Feed the Future Nepal Knowledge-Based Integrated Sustainable Agriculture in Nepal (KISAN) II Project Year 3 Annual Report July 16, 2019 to July 15, 2020 FEED THE FUTURE NEPAL KNOWLEDGE-BASED INTEGRATED SUSTAINABLE AGRICULTURE IN NEPAL (KISAN) II PROJECT YEAR 3 ANNUAL REPORT JULY 16, 2019 – JULY 15, 2020 CONTRACT NUMBER AID-367-C-17-00001 DISCLAIMER This report is made possible by the generous support of the American people through the United States Agency for International Development (USAID) under the Feed the Future Initiative. The contents are the responsibility of Winrock International and do not necessarily reflect the views of USAID or the United States Government. Cover Photo: Shanti Chaudhary in Kailali grows vegetables and other crops all year-round after benefiting from agriculture related trainings, technical assistance, and irrigation support from KISAN II partner, Kishan Agrovet Center. This shallow tube well benefits seven farming households and irrigates about two hectares of land. (Photo credit: Robic Upadhayay for USAID) TABLE OF CONTENTS Table Of Contents ........................................................................................................................................................... iii Acronyms............................................................................................................................................................................ vi Executive Summary ........................................................................................................................................................ viii Introduction ........................................................................................................................................................................ 1 Key Output Level Indicator Results .............................................................................................................................. 1 Key Outcome Level Indicator Results .......................................................................................................................... 3 Farm-Level Yields .......................................................................................................................................................... 3 Farm-Level Sales ............................................................................................................................................................ 3 Firm-Level Sales ............................................................................................................................................................. 4 Access To Finance ........................................................................................................................................................ 5 Improved Management Practices And Technologies ............................................................................................ 5 Organizational Capacity Development Outcomes ............................................................................................... 5 Inclusion ........................................................................................................................................................................... 6 Enabling Environment And Government Collaboration ...................................................................................... 6 Business Literacy Program .......................................................................................................................................... 7 Collaboration, Learning And Adaptation................................................................................................................. 7 Science, Technology, Innovation, And Research (STIR) ...................................................................................... 7 Impact Of COVID-19 ....................................................................................................................................................... 8 Impact On Agribusinesses And Farmers ................................................................................................................. 8 COVID-19 Adaptations ............................................................................................................................................... 9 Migrant Returnees And Skillsets ................................................................................................................................ 9 Update On Activity Implementation ........................................................................................................................... 10 Collaboration With Government Of Nepal ......................................................................................................... 10 Engaging Municipalities To Understand And Support Production, Marketing, And Irrigation (Activity CL.1) .......................................................................................................................................................................... 10 Component 2: Strengthen The Competitiveness, Resilience, And Inclusiveness Of Selected Agriculture Market Systems............................................................................................................................................................ 13 Sub-Objective 2.1: Strengthen The Organization And Coordination Of Selected Market Systems .. 13 Sub-Objective 2.2: Strengthen The Organization And Coordination Of Selected Market Systems .. 17 Sub-Objective 2.3: Enhanced Financial Service Markets Serve Selected Market Systems .................... 17 Sub-Objective 2.4: Enhanced Market Infrastructure And Other Services To Support Selected Market Systems ....................................................................................................................................................... 20 Sub-Objective 2.5: Expanded Trade In Domestic And Regional Markets To Support Agricultural Market Systems Development ............................................................................................................................ 21 Component 1: Improve The Productivity Of Selected Agriculture Market Systems ................................. 22 Sub-Objective 1.1: Facilitate Intensification And Diversification Of Male And Female Farmers And Socially Excluded Groups Into Higher-Value Commodities......................................................................... 22 Sub-Objective 1.2: Strengthen The Capacity Of Input Supply Systems To Deliver Timely And Affordable Productivity-Enhancing Technologies ............................................................................................ 22 Sub-Objective 1.3: Increase Adoption Of Profitable, Productivity-Enhancing, And Climate-Smart Technologies By All Groups, Including Youth, Women, And Disadvantaged Groups .......................... 24 Component 3: Strengthen The Enabling Environment Of Selected Agriculture Market Systems ........... 26 Sub-Objective 3.1: Build Capacity For Streamlining, Harmonizing, And Coordinating GON Policies And Regulations ...................................................................................................................................................... 26 Sub-Objective 3.2: Improve Investments, Management, And Governance (E.G. Standardization) Of Infrastructure ........................................................................................................................................................... 27 KISAN II PROJECT YEAR 3 ANNUAL REPORT Page iii AID-367-C-17-00001 Sub-Objective 3.3: Improve Systems To Increase Quality Of Selected Commodities .......................... 28 Sub-Objective 3.4: Support Local Government Agencies To Improve Investments In Support Of Market System Development .............................................................................................................................. 29 Component 4: Increase Vulnerable Communities Ability To Act On Business Opportunities Within Selected Markets Systems ......................................................................................................................................... 30 Sub-Objective 4.1: Enhance Literacy And Business Skills ............................................................................. 30 Component 5: Apply Collaboration, Learning And Adaptation To Market Systems Development ....... 32 Mid-Year Program Review Workshop To Plan Next Steps And Narrow Scope Of Learning Objectives ................................................................................................................................................................. 32 Learning Agenda...................................................................................................................................................... 32 Sub-Objective 5.1: Apply CLA To Advance Competitiveness..................................................................... 40 Sub-Objective 5.2: Apply CLA To Advance Inclusiveness ............................................................................ 40 Grants Under Contract ............................................................................................................................................. 42 Monitoring, Evaluation, And Learning (MEL) ........................................................................................................ 43 Operational, Financial, And Communications Activities