# LongBench v2 / 66f4cd2c821e116aacb316ef

task_id: bc27d52a-7136-592c-9868-bdd893d7be0c
task_key: train--66f4cd2c821e116aacb316ef
task_revision_id: 3

{"choice_A":"A country that prioritizes short-term agricultural outputs through chemical intensification, while forgoing investments in farmer education, may initially achieve impressive yield increases. However, this approach risks long-term soil degradation and health crises, which ultimately lead to a destabilized agricultural sector that requires significant state intervention, thereby straining public finances and reducing the government's capacity for social investment.","choice_B":"By neglecting agricultural human capital investments, the economy may become increasingly dependent on foreign food imports and agricultural technologies, creating a precarious trade balance. This dependency can exacerbate domestic income inequality as rural areas suffer from reduced job opportunities, leading to civil unrest that threatens political stability and economic policy continuity.","choice_C":"A consistent lack of investment in agricultural education leads to a homogenization of farming practices across regions, stifling innovation and adaptability. This results in an agricultural sector that is ill-prepared for climate change impacts, which in turn amplifies rural poverty and forces governments to increase welfare spending, thereby diverting resources from infrastructure and human capital development initiatives.","choice_D":"The absence of targeted human capital investments in the agricultural workforce perpetuates a cycle of poverty and economic stagnation, particularly among marginalized groups. This exacerbates social inequalities, as access to emerging agricultural markets becomes increasingly limited to those with existing capital and connections, ultimately undermining the potential for inclusive economic growth.","context":"INVESTMENT\nTOOLKITS\nFAO\nINVESTMENT \nCENTRE\nHOW TO INVEST IN FARMERS?\nA GUIDE FOR AGRICULTURE HUMAN \nCAPITAL INVESTMENT PROJECTS\n\n\nInvestment Toolkits\nNumber 5\nHOW TO INVEST IN FARMERS? \nA GUIDE FOR AGRICULTURE HUMAN  \nCAPITAL INVESTMENT PROJECTS\nJohanna Gammelgaard  IFPRI CONSULTANT\nSteven Franzel  IFPRI CONSULTANT\nRodrigo Salcedo Du Bois  FAO \nAshok Kumar  TRANSFORMING RURAL INDIA FOUNDATION \nKristin Davis  IFPRI\nJohn Preissing  FAO\nKatarzyna Pankowska  FAO\nPublished by \nthe Food and Agriculture Organization of the United Nations \nand \nthe International Food Policy Research Institute\nRome, 2023\n\n\n   III\nContents\t\nForeword\t\nVII\nAcknowledgements\t\nVIII\nAbbreviations and acronyms \t\nIX\nINTRODUCTION\t\n1\nMODULE 1\t\n\t\n\t\nAgriculture human capital investment: what it is and how to use it\t\n5\t\nMODULE 2\t\n\t\n\t\nDefining agriculture human capital investment\t\n13\t\n\t\nMODULE 3\n\t\nBuilding agriculture human capital through investment\t\n21\n\t\nMODULE 4\n\t\nAgriculture human capital investment development methods\t\n47\n\t\nMODULE 5\n\t\nA deep dive into two agriculture human capital investment cases\t\n95\n\t\nCase 1: The Jharkhand Opportunities for Harnessing Rural Growth \n\t\nproject in India case study\t\n97\t\n\t\n\t\nCase 2: The Haku Wiñay/Noa Jayatai case study\t\n111\n\t\nMODULE 6\n\t\nAppraising agriculture human capital investments in the context of economic  \n\t\nand financial analysis\t\n125\n\t\nMODULE 7\n\t\nKey messages and recommendations on investing in AHCI\t\n141\n\t\nREFERENCES\t\n151\n\t\n\t\nGLOSSARY\t\n160\n\t\n \n\t\nANNEX\t\n163\n\t\n\t\n\n\n\t\n\t Tables, figures, and boxes\n\t\n\t\nTables\n\t\n1.1\t\nCurrent focal areas for agriculture human capital investment\t\n10\n\t\n2.1\t\nThree fields of agriculture human capital and some examples\t\n16\n\t\n4.1\t\nPotential for methods to improve human capital, and changes sought\t\n85\n\t\n4.2\t\nPerformance of human capital development methods across selected  \n\t\n\t\nassessment criteria\t\n87\n\t\n4.3\t\nUsefulness of methods in developing human capital\t\n88\n\t\n5.1\t\nMain stakeholders in the JOHAR project\t\n101\n\t\n6.1\t\nComparative costs for two distinct approaches to training\t\n138\n\t\nA.1\t\nExpected incremental costs and benefits for each type of subproject and activity\t 164\n\t\nA.2\t\nTechnology adoption rates from the participants’ survey\t\n165\n\t\nA.3\t\nEFA indicators: overall project \t\n166\n\t\nA.4\t\nEFA indicators: capacity-building component \t\n166\n\t\n\t\nFigures\n\t\n2.1 \t\nAn investment model in agriculture human capital and its components\t\n15\n\t\n2.2 \t\nTypology of human capital development methods in agriculture\t\n17\n\t\n3.1 \t\nAgriculture human capital in a theory of change\t\n22\n\t\n3.2 \t\nThree building blocks in augmenting agriculture human capital investments\t\n23\n\t\n3.3 \t\nContent, objectives and key activities of three building blocks\t\n24\n\t\n3.4 \t\nExample of aspirational building block informed by framing building block\t\n34\n\t\n3.5 \t\nInformation flows between building blocks pre-implementation\t\n42\n\t\n3.6 \t\nInformation flows between building blocks during implementation\t\n43\n\t\n4.1 \t\nHuman capital development methods useful for supplementing technical  \n\t\n\t\ntraining and education to achieve self- and wage-employment\t\n92\n\t\n5.1 \t\nFunding flow system of JOHAR\t\n100\n \t\n5.2 \t\nTheory of change in JOHAR\t\n103\n\t\n5.3 \t\nLayering and phasing of JOHAR project activities\t\n107\n\t\n5.4 \t\nImplementation structure of JOHAR\t\n108\n\t\n5.5 \t\nSummary of aspirational building blocks of Haku Winay/Noa Jayatai\t\n114\n\t\n5.6 \t\nSummary of components and processes developed by Haku Wiñay/Noa Jayatai\t\n120\nIV   \n\n\n\t\n6.1 \t\nIntegrated investment appraisal methodology\t\n130\n\t\n7.1 \t\nKey recommendations for investing in farmers\t\n142\n\t\n\t\n \n\t\n\t\nBoxes\n\t\n1.1\t\nDescription of five types of capital\t\n6\n\t\n1.2\t\nDefinitions of agriculture human capital\t\n7\n\t\n1.3\t\nDevelopment of technical, social and managerial skills under Jharkhand  \n\t\n\t\nOpportunities for Harnessing Rural Growth Project (JOHAR) in India\t\n8\n\t\n3.1\t\nEnvironmental and social safeguard considerations for agriculture human  \n\t\n\t\ncapital projects\t\n41\n\t\n4.1\t\nExtension and advisory services and human capital development methods\t\n50\n\t\n6.1\t\nDifferences between financial and economic parts of the EFA in investment  \n\t\n\t\nprojects\t\n126\n\t\n6.2\t\nPeru’s Agriculture Innovation Project and AHCI EFA\t\n127\n\t\n6.3 \t\nWithout project (WOP), with project (WP) and incremental scenarios\t\n128\n\t\n6.4 \t\nSteps in valuing intangible benefits and costs\t\n133\n\t\n6.5 \t\nFinancial and economic discount rate\t\n134\n\t\n6.6 \t\nSensitivity analysis\t\n135\n\t\n6.7 \t\nAdditional useful EFA modelling remarks\t\n136\n\t\n7.1 \t\nThe need for more agriculture human capital research\t\n147\n   V\n\n\n©FAO/Alberto Conti\n© FAO/Atul Loke\n©CIFOR/Kate Evans\n\n\nForeword\nSustainable agricultural productivity, food and nutrition security and poverty \nreduction remain top goals of governments and development institutions \naround the world. Yet, progress is under threat from a variety of crises, \nincluding climate change and public health emergencies and their associated \neconomic and environmental shocks. \n\t\nThe transformation to more sustainable, secure and equable agrifood \nsystems needs investments in agriculture, rural infrastructure, natural  \nresource management and climate resilience. However, agricultural invest-\nments often prioritize the physical or natural capital of farming communities.\n\t\nInvesting in farmers’ education, knowledge, habits, experiences and \nattributes – or agriculture human capital – is crucial to drive innovation, boost \nproductivity, strengthen farm management and empower smallholders. \nBuilding agriculture human capital is fundamental to developing equable, \nsecure, resilient and sustainable farming communities. It is key to successful \nagriculture and rural development policies.\n\t\nBeginning in early 2020, the FAO Investment Centre partnered with the \nInternational Food Policy Research Institute (IFPRI), with support from the \nCGIAR Research Program on Policies, Institutions, and Markets (PIM) and the \nFAO Research and Extension Unit, to examine agriculture human capital \ninvestments globally. The goal was to understand how farmers developed \ntheir human capital through a variety of initiatives. \n\t\nThe study shows that investments in developing the human capital of \nsmallholder producers resulted in new technical and business skills and \nempowered farmers. This led to increased incomes, improved yields and the \ninclusion of marginalised groups.\n\t\nAs global agrifood systems face ongoing disruptions, challenges and \nopportunities, agriculture human capital must keep pace. We need more  \nand better investments in innovative and cost-effective programmes to \nstrengthen and measure human capital development. \n\t\nThis toolkit supports investors – including policymakers, government \nofficials, international and national development banks and the private sector \n–  to make sounder investment decisions on projects, programmes, and \npolicies to strengthen farmers’ capacities. \n\t\nWe believe this toolkit makes a unique contribution to the agriculture \ninvestment landscape. We invite you to use the evidence, strategies, good \npractices, guidance and recommendations it contains on how to best invest \nin farmers.\nMohamed Manssouri\nDirector \nFAO Investment Centre\nSuresh Babu\nHead, Capacity Strengthening \nIFPRI\n   VII\n\n\nAcknowledgements\nThis toolkit was written as part of the Agriculture Human Capital Investment \nStudy funded by the Investment Centre of the Food and Agriculture \nOrganization of the United Nations (FAO) with the support of the International \nFood Policy Research Institute (IFPRI), the CGIAR Research Program  \non Policies, Institutions, and Markets (PIM) and the FAO Research and \nExtension Unit.\n\t\nThe following individuals from FAO Investment Centre participated in \nthe preparation of this report: Hubert Boirard, Dennis Escudero, Alessandra \nGage, Michael Morris, Luis Dias Peirera, and Kundan Singh.    \n\t\nThe authors would like to express their appreciation to Mohamed \nManssouri (FAO Investment Centre) for his support. They also thank \nDelgermaa Chuluunbaatar (FAO), Deborah Duveskog (FAO), Marie-Aude \nEven (International Fund for Agricultural Development), Priti Kumar (World \nBank), Jaap van de Pol (FAO Investment Centre), Kundan Singh (FAO) and \nFrancisca da Silva Torrealba del Pilar (independent consultant) for reviewing \nthe toolkit.\nVIII   \n\n\n\u0007\nAbbreviations and acronyms\nAHC\t\nagriculture human capital\nAHCI\t\nagriculture human capital investment\nAPS\t\nAjivika Pashu Sakhis (livestock friends)\nBMMU\t\nBlock Mission Management Unit\nCBA\t\ncost-benefit analysis\nCEA\t\ncost effectiveness analysis\nCF\t\nconversion factor\nCIC\t\nCommunity Implementation Committee\nCSP\t\ncommunity service providers\nDMMU\t\nDistrict Mission Management Unit\nEA\t\neconomic analysis\nEAS\t\nextension and advisory services\nEFA\t\neconomic and financial analysis \nENPV\t\neconomic net present value\nEOCK\t\neconomic opportunity cost of capital\nFA\t\nfinancial analysis\nFAO\t\nFood and Agriculture Organization of the United Nations\nFFS\t\nfarmer field schools\nFIRR\t\nfinancial internal rate of return\nFNPV\t\nfinancial net present value\nFTC\t\nfarmer training centre\nFTFE\t\nfarmer-to-farmer extension\nGFRAS   \t\nGlobal Forum for Rural Advisory Services\nGPS\t\nglobal positioning systems\nICT       \t\ninformation and communication technology\nIFAD      \t\nInternational Fund for Agriculture Development\nIFPRI      \t\nInternational Food Policy Research Institute\nIIA\t\nintegrated investment appraisal\nINIA\t\nInstituto Nacional de Innovación Agropecuaria  \n\t\n\t\n(National Institute of Agriculture Innovation)\nIPA\t\nInnovations in Poverty Action\nIRR\t\ninternal rate of return\nJOHAR   \t\nJharkhand Opportunities for Harnessing Rural Growth\nJSLPS\t\nJharkhand State Livelihoods Promotion Society\nMAFF\t\nmanagement advice for family farms\nM&E\t\nmonitoring and evaluation\nMT\t\nmaster trainers\nNGO\t\nnon-governmental organization\nNPV\t\nnet present value\n   IX\n\n\nNRLM    \t\nNational Rural Livelihoods Mission\nPDO       \t\nproject development objective\nPG          \t\nproducer group\nPO          \t\nproducer organization\nRCT\t\nrandomized controlled trial\nSMMU  \t\nState Mission Management Unit\nSNIA\t\nSistema Nacional de Innovación Agropecuaria  \n\t\n\t\n(National System of Agriculture Innovation)\nSWOT\t\nstrengths, weaknesses, opportunities and threats\nToC\t\ntheory of change\nTSA       \t\ntechnical support agencies\nVO         \t\nvillage organization\nWOP\t\nwithout project scenario\nWP\t\nwith project scenario\nX   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nIntroduction\n\t\n\t WHY THIS TOOLKIT\nThe Food and Agriculture Organization of the United Nations (FAO)’s \ninvestment toolkits are designed to provide agricultural investment \npractitioners and technicians with innovative and proven approaches, tools \nand best practices. This Agriculture Human Capital Investment (AHCI) toolkit \nhas exactly this purpose in mind, with a focus on helping our target audience \n(investors such as policymakers, government officials, international and \nnational development banks and the private sector) make sounder \ninvestment  decisions on projects, programmes, and policies that strengthen \nfarmers’ capacities.  