Rural Development Program RDP II

1. Rural Development Program RDP II Aiding rural & community development through promoting poverty reduction, food security, nutrition and resilience

2. Program Development Objective • To improve access to basic services in rural areas and to improve farming practices leading to increased production and productivity.

3. Components • Component 1: Community infrastructure and services • Component 2: Agribusiness Partnerships and Support • Component 3: Program Management

4. Component 2 • This component aims to increase agricultural production and productivity through improved, climate resilient farming practice, diversification and commercial activity. • The subcomponents are: • 2.1: Agribusiness Partnership Grants • 2.2: Agricultural Supplemental Equity Facility • 2.3: Agricultural Commercialization • 2.4: Agriculture and livestock disaster recovery and resilience

5. 2.1: Agribusiness Partnerships • Partnerships between smallholder farmers and agribusinesses that facilitate increased production and marketing of agricultural commodities • Facilitate productive alliances between agribusiness, farmers and other value chain actors • Partnerships must engage smallholders and assist them to improve their productivity and connection to markets • May be based on any one or more agricultural or livestock commodities • Partnerships financed through a competitive grant scheme • Grants up to $2 million • 20 partnerships ongoing, 28 potential in the pipeline

6. Partnerships focus • Designed by lead partner to fit the actual needs • Improving farmer production and quality • Building capacity – financial literacy, basic management and planning training, production and processing techniques • Provide extension services • Hands on training and farmer field school approach • Supply tools and equipment where required • Value chain improvement • Marketing

7. Types of partnerships

8. Potential allocation of the combined Call 1 and 2 Partnership Grant

9. 2.2: Agricultural Supplemental Equity Facility • Enable agribusinesses to expand • Finance for plant and equipment, infrastructure, working capital • Grants of up to $600,000 SBD • Eligibility criteria loan approval from a participating commercial bank • Agriculture related • ASEF are linked to a bank loan covering at least 60% of project costs. • 9 ASEF grants given to date

10. 2.3: Agricultural Commercialization • Focus on direct engagement and support for farmer groups through: • (i) assisting their members to increasing production, quality, productivity, value addition and market access; and • (ii) improving the capacity of the groups themselves • Improved industry coordination, • Adaptive agricultural research (cocoa, coconut)

11. 2.4 Agriculture and livestock disaster recovery and resilience • In Guadalcanal • Help to stimulate economic activity • Repair or replace agriculture and livestock infrastructure for cocoa, copra, pigs and Chicken and replace some breeding stock (pigs and chickens). • To date, 2,469 beneficiaries from 274 families have received assistance • Develop and deliver training and awareness on climate and disaster resilient farming practices in all provinces.

12. Poverty Reduction • All sub-components focus on poverty reduction Food security • Improved by having more income to purchase food Nutrition • Partnerships for food production (root crops, vegetables, fruit and nuts, livestock) – one for fishing industry in Noro includes a nutritionist to balance diets Resilience • Training and awareness on climate and disaster resilient farming practices

13. Tagiotumas