zVANU3TICS PMMT OF BK4.LL pARMWUmsE C3MVIT p~oj=C No. 664~-0302 Tm;TUNIMI MAY 1980 TAKlE OF CONTS PAGE i. WnODUCTioN A.. Evaluation Team Membe s . ... ,.. B. List of Officials Intweviewed . ,.. *.*, . 22. C. Field Trips . .. 2 D. List of Perons in ontact vith Tea 2 E. List of AbbreviatJona vith Brief Explanations 2 1I. sJIARY AND RECObW.DAMTIs.. A. Suama ' B. Rec ndationas .. 6 fli. A SIS A. Imact of the Project 1. Ii~act on Apricutural, Productivity9 2. IMact on Production .1 3. Izpact an Incomes of Participating Farmers 12 4* Impact on Technolog Used 14 5. Diffusion of Project Methods to Non-Participants 16 B. Methods of Credit Approval and Input Supply. 1. Credit approval and Delivery System 17 2. Are there Inequities in Loan Eligibility Determination? 20 3. Aequacy of the Input Sup;'y system 20 4*. Role of Private SectQr in SupIM of Inputs to Project Farmers -... 23 5. Role of the Farm Plans 25 6. Reactions of Farmers and Exension Agents 26 C. Financial Aspects 1. Performance of the National Bank of TvniAia-BN 27 2. Reporting Services of the BIW 29 3. Delinquency in Repament of AP E lans 34 4, Capitalization Proposal for the Future of APMAVE 36 5. The Role of the SCMAs 37 6. Interest Rstes, Supervised Credit, and the Financial Environment 38 7. Loan Targets and Cost-Benefit Cm prisons 39 D. Program for the 3W13. Farmer, Other Project Asmtions. 1. Are Project Beneficiaries in the Target Grop 41 TABlE dlCtaMNTS COT'D PAGE 2. Farm sizemand theDemand for Credit 4 3. Participation of Farmers with 0-5 and 5-1 Hectares in the Project I F''."" 4. Has the Opposition of Large Farmers Affected the . .,qlmentation of the Proj e '" . .45 5. Farmers Receptivity" "6. 6. Profitability of Controlled Producer Prices 46 7. Adequacy of the System of Comercialization 4- E. Projection of Project APMANE'e Needs " ... 1. Staffing of Projet MAKE 147 2. Extension of the Time for I -lementation .. ,49, 3. Vehicle Requirements and the Chauffeur Situation. 51 14. Training and Personnel Development :25. 5. CIEA, its Role and Performance 53 6. USAID Technical Assistance i 1e1m~nts ' .354 7. Technical Operat Sg.a." " " . IV. BROADiEN EVAMATIM:. PLANG ADAPT= TO - . T PARTICULAR CDITZIONS OF ,WZI F'ARIM S . 514.-: 59 Concluding Obaervatiois by Prof. A. Che noufi, Teem CoordLn&tor, on problems of evaluating certain social aspects of smnal farmer piograms in Tunisia. Annex A: Projet de Credit SupeiA ' A.MYA.NE. '; " Etude de Sulvi et d'Evaluation de ... Premiere Annde d'Execution, 97$/79 CEA, Janver 1980. Annex B: Projet de Credit Supervis6 AP.MA.N.E. Note Ccplementaire aur le Remboursemant .des Prbts.. CM, Mws,.1980. This evaluation was undertaken by a bi-national team, members of ,which are listed under A. Interviews made by the team are listed under B., and field trips under C. Sources of information included interviews end trips, studies by CNEA (see list of abbreviations under 2.), bank reports, governmant documents. A. List of Evaluation Team Members Mr. A. Chebil, Chief Engineer, D.P.S.A.E. Mr. P. Avram, Consultant, AID/I, Chio State University Mr. J. Gharbi, Chief Engineer, D.A.P.M.E. Miss Kh. Baghdadi, Chief Engineer, D.P.V. Dr. G. Donald, Consultant, AID/11, National Planning Association Coordinators Prof. A. Chennoufi, Chairman of' .. Department of Rural Economics I.N.A.T. Mr. E. F. Gibson, Agricultural Economist USAID/Tunin B. List of peole and officials contacted and interviewed during the assessment study. USAID .. Mr. U1.F. Gelabert, Director, USAID, Tunis USAID . r. G. H. Zarr, Regional Legal Advise., USAID, Tunis MV/DCI .. Wr. F. Khelil, Directeur de la Cooperation Inter­ nationale (Director for International Cooperation) D.A.P.M.E.. W. K. Daghfous, Directeur de l'asaistance aux petites & moyenes exploitants (Director for assistance to 8mall and Medium-sized Farmers) C.R.D.A. Mr. A. El-Ghali, comissaire regional aUi d6veloppement (Beja) agricole (Regional Officer for Agricultural Development) C.R.D.A. Mr. El-Hedi, head of BNT Office in Beja (Deja) D.P.V. .. Mne. N. Jebnoun, ingdnieur subdivisionnaire' (Sub. (Grombalia). divisional Engineer) DPV, Grombalia. SOWAM .. Mr. F. Bouzaiene, Head of Technical Division C.N.E.A... Mr. A. Slam, Director, CEA Mr. Zghidi, Consultant, CNEA Wr. M. TaJaoui, Consultant, CEA O.C. .. Mr. Mlika, Head of Supply Service O.E.P. .. Mr. Balti, Head of Study Division Mr. Mhouchi, Head of 8upply Service Mr. Jaafar, Comercial Director -2- B.N.T. r. M. Atallch, Deputy Director of Aica:iji'al Division, Tunis 1 . r. A. Soul&, Agriculiural Credt o cer. .c.G.C... .. ,. M.m. mahoub, Director of -'Tecical Division B..T., , K,.: (aslti, Commercial Direc or . B.N.T. .. WtM. kasem, Chief of the Zaghouan Branch.... the C. B.N.T. C. Trips made by Evaluation Tbmn Beja Governorate Beja delegation: Sectors: Ksar Mezouar, Amdoun. ,Noaeul Governorate: Grombalia delegation: Sectors: Djebe. Terif, Nianou