and regulations 2 draft food safety regulations, 1 draft agribusiness rule, 1 subsector Component 3 staff, LSP - development strategy documents and 1 3.1.1 Develop policy support Firm, regional STTA, national level guideline for PSE will be agenda with GON technical committees prepared and a series of PPDs organized as required to garner inputs and refine drafts Component 3 staff; GESI 3.1.2 Engage private sector Adviser, local STTA or advocacy groups in policy LSP, and/or logistics 2 public-private dialogue events dialogue supports for event organization Sub-objective 3.2 Improve investments, management, and governance (e.g. standardization) of infrastructure International and local 3.2.1 Develop a menu of proven STTA for related post- Dissemination of case study on cold post-harvest technologies and harvest technology; storage (See Activity 2.4.1) infrastructure Communications Team 3.2.2 Assess enabling environment Component 3 staff, National for public and private sector 1 assessment completed and International STTA investment in infrastructure Arrangements for training/study visit in institutions like MANAGE 10 senior officials trained for policy 3.2.3 Support participatory in India under the Feed the analysis, follow up agriculture program administration of infrastructure Future India Triangular planning training; Planning training and planning Training (ITT) program or delivered to 10 municipalities any other reputed Policy Research Institutes Sub-objective 3.3 Improve systems to increase the quality of selected commodities

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 103 AID-367-C-17-00001 Activities Human Resources Benchmark(s) 3.3.1 Development of industry- 1 illustrated commodity norm drafted Component 3 and driven commodity norms and and disseminated for two vegetables Component 2 staff standards. completed Component 3, GESI Adviser, communication 1 information campaign; one staff; Local STTA, 3.3.2 Promote safe food practices training/exposure visit, support for International STTA, witness audits of Nepali GAP auditors Extension agents of partner firms Sub-objective 3.4 Support local government agencies to improve investments in support of market systems development Two case studies will be conducted with municipalities on private sector/cooperative management in Cluster Manager/staff, irrigation/market development. One communications staff, local 3.4.1 Increase understanding and learning event bringing together public STTAs for assisting adoption of market systems and private sector stakeholders to municipality officials for development strategies review the PMAMP community short case studies, if farming model and integration of public required and private sector resources via video instruction to complement human resources Cluster managers/staff and occasionally SPPA; Logistic 3.4.2 Build capacity of local 2 tasks identified by Government in the costs for government units to align process of establishing effective, transportation/visits, investment strategies to support functional linkages among the three meeting organization; increased market access for tiers of Government (federal, provincial STTA and LSPs for farmers and municipality) assessment works, if required. Component 1, 2 and 3 staff, Partner firms identified, and recruitment 3.4.3 Launch internship program student and professor process of interns initiated; maximum stipend/travel costs of 5 interns recruited and placed. Component 4: Increase vulnerable communities’ ability to act on business opportunities within selected market systems Sub-objective 4.1 Enhancing literacy and business skills Revised and developed curricula Component 4 lead, (Module 3,4,5); all modules and Curriculum Development guidebooks printed; Contribution to Manager, Regional Literacy 4.1.1 Develop and adapt business outcomes: Increased literacy and and Business Skills literacy training materials business skills will contribute to Coordinator, GESI Adviser, farming as a business and selected KISAN II staffs of microenterprise growth, which in turn different levels leads to sales and income gains Short course- 18 Master trainers via 2 MTOT refreshers; 13 district level Component 4 lead, Training review and orientation to Y2 Manager, CBMs, ACs, Community Trainers – 3rd batch; 200 Senior Master Trainers, Community Trainers (CTs) via 8 4.1.2. Recruit and train trainers CTOTs and required no. of CTOT Master Trainers, training refresher (need based); Long course- 9 venues, training guides Senior Master Trainers, 90 Master Trainers via 5 MTOTs; 868 Community Trainers (CTs) via 38 CTOTs and 25 CTOT refreshers