We believe that this toolkit makes a unique contribution \nto the investment landscape by focusing on effective and proven tools and \nprocesses in human capital, an area that has suffered from underinvestment \nand attention from government officials, development finance institutions \nand other actors. \n\t\nThe 2021 United Nations Food System Summit pointed out that to \nreach the Sustainable Development Goals (SDGs), agrifood systems must \ntransform to be more inclusive and sustainable and provide safe and \nnutritious food for all (United Nations, 2021). The climate change crisis, \nCOVID-19 pandemic, war in Ukraine and a disruption in global supply chains \nhave further highlighted the importance of resilient agrifood systems.  At the \nsame time, digital and precision agriculture technologies, nature-based food \nand agriculture solutions, and global and national food quality and safety \nstandards provide opportunities to improve the resilience of our agrifood \nsystems and the quality of our foods. At the farm level, this demands that \nsmallholder producers have greater access to information, the ability to \nadapt and to adopt, and become more empowered to make production, \nmarket, natural resource and overall farm decisions. Climate-smart and \nresilient agriculture requires smart and resilient farmers.\n\t\nMany actors invest in agriculture but none more than farmers \nthemselves, the greatest source of on-farm investments, including in  \nhuman capital (FAO, 2012). In fact, farmers invest more than four times the \namount of governments in capital stock (including human capital) in their \nfarms than government programmes (FAO, 2021). Additionally, governments, \ninternational financial institutions, the private sector, producer organizations \nand non-governmental organizations (NGOs) contribute to the formation of \nagriculture human capital  through the investments and policies they pursue. \n\t\nOver the past two decades, trends indicate that limited resources are \ndedicated to improving farmers’ capacities through public and private \ninvestments, which is ironic given the increasing innovation and adaptation \ndemands and opportunities in the sector (FAO, 2022a). Many government \nprogrammes and investment loans prioritize “hard” investments in physical \ninfrastructure over “soft” investments in human and social capital.  \nAgriculture human capital investments are also at times hidden under \nbroader programme themes, so not always fully accounted for in policies, \nprogrammes, and projects as well as private sector decision-making. This \nmeans that not only the benefits, but also the costs are not fully accounted. \nThe purpose of this toolkit is to provide the means to effectively plan and \nadvocate for more and better investments in farmers’ capacities. Specifically, \n   1\n\n\nwe want these investors to be able to explain what agriculture human capital \nis, give examples of agriculture human capital investment projects, be able  \nto integrate agriculture human capital into a project theory of change, and \nselect appropriate  agriculture human capital development methods  based \non project goals.\n\t\n\t HOW THE TOOLKIT WAS DEVELOPED \nThe FAO Investment Centre along with its partner the International Food Policy \nResearch Institute (IFPRI) embarked on an analysis of AHCI over two years \nago. This involved a thorough review of secondary data on AHCI trends and \nevidence, conducting key informant interviews, undertaking primary research \nglobally on a range of best practices and lessons learned. The analysis \nshowcased other relevant cases as box stories, reviewed the use of economic \nanalysis in AHCI, developed thematic investment briefs and hosted eight \nglobal or regional webinars to share findings and gather feedback on the topic. \nFrom this body of work, nine case studies, four investment briefs, and a global \nsynthesis report were published, forming the basis of this toolkit. The authors \nalso drew on other findings around investments in agriculture human capital \nfor use in the toolkit.  \n\t\nThis toolkit adds to the study synthesis Investing in farmers: agriculture \nhuman capital investment strategies (Davis et al., 2021). This set out to better \nunderstand investment in human capital to deal with challenges facing our \nglobal agrifood systems, from sustainably feeding the world’s growing \npopulation with safe, healthy and nutritious food to finding innovative \nsolutions for more resilient and climate-smart agriculture.\n\t\nThis toolkit seeks to address the challenges and opportunities \nmentioned by providing investment strategies, evidence, good practices, and \nrecommendations for improving the quality and quantity of investments in \nagriculture human capital – to improve investments in farmers.  \n\t\n\t HOW TO USE THE TOOLKIT \nThroughout the toolkit, there are a number of learning aids. Each module has \na learning objective, stated at the outset. These are in the form of competen-\ncies, something the user should be able to do or perform as a result of reading \nthe module. Boxes throughout the toolkit provide more in-depth insights into \nterms or issues. Each word highlighted in green is defined in the glossary. \n\t\nThe toolkit comprises seven modules. Module 1 discusses what human \ncapital is, compares it to other types of capital, and provides concrete \nexamples of human capital investment. Module 2 defines agriculture human \ncapital in greater depth and shares a theory of change for human capital \ndevelopment. Module 3 provides building blocks to consider when designing \nprojects that invest in agriculture human capital. Module 4 contains a series \nof  agriculture human capital development methods, with information about \nprinciples, reach, sustainability, ease of implementation and much more. \nModule 5 comprises two deep-dive case studies into two human capital \ndevelopment projects from India and Peru. Module 6 focuses on economic \nand financial analysis methods of agriculture human capital investments, \nproviding specific examples. Module 7 provides a set of key messages and \nrecommendations.  \n2   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n© Pep Bonet/NOOR for FAO\n©Shutterstock\n\n\n\n\n\t\n\t WHAT IS AGRICULTURE HUMAN CAPITAL? \nHuman capital includes \"the  skills, knowledge, ability  to labour and good \nhealth that together enable people to pursue different livelihood strategies \nand achieve their livelihood objectives” (DFID, 1999). From an economic \nperspective, this refers to assets that improve individual productivity and \nproduce economic value (Goldin, 2014). Human capital goes beyond individuals \nto benefit others and society, across generations (World Bank, 2019). \nAgriculture human capital applies these concepts to the agriculture and rural \ndevelopment space. \n\t\nHuman capital is one of the five livelihood assets in the sustainable \nlivelihood framework developed by the United Kingdom Department for \nInternational Development (DFID, 1999). These assets include natural, physical, \nfinancial, social and human capital (Box 1.1). \nModule 1 \nAgriculture human \ncapital investment: what \nit is and how to use it\nLearning objective \nTo be able to explain what human capital is and how  \nit differs from other types of capital. At the end of the module \nyou should be able to give examples of investments \nin agriculture human capital and discuss different ways  \nthat actors invest in it. \n!\n   5\n\n\nDESCRIPTION OF FIVE TYPES OF CAPITAL\nThe five types include:\n1.\t human – health, education, knowledge, skills; \n2.\t natural – land, water, soils, livestock, trees; \n3.\t financial – cash or other financial assets like pensions; \n4.\tphysical – planned infrastructure, tools;\n5.\t social – network of relationships, group membership.\nHuman capital is inextricably linked to the other kinds of capital. It is needed to  \nbetter manage natural and financial capital, to use physical capital, and to build social \ncapital. Strengthening human capital thus adds value to other types, leading to  \nbetter livelihood outcomes. The close connection between an empowering learning \nprocess and enhanced well-being indicates that improving human resources among \npoor farmers is an important element in broader rural development (Friis-Hansen  \nand Duveskog, 2012). \nBOX 1.1 \nSOURCE: \nDFID. \n1999. \nSustainable \nlivelihoods \nguidance \nsheets. \nLondon, \nDFID.\nThis toolkit focuses on human capital in agriculture (including livestock \nfarmers, fisheries and forestry). We define agriculture human capital as the \nskills and capabilities of agricultural producers to successfully manage \nagricultural enterprises – the toolkit focuses on small-scale producers. \nAgricultural producers here include farmers, pastoralists, foresters and fisher \nfolk and are mainly referred to as farmers or producers interchangeably \nthroughout the toolkit.  Capability, according to economist and philosopher \nAmartya Sen, is the ability to perform certain basic functions in life. Agriculture \nhuman capital also includes more abstract aspects relating to livelihoods in a \nbroader sense, such as self-esteem, empowerment, creativity, increased \nawareness and attitudes or mindsets. Agriculture human capital thus can be \ndeveloped or improved. Throughout the toolkit we use synonyms such as \ncapacity, skills development, education and farmer learning for agriculture \nhuman capital development. We define key terms in Box 1.2.\n6   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nDEFINITIONS OF AGRICULTURE HUMAN CAPITAL\nThere are many terms for human capital, covered in more depth in Module 4. \n•\t Knowledge: The theoretical or practical understanding of a subject through an  \n\t active learning process.  \n•\t Skills: Expertise which is often occupation-based and focused on competencies  \n\t for economic value. The expertise may be technical, functional or business related.  \n•\t Education: Expertise in a discipline by undergoing systematic instruction and  \n\t learning, especially at a school or university. \n•\t Empowerment: A process that increases the capacity of people to make choices  \n\t and to influence collective decisions towards desired actions (Danida, 2004).   \nBOX 1.2 \nSocial capital can be an important link to human capital, as in the case of \ncapacity development initiatives in Cameroon and Côte d’Ivoire (Gordon, \n2021). The toolkit focuses on individual human capital, however, and \nspecifically, that of agricultural producers. \n \t\nAgriculture human capital investment involves putting finances, time \nand other resources into strengthening the skills and capabilities of \nagricultural producers. The most important investor in agriculture human \ncapital are farmers themselves who invest in many ways; however, many other \nactors play key roles.  Governments, international financial institutions, farmer \norganizations, the private sector and civil society all invest in human capital \ndevelopment for different reasons. Some projects and programmes seek \neconomic returns such as higher productivity or increased incomes. Others \naim to empower or increase the agency of small-scale producers. Human \ncapital development initiatives often contribute to larger project goals. For \ninstance, a project intending to expand farmers’ market linkages may invest \nin human capital by  training  farmers in market analysis. Other investors focus \nentirely on human capital development. For instance, the Government of \nEthiopia invested heavily in farmer training centres in the 2000s (Wordofa and \nSassi, 2018). Government investment in basic education is an important \nmeans of improving producers' human capital and also improves producers' \ncapacity to benefit from other interventions, such as training in market \nanalysis and farmer training centres. \n\t\nHuman capital development goes beyond just developing technical \nskills. Box 1.3 shows skills developed through a project highlighted in  \nModule 5. \nSOURCE: \nAuthors; \nDanida. \n2004. \nFarmer \nempowerment: \nExperiences, \nlessons \nlearned \nand \nways \nforward. \nCopenhagen: \nTechnical \nAdvisory \nServices \nDanida.\n   7\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT: WHAT IT IS AND HOW TO USE IT\n\n\nDEVELOPMENT OF TECHNICAL, SOCIAL AND MANAGERIAL SKILLS UNDER \nJHARKHAND OPPORTUNITIES FOR HARNESSING RURAL GROWTH PROJECT \n(JOHAR) IN INDIA \nThe master trainers (MT) working in the JOHAR project are women smallholder  \nfarmers aged 28–34 with 10–15 years of formal education. MTs train community  \nservice providers and farmers in livestock management. MTs receive 34 days of training \n \nunder JOHAR. One of these is a six-day residential training session covering adult \nlearning and human values. They also learn about livestock rearing practices, financial \npractices and facilitation skills. MTs must pass certification exams set by the  \nAgriculture Skills Council of India.  \n \nThe human capital gained provides opportunities for women to improve their  \nlivelihoods. One MT successfully started a poultry enterprise, and with the enhanced \nearnings and knowledge she is now the major decision-maker in her house. MT  \nself-esteem and confidence were also enhanced. Many reported improved abilities  \nto speak publicly, as well as better listening skills and empathy.\nBOX 1.3\nSOURCE: \nKumar \net \nal. \n2021. \nInvesting \nin \nwomen \nlivestock \nadvisers \nand \nfarmers \n– \nJharkhand \n \nOpportunities \nfor \nHarnessing \nRural \nGrowth \nProgramme \nin \nIndia. \nRome, \nFAO \nand \nIFPRI. \n \nhttps://doi.org/10.4060/cb7116en\n“I am an educated person, but I could not use my education \nin the village; now I read a lot about animal rearing and \ntreatments, keeping an account of income and expenses, \ntraining the [community animal health service providers] \nand operating laptops” declares one MT\n.