Revolving Loans and Training for Farmers in Bac Kan Province

The revolving loan and agricultural training program in Bac Kan was established in January 2005 and planned to conclude in December 2008. The program is designed to alleviate poverty in the area and improve farming techniques.

Background to the project

Bac Kan province is very mountainous and has only 6.28% of its land available for agriculture. However, with 85% of the population in the province's communes continuing to earn an income through farming, the lack of arable land poses a problem. In the communes of Dai Sao, Hoa Muc and Ha Vi the average annual per capita income of farmers is 1,890,000 dong (VND, just over US$100), which is only 27% of the national average income.

Overview of the project

This project has seen training and loans provided to some of the most disadvantaged farming families in one of the poorest provinces of Vietnam. This project raises the ability of local farmers to establish better farming enterprises and successfully manage livestock. In addition to this training, the project provides its participants with the skills and knowledge to design and implement production plans with guidance and funding to develop the capacity of the participants.

The project's objectives are:

1. Assist farmers to develop sustainable agricultural and forestry production.
2. Enhance solidarity in the community; reduce pressure on natural forestry areas, protect forests in the communes and mitigate farming land degradation.
3. Assist farmers to apply new knowledge from the training.
4. Disseminate and extend successful models of farming practices and skills to other communes in the province.

Union Aid Abroad-APHEDA's project is aimed at increasing the level of education about farming skills to those who make a commitment to the training courses and those most disadvantaged. Accordingly the project's selection criteria focus on:

• Single parent headed families.
• Poor families with difficulties in accessing other credit.
• Continuing to work with the graduates from the two month agro-forestry training provided by APHEDA and the province's Department of Labour in 2002-2005.
• Farmers who have completed the four day course with the Farmers Support Center on technical skills and loans management.

Training is provided to participants on various farming techniques, such as raising sows, chickens, goats, pond fishery, planting bamboo or growing grass for horned animals.

In order to assist participants to successfully implement the various skills, techniques and knowledge that they have acquired from the training, a loan scheme is available for those who meet the criteria. This scheme is designed to provide the material base with which the participants can start to change their production.

Criteria for accessing the loans include:

• households having a production plan, taking account of economic effectiveness and solvency,
• competency in the training for the new production chosen by the participant,
• contributions by participants to labor, land, costs to build breeding facilities, production tools and equipment, organic fertilizers and food for livestock,
• the participants coming to open and democratic meetings to keep informed about content, scale and loans from the project so that they can carry out investment activities.

By providing training to 220 households in the Bac Kan province and giving them access to loans of around VND 1,500,000 (US$100), Union Aid Abroad-APHEDA is looking to build the knowledge and skills of local farmers and communities. It is hoped that by implementing this project other households will be encouraged to learn and follow successful models without direct support from the project. By building the capacity of local authorities and bodies to conduct these projects on their own, Union Aid Abroad-APHEDA seeks to establish an environment of efficiency and increasing self-sufficiency among some of the most disadvantaged in Vietnam.

© Union Aid Abroad - APHEDA 2003.
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Last Modified: Wednesday, 21-Mar-2007 10:35:47 EST
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