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 104 AID-367-C-17-00001 Activities Human Resources Benchmark(s) Component 4 lead, short course –31,500 farmers will be Component 4 staffs, 108 4.1.3 Deliver business literacy enrolled in the long course (graduations (18+90) Master Trainers, training to participants in in Year 4); 17,710 participants will Area Coordinators, 1068 commercial and non-commercial enroll in the short course program. This (200+868) Community areas will include Suaahara II village model Trainers, training venues, farmers training materials Component 5: Apply Collaboration, Learning, and Adaptation to Market Systems Development Learning Questions on competitiveness LQ 1: A study to compare and contrast farmer benefits in yield Component directors Information gathered and compiled and income outcomes from each implementation business model LQ 2: How can adoption of post- harvest technologies and practices Component directors Information gathered and compiled make enterprises (farmers and firms) more competitive? LQ 3: How can irrigation be Mechanism to incentivize private sector promoted through a private Component directors investment in irrigation identified sector/commercial model? Learning Questions on inclusiveness LQ4: Will simple-to-follow improved management practice Role and characteristics of training and training materials and “leave Component directors, GESI training materials to promote behinds” increase adoption rates Adviser technology adoption will be established among women and farmers from disadvantaged groups? LQ5: What adaptations to our approach - training/TA/grants -- Component directors and Better adaptation approaches lead to higher adoption and greater GESI Adviser established income change among women, youth, and disadvantaged groups? LQ 6: Does business literacy training combined with agriculture Master trainers, Community training increase the ability of trainers and Component Assumption tested vulnerable and DAG households to director act on right type of business opportunities? Learning Questions on resilience LQ 7: Do KISAN II private sector led activities buffer or better equip Master trainers, Community One study conducted farmers to cope from trainers and Component environmental, economic, and director political shocks? LQ 8: Does market led production planning lead to better Cluster managers and farmer incomes and are they better One study completed Component leads (1 and 2) able to withstand market price fluctuations? Learning Questions on policy development LQ 9: How can KISAN II best Cluster managers and One mechanism to capacity building build the capacity of local Component 3 lead identified government units to increase

municipality level investment in

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 105 AID-367-C-17-00001 Activities Human Resources Benchmark(s) agriculture sector that best respond to local farmer’s needs? LQ 10: What are the grain storage options and modalities that would Local consultant or Storage options and modalities benefit farmers and be financially consulting firm identified viable (sustainable)? Sub-objective 5.1 Apply CLA to advance competitiveness 5.1.1 Workshop on Market Systems Development (MSD), DCOP/Agriculture, MSD, 2 workshops on understanding and sector level information, and APD, and RD updating MSD approach interlinkages DCOP/Agriculture, MSD, 5.1.2 Opportunity mapping (same APD, RD, SBOMs, and ZOIs maps, collaborative mapping as Activity 2.0). CBMs DCOP/Agriculture, MSD, 5.1.3 Workshop on partnership APD, RD, SBOMs. and 1 training/workshop conducted modalities. CBMs 5.1.4 Cluster-level learning DCOP/Agriculture, MSD, workshops on KISAN II’s sector 1 event in each of 7 clusters with 20 or APD, RD, SBOMs. and level information, constraints, and more participants each CBMs opportunities Area Coordinators, CBM, 5.1.5 Cluster level trimester review 7 workshops. Evidence and findings MSD, APD, RD, and and reporting workshop will be documented and shared DCOP/Agriculture Sub-objective 5.2 Apply CLA to advance inclusiveness KISAN II senior management including 5.2.1 GESI mainstreaming in regional director, cluster 2 workshops for technical team and Inclusive Market System business managers, GESI other staff Development workshop Adviser and thematic experts GESI adviser, 5.2.2 Coordination Meetings with DCOP/Agriculture, MSD, Modality for external collaboration other USAID projects APD, RD, SBOMs, and among USAID projects determined CBMs 5.2.3 Cluster-level learning GESI Adviser, Area workshops on KISAN II’s sector Coordinators, CBM, MSD, Evidence and findings will be level information, constraints, and APD, RD, and documented and shared opportunities DCOP/Agriculture Sub-objective 5.3 Apply CLA to strengthen resilience Area Coordinators, CBM, 5.3.1 Pause and Reflect workshops 7 events. Evidence and findings will be MSD, APD, RD, and (cluster level) – a subset of 5.1.4 documented and shared DCOP/Agriculture Component Lead, KISAN II 5.3.2 Development of real time Feedback mechanism documented and staff, partner organizations, feedback loop tested. and lead firms. Evidence and findings will be shared CBM, MSD, APD, RD and 5.3.3 MEL data sharing workshops and reflected in annual work plans and MELD the MEL Plan Sub-objective 5.4 Apply CLA to policy development