\n“\n© Transforming Rural India Foundation/Ashok Kumar\n8   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n\t\n \t EXTERNAL INVESTMENT IN AGRICULTURE HUMAN CAPITAL \nLess than 0.2 percent of total international development finance between \n2015 and 2018 specifically targeted agriculture education, training and \nextension (Davis et al., 2021 based on OECD data and Atteridge et al., 2019). \nHowever, it is difficult to know the exact amounts since human capital goes by \nmany terms and the proportion of funding that specifically targets human \ncapital elements is often not explicit. It is similarly difficult to understand \nexactly how much is invested domestically through national or sub-national \ngovernment budgets.\n\t\nThere are different types of human capital investment approaches. \nTypical or traditional projects are financed, at least in part, through an \ninternational financial institution with an implementing partner such as the \ngovernment or a non-governmental organization (NGO). These projects \ntypically have a set, relatively short time frame of three to five years. \n\t\nUsually, human capital is a sub-component of a larger project, such as \nthe World Bank’s Maharashtra Project on Climate Resilient Agriculture. The \nproject’s aim was to enhance climate resilience and the profitability of \nsmallholder farming systems. One component focused on strengthening the \nadaptive capacity of smallholders to adjust and modify their production \nsystems to moderate potential future impacts from climate events. \n\t\nSome projects, however, are standalone human capital investments in \nagriculture as the main goal. For instance, the International Fund for \nAgricultural Development (IFAD)  Rural Youth Vocational Training, Employment \nand Entrepreneurship Support Project in Mali  supported vocational training \nand microenterprise development for young people, especially women. \n\t\nGovernment programmes often institutionalize human capital \ndevelopment over a much longer period such as decades, as in the case of \nHaku Winay in Peru (Salcedo du Bois and Zimmerman, 2021), Cameroon’s \nProfessional Training Programme in the Agropastoral and Fisheries Sectors \n(Takamgang and Lhoste, 2021) or Twigiri Muhinzi in Rwanda (Neza et al., 2021). \nMany countries have agricultural universities, colleges and training centres \nthat are critical for strengthening human capital in agriculture. In the late \n1990sthe Government of India and the World Bank implemented the \nAgricultural Technology Management Agency model to facilitate and coor-\ndinate farmer-led extension activities (Reddy and Swanson, 2006). \n\t\nNGOs and the private sector also provide extension services that \ndevelop human capital. Catholic Relief Services (CRS) has a curriculum called \nSkills for Marketing and Rural Transformation (SMART Skills)  that provides an \nintegrated and sequential approach to strengthening farmer capacity to link \nup with markets and manage their resources.\n\t\nIn Indonesia, the private company Mars has been training Cocoa Doctor \nentrepreneurs through a network of Cocoa Development Centres in South \nSulawesi. These entrepreneurs provide advice and coaching to 12 000 farmers \ndirectly in their villages. Mars also works with eight vocational schools and has \nestablished a cocoa curriculum to encourage young people to become \ninvolved in cocoa farming and related businesses.\n   9\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT: WHAT IT IS AND HOW TO USE IT\n\n\nOther examples of human capital investment projects include investment in \nnutrition projects by the World Bank (2020) and IFAD; focusing human capital \ndevelopment on youth in Trinidad and Tobago or Indigenous Peoples in Brazil \nand Kenya (Davis et al., 2021; Mwangi et al., 2021). Human capital development \ncan be through informal coaching as with the Mondelēz international \nsustainability programme Cocoa Life or formal as with the  school-on-air radio \ncertification programme supported by IFAD (Davis et al., 2021).\nCurrent agriculture human capital investment \nAgriculture human capital investment focus areas have changed over time. \nThese changes include the methods or approaches, target groups, and overall \nthemes and related skillsets. For instance, in 1980s there was more focus on \nhome economics for women on farms and on productivity-enhancing skills. \nToday, farmer field schools and digital approaches are common. Skillsets for \ntoday have greater focus on climate change and entrepreneurship and go \nbeyond a focus on production. Table 1.1 provides a snapshot of investment \ntopics today within agriculture human capital. \nThere are many different ways to invest in human capital in agriculture. Human \ncapital development can and should be part of any investment project, given \nits linkages to other types of capital (Box 1.1). It strengthens other types of \ncapital and thus investments. However, human capital is difficult to measure \nadequately in terms of benefits and costs, thus challenging decision-makers \nand investors to pitch the case for investment (see economic and financial \nassessment considerations in Module 6). \n\t\nWhatever the form or the theme of agriculture human capital develop-\nment, it needs to be thoughtfully defined, designed, implemented, monitored \nand evaluated. The next sections provide more information about how to  \ndo this. \nTable 1.1\t\n \nCurrent focal areas for agriculture human capital investment\nMethods and approaches\nTarget groups\nThemes and skillsets\n\t\n· Various forms of farmer field schools \n\t\n· Digital approaches, information and \t\n\t communication technologies\n\t\n· Community extensionists and lead \t\n\t farmer approaches\n\t\n· Small-scale agricultural producers\n\t\n· Women\n\t\n· Youth\n\t\n· Landless\n\t\n· Indigenous Peoples\n\t\n· Other actors in the value chain \t \t\n\t besides producers (transporters, \t\n\t advisers) \n\t\n· Climate change\n\t\n· Resilience\n\t\n· Agroecology\n\t\n· Nature-positive solutions\n\t\n· Nutrition \n\t\n· Business and marketing skills\n\t\n· Entrepreneurship \n\t\n· Digital tools \nSOURCES: \nAuthors’ \nown \nelaboration.\n10   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n© Juan Carlos Huayllapuma/CIFOR\n©FAO/Max Valencia\n\n\n\n\nModule 2 presents a set of definitions and categories that can be helpful in \nconceptualizing agriculture human capital investments (AHCI). This way, we \nalso operationally define concepts that are used later in the toolkit.\nModule 2 \nDefining agriculture \nhuman capital \ninvestment\nLearning objective \nTo be able to define and discuss investment  \nin agriculture human capital.\n!\n   13\n\n\n\t\n\t AGRICULTURE HUMAN CAPITAL INVESTMENT AS A MODEL AND ITS  \n\t\n\t SIX COMPONENTS\nBuilding investments in agriculture human capital requires more than choice \nor design of development methods. Broadly, it requires the employment of six \ndifferent, but potentially overlapping, components to form what we call a \nmodel  of AHCI.  These components are: 1) the target group; 2) individual skills \nproviders; 3) development methods; 4) an objective for development in the \nfield of human capital; 5) implementer(s); and 6) funder(s). Figure 2.1 gives an \noverview.\n\t\n\t DEFINING SUCCESS CRITERIA\nAs this toolkit aims to provide approaches, tools and best practices for design, \nimplementation, monitoring and evaluation of successful investments in \nagriculture human capital, we need to first clarify success criteria. We define \nsuccessful investment in agriculture human capital as:\nTherefore, for AHCI to be successful, human capital should be developed and \nstrengthened and should enable producers to achieve their desired outcomes \nand impacts.\na form of intervention that achieves heightened or improved \nhuman capital among agricultural producers which is deemed: \na) desired; b) appropriate; c) timely; and d) useful in enabling \nthe pursuit of livelihood strategies and eventually desired \nlivelihood outcomes and impacts within agriculture. \n14   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nFigure \n2.1\nAn \ninvestment \nmodel \nin \nagriculture \nhuman \ncapital \nand \nits \ncomponents\nSOURCE: \nAdapted \nfrom \nDavis \net \nal. \n2021. \nInvesting \nin \nFarmers: \nAgriculture \nHuman \nCapital \nInvestment \nStrategies. \nRome, \nFAO \nand \nIFPRI. \nhttps://doi.org/10.4060/cb7134en\nA model has one, often multiple, \ndefined target groups whose human \ncapital a AHCI model is designed to \nenhance. This target group could be \nfarmers from a geographic area, or \nspecific types of farmers (e.g., \nhorticulture, livestock farmers)\nA model has a more or less defined \nobjective as to which field(s) of  \nhuman capital should be developed \namong the target group\nThe implementer of an AHCI model  \nis the given organization(s)  \nor government(s) behind and  \nresponsible for overall implementation, \nfor instance a national programme  \nor project activity\nA model has  \none or more funders\nThe target group is reached \nthrough direct contact  \nwith individual skills providers.  \nThese providers facilitate and support \nthe learning process by teaching, \nadvising or demonstrating  \ndifferent skills\nThe human capital development  \nmethod is how and where learning  \ntakes place. These can include \ndemonstration plots, farmer field  \nschools or on-the-job training\nT\narget groups\nImplementers\nIndividual skills \nproviders\nHuman capital \ntype\n• \n \nSmall-scale \nfarmers\n• \n \nAgro-pastoralists\n• \n \nYouth, \nwomen, \netc. \n• \n \nCivil \nsociety\n• \n \nPublic \nsector\n• \n \nPrivate \nsector\n• \n \nExtension \nstaff\n• \n \nLead \nfarmers\n• \n \nCommunity \nadvisers\n• \n \nTechnical \n \nagricultural \n\u0003\nskills\u0003\n• \n \nFunctional \nand \n \nsocial \n\u0003\nskills\n• \n \nManagerial \nand \n\u0003\n \nbusiness \nskills\nDelivery  \nmethod\n• \n \nFormal\n• \n \nNon-formal\n• \n \nInformal\nFunders\n• \n \nDevelopment \nbanks\n• \n \nInternational \n \nfinancial\u0003\n \ninstitutions\n• \n \nGovernments\n   15\nDEFINING AGRICUL\nTURE HUMAN CAPITAL INVESTMENT\n\n\n\t\n\t THREE FIELDS OF AGRICULTURE HUMAN CAPITAL \nAgriculture human capital implies skills and capabilities within more than just \nthe field of agricultural techniques and practices. Specifically, three different \nfields are used here, namely: 1) technical agricultural skills;  2) functional \nskills; and 3)  business skills  (Davis et al., 2021). Table 2.1 gives an introduction, \nwith concrete examples from case studies in 2020.\nTable 2.1\t\n \nThree fields of agriculture human capital and some examples\nAHC field Focus in the field of AHC\nExamples of acquired agriculture human capital within given field\nTechnical agricultural skills\nOften focus on good agricultural \npractices, i.e. the use of good \nmanagement principles  \nfor agricultural production that  \ndo not harm the environment  \nor human health.\nCocoa farmers in Indonesia gained knowledge around agronomy, phytosanitary \ncontrol, harvest and post-harvest as well as skills in the fields of seeding, grafting, \npruning, composting and harvesting.\nYoung learner in Cameroon: “The training has changed us, I respect the \ndimensions [for sowing] and the yields are very, very different.” \nWomen livestock rearers in India learned about timely vaccination, deworming, \ncastration, animal cleanliness, and provision of feed supplements and clean \ndrinking water for their livestock.\nFunctional skills\nOften relate to skills in \ncommunication, leadership, public \nspeaking, negotiation, conflict \nresolution, networking, critical \nthinking and decision-making.  Also \ninclude heightened agency and \nself-confidence. All of these are \nimportant for livelihoods dependent \non agricultural production.\nLearner in the United States of America: “I definitely learned a lot of my soft skills... \nhow to speak in front of people, professionalism, how to network, just all-around \npeople skills... how to talk to different people with different backgrounds than me \nand try to relate to them and not leave anybody out.”\nIndian master trainers learned responsibility, participation, teaching and \ncommunication. They were responsible for: training community service providers; \npreparing venues; planning training content and sub-group activities, tests, \nfeedback forms, and field assignments; logistics, and handling urgent needs of \nparticipants. Moreover, due to heightened expertise and self-reliance, they  \ngained higher self-esteem and confidence. \nWomen in Kenya were empowered in their household roles. After training in  \nfamily budgets and gender awareness, many women said that awareness led to a \nnew division of labour that reduced their heavy workload in the home. \n“After training, he changed. When I am sweeping, he takes the bicycle and fetches \nwater. I realized I had been suffering, working the whole day without resting.” \nBusiness skills\nOften includes managerial, market, \nfinancial and record-keeping skills, \nbut can also entail a shift in mindset \nto perceiving farming as a business, \nand the opportunities that brings \nwith it.\nIn Chile, participants gained management and planning skills, and the ability to \nfollow protocols for monitoring productive activity by keeping registers. One male \nfarmer stated: “sometimes we are a bit reluctant to keep records but we have had \nto learn to keep a register when, for example, a calf dies”. \nIndian female livestock producers gained skills in using markets and value chains, \nsavings and credit, and market analysis. Financial awareness and understanding \nthe economic importance of livestock increased significantly among community \nlivestock service providers. Producers realised that livestock rearing was \neconomically rewarding and less labour intensive than other local opportunities.