Farmers' Support Fund: Effectively helping members escape poverty.

(Baonghean) - Over the years, the Farmers' Support Fund has helped thousands of households in the province borrow capital at preferential interest rates, invest in business, contribute to the transformation of the agricultural and rural economic structure, gradually improve the lives of farmer members, and create more internal strength in mobilizing resources for building new rural areas...

In May 2012, from the Central Farmers' Support Fund of 1.3 billion VND, 60 households in four communes of Dien Ngoc, Dien Xuan, Dien Phong, and Dien Binh (Dien Chau district) received loans to invest in seafood processing and breeding sows. Leading us on a tour of his family's breeding sow farm, Mr. Nguyen Xuan Hoa (Dien Binh commune) shared: “Although the loan from the Fund was only a few tens of millions of VND per household, for my family it was a valuable opportunity to continue investing in production and livestock farming. Around mid-2012, when livestock farming faced capital difficulties, my family had to sell off some of our breeding sows.”

After receiving a loan from the Farmers' Support Fund, my family focused on investing in feed and disease prevention medicine for our pigs. Furthermore, participating in the pig breeding project provided us with training on disease prevention for livestock, and allowed us to exchange and learn from the experiences of other households in the area. Thanks to this, our pig farming has developed significantly. In the first six months of 2014, my family earned over 25 million VND in profit from selling piglets.”... According to calculations by Mr. Bui Van Khuyen, Vice Chairman of the Dien Chau District Farmers' Association, after one loan cycle (2 years), the 60 households in the district participating in the farmers' support fund projects all earned profits 2-2.5 times their initial loan amount.

Seafood processing in Dien Ngoc commune (Dien Chau district).

Also in 2012, receiving funding from the Farmers' Support Fund, 65 farming households in three communes of Nghi Long, Nghi Trung, and Nghi Van (Nghi Loc district) borrowed a total of 1.1 billion VND to develop breeding of Sind crossbred cattle and porcupine farming; each household borrowed an average of 12-30 million VND. After more than two years of receiving the capital, the cows of the participating households each gave birth to 1-2 calves, resulting in an average annual profit of over 20 million VND per Sind crossbred cow. In total, the 65 households in Nghi Loc had a net profit of approximately 1.6 billion VND over one loan cycle. The participating households all shared the same opinion: Compared to traditional yellow cattle farming, raising Sind crossbred cattle has many superior advantages such as not being picky eaters, having fewer diseases, rapid weight gain, and a larger, more attractive appearance, making them more popular in the market…

Mr. Nguyen Thanh Ha, Chairman of the Nghi Long Commune Farmers' Association, said: "Many families have bred an additional 1-2 cows for raising, and some households have sold two batches, earning nearly 50 million VND in profit. All households participating in the project used the loan capital for its intended purpose, effectively utilizing the funds, managing their production and business operations, and most importantly, it provided them with methods and approaches to change their perceptions and behaviors, significantly contributing to the poverty reduction movement. Currently, after the project ends, the local authorities are encouraging association members to build a fund to support farmers at the grassroots level, creating capital for sustainable livestock development."

With the goal of helping more farmer members escape poverty and become wealthy thanks to capital from the Farmers' Support Fund, the Provincial Farmers' Association has focused on mobilizing capital through various forms to build and develop the fund. As of July 31, 2014, the total capital of the Farmers' Support Fund managed by all levels of associations in the province was VND 24,924,174,000; of which VND 10,500,000,000 was entrusted capital from the Central Government, VND 12 billion was allocated annually from the provincial budget (supplementary funds of VND 10 billion in 2012, VND 1 billion in 2013, and VND 1 billion in 2014), and VND 1,070,000,000 was directly managed by district-level organizations. With funds entrusted by the Central Association, loans have been disbursed to 26 local branches, benefiting 430 households. Of these, 19 projects with a total loan capital of 7.1 billion VND have completed their second loan cycle. Provincial budget funds have been disbursed to 38 local branches, benefiting 598 households, with 17 projects currently underway with a total loan capital of 4.4 billion VND completed their second loan cycle. District-level funds have been used to develop 27 model projects in 27 local branches across 14 districts, providing loans to 100 households.

From the first-cycle loan projects, the number of cattle increased by 500 (450 breeding cows, 50 beef cattle), with an estimated value of 6,948 million VND; the total number of breeding sows increased by 10,325, with a value of 6,600 million VND; shrimp farming increased by 15,828 kg; fish sauce processing increased by 10,000 liters; and the civil carpentry trade generated an income of 2.4 billion VND… To maximize effectiveness, after disbursing funds for project models, farmers' associations at all levels coordinated the organization of training courses to transfer scientific and technical knowledge, methods of raising, cultivating, and controlling pests and diseases for crops and livestock, ensuring that the capital reached the people with the highest efficiency. Simultaneously, they conducted inspections and provided guidance on the use of funds to prevent misuse.

Initial results from models using loans from the Farmers' Support Fund show that, although the capital is not large (from 15 - 30 million VND/household), it has created conditions for members of the Farmers' Association to build and replicate economic development models, contributing to the transformation of the rural economy. Many localities have formed clubs and cooperatives, with close links between member households in the production and consumption of products, such as using the same seeds, animal feed, sharing experiences and methods... to help reduce production costs. Most households that received loans voluntarily contributed to the Farmers' Support Fund, mobilized by the commune, from 50,000 - 100,000 VND/year, contributing to the growth of capital and creating conditions for other farmers to borrow capital to develop production.

Mr. Nguyen Huu Nhi, Chairman of the Provincial Farmers' Association, stated: Since 1996, the Farmers' Support Fund has been established and operational, marking a milestone in the innovation of the association's operational methods, laying the foundation and creating resources to directly promote farmers' movements. Particularly, since the implementation of the project to improve operational efficiency (2011-2020), the fund has fundamentally reformed its method of supporting farmers, focusing on loans for production and business development through project models (instead of loans to individual households or small groups of households) to build and replicate models of linkages, cooperation, groups of households, farms, and small businesses; primarily focusing on fulfilling the core criteria of the new rural development program, which is creating jobs, increasing income, and improving the lives of members and farmers… Through the activities of projects funded by the support fund, there has been a positive impact on the awareness of local Party committees and authorities regarding the Farmers' Association. At the same time, it creates favorable conditions for all levels of associations to strengthen their activities, disseminate information, unite farmers, and successfully implement economic development programs.

Ngoc Anh