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 106 AID-367-C-17-00001 Activities Human Resources Benchmark(s) 5.4.1 Policy issue specific EED, SPPA, MSD, APD, 4 Specific policy-related briefings technical committee RD, SBOMs, and CBMs prepared meetings/dialogues 5.4.2 Sensitization workshops for municipalities on planning and EED, SPPA, MSD, APD, 10 Workshops in Municipalities governance skills and principles of RD, SBOMs, and CBMs USAID’s market system approach 5.4.3 Technical evidence-based EED, SPPA, MSD, APD, 3 cases/assessments identified, and case studies/assessments RD, SBOMs and CBMs technical evidences gathered. 5.4.4 Validation workshops EED, SPPA, MSD, APD, (central level) on case studies & One validation workshop conducted. RD, SBOMs, and CBMs assessments 5.4.5 Pause and Reflect workshops EED, SPPA, MSD, APD, Two central level pause and reflect (central level). RD, SBOMs and CBMs organized: 1 for policy, 1 for project. 5.4.6 Technical forums/network EED, SPPA, MSD, APD, Two technical or network meeting meetings RD, SBOMs, and CBMs organized. Grants Under Contract GUC.1 Develop the Grants Under Component leads, GESI 1 RFA released focused on GESI Contract Manual to support Advisor, grants populations program activities GUC.2 Issue an Annual Program KISAN II staff and partner Statement and identify potential Annual Program Statement Released time grantees GUC.3 Assess Applications and Grants Committee 25 new partnerships approved Award Grants GUC.4 Coach and mentor Grants team, technical field 150 grantees, total recipients staff GUC.5 Market System KISAN II staff time Grants monitored Contribution Monitoring, Evaluation and Learning (MEL) Sub-objective 5.5 Apply CLA to Monitoring and Evaluation MEL Consultant, COP, 5.5.1 Update and submit MEL plan Revised MEL plan submitted to MEL Director, and to USAID/Nepal USAID/Nepal Component leads. 5.5.2 Upgrade and Data system consultant, WIKISAN 2.0 system is fully operationalization of WIKISAN COP, MEL director, and operational (user friendly) 2.0 Component leads MEL director, DevResults 5.5.3 Customize DevResults staff, HQ staff, and MEL DevResults customized and operational team. 5.5.4 Training on theory of change MEL Director, MEL team, Two events with 50 KISAN II staff (TOC) and performance indicators and Component leads. trained Approximately 22 field staff trained on 5.5.5 Train data entry field staff on data collection and 28 field staffs on MEL Team data collection and regular checks refresher training. Guides on data quality requirements updated 5.5.6 Conduct spot checks and KISAN II and lead partners’ Annual DQA of selected indicators Internal DQA technical and MEL staff 5.5.7 Identify mapping priorities GIS Expert, DevResults, At least five maps will be prepared and and produce maps GIS, and sector data from used for planning and/or storytelling

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 107 AID-367-C-17-00001 Activities Human Resources Benchmark(s) GON, USAID/Nepal, and other Implementing Partners. Third Party Survey Firm, 5.5.8 Design and conduct an MEL Team, MS Access Annual survey data for DIS, FTFMS, annual farmers survey to measure Database Consultant, and and DevResults outcomes MEL Consultant Project staff MEL Team, 5.5.9 Design and conduct an MS Access Database Annual organizational survey data for annual organizational census Consultant, and MEL DIS, FTFMS, and DevResults survey to measure outcomes. Consultant 5.5.10 Design and implement a Third Party Survey Firm, baseline household panel survey to MEL Team, MS Access HH panel survey design, baseline data, measure changes in resilience Database Consultant, and and analysis for resilience monitoring capacities throughout the LOP MEL Consultant Data entered in relevant GON and 5.5.11 Submit project data to MEL Director, MEL USAID databases in accordance with USAID and GON Manager, Data expert. the agreed reporting schedule 5.5.12 Update the KISAN II KISAN II Environment Updated EMMP and both project and Environmental Management and focal person, Component 1 partnered staff trained Monitoring Plan (EMMP) and 2 leads, and lead firms Operational, Administrative and Communications Activities KISAN II Staff and OP.1 Submit Key Deliverables to partners; International Approved deliverables USAID/Nepal Consultant Subcontractors consulted for activity OP.2 Establish Agreements with KISAN II staff time input for Year 3 annual work plan and Subcontractors oriented to Year 3 activities OP.3 Implement Branding and KISAN II staff and partner Correct USAID project branding and Marking Plan time marking KISAN II staff and partner OP.4 Staff Recruitment and time; requires USAID KISAN II and partner staff hired and Training approval for all P1 level trained staff and higher OP.5 KISAN II Procurement Plan KISAN II staff time Equipment procured KISAN II staff time in KSAN II and partner staff trained in OP.6 Update Standard Operating coordination with Winrock applicable, established standard Procedures Operations staff operating policy and procedures KISAN II staff and partner Meetings completed, and any follow-up OP.7 Consultative Meetings time, USAID, and other action tasks carried out Feed the Future projects Staff trained on emergency OP.8 Emergency Management DCOP/Finance, Security preparedness as they join the project Preparedness and Training Focal Person and all staff trained once annually OP.9 Orientation to local media/journalists to Communications, MEL, 1 orientation program; site/exposure document/highlight practices GESI visit for 10 journalists adopted by partner firms and farmers Review and planning workshops OP.10 KISAN II Review and Staff time, travel cost, conducted, work plan for Year 4 Annual Planning Workshops international consultant time produced.