\nIn Kenya, a participant stated: “I have learnt how to make a budget; initially  \nI used to plant without one. Now I use the budget to track how much fertilizer I have \nused and through the records I can see my profits or losses. Like a planting \ncalendar, I did not know anything about it at all. A problem map and the problems \nyou are likely to meet when farming, on the roads or at the market and how to \nresolve them. So, I was able to learn that, when you have these problems, you can \nsolve them”.\nSOURCES: \nAuthors, \nwith \nedited \nquotations \nfrom \nDavis \net \nal. \n2021. \nInvesting \nin \nFarmers: \nAgriculture \nHuman \nCapital \nInvestment \nStrategies. \nRome, \nFAO \nand \nIFPRI. \nhttps://doi.org/10.4060/cb7134en\n16   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nWhile these are the three overarching fields within which to develop human \ncapital in agriculture they should not be seen as rigid categories. These skills \nand capabilities can often overlap or be interdependent. For instance, \ngaining technical knowledge on production can lead to greater self-esteem, \nwhich can provide incentives to take on leadership roles and increase \nfunctional skills. These should not be seen as entirely separate forms of \nhuman capital however, these categories can be useful in discovering: 1) \nwhich skills are most needed for a desired impact; and 2) how best to develop \nthose skills. Module 4 addresses this. \n\t\n\t THE MANY METHODS OF INVESTING IN AGRICULTURE HUMAN \t\n\t\n\t CAPITAL – A TYPOLOGY\nKnowing the specifics of how to develop agriculture human capital within one \nor several of the fields is useful when investing in AHC. We define an AHC \ndevelopment method as systematically applied procedures and techniques \nto provide information, advice, skills, training, education and other services \nto producers and to facilitate problem-solving and learning (adapted from \nDavid and Cofini, 2017). Examples of common development methods could \nbe farmer field schools or community promoters. \n\t\nChoosing and designing the best suited development methods is \narguably where most of the crucial decision-making occurs when investing \nin agriculture human capital. Generally, the myriad of existing methods can \nbe divided into three categories depending on their levels of formality (Davis \net al., 2021). Figure 2.2 gives an overview of the typology which Module 4 also \naddresses.\nFigure \n2.2\nTypology \nof \nhuman \ncapital \ndevelopment \nmethods \nin \nagriculture\nSOURCE: \nDavis \net \nal. \n2021. \nInvesting \nin \nFarmers: \nAgriculture \nHuman \nCapital \nInvestment \nStrategies. \nRome, \nFAO \nand \nIFPRI. \nhttps://doi.org/10.4060/cb7134en\nAdult and youth learners\nFormal\nInformal\nNon-formal\nAgricultural \neducation system\nExtension  \nprogrammes\n• Farmer training centres\n• Vocational education\n• Agricultural colleges or universities\n• Certification\n \nCertification\nCoaching\nOn-the-\njob \ntraining,\napprenticeships\n•  Farmer field schools\n•  Farmer study circles\n•  Dimitra clubs\n• Master trainers\n• Farmer training centres\n• Youth development\nIndividual\nGroups\nExperience\nMedia, meetings, \nmarkets\nFarmer to farmer\n   17\nDEFINING AGRICUL\nTURE HUMAN CAPITAL INVESTMENT\n\n\n\n\n©CIFOR/Rifky\n©Unsplash/Trevor Vannoy\n\n\n\n\nModule 3 \nBuilding agriculture \nhuman capital through \ninvestment\n\t\n\t INTEGRATING AGRICULTURE HUMAN CAPITAL IN A THEORY OF CHANGE\nWriting up a theory of change can be useful for any project or initiative. This \nalso applies when investing in agriculture human capital (AHC). A difference \nhere, however, is that AHC is in many cases not the end goal in itself, but a \nmeans to reach it. When farmers learn new skills, the hope is that those skills \nwill help solve problems or improve certain conditions which eventually will \nachieve the wider impacts that are the aims of the project. Therefore, in a theory \nof change, human capital itself can be seen as an output, rather than the final \nimpact  (see Figure 3.1, in yellow).\nLearning objective \nTo be able to use the building blocks of agriculture  \nhuman capital investment and elements of each  \nin programme or project design, analysis, or evaluation. \n!\n   21\n\n\nInput\nOutput\nOutcome\nImpact\nActions  \nand behaviours \nadopted by \nfarmers due  \nto new human\ncapital \nChanges  \nresulting from \nadopted  \nactions and \nbehavours\nAgriculture \nhuman capital\ndeveloped\nImplementation  \nof human capital \ndevelopment \nmethod(s)\nThe key to successfully achieving the desired impact through investments in \nAHC is then twofold: first, understand how human capital in agriculture is best \ndeveloped  input -> output;  and second, understand how and which kinds of \nskills and capabilities help farmers to adopt new practices which can \neventually lead to the desired impacts  output -> outcome -> impact. \n\t\n\t THREE BUILDING BLOCKS TO INFORM PRACTICES AND DECISIONS\nBuilding an agriculture human capital investment through programmes or \nprojects requires three building blocks:\t   \n1.\t Understand how and which types of skills and capabilities have the  \n\t\nbest potential to lead to desired impacts is what we call the aspirational \t\n\t\nbuilding block, because as in a theory of change, these are changes  \n\t\nyou aspire to make. \n2.\t Understand how human capital in agriculture is best developed;  \n\t\nthat is, which  development methods  to apply, how to organize, and create  \n\t\nincentives for learning. This we call the design building block. \n3.\tThe third and equally crucial part is to understand how contextual  \n\t\nfactors \tset the frames which make human capital development methods \t\n\t\npossible and also how they influence outputs, outcomes and impacts.  \n\t\nThis we call the framing building block. Figure 3.2 summarizes these \t\n\t\n\t\nthree building blocks.\nFigure \n3.1\nAgriculture \nhuman \ncapital \nin \na \ntheory \nof \nchange\nSOURCE: \nAuthors, \nadapted \nfrom \nDavis \net \nal. \n2021. \nInvesting \nin \nFarmers: \nAgriculture \nHuman \nCapital \nInvestment \nStrategies. \nRome, \nFAO \nand \nIFPRI. \nhttps://doi.org/10.4060/cb7134en\n22   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nInput\nImplementation  \nof human capital \ndevelopment \nmethod(s)\nDesign  \nbuilding block\nAspirational building block\nFraming building block\nInform design\nInfluence output, outcomes and impact\nContextual factors that\nImpact\nChanges  \nresulting from \nadopted  \nactions and \nbehavours\nOutcome\nActions  \nand behaviours \nadopted by \nfarmers due  \nto new human\ncapital \nOutput\nAgriculture \nhuman capital\ndeveloped\nKey questions for the aspirational building block:\n•\t What role does farmers’ human capital play in bringing about  \n\t desired impacts? Is it fundamental, such as empowerment,  \n\t or supportive, such as better technical or decision-making skills? \nKey question for the design building block:\n•\t How can implementing human capital development methods develop \t\n\t \tthis human capital?\nKey question for the framing building block:\n•\t How do contextual factors affect how human capital can  \n\t be developed and how successfully it leads to outcomes and  \n\t eventually impacts?\n \n \nWhile we divide the process of building an agriculture human capital \ninvestment into these three blocks, they are not three distinct phases to  \nbe undertaken in a prescriptive order. Rather, they represent information \ngathering, goal-setting and decision-making activities that are ongoing, and \ninterdependent. \nFigure \n3.2\nThree \nbuilding \nblocks \nin \naugmenting \nagriculture \nhuman \ncapital \ninvestments\nSOURCE: \nAuthors' \nown \nelaboration.\n!\n   23\nBUILDING AGRICUL\nTURE HUMAN CAPITAL THROUGH INVESTMENT\n\n\nDesign  \nbuilding block\nAspirational  \nbuilding block\nFraming  \nbuilding block\nH  Impacts\nI  Outcomes\nJ  Output\nK \t\nTargeting\nL \t\nMethods\nM \t\nOrganizing\nN  Scaling and \t\n\t\n \nsustaining\nO  Keep improving\nA \t\nFarmers\nB \t\nInstitutions\nC \t\nEnvironment\nD \t\nProviders\nE \t\nImplementer\nF \t\nPartner(s)\nG \t\nFinancing/ \n\t\nfunding\nObjective\nCreating a thorough \nunderstanding of contextual \nfactors that inform \naspirational and design \nbuilding blocks.\n \n \nKey activities\nNeeds assessment, \ninterviews, mini surveys, \nstakeholder analysis, analysis \nof institutional, regulatory, \ncultural and social factors, \nreview of past projects  \nand monitoring and \nevaluation results.\nObjective\nIdentifying feasible and \ndesirable human capital \ntargets J , outcomes I   \nand impacts H , informed  \nby framing and design \nbuilding blocks.\n \nKey activities\nConversations with  \nfarmers, partners, and \nstakeholders, gather \ninformation from existing \nliterature.\nObjective\nCreating a human capital \ndevelopment design that \nensures best ways to achieve \nhuman capital targets J , \noutcomes I  and impacts H  \nto be reached, informed by \nframing and aspirational \nbuilding blocks. \nKey activities\nStrategic decision-making  \non design, convening with \npartners, farmers and \nstakeholders, review of past \nprojects and monitoring and \nevaluation results, creating \nmonitoring, evaluation and \nlearning procedures.\n\t\n\t THREE BUILDING BLOCKS – OBJECTIVES AND KEY ACTIVITIES\nWe now discuss each of the three building blocks. Figure 3.3 presents them \nand the elements of each one as well as their main objectives and activities. In \ntotal there are 15 elements ( A – O ) across three building blocks. Each of these \nelements has its own objectives and activities and is described in the text. In \neach building block, farmers as well as partners play a pivotal role and there \nis a need for their active participation at each stage. See Module 5 for two \ncases exemplifying the three building blocks.\nFigure \n3.3\nContent, \nobjectives \nand \nkey \nactivities \nof \nthree \nbuilding \nblocks\nSOURCE: \nAuthors' \nown \nelaboration.\n24   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nAs with the development of any project goal, developing human capital in \nagriculture is highly sensitive to its context, and is particularly dependent on \nthe people who are set to learn new skills and acquire new capacities. Investing \nin AHC is only fruitful when learners find it relevant, appropriate, timely and \nuseful. The framing building block is therefore very focused on the mindset of \nlearners, or farmers, but also other factors presented in the following \nelements.\nThe main elements of the framing building block are A – G  in Figure 3.3. \nHowever, these, as well as key information about them, will vary from project \nto project and place to place, and the descriptions and topics highlighted \nbelow are not exclusive nor exhaustive. They may or may not overlap by their \nvery nature.\nA  Farmers: socioeconomic and cultural conditions\nFraming building block\nObjectives and key activities\nDESCRIPTION \nKEY ACTIVITIES\nFarmers, pastoralists, fishers, foresters, and other small-scale \nproducers (here referred to simply as farmers) make up the main \ntarget group for agriculture human capital investments under \ndiscussion. These learners stand to gain new capacities, learn \nnew skills or gain new knowledge. Therefore, it is essential to \nunderstand what they consider an improvement to their \nlivelihoods and what they need to attain it, as well as aspects of \ntheir way of life and socioeconomic conditions that may \ninfluence the learning process, such as customs, existing or \ntraditional knowledge, culture, preferences, and desires. \nIdentify the geographical scope of the project and potential \ntarget group(s). Conduct needs assessments via semi-\nstructured interviews, minisurveys, focus group discussions and \nparticipatory consultations with potential target group(s) and if \nrelevant, other key informants with deep knowledge of the living \nand socio-economic conditions of the target group. Depending \non the geographical scope of the project, be sure to consult  \nwith farmers representing different agro-ecological zones, \nIndigenous Peoples, gender and age groups and, production \nand livelihood systems (FAO, 2011).\nMain objective \nCreating a thorough understanding of contextual factors to \ninform aspirational and design building blocks.\n!\n   25\nBUILDING AGRICUL\nTURE HUMAN CAPITAL THROUGH INVESTMENT\n\n\nEXAMPLES OF \nAGRICUL\nTURE /\nLIVELIHOOD \nSYSTEMS\nThe main areas we need to understand from conversations with \nfarmers include:\n1.\t What are the current  agriculture / livelihood systems  among \t\n\t\nthe target group? \n2.\t What are the main challenges or struggles that farmers face?\n3.\t What are farmers’ needs and aspirations to better their  \n\t\nlivelihoods? \n4.\tWhat are the opportunities for changes in actions and \t\n\t\n\t\nbehaviour to alleviate those struggles or fulfil those needs and \t\n\t\naspirations? And which of these do farmers consider desirable, \t\n\t\nappropriate, timely and useful?\n5.\t Which support services are available to farmers such as \t\t\n\t\nfinancial, informational and marketing?\n6.\t Which skills and capabilities will be useful to farmers to adopt \t\n\t\nthose actions and behaviours?\n7.\t Which relevant skills and capabilities do farmers already have \t\n\t\nwhich they can further develop to facilitate learning new skills? \t\n\t\nThis can include Indigenous Peoples’ traditional knowledge and \t\n\t\nlocal farmers' ancestral knowledge. \n8.\tWhich new skills and capabilities will complement existing skills \n\t\n\t\nand capabilities?