Zaghouan Governorate: Fahs delegation.:' SCRAM Regional Office. ,. D. List.of people in direct contact with the project and interviewed by the Evaluation Team Mr. E. F. Gibson, Project Officer, USAID, nis. Mr. C. J. Fliginger, Chief of Agricultural Division, USAID, Tunis Mr. 1. Trabelsi, APMANE Pro .t Chief, DAME Mr. D. Dupras, APMAIME Techni -Advisel, .USAID Mr. R. Gregg, AM'AEconomic Adviser, USAID" " . Mr. M. Gasmi, AP14ANE Office Liaison. Chief, Beja Mr. A. Gaidi, Extension Agent : Ksar Mezouar. Mr. A. Dhaouadi, Extension Agent, Amdoun 'W M. Lehmar, Extension Aent, Grombalia and. about 40 farmers in Ksa.14ezouar, Andoun, 'Djebel Teref, Nianou. E. List of Abbreviations 4rith brief explanation. AM=tE... Assistance au petits et1yens Agriculteird du Nord- Est. (Assistance to Si&ll and Medium-s zed-farmer of the Northeast - formal name of the AID projict unit _...(the Ministry of Agriculture) B.N.T. .. Banque Nationale du Tunisie. (Public Comercial Ban1c) C.N.E.A.... Centre Nationale d'dtudes Agricoles (A Research Organization) C.T.V. .. Cellule Territoriale de Vulgarisation. (Loc l 'Office of Extension. Agents) C.C.G.C... Coop6rative.Centrale des Grandes C&Utures (Sells some Seeds to Farmers) C.R.D.A... Commissariat 6-4iqnall.au d~veloppeient Agricole.' (Provincial Office. of Ministry of Agriculture) -3" D.A.P.M.E. .. Direction do l'Assistance aux petits et moyens eloitants. (iinstbre do l'Agriculture, Tunisia) Division Supervising APMANE) D.P.S.A.E. .. Direction do la planification, den statistiques et des analyses 6conomiques (Ministbre do l'Agriculture Tun±ie) (Planning Office, Ministry of Agriculture) - D.C.I. .. Direction de la Cooperation Internationale (Miniutdre do lt agriculture, Tunisie) (International Affairs Office vrithin the Ministry of Agriculture) - D.P.V. .. Direction de la Production V6g6tale (Ministbre de l'Agriculture Tunisie). (Division formerly supervising APMANE) - M.O.A. .. Minist6re de 1' Agriculture (M.nistry of Agriculture) - O.C. .. Office des C6rdales. (Sells Seeds, Fertilizer; buys cereals) - O.E.P. .. Office de l'Elevage et des piturages. (Sells livestock and promotes livestock production) - I.N.A.T. .. Institut National Apronomique do Tunisia. (Principal Agricultural University) - S, C.M.A .. Socibte de caution Watuelle Agricole (Local Organizations for Farm Credit) - S.O.N.A.M. *. Socihtd National de Motoculture (Rents Tractors and Cobine Services) IL. 3'.#WARY AND RECO0,IDATIKS - A. JW4PIRY " BACIROU4D THe Small Farmer Supervised Credit project, referred to as API(, in Tunisian terminology, is a project that seeks to: (a) use credit as a tool to increase .farm production; (b) improve the quality and increase the supply'of production inputs; (c) intensify technical services and, as a result of this combination; (d) increase the number of small and medium sized farmers employing higher levels of production technology. The USAID contribution to this project consists of a $17,300,000 loan to establish a revolving capital fund from iftich supervised loans will be made to eligible, small and medium sized (0-50 hectares) farm operators in the five north-east gouvernorats making up the project area. Other U.S. contributions consist of grans amounting to $937,000 for purposes spelled out in the project paper, i.a., for assistance in the launching and advancement of the project. As of this date, the U.S.­ contribution amounts to a little more than $2,000,000 to the loan fund, and a further release of slihtly less than $4,000,000 is anticipated shortli. This will bring the U.S. contribution to $6,000,000 in 1980, in compliance with the financial schedules included in thd terms of the loan agreement. The use of U.S. gant funds d(ring the launching and the initial two year period of operations has been highe" than ihat, was previously anticipated. The Government of Tunisia's contribution to date anount to 1,550,000 diners ($3,875,O00),,and it is slightly above target I.rith its commitments. This project (API4AE), is the only program offering supervised credit to small farmers in Northern Tunisia, and its success is of wider interest to the Tunisian Government as a model for possible future expan­ sion nationw-ride. Progress to date The project comienced in October 1978 and will comlete an operation covering tim crop cycles in July 1960. Initial organizational taks including the inter-agency transfer of API.MIE (from the Direbtion de Production Vegetale to the Direction de l'Assistance aux Petits et Moyen Exploitants (DAP) in summer 1979, the recruitment and training of personnel, the establishment of regional offices and the acquisition of equipment and materials -ere all satisfactorily accomplished. This crop year almost 2,000 farmers in the target group were reached .ith technical services and credit. APMi=E is now in place, and ready to intensify and expand its services.