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 108 AID-367-C-17-00001 ANNEX B. PLAN FOR COORDINATING WITH THE GOVERNMENT OF NEPAL MINISTRY OF AGRICULTURE AND LIVESTOCK DEVELOPMENT

The Knowledge-based Integrated Sustainable Agriculture in Nepal (KISAN) II project was designed to align with and support the Government of Nepal (GON)'s Agriculture Development Strategy and the USAID’s Feed the Future (FTF) Initiative. The success of the predecessor KISAN project is, in large part, due to the close collaboration between KISAN staff and GON Ministry of Agricultural Development (MOAD) officials – at the central government, regional, district, and service center (SC) levels. KISAN II has been adapting similar guiding principles for engagement with constitutionally established organizations at the federal, provincial, and municipal levels. The project is maintaining very good relationships with elected and bureaucratic leadership in all three tiers of Government and is implementing its activities in close coordination and collaboration with them.

The principles and objectives for GON-KISAN II coordination are described below, followed by methods for collaboration at each level of government and reporting requirements.

KISAN II’s objectives are five-fold: 1. Align project priorities and activities to support the ADS and other sectoral strategies through regular consultative meetings and supported by a Steering Committee chaired by the Secretary, MOALD. There is representation of joint secretaries and directors from the Ministries of Agriculture and Livestock Development, Finance, Federal Affairs and General Administration, Health and Population, National Planning Commission, National Farmers' Commission, Federation of Nepalese Chambers of Commerce and Industries (FNCCI), Department of Agriculture (DOA), Department of Livestock Services (DOLS), Department of Food Technology and Quality Control (DFTQC), Department of Irrigation (DOI), and Nepal Agricultural Research Council (NARC) in this committee.

The purpose of this Committee is to: ● monitor progress, ● ensure close coordination between the GON and the Feed the Future projects at all levels, ● create a platform to provide updates on implementation progress, ● provide strategic guidance, ● support implementation, ● share results, and ● ensure stakeholder’s ownership and provide oversight in the process.

Biannual meetings of this committee will be supplemented through social media posts, activity specific briefings, and field visits to project sites.

To increase the technical collaboration, knowledge sharing, and to address operational level issues, KISAN II will continue convening a technical committee composed of technical experts from MOALD, departments, and other agencies. These experts will focus on areas such as seed and soil science, crop-specific practices, mechanization, post-harvest, irrigation,

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 109 AID-367-C-17-00001 finance, and /or environmental management, as appropriate, and interact with KISAN II technical experts and senior staff. As in the past, the Joint Secretary, Planning and Development Cooperation Coordination Division of MOALD will be chairing this committee. Technical committee meetings will convene every three months near the date of the Steering Committee meetings wherever possible.

2. Coordinate with GON and other development partner activities at the provincial and local levels. KISAN II will assist and participate in regular periodic meetings with provincial and municipal agricultural representatives, and other informal and formal interactions with other local government officials, including the mayor, deputy mayor, and executive officials. There will be regular planning and coordination meetings among local/cluster level staff of sister projects, such as SUAAHARA II, Nepal Seed and Fertilizer (NSAF) project, Sustainable Action for Resilience and Food Security (SABAL), Promoting Agriculture, Health, and Alternative Livelihoods (PAHAL), Farmer-to-Farmer program implemented by Catholic Relief Services, and Program for Aquatic Natural Resource Improvement (PANI).