\n9.\t Which challenges and opportunities for learning and \t\n\t\n\t\ndeveloping human capital do farmers identify?\n•\t Socioeconomic conditions: Social status, disabilities, \nfinancial assets, opportunity costs, size and status of land \n(leasing or owning), relationships, levels of education  \nand literacy. \n•\t Logistics: Where are farmers in relation to the place  \nof learning? Is transport available, , easy and affordable?  \nIs there access to learning materials including digital \nresources such as smartphones, internet access and radio, \nfarmers’ calendars? Do farmers have access to a suitable \nplace for onsite learning, e.g. a demonstration plot?\n•\t Farmer segments: Recognize the differences among \nfarmers regarding levels of interest and opportunities and \nbarriers to engagement, as well as understanding the  \nroot causes of any potential disengagement.\nLivestock rearing, cash crop and tree cultivation, home gardens, \nagroforestry, orchards, aquaculture, apiculture, fishing, as well \nas off-farm enterprises. Often systems are holistic and many \noverlap for an individual farmer. Investments in AHC are often \nembedded in one or several such systems, focusing on skills \nand capabilities directly applicable to that system.\n26   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nElement A  is a process rather than a one-off checklist. It is important to \ncollect this information consistently while setting a theory of change \n(aspirational building block) and designing project implementation (design \nbuilding block), and likewise to ensure farmer participation in all three building \nblocks, not just the framing building block. This is to avoid setting top-down \npriorities or implementation that is unsuitable for farmers.\n!\nB  Institutions: institutional, political, legal and  \n\t   \norganizational conditions\nDESCRIPTION \nKEY ACTIVITIES\nInstitutions are any official or unofficial policies, norms, or \norganizations that affect the project. Official institutions can \ninclude national, district and local government agencies, \npara-governmental entities, policies and legal frameworks, \nfor-profit enterprises, NGOs, associations and established \ncommunity organizations. Unofficial (or one could call them \nintangible) institutions include markets, norms, customs, \nnetworks, and more loosely structured organizing patterns  \nand activities, such as trading habits and migration. \nCollect information through interviews with farmers, relevant \nstakeholders such as local authorities, district commissioners, \nspokespeople, local/national organizations/NGOs and \ngovernmental agencies. Conduct analysis on the legal landscape \n \nin the given district/country. Carry out market and/or value chain \nanalysis relevant to the project (certain crops, local/district/\ninternational chains). Collect secondary data via national policy \ndocuments and stakeholder mapping. Review past human \ncapital development projects in the area and the lessons \nlearned.\nThe main areas we need to understand regarding institutions \ninclude:\n1.\t Are community organizations present in the target group(s) and \t\n\t\nif so, what are their motivations, aims, activities, membership \t\n\t\nand level of influence? If there are a lot, how do they differ from \t\n\t\neach other, and interact?\n2.\t Are there any other types of organizations in the community, \t\n\t\nsuch as NGOs, companies, associations that could affect the \t\n\t\nproject, and in what way?\n3.\t Which types of district and/or national organizations such as \t\n\t\nNGOs, companies, associations, could affect the project, and in \t\n\t\nwhat way?\n4.\tWhich local government agencies or forms of community \t\n\t\ngovernance are present, such as traditional/local authorities, \t\n\t\nchiefs, elders, mayors, and if so, what are their motivations, \t\n\t\naims, activities and level of influence? \n   27\nBUILDING AGRICUL\nTURE HUMAN CAPITAL THROUGH INVESTMENT\n\n\nDESCRIPTION \nKEY ACTIVITIES\nEnvironment here refers to the physical and natural environment \nwhere the project takes place. This includes the climate, soil,  \nwater, precipitation and wind conditions in which farmers \nundertake agriculture, fishing, or pastoralism. This can imply \nrisks from natural or human-made events such as flooding, \ndroughts, earthquakes, sea water rise, pests, pollution, new \nlarge-scale development projects like dams or highways. Lastly, \nit also includes the infrastructure necessary for farming, as well \nas for extension and service providers, such as roads, public \ntransport, storage facilities and mills. \nCollect information on the physical and natural environment \nthrough observations and interviews with farmers, extension \nstaff (if any) and local stakeholders. Collect quantitative \ninformation, if available, in the form of weather and climate \nstatistics for the area.1\nThe main areas we need to understand regarding environment \ninclude:\n1.\t Is the necessary infrastructure in place for planned project \t\n\t\nactivities?  \nKeep in mind that activities from A  and B  can overlap, since farmers \nthemselves make up local communities and therefore play active roles in local \ninstitutions, with varying levels of involvement. This is to avoid setting top-\ndown priorities or implementation that is unsuitable for farmers.\n!\nC  Environment: physical and natural conditions\n1\t\nFor a good example of data collection tools for challenging environments, \n \n\t\nsee KoBoToolbox. 2022. [online]. www.kobototoolbox.org    \n5.\t Which sub-national and/or national governmental institutions \t\n\t\ncould be involved with the project and in what way?\n6.\t What is the legal framework or set of policies that affect the \t\n\t\nproject?\n7.\t Are there any risks of future changes in policies/legal \t\n\t\n\t\nframework that could affect the project?\n8.\tWhat are the defining customs, norms, patterns, markets,  \n\t\nvalue chains and other intra-community organizations in place \t\n\t\nthat could affect the project?\n9.\t What are the defining inter-community or national organizing \t\n\t\npatterns, value chains or migration patterns?\n28   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nDESCRIPTION \nKEY ACTIVITIES\n2.\t What are agro-climatic conditions like?\n•\t Do conditions suit some crops over others?\n•\t How healthy is the soil?\n•\t Is precipitation reliable?\n•\t Are groundwater levels reliable and adequate for irrigation? \nAre pumps and power sources available?\n•\t What are year-round weather patterns like? Are there risks \nof droughts or flash flooding? \n3.\t Do the surrounding areas pose other types of risks, such as sea \t\n\t\nwater rise, pests, air/water/soil pollution?\n4.\tAre there any large-scale infrastructure and/or development \t\n\t\nprojects affecting farmers’ land or access to resources?  \n\t\nAre any such developments planned and if so, how might they \t\n\t\npotentially affect farmers and farming activities?\nA provider is anyone who facilitates any human capital \ndevelopment programming among farmers in pre-project \nimplementation. This could be public extension staff assigned  \nto the area of the potential target group or private businesses in \ncommunities providing agro-advisory services. If no providers \nare present, disregard this section. \nCollect information through interviews with existing providers  \nand farmers.\nThe main areas we need to understand regarding providers \ninclude:\n1.\t If providers are in the given area, what are their current \t \t\n\t\nfunctions/roles/tasks/activities with the target group? What are \t\n\t\ntheir methods and approaches to human capital development?\n2.\t What are their current capacities?\n3.\t What is their standing with the target group? Are they trusted/\t\n\t\nrecognized, and what is the general satisfaction level among \t\n\t\nclients?\n4.\tWithin which fields and institutions do they facilitate human \t\n\t\ncapital development: technical, functional or business? \n5.\t What role could current providers and their services play in  \n\t\nthe project? \n6.\t Are there any constraints that deter providers from fulfilling \t\n\t\ntheir mandate?\n7.\t How could their capacities fit or be developed for the purposes \t\n\t\nof the project, for sustained institutional capacity?\nD  Providers: existing human capital development conditions\n   29\nBUILDING AGRICUL\nTURE HUMAN CAPITAL THROUGH INVESTMENT\n\n\nDESCRIPTION \nKEY ACTIVITIES\nThe implementer or co-implementers refer to the organiza-\ntion(s) or entity(-ies) who bear the main responsibility for \nproject design and implementation. These two tasks may  \nbe divided between two or more implementers or delegated \nto other persons or organizations who implement activities \non the ground. The entities who implement sub-components \nare referred to as partners. They are responsible for specific \nportions but not the entire project (see F ).\nConduct assessments of existing capacities and areas of \npotential capacity development within the implementing \ninstitution(s). Identify skilled staff and/or departments best \nsuited for project design and implementation. \nThe main areas we need to understand regarding the \nimplementer include:\n1.\t Which capacities are beneficial or necessary for the project \t\n\t\nimplementer?\n2.\t To what extent are those capacities present within the \t \t\n\t\norganization?\n3.\t Which staff/departments are most able to complete the \t\t\n\t\nproject tasks?\n4.\tWhich areas or capacities could be strengthened or \t\n\t\n\t\ndeveloped?\n5.\t Given the capacity assessment, which tasks are suitable  \n\t\nfor the implementer to do in-house and which are better \t\t\n\t\nthrough collaboration with or outsourced to partners?  \n\t\n(See F  for partner capacities.)\n6.\t What is the nature of the AHCI project, i.e. is it a stand-alone \t\n\t\nproject or a component in a larger programme, and what \t\n\t\ndoes that mean for collaboration as an implementer?\n7.\t What are the general mandate, approach and organizational \t\n\t\nstructure of the implementer, and how do they relate to the \t\n\t\nimplementation process?\nE  Implementer: intra-organizational and capacity conditions\nWhile this toolkit focuses on individual capacities, it is important to note there \nare three levels: individual, organizational, and systems (or enabling \nenvironment) capacities. Most farmers are part of social systems and farmer \ngroups or cooperatives, which also need organizational level capacity. Links \nbetween organizational capacities are shown in the case on professionalizing \nfarmer organizations through private sector-led models (Gordon, 2021). \nIndividuals and organizations can function better when there is system-level \ncapacity, the ability to shape and implement policies and regulations for the \nbenefit of agrifood actors.\n!\n30   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nDESCRIPTION \nKEY ACTIVITIES\nDESCRIPTION \nKEY ACTIVITIES\nPartners can be any organization(s) or person(s) with  \nwhom the implementer is collaborating on project design and/or \nimplementation and who contribute resources.  \nThese can be actors functioning at national, district or local level, \nor all three. \nConduct analysis and/or strengths, weaknesses, opportunities \nand threats (SWOT) at local, district and national level for any \nstakeholders with capacities and insights relevant to the project. \nHold initial talks and discussions with potential partner(s) to \nestimate organizational fit.\n1.\t Which actors with capacities and insights relevant to the  \n\t\nproject are present? \n2.\t Which capacities or other resources could they contribute  \n\t\nin project design and/or implementation?\n3.\t Is a partnership feasible or desirable? If so, what form of \t\t\n\t\n\t\npartnership should it be?\n4.\tCould there be risks entering into a partnership? If so, what  \n\t\nare they?\n5.\t If partnership is feasible and desirable, how are tasks to be \t\n\t\n\t\ndelegated and good communication ensured?\nThese comprise the resources available for project design, \nimplementation, monitoring and evaluation for the lifespan of the \nproject or programme. \nCreate a clear overview of budgeted resource flows. Conduct a \nrisk assessment depending on the source of resources.\nThe main areas we need to understand regarding funding include:\n1.\t Which resources are available for project implementation,  \n\t\nand what does that mean for the general scope of the project?\n2.\t Where are resources coming from?\n3.\t What is the timing of resource flow(s) throughout the lifespan  \n\t\nof the project?\n4.\tAre there any risks to future flow of resources and its reliability \t \t\n\t\ndepending on source(s)?\n5.\t What are the capacities of implementer(s) and/or partner(s)  \n\t\nto handle and report on funding? (These are part of the \t \t\n\t\n\t\nassessments in E  and F ) \n6.\t What funding or resources exist to continue the project \t \t\n\t\n\t\nactivities in a sustainable way at the same location and to upscale \t\n\t\nto other locations? \nF  Partner(s): collaboration opportunities and conditions\nG  Financing and/or funding: resource and financial conditions\n   31\nBUILDING AGRICUL\nTURE HUMAN CAPITAL THROUGH INVESTMENT\n\n\nH  Impacts: the long-term desired effects of the project\nAspiration building block\nObjectives and key activities\nMain objective \nSelect feasible and desirable  \nhuman capital J , outcomes I  and impacts H ,  \ninformed by framing and design building blocks.\nSetting a theory of change for a project and incorporating AHC can be \nchallenging. We suggest doing so based on a thorough understanding of \nrelevant contextual factors, which is based on information gathered in the \nframing building block (elements A – G ).