Pivotal to enriching the living standards of people, the agriculture sector in Nepal engages two-thirds of the nation’s labor force and contributes to more than one-third of its Gross Domestic Product (GDP). As such, the Agriculture Development Strategy (2015-2035) of Nepal targets an increase in the volume of food production through higher productivity by accelerating the growth of micro, small and medium agro-enterprises including those headed by women, youth, and disadvantaged groups.
Some interventions to sustain smallholder farmers in the country have been instrumental in promoting these targets. A study carried out by the Independent Office of Evaluation of the International Fund for Agricultural Development (IFAD) reviewed the joint work of IFAD and the Government of Nepal between 2013 and 2019, which consisted of eight projects at a total cost of US$206.7 million. The study highlighted that IFAD had helped to increase the productivity of small farms by focusing on improved production of high-value crops including off-season vegetables, fruits, and dairy products. This also increased the income of smallholder farmers in the country.
The Heifer International Nepal has been investing in smallholder farmers, especially those run by women, youths, and disadvantaged groups for more than two decades to increase their access to agricultural services in order to reduce hunger and poverty. With an aim of increasing annual household income by 72%, Heifer is currently implementing its ‘Strengthening Smallholder Enterprises of Livestock Value Chain for Poverty Reduction and Economic Growth in Nepal II (SLVC II)’ project (2018-2021) with a fund of US$ 25.6 million distributed across 31 districts.
Dr. Tritha Regmi, Director of Programs at Heifer, says that modern agricultural services should reach out to the grassroots to ensure fair market prices thereby uplifting the economic standards of smallholder farmers. A recent study by ILO (2019) showed that smallholders account for almost all vegetable production in Nepal, with 3.2 million vegetable growing holdings being equivalent to 69% of all Nepalese households.
Among the findings of the study, there are few worth mentioning:
- The vegetable sector (excluding potatoes) contributes about US$895.45 million or 8.8% of the national GDP.
- The majority of goats are slaughtered within villages on different occasions, especially during holidays and festivals, with the surplus being sold when the income is required.
- Only 20% of land is cultivatable in Nepal
- ADB (2012) estimates that about 71.6% of smallholders are dependent on informal sources of credit such as private money lenders and relatives, for loans.
- Integrated crop and livestock subsistence farming systems with the predominance of smallholder farmers are the main features of agriculture in Nepal.
- According to the Food and Agriculture Organization of the United Nations, 2.7 million smallholder farms account for 70% of the food produced and nearly five family members work on each household farm.
- Only one-fifth of the 2.7 million smallholder farms use improved seed varieties.
- The average smallholder farm size in Nepal is 0.52ha.
According to Dr. Regmi, smallholder farmers in Nepal are unable to invest in inputs including modern agricultural and livestock techniques, high-quality seed, and fertilizers. He observed that small land holding, lack of market access, and the dominance of intermediaries are the key challenges faced by smallholder farmers and suggests improving the production and supply value chain system would improve their livelihood by directly connecting them to the market.
To address these issues, SLVC II is working with Smallholder Farmers’ Organizations and value chain actors to improve market systems, primarily in goat meat and dairy value chains along with vegetable and backyard poultry, he added.
“Currently we are working with 279,000 families, more than 12,000 women groups and 226 women-led cooperatives to synergize relationship between social capital development and market engagement,” he stated.
It is noteworthy that the project contributes towards the achievement of seven out of the 17 Sustainable Development Goals including No Poverty, Zero Hunger, Gender Equality, and Economic Growth.
For smallholder farming to contribute to Nepal’s national economy, it needs to be women-friendly, such that it has to consider women’s roles as agricultural producers, respect their labor, and recognize their identity.
“Our partnership with women-led cooperatives for smallholder farming has produced exciting results; there was zero default; loans have been returned on time and more women have been capacitated by women” described Dr. Regmi.
He recommended that initiatives promoting smallholder farming should advocate for capacity building of youths, ensure women’s access to land, enable easy access to loans and subsidies, adapt modern agro-technology, and encourage direct market access.
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