3. Collaborate with GON and municipal extension staff, community health workers, and technical experts in joint training events and monitoring visits to ensure transparency and identification of opportunities for further collaboration.

4. Leverage provincial and local government funds for value chain actors for cost sharing infrastructure investments such as irrigation, collection centers, and storage facilities.

5. Inform and influence key government stakeholders on the effectiveness of the market systems approach and support for an enabling environment for private sector led agricultural development.

Collaboration at multiple levels of Government

During the startup meetings with GON staff, KISAN II informed and oriented GON agencies and other offices to the market systems development approach, private sector led implementation models, and projected impacts. MOALD senior staff were briefed and provided feedback on draft annual work plans for Years I and 2. Highlights of the draft Year 3 annual work plan were presented during the third Technical Committee meeting and feedback from this meeting will be incorporated into the final work plan.

Central: Consultative meetings: From the moment of award, KISAN II leadership have engaged the GON at senior levels, meeting with MOAD (currently MOALD) Secretary and Joint Secretaries to inform them of new project objectives and implementation modalities and seek their advice on specific personnel for more detailed collaborative discussions on work planning, monitoring and reporting. Consultative meetings have been conducted with Joint Secretaries and Undersecretaries each year while preparing the annual work plan. Additional consultations were done with three department

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 110 AID-367-C-17-00001 Directors General or Deputy Directors General, and the heads of Government projects, such as Prime Minister Agriculture Modernization Project (PMAMP).

Steering committee: A senior level steering committee has been formed to provide on-going guidance, advice and feedback on a biannual basis. The first meeting will be held in the beginning and the second meeting will be scheduled towards the middle of Nepali Fiscal Year. The first meeting will review KISAN II’s progress through annual progress report and from the feedback of joint monitoring visits. Regular review of progress will be carried out in the second meeting. Similarly, technical committee members will collaborate with KISAN II technical staff to ensure knowledge sharing, model the Collaboration, Learning and Adaption (CLA) approach, and align activities with ADS and the latest research.

Joint monitoring: Regularly, senior MOALD staff will be invited to participate in joint monitoring visits to the field, Kathmandu-based technical events, and monitoring, evaluation and learning briefings to keep them abreast of KISAN II progress and seek advice for adaptations and opportunities to better collaborate with on-going GON programs. Whenever possible, joint monitoring visits will occur before steering committee meetings to inform the feedback.

Joint Sector Review (JSR): As part of the National ADS Implementation Committee (NADSIC) of ADS, KISAN II will support USAID to facilitate initiation of the Joint Sector Review by engaging donors and MOALD (see text box). These reviews will serve as forums for performance assessment and policy guidance, allow a broad spectrum of stakeholders to get insights into, and influence policy and priorities in agricultural development. The MOALD and donors will develop a broad architecture for the application of mutual accountability to agriculture sector development plan implementation.

Primary Purpose of Joint Sector Reviews

By bringing together senior GON Ministerial staff with development partners, JSRs will provide orientations and a decision support tool for the implementation of the ADS. Furthermore, it will help in reviewing observed results of sector performance in comparison to planned target. Additionally, it will regularly bring the MOALD and donors together to discuss their activities and raise issues and concerns that will contribute to successful implementation of planned activities. Therefore, a JSR will enhance mutual accountability and harmonization of resources in ADS implementation.

Provincial: At the time of the KISAN II project launch, provincial Governments and their locations were still to be determined. They have since been established/set up. KISAN II’s plan is to coordinate activities between the project’s regional and cluster offices and the provincial Ministry of Land Management Agriculture and Cooperatives (MOLMAC) in all four focus provinces (Province 3, 5, Karnali Province, and Sudur-paschim Province) to ensure collaboration and information flow among provincial administrative and technical officials and KISAN II staff, partners, and beneficiaries.