\nKEY ACTIVITIES\nOBJECTIVE\nEXAMPLES  \nOF IMPACTS\nAnalyse accumulated information/data from framing building \nblock activities ( A – G ). Source existing knowledge from impact \nassessments and evaluation of other projects or programmes. \nIdentify feasible and desirable human capital, outcomes and \nimpact in participation with farmers.\nIdentify desired impacts of the project based on needs and \naspirations of farmers. What is the long-term, measurable change \nthat you want to see? Identify feasible and desirable human  \ncapital, outcomes and impact in participation with farmers.\nMain questions to consider:\n1.\t Based on conversations with farmers ( A ) on needs and \t\t\n\t\n\t\naspirations, which are the main challenges within the given \t\n\t\n\t\nagricultural/livelihood systems that the project aims to \t \t\n\t\n\t\naddress?\n2.\t Which opportunities exist to overcome those challenges? \n3.\t Which opportunities could farmers pursue by changing actions \t \t\n\t\nand behaviours?\nIs each opportunity feasible, measurable, timely and \t\n\t\n\t\n\t\nappropriate, given information from the framing building block \t \t\n\t\n(elements A – G )?\nIncreased incomes, increased resilience of agricultural/livelihood \nsystems facing certain disruptions, increased empowerment of \nmarginalised groups in agricultural/livelihood systems, improved \nhealth and nutrition.\n32   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nOBJECTIVE \nEXAMPLES  \nOF OUTCOMES\nOBJECTIVE \nEXAMPLES  \nOF OUTPUTS\nIdentify changes in actions and behaviours (outcomes) that can \nlead to the desired impact.\nThe main questions to consider include:\n1.\t Based on accumulated information from A – G , which changes \t \t\n\t\nin actions, activities and behaviours are most likely to lead to the  \n\t\ndesired impact?\n2.\t Which of those changes can best be facilitated or are most \t\n\t\n\t\nlikely to follow from developing new skills and capabilities \t\n\t\n\t\namong farmers?\n3.\t Based on accumulated information from A – G , which  \n\t\nactions and behaviours are measurable, feasible, timely and \t\n\t\n\t\nappropriate?\nThese include adoption of technical agricultural practices, such  \nas integrated pest management, pruning, harvesting, irrigation \nsystems and storage, changes in behaviour such as taking up new \nleadership or entrepreneurship roles, changes in division of \nlabour between household members, changes in strategies to \nreach markets or secure fair prices.\nIdentify agriculture human capital that can lead to desired \noutcomes.\nThe main questions we need to consider include:\n1.\t Based on accumulated information from A – G , which type  \n\t\nof AHC is most likely to lead to the desired outcomes?\n•\t Which type of AHC: knowledge, skills, education, \t\n\t\nempowerment, networking and/or social capital?\n•\t Which field or combination of fields of AHC: technical \nagriculture, functional and/or business skills? \n2.\t Based on accumulated information from A – G , is the \t\n\t\n\t\n\t\ndevelopment of those new skills and capabilities feasible, \t\n\t\n\t\nmeasurable, timely and appropriate?\nSkills, knowledge, capabilities, greater self-esteem, positive \nattitude, confidence within fields of agricultural techniques and \npractices, social interactions and business practices as  \nwell as other areas relevant to the given agriculture/livelihood \nsystem or general well-being. It can also include changed \nmindsets, attitudes, and judgements.\nI  Outcomes: changes in actions and behaviours\nJ  Outputs: agriculture human capital\nMake sure to set the goals of H , I  and J  in consultation with targeted \nfarmers. See Figure 3.4 for an example.\n!\n   33\nBUILDING AGRICUL\nTURE HUMAN CAPITAL THROUGH INVESTMENT\n\n\nAspirational building block\nFraming building block\nExample\nFemale farmers testify \nthat they are excluded \nfrom certain agricultural \ndecisions and practices, \nwhich lowers their income \nand social standing ( A )\nExample\nIn the community, a \nnetwork of women’s groups \nare present, giving \npotential and space for \ndeveloping new actions, \nbehaviours and roles by \nwomen ( B )\nExample\nFemale farmers find  \nthat learning livestock \nrearing skills is well \nsuited to their current \nlivelihoods ( A ) \nOutput\nFigure \n3.4\nExample \nof \naspirational \nbuilding \nblock \ninformed \nby \nframing \nbuilding \nblock\nSOURCE: \nAuthors' \nown \nelaboration.\nExample of  \ndesired impact: \nFemale farmers are \nempowered in agricultural \ndecisions and practices, \nand improves incomes \nand social standing\nOutcome\nImpact\nExample of actions \nand behaviours:\nFemale farmers are \nenabled to take up \nleadership and entrepre-\nneurship roles; providing \nadvisory services to \ncommunity members\nExample of  \nagriculture human \ncapital target: \n \nExpert knowledge and \nskills in livestock rearing, \nand increased self- \nesteem among female \nfarmers\n34   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nOBJECTIVE \nKEY ACTIVITIES\nThrough a participatory process, select target group(s) that: a) are \ninterested in partaking in the project; b) have potential to acquire \nnew human capital and benefit from it; and c) testify to various \nneeds and aspirations aligned with the project. \n1.\t Within the geographical scope set in A , develop clear criteria \t\n\t\n\t\nfor selecting the geographical areas of the project. This will \t\n\t\n\t\ndepend on:\n•\t logistical scope and resource availability of the project \n(revert back to G );\n•\t government priorities ( B );\n•\t location-specific challenges the project aims to address ( H ), \ne.g. poverty, unemployment, food safety, climate change \nadaption, market access; \n•\t location-specific know-how and heritage of knowledge in \nrelation to agrifood systems; \n•\t location-specific opportunities the project aims to take \nK  Targeting\nDesign building block\nObjectives and key actions\nMain objective \nCreate a project design that ensures the likelihood of  \nreaching human capital targets J , outcomes I  and impact \nH , informed by framing and aspirational building blocks.\nThe following elements within the design building block are meant as a tool to \nincorporate thinking and considerations on AHC within the project design, \nand not as a new set of project design guidelines, many of which exist.2\n!\n2\t\nFor useful project design guidance, see FAO Investment Learning Platform: \n \n\t\nwww.fao.org/investment-learning-platform/investment-cycle-phases/en/;  \n\t\nWorld \nBank \nProject \nCycle: \nhttps://projects.worldbank.org/en/projects-operations/ \n\t\nproducts-and-ser-vic-es/brief/projectcycle#:~:text=Once%20all%20project%20\t\n\t\ndetails%20are%20negotiated%20and%20accepted,and%20the%20legal%20documents%20\t\n\t\nare%20accepted%20and%20; IFAD Project design and Management: www.ifad.org/en/\t\n\t\nproject-design-and-management \n   35\nBUILDING AGRICUL\nTURE HUMAN CAPITAL THROUGH INVESTMENT\n\n\nadvantage of: agroclimatic conditions allowing for different \nagricultural/livelihood systems ( C ); for example: suitable \nconditions for grazing, tree cover, growing certain crops, or \ndeveloping aquaculture; existing capacities of local \norganizations ( B );\n•\t other ongoing projects or programmes in the area;\n•\t possibilities for collaboration with partners in the area. \n2.\t Based on new consultations with farmers on geographical scope \t\n\t\nthrough, for instance, participatory needs assessments, \t\n\t\n\t\n\t\nminisurveys, focus group discussions or other formats, discover:\n•\t Which farmers have the potential or are already involved in \nagricultural/livelihood systems connected with the project? \n•\t Which farmers have expressed interest in acquiring new \nhuman capital related to a given agricultural/livelihood \nsystem?\n•\t Which farmers are willing to invest time, effort and potentially \nresources in learning new skills and acquiring new \ncapabilities? \n•\t Which farmers express needs and aspirations aligned with \nthe project? \n3.\t Drawing on these consultations as well as assessments \t\t\n\t\n\t\nconducted as part of A , B  and C , select the target group(s) of \t \t\n\t\nthe project whose human capital you want to further develop.\n4.\tCreate an inclusion strategy ensuring all target group segments \t\t\n\t\ncan participate.\n•\t Identify the barriers to participation or engagement each \nsegment or target group faces, e.g. lack of transport or other \nresources (financial, digital tools, land), lack of social \nacceptance in relation to gender or LGTBQIA+ norms, social \nstanding or lack of physical abilities. This can also include \nunderstanding why some farmers are not interested in \nparticipating.\n•\t Devise a strategy to ensure participation for each target \ngroup segment given their socioeconomic barriers and \navailable resources.\n•\t Use this strategy when selecting development methods  \nand designing the implementation activities in L .\nBe sure to provide reliable and attainable incentives for learning rooted in the \nneeds and aspirations of farmers (data from A ). If incentives such as higher \nvalue or productivity of crops, greater well-being remain out of reach despite \nacquiring skills and capacities, farmers may see no reason to invest time and \neffort in learning (Davis et al., 2021; McNamara, 2020). \n!\n36   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nOBJECTIVE AND\nKEY ACTIVITIES\nEXAMPLES OF \nDEVELOPMENT \nMETHODS\nOBJECTIVE \nKEY ACTIVITIES \nSelect agriculture human capital development method(s) \nand design implementation activities best suited for AHC \ndevelopment. \nModule 5 is dedicated to decision-making around selecting  \nand designing the best method to develop human capital in \nagriculture based on conditions and goals. \nFarmer field schools (FAO, 2016), certified community promoters, \nfarmer training centres.\nDesign an organizational and management structure to \nimplement human capital development that outlines the division \nof tasks, responsibilities and decision-making processes. \n1.\t Who does what, and how should they do it? Based on \t\n\t\n\t\n\t\nassessments from A , B , D , E , F , in consultation with \t\n\t\n\t\n\t\nrespective actors the roles, outline responsibilities and  \n\t\ndecision-making processes for the actors that have significance \t\t\n\t\nfor the development of human capital:\n•\t farmers ( A );\n•\t other stakeholders involved ( B );\n•\t providers of human capital on the ground ( D );\n•\t implementer or co-implementers ( E );\n•\t partner(s) ( F ). \n2.\t Define the ways in which these roles relate to:\n•\t How you plan to form governance bodies for decision-\nmaking, oversight, budgeting and financial decisions (e.g. a \nsteering committee). Consider the degree of decentralisation \nin decision-making, such as the design or financial decisions \nfarmers themselves should make to support ownership of \nlearning processes.\n•\t Develop human capital directly. Which tasks relate to  \neach activity in implementing agriculture human capital \ndevelopment methods L ? Consider existing local \ninstitutional systems/customs/responsibilities and define \nroles that complement them.  Local farmer groups and \ncommunity members could well take on certain tasks.\n•\t Set up new institutions to work within the organizational \nstructure such as community-level commissions, boards or \ncouncils with defined roles and responsibilities. \nL  Method: how to develop agriculture human capital\nM  Organizing: how to organize and manage implementation\n   37\nBUILDING AGRICUL\nTURE HUMAN CAPITAL THROUGH INVESTMENT\n\n\nOBJECTIVE \nKEY ACTIVITIES \nCreate a strategy that maintains the desired continuity and allows \nfor replication and scaling of human capital development prior to \nimplementation.\n1.\t Assess which aspect(s) to sustain in the long run plus required \t \t\n\t\nscaling, actions and strategies.\n•\t For the project itself developing human capital, consider \nwhat it requires to ensure continuity, or its different \ncomponents, beyond the initial time limit. Will the funding \ncontinue or are there alternative sources, partnerships, \nimplementer(s), and capacity building from relevant \ninstitutions? Also, what would it require to scale up the \nproject, and is there funding available for that?\n•\t Are there any successful approaches from the project \nimplementation? Discuss with relevant stakeholders how to \ncontinue, scale up or integrate these approaches into other \nprogrammes or into new ones. Provide ample evidence and \ndocumentation with information.\n•\t Is there developed human capital among farmers and is it \npossible to ensure continuous farmer support? Will farmer \ncoaching and advisory services or other supports be \navailable after the project ends? Can they be scaled up \nbeyond the project?\n•\t What are the outcomes and impacts of the project? This may \nneed a more holistic approach to identify a wider set of \nfactors that support certain actions, behaviours and wider \nimpacts. Consider how to sustain certain relationships, \nmarket channels, networks and other factors post project \nand how to scale up.  \nN  Scaling and sustaining\n3.\t Monitoring, evaluation and learning tasks ( O ) Establish capacity \t\n\t\nstrengthening within identified areas or institutions of need \t\n\t\n\t\n(revert back to identified institutional skills needed under E ).\n4.\tEstablish communication and reporting channels and procedures \n \n\t\nthroughout implementation.\nAHCIs are often components of a larger programme investing in other areas \nsimultaneously. Having a clear outline of intra-organizational roles and \nresponsibilities as the implementer is key to facilitate development of human \ncapital.\n!\n38   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nOBJECTIVE \nKEY ACTIVITIES \nINDICATORS FOR \nAGRICUL\nTURE \nHUMAN CAPITAL\n2.\t Take step one in consultation and collaboration with partners and \n\t\n\t\nother stakeholders, potentially reaching out to new stakeholders, \t\n\t\ngovernments, ministries and companies that are relevant in \t\n\t\n\t\nterms of continuity, replication or scaling up.\nCreate a clear strategy for monitoring, evaluating and learning to \nkeep improving the project design once implementation starts.\n1.\t Pre-implementation: Establish monitoring, evaluation and \t\n\t\n\t\nlearning mechanisms.\n•\t Collect baseline data on existing skills and capabilities \nthrough surveys, interviews and focus group discussions \nprior to implementation.\n•\t Set up channels for grievance, feedback and information \nsharing that are easily accessible for farmers, providers and \nstaff working on the project, to learn from success or barriers \nto human capital development.\n•\t Establish clear procedures on handling complaints, \ngrievances and other feedback that are integrated into the \norganization ( M ) of the project.\n•\t Ensure transparency of practices for all of the above to \npromote awareness among all involved, including \ncommunication channels. \nDuring implementation: Collect results on progress towards set \t\n\t\n\t\nhuman capital indicators through surveys, interviews, focus \t\n\t\n\t\ngroup discussions and compare with baseline data as well as \t\n\t\n\t\nhuman capital targets ( J ). Consider mid-term reviews.\n2.\tDuring implementation: Collect data from feedback and \t\t\n\t\n\t\ngrievances and follow established procedures. Ensure that \t\n\t\n\t\nfeedback is used to improve project performance.\n3.\t Consider methods such as log frames, randomized control trials, \t\n\t\nparticipation, reflection workshops, minisurveys, interviews.\nThere is no one way to determine indicators for AHCI when \ncollecting baseline data and subsequently monitoring and \nevaluating progress. One could choose indicators of output, that \nis: What human capital have farmers gained? This can be difficult \nto measure but could rely on qualitative data from farmers, \nthrough surveys, interviews, focus group discussions. Progress \nindicators on outcomes, that is: To what extent are farmers \nadopting new actions and behaviours? Likewise rely on qualitative \ndata from farmers but could be supplemented with observational \nO  Keep improving\n   39\nBUILDING AGRICUL\nTURE HUMAN CAPITAL THROUGH INVESTMENT\n\n\ndata. Finally, assess indicators on impact, that is: To what extent \nhas the project delivered the desired goal(s)? This depends  \non the nature of the goal(s). If the project aimed for quantifiable \ngoals such as increases in productivity or incomes, there are  \nways to measure impact through quantitative data, although there \nare significant challenges in determining cause and effect. If the \nproject aimed for goals that are difficult to quantify such as \nwell-being and empowerment, monitoring and evaluation is again \nbased on qualitative data collection. For a deeper understanding \nof impact evaluation of AHC investments, see Module 4 and other \nuseful resources (FAO, 2022a; FAO, 2022b).\nOften, strategies for N  and O  are not fully formed until the project is ongoing. \nWe suggest rather that all elements of the design building block are thoroughly \nplanned fully prior to implementation. This includes developing an exit \nstrategy as one of the first steps of the design process.\n!\n40   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nENVIRONMENTAL AND SOCIAL SAFEGUARD CONSIDERATIONS FOR  \nAGRICULTURE HUMAN CAPITAL PROJECTS\nAll AHCI projects occur within a bigger picture: building human capital  (output)   \nsuch that behaviours and actions are changed  (outcome)  and lead to larger project/\nprogramme goals  (impact)  within a given area (geographical and societal). It can  \nbe difficult to imagine that an AHC project could have negative environmental and/or \nsocial impacts, however this can happen if the context within which the project works  \nis not adequately assessed beforehand. Negative social impacts could be in the form  \nof social conflict between those who receive the training and those who do not or \ndiscord over cultural sensitivity of the human capital targeted (e.g. does the project \nconflict with existing cultural norms or traditional knowledge?). The building of human \ncapital can also, if not accompanied by specific safeguards or incentives to reduce \nthese risks, prompt “brain drain”, where newly trained participants acquire skills that \nencourage them to leave their area because of the absence of local opportunities  \nor compensation. \nBy assessing the social context within which the project is planned, project designers \ncan avoid, reduce, or mitigate these potential risks and negative impacts. It is important \nto consider inclusiveness when targeting participants, as some who are already well  \noff, in terms of literacy or access to information, might be overrepresented compared  \nto those more in need. In some cases, it is likewise essential to create a “safe space”  \nfor capacity development for the individual, as it is sometimes discouraged by religious \nbeliefs, tradition, gender roles, norms and policies. A coaching approach to personal \nlearning could remove any potential harm in these situations. With regards to wider \nconflicts, FAO provides guidance on conflict sensitive programming that can prove \nuseful (FAO, 2020).\nLikewise, on the environmental side, the human capital intervention (and the  \nlarger outcome or impact to which it contributes must be assessed in relation to \nenvironmental sustainability. An example of a well-intentioned human capital idea gone \nawry is the case of training farmers in some countries with water shortages and poor \nconnectivity to irrigation systems in the use of solar irrigation pumps. In theory, the idea \nseems wonderful: farmers have access to water, agricultural productivity increases, they \nacquire skills in on-farm water management using renewable energy. In reality, the \nresult is far from ideal. In countries without groundwater monitoring or legislation and \nenforcement on its use, many of these solar powered irrigation pumps are depleting \ngroundwater resources without any replenishment and have developed into a problem \nof their own. The lesson learned is that without assessing the related output, outcome \nand impact of a project against the wider environmental, legal, social and political \ncontext a good idea can turn out to be disastrous\nBOX 3.1\nSOURCE: \nAuthors’ \nown \nelaboration; \nFAO. \n2020. \nThe \nprogramme \nclinic \ndesigning \nconflict- \nsensitive \ninterventions: \napproaches \nto \nworking \nin \nfragile \nand \nconflict-affected \ncontexts. \nRome, \nFAO. \nwww.fao.org/3/ca7494en/ca7494en.pdf\n   41\nBUILDING AGRICUL\nTURE HUMAN CAPITAL THROUGH INVESTMENT\n\n\n\t\n\t INFORMATION FLOW BETWEEN BUILDING BLOCKS: A KEY PRINCIPLE \t\n\t\n\t OF DESIGN AND “ O  KEEP IMPROVING” \nAs is evident above, the flow of information between the three building blocks \nis key. This is the case in the pre-implementation or design phase (Figure 3.5) \nas well as during implementation (see Figure 3.6). In the latter, the  aspirational \nbuilding block becomes an evidence building block, where data on actual \noutputs, outcomes and impact move from being aspirations to guidance for \ncontinuous improvement in the design building block, and is therefore the \nprimary principle of O  Keep improving.\nDesign  \nbuilding block\nK \t\nTargeting\nL \t\nMethods\nM \t\nOrganizing\nN  Scaling & \t \t\n\t\nsustaining\nO  Keep improving\nFigure \n3.5\nInformation \nflows \nbetween \nbuilding \nblocks \npre-implementation\nSOURCE: \nAuthors' \nown \nelaboration.\nA \t\nFarmers\nB \t\nInstitutions\nC \t\nEnvironment\nD \t\nProviders\nE \t\nImplementer\nF \t\nPartner(s)\nG \t\nFinancing/ \n\t\nfunding\nFraming  \nbuilding block\nAspirational  \nbuilding block\nH  Impact\nI  Outcome\nJ  Output\nData 2\nWhat do contextual factors tell \nus about the best design \nstrategies? \n \nExample: Most farmers own \nsmartphones ( A ). Digital tools \ncould therefore make part of a \nmethod ( L ), but should also \ninform on a targeting strategy  \n( K ) that ensures inclusion of \nfarmers without smartphones.\nData 1\nWhat do contextual factors tell \nus about which types of human \ncapital is important, and how \nthey lead to desired impact? \n \nExample: Soil quality ( C ) is low \nand farmers testify of low yields \n( A ). An important type of \nhuman capital would be skills to \nimprove soils.\nData 3\nWhat do the elements of the \ntheory of change tell us about \nthe best design strategies? \n \nExample: Leadership skills and \nimproved empowerment ( J ) \namong women are desired. A \nmethod that involves targeted \nwomen directly in decision-\nmaking could therefore be \nrelevant.\n42   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nDesign  \nbuilding block\nK \t\nTargeting\nL \t\nMethods\nM \t\nOrganizing\nN  Scaling & \t \t\n\t\nsustaining\nO  Keep improving\nFigure \n3.6\nInformation \nflows \nbetween \nbuilding \nblocks \nimplementation\nSOURCE: \nAuthors' \nown \nelaboration.\nA \t\nFarmers\nB \t\nInstitutions\nC \t\nEnvironment\nD \t\nProviders\nE \t\nImplementer\nF \t\nPartner(s)\nG \t\nFinancing/ \n\t\nfunding\nFraming  \nbuilding block\nEvidence  \nbuilding block\nH  Impact\nI  Outcome\nJ  Output\nData 5\nData 5: What is the feedback \nfrom farmers, providers, & \npartners re. K - O , what are the \nchanges in contextual factors  \n(if any); and what can be learned \nfor improving design? \n \nExample: Providers testify that \nteaching conditions are not \nideal for given circumstances  \nreassess L .\nData 4\nWhat is the feedback from \nfarmers, providers & partners \nre. the specific skills and \ncapacities, the specific actions \nand behaviours and how those \nhelp lead to the desired impact? \n \nExample: Farmers testify that \ncertain skillsets are not useful in \norder to undertake the required \nactions for change  reassess \nJ , I , possibly H .\nData 6\nWhat is the evidence of \nachieved outputs, outcomes \nand impacts and what can be \nlearned for improving design? \nThis can be documented under \nset indicators \n \nExample: Indicators of \ndeveloped agriculture human \ncapital are low.  reassess K , \nL , M  and collect data 5 to \nfacilitate/improve an uptake in \nhuman capital developed.\n   43\nBUILDING AGRICUL\nTURE HUMAN CAPITAL THROUGH INVESTMENT\n\n\n\n\n©CIFOR/Faizal Abdul Aziz\n©FAO/Luis Tato\n\n\n\n\nModule 4 \nAgriculture human \ncapital investment \ndevelopment methods\n\t\n\t INTRODUCTION\nHaving discussed what AHC is, theories of change using human capital, and \nthe different components of project design, we now turn to  AHC development \nmethods. We omit the word “agriculture” in this module on the basis the term \n“human capital” refers to human capital in agriculture. This module lists  human \ncapital development methods, presents indicators and criteria for assessing \nthem and describes selected methods. Next, the module presents tables to \nhelp select which methods to use and discusses principles for deciding how \nto combine methods. \nLearning objective \nTo be able to list different types of methods to develop  \nhuman capital. You can then select appropriate human  \ncapital development methods based on your context, \nresources and goals. \n!\n   47\n\n\nGROUP\nINDIVIDUAL\nGROUP\n\t\n\t LIST OF AGRICULTURE HUMAN CAPITAL DEVELOPMENT METHODS\nMany human capacity development methods have developed for different \npurposes, target groups and conditions. As shown in Figure 2.2 in Module 2, \nhuman capital development methods may be categorized as: \n•\t formal, involving the agricultural education system; \n•\t non-formal, including extension and advisory services and training  \n\t for specific purposes and skills; and\n•\t informal,  where learning is more ad hoc as when farmers learn from \t\n\t \teach other or other informal sources such as input supply shops. \t\n \nHuman capital development methods may also be categorized according to \ntheir target, that is, individuals (e.g. call centres), groups (e.g. farmer field \nschools) or the public at large (e.g. radio). \n\t\nThe list below is not exhaustive but includes most of the methods that \nhave been documented, such as JICA (2008), Hoffman et al. (2009), David and \nCofini (2017) and Davis et al. (2018). Methods are listed by type (formal, non-\nformal and informal) and then within each type, depending on whether the \nmethod targets individuals, groups, or the public at large. The 16 starred \nmethods are described in more detail in the next section followed by discussion \nof the criteria.