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District: Since most of the district level government offices were dissolved by the end of Nepali Fiscal Year 2017/18, KISAN II field staff started coordinating with agriculture technicians deputed in various municipalities and followed the trajectories of their careers to new posts – thereby leveraging positive relationships in their new positions. In 2018/19, Agriculture Knowledge Centers (AKC) and Veterinary Hospital and Livestock Services Expert Centers (VHLSEC) were established in 51 and 47 districts respectively as provincial level organizations. Since the roles and responsibilities of these AKCs and VHLSECs are very similar to previous District Agriculture Development Offices (DADO) and District Livestock Services Offices (DLSO), KISAN II field staff are coordinating activities and will continue to work closely with these centers regarding technical matters. Similarly, KISAN II field staff will be working closely with the officials of rice, maize, and vegetable Zones and Super-zones of Prime Minister Agriculture Modernization Project (PMAMP), which is a mega project of the Government of Nepal.

Local government units (Metropolitan, sub-metropolitan, municipalities, and rural municipalities): While the roles and authorities of local Government are described in the new constitution, bilateral project collaboration is a new exercise for many. KISAN II staff are engaging local government officials in its target operational zones particularly by following private sector sourcing patterns to the designated municipalities. The principles of KISAN local government collaboration model will still apply: ● Provide awareness/orientation about the approach (private sector-led, facilitative implementation for agriculture development), staff and partnering structure, contractual scope of work and desired outcomes ● Identify areas of mutual interest and need in the targeted zone ● Coordinate to seek out opportunities to complement, sequence, layer and integrate KISAN II activities with other development partners and the GON ● Identify areas where leveraging resources will lead to greater farmer household impacts than either party working alone ● Establish expectations and modes and timing of knowledge, reporting and data sharing, and joint planning and monitoring ● Designate local government liaison and project focal point for on-going, regular communication.

Detailed Implementation Plans (DIPs). DIPs are the documentation that describes types and scale of planned activities in a given geographic zone. In consultation with USAID, KISAN II identified rural municipalities, municipalities, and sub-metropolitan cities as the primary partner for DIPs. KISAN II Staff recognized that flexibility was needed during the first year to establish relationships with newly formed government structures. This relationship helped KISAN II field staff carry out their activities in the second year. It is expected that the relationship will be helpful for KISAN II field staff to conduct activities in the future. Area coordinators and other field staff will be continuously engaging and establishing relationships with both provincial and municipality level officials to orient them to the project approach, parameters of implementation (software over hardware, and the project design to follow buyers to preferred sourcing zones to identify farmer/producers).

KISAN II PROJECT ANNUAL WORKPLAN Y3 PAGE 112 AID-367-C-17-00001 After following the collaboration steps listed above, • Area coordinators and other KSIAN II staff will have garnered local government priorities for activities, opportunities for leveraging project and GON resources, and preferred public and private sector implementation zones. • KISAN II staff then produce a draft DIP, allocating resources and activities according to potential for achieving results and resources available • Draft DIP is shared with local officials for review and comment • Area coordinators discuss options for adjusting activities and scale of investments, within parameters set by project leadership • KISAN II’s senior staff will provide managerial support to finalizing negotiations, as needed.

Reporting and deliverables This collaboration will result in knowledge sharing through specific reports and events: Reports ● Annual work plan of the third year will be shared to federal and provincial agriculture ministries and municipal level offices 15 days after finalized by USAID. ● Triannual and annual progress reports to same, 15 days after finalized by USAID. Reports due to USAID by December 15, April 15, and August 15 ● Monitoring, Evaluation and Learning data/reports shared with appropriate GON offices, within 15 days of finalization by USAID.

Events ● Biannual steering committee meetings including one during which annual outcome results are shared and following year’s work plan will be presented. The other one will be held during the middle of Nepali Fiscal Year and project achievements within the past six months and other relevant reports will be shared. Steering Committee meetings will be held jointly with other USAID projects. ● Technical committee meetings will be held to share technical innovations between MOALD departments and KISAN II technical staff concurrent with steering committees or near the dates. ● Continue support to MOALD for the operation of Joint Sector Reviews (JSRs) annual meeting of ADS-JSR Committee and triannual meetings of ADS-JSR technical committee meeting. ● Consultations with senior GON – Secretary, Joint Secretaries and/or Undersecretaries as part of annual work plan development process. Joint monitoring trips to project sites ● On-going meetings/consultations with local officials at local implementation level to discuss priorities, progress, leveraged investments, sequencing, layering and integrating KISAN II activities with other GON and development partner programs.

This provisional plan will be updated regularly as the devolution of government functions evolves and project activities scale up and diversify.

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