\n\t\n\t FORMAL\n•\t Agricultural universities \n•\t Agricultural vocational schools* \n•\t Certification programmes from government, educational institutions, \t\n\t\n\t private sector (e.g. community promoters)* \n•\t Farmer training centres* \n\t\n\t NON-FORMAL\n\t\n\t Extension and advisory methods\n•\t Benchmarking for farm business analysis\n•\t Agricultural call centres*\n•\t Extension agent advising individual farmers\n•\t Management advice for family farms*\t\n•\t Plant health clinics\n•\t Village agents* \n•\t Demonstrations \n•\t Enablers of rural innovation\n•\t Extension agent advising groups\n•\t Farmer field schools*\t\n\t\n•\t Farmer study circles\n•\t Farmer-to-farmer extension (e.g. lead farmers, community promoters)*\n•\t Household methodologies \n•\t Innovation platforms \n•\t Learning events/workshops \n•\t Service provision by cooperatives \n•\t Study tours*\n•\t Videos*\n48   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nINDIVIDUAL\nPUBLIC  \nAT LARGE\nPUBLIC AT LARGE\n•\t Edutainment television*\n•\t Extension campaigns\n•\t Fairs and shows*\n•\t Mobile phone extension with basic features for text messages and \t\n\t\n\t interactive voice response\n•\t Radio*\n•\t Smartphones/computers/laptops with internet for:\n•\t Digital portals, knowledge banks and platforms\n•\t e-learning platforms\n•\t Mobile apps\n•\t WhatsApp, Telegram and other social media discussion groups*\n•\t Tele/video conference\n\t\n\t On the job training\n•\t Internships/apprenticeships*\n•\t Coaching/mentoring*\n\t\n\t  \n\t\n\t INFORMAL\n•\t Coaching/mentoring\n•\t Experience\n•\t Farmers advising each other in absence of a programme\n•\t Markets/input suppliers\n•\t Meetings \n \n \n \n\t\n* Described in more detail in the next section\nHuman capital development methods may also be categorized according to \ntheir target, that is, individuals (e.g. call centres), groups (e.g. farmer field \nschools) or the public at large (e.g. radio). \n\t\nThe list below is not exhaustive but includes most of the methods that \nhave been documented, such as JICA (2008), Hoffman et al. (2009), David and \nCofini (2017) and Davis et al. (2018). Methods are listed by type (formal, non-\nformal and informal) and then within each type, depending on whether the \nmethod targets individuals, groups, or the public at large. The 16 starred \nmethods are described in more detail in the next section followed by discussion \nof the criteria.\n   49\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nEXTENSION AND ADVISORY SERVICES AND HUMAN CAPITAL  \nDEVELOPMENT METHODS\nExtension and advisory services (EAS) are the activities from different sectors  \nthat facilitate farmers’ access to knowledge, information and technologies; their \ninteraction with markets, research and education, and the development of technical, \norganizational and management skills and practices” (Davis and Sulaiman, 2018).  \nEAS account for most of the human capital development methods available to farmers \nin the South. Other methods include educational institutions, on-the-job training such \nas internships and apprenticeships and informal methods such as farmers’ \ninteractions with each other.\nBOX 4.1 \nSOURCE: \nAuthors \nand \nDavis, \nK. \nand \nSulaiman, \nR. \n2018. \nOverview \nof \nextension \nphilos-\nophies \nand \nmethods. \nIn: \nDavis, \nK., \nBohn, \nA., \nFranzel, \nS., \nBlum, \nM., \nRieckmann, \nU., \nRaj, \nS., \nHussein, \nK. \n& \nErnst, \nN. \neds. \n2018. \nWhat \nworks \nin \nrural \nadvisory \nservices? \nGlobal \nGood \nPractice \nNotes. \nLausanne, \nSwitzerland: \nGFRAS, \npp. \n3-6.\n\t\n\t FIELDS AND TYPES OF HUMAN CAPITAL DEVELOPED, CHANGES IN \t\n\t\n\t\n\t HUMAN CAPITAL SOUGHT AND CRITERIA FOR ASSESSMENT\nThe descriptions of the methods include fields and types of human capital \ndeveloped, changes in human capital sought and criteria and indicators used \nfor assessing the methods. These three sets of descriptors are defined below.\nFields of human capital developed\nHere we look at fields of human capital as defined in Module 2 that the method \ncan develop easily.\n\t\nChanges in types of human capital sought that may increase or \nimprove these types, as defined in Box 1.2.\nCriteria for assessing human capital development methods\nFive of the seven criteria are adapted from David and Cofini (2017) and compare \nmethods in tables presented in the section \"Principles for selecting which \nmethods to use\" (pp 80–84).\n50   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n1\n2\n3\n4\n5\n6\n7\nOther criteria could be included in the above list, such as scalability, ease of \naccessing a method, and suitability for working with other target groups, such \nas disabled or Indigenous Peoples. Some such as ease of access are highly \nnuanced and depend on the context, such as the target population’s education \nlevel and the proportion with access to smartphones or the internet. Others, \nsuch as suitability for Indigenous Peoples, may be relevant only in some \ninstances. Planners can include additional criteria as needed. \nThe number of people who can participate in or use a \nparticular method. This could be the number of persons \ntrained or the numbers listening to a radio broadcast. \nCategories used for this toolkit include wide, moderate \nand limited.\nThis assesses the level of difficulty in applying a method, \nincluding content development, recruiting and training. \nThe categories are easy, moderate or difficult.\t\n \nThe cost of implementing a method includes staff sala-\nries, transport and equipment. The categories are low, \nmedium and high.\t\n \nCost per user or per trainee is the total cost divided by \nthe number of persons participating in or using the \nmethod. Note that the cost of a method such as a tele-\nvision show may be high while the cost per viewer may \nbe low. The categories are low, medium and high.\nThis assesses the level of difficulty in applying a method, \nincluding content development, recruiting and training. \nThe categories are easy, moderate or difficult.\t\n \nThis is the extent to which the method can accommodate \nconstraints faced by women (such as lack of time due to \ndomestic work, childcare needs, cultural taboos on \nmixing with men) or by youth (such as constraints on \nspeaking when elders are present). The categories are \nhigh, medium and low.  \t\n \nThis assesses feasibility for national and local institutions \nto continue financing the method once external support \nends. The categories are high (highly feasible), medium \nand low.\nREACH\nSUITABILITY FOR \nLOW LITERACY \nPOPULATIONS\nSUITABILITY  \nFOR WORKING \nWITH WOMEN \nAND YOUTH\nFINANCIAL \nSUSTAINABILITY\nEASE OF \nIMPLEMENTATION\nCOST\nCOST PER USER\n\t\n\t DESCRIPTION OF SELECTED HUMAN CAPITAL DEVELOPMENT \t\n\t\n\t\n\t METHODS\nThe selected human capital development methods are described below in \nalphabetical order within the three main development categories (formal, non-\nformal, and informal). The descriptions of methods draw upon Davis et al. \n(2018), David and Cofini (2017) and other references, specific to each method.\n   51\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nIMPLEMENTATION\nAn information hub that people call to receive timely and \nrelevant information and advice.  Call centres also help link \nfarmers to services such as input suppliers, produce \nmarketers or credit providers. \nThe information and advice provided by a call centre need \nto be accurate, up-to-date, accessible, relevant and timely. \nFarmers need to trust their call centre. This trust can be \nmore easily developed if farmers already trust the institution \nconnected to the call centre. For example, i-shamba (farm), \na farmer information service in Kenya is associated with the \npopular agricultural television show Shamba Shape Up (see \nmethod on edutainment television) and operates an \nagricultural call centre that farmers can subscribe to free \nof charge.\t\n \nTo understand farmers’ needs, preferences and capabili-\nties requires a comprehensive needs assessment. Key \noperational decisions include: \n•\t which languages to use; \n•\t whether to answer calls directly or use interactive  \nvoice response (automated replies with the caller  \nselecting different options); \n•\t which hardware and software to use;\n•\t how to develop the call centre application, that is,  \nthe repository of knowledge that call agents access  \nto reply to callers’ questions;\n•\t whether calls can be linked to locations via global  \npositioning systems (GPS) so that information given  \nis adapted to the caller’s precise location; \n•\t which data to capture from the call and how  \nto use the data to manage knowledge and improve  \nperformance.\nParticular attention needs to be given to recruiting and \ntraining call agents as the direct point of contact for callers. \nDEFINITION\nPRINCIPLES\nAgricultural  \ncall centres\n52   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nFIELDS OF \nHUMAN CAPITAL \nDEVELOPED\nCHANGES IN \nHUMAN CAPITAL \nSOUGHT\nREACH\nEASE OF \nIMPLEMENTATION\nCAPACITIES \nREQUIRED  \nAND COST\nSUITABILITY FOR \nWORKING WITH \nLOW LITERACY \nPOPULATIONS\nSUITABILITY  \nFOR WORKING \nWITH WOMEN \nAND YOUTH\nTechnical agriculture\nIncreased knowledge, networks\nModerate, often limited to paid subscribers or members of \nparticular organizations.\t  \nDifficult, requires considerable expertise in agriculture, call \nhandling procedures, customer relations and call centre \nhardware and software.\t  \nRequired expertise includes call centre management, \n \ntechnical agriculture, operations and call centre agents with \nagricultural background and good communication skills. \nCosts are high but cost per beneficiary may be low to \n \nmoderate if the number of users is high.\t\n \nHigh, as long as they have access to phones.\t\n \nModerate to high, services may attract more youth and \nwomen if they are represented among the call agents.\t\nModerate. Key aspects are building trust among users and \nassuring them they can get relevant, accurate and timely \ninformation at low cost. Cost recovery is a challenge and \nmay involve subsidies or direct payments from users.\nStrengths include two-way communication, location spec-\nificity (particularly when calls are GPS-located), and the \nability to answer farmers’ specific questions. Challenges \ninclude gaining the trust of the audience and managing the \ncomplex set of agricultural information, customer relations \nand call centre hardware and software. \nFINANCIAL \nSUSTAINABILITY\nSTRENGTHS AND \nCHALLENGES\n   53\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nCHANGES IN \nHUMAN CAPITAL \nSOUGHT\nREACH\nEASE OF \nIMPLEMENTATION\nFIELDS OF \nHUMAN CAPITAL \nDEVELOPED\nTrade fairs, trade shows \t  \nAgricultural fairs and shows are public events with displays \nand exhibits to provide farmers with information on \ntechnologies and practices.\t\n \nFairs may be organized by government agencies, NGOs, \nfarmer organizations or private companies. They may deal \nwith farming in general or focus on a particular sector such \nas livestock or seeds. They may be national in scale or focus \non a particular region or district. Input suppliers and other \nservice and equipment providers seek to increase their \nsales by showcasing their products and services for farmers \nand other stakeholders.\t  \nSome common features of many fairs include: displays \nwhere participants view produce, livestock and technologies; \nexhibition areas where input suppliers and service providers \nshowcase their products and services; forums where \nexhibitors make presentations to participants; training \nsessions where farmers can learn new skills and techniques; \nand business-to-business forums where farmer \norganizations and other businesses can meet, strengthen \nnetworks and conduct business. Many shows award prizes \nand feature music and other forms of entertainment.  Some \nNGOs organize fairs with a particular objective in mind, as \nwhen Catholic Relief Services manages seed and voucher \nfairs across 11 African and Asian countries to help poor \nfarmers access seed and promote local seed businesses \n(CRS, 2017).\t\n \nTechnical agriculture, business\t\n \nIncreased knowledge, networks\t  \nModerate \nDifficult, requires a great deal of planning and \nadministration\nSYNONYMS/\nSUB-CATEGORIES\nDEFINITION\nAgricultural  \nfairs and shows\nIMPLEMENTATION\nPRINCIPLES\n54   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nCAPACITIES \nREQUIRED  \nAND COST\nCosts of putting on a fair are high but costs per attendee \nmay be low to moderate, depending on the numbers \nattending. Costs of attending may be high if great distances \nare involved. Considerable skills in planning, administration \nand logistics are required. Costs include renting venue and \nfacilities, publicity, marketing, engaging exhibitors, \norganizing contests, and transporting farmers. \nHigh\t\n \nLow to moderate for women as they may face difficulties \ntravelling away from home and responsibilities such as \nchildcare and domestic work, with gender taboos against \ntravelling. High suitability for youth.\t\n \nLow to medium, depending on the willingness of local \ngovernments or trade associations to take responsibility \nfor organizing shows. Some costs can be recovered through \ncompany subscriptions and charging exhibitors.\t\n \nThe strengths are that farmers can learn about a wide range \nof products and services in a short period of time in one \nlocation and companies can market their products and \nservices to many farmers and businesses and obtain \nfeedback on them. Farmers can build networks with other \nfarmers, input suppliers and service providers. Challenges \ninclude high costs, complexity of planning and logistics, \nand difficulty in assessing their impact.\nSUITABILITY FOR \nWORKING WITH \nLOW LITERACY \nPOPULATIONS\nSUITABILITY  \nFOR WORKING \nWITH WOMEN \nAND YOUTH\nSTRENGTHS AND \nCHALLENGES\nFINANCIAL \nSUSTAINABILITY\n   55\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nAgricultural  \nvocational schools\nCHANGES IN \nHUMAN CAPITAL \nSOUGHT\nREACH\nEASE OF \nIMPLEMENTATION\nFIELDS OF \nHUMAN CAPITAL \nDEVELOPED\nAgricultural colleges\t\n \nAgricultural vocational schools offer students two- to \nthree-year study programmes, often in two tiers, one \nbeginning after completion of primary school and the other \nafter high school. Training objectives are either to prepare \nfor employment in the public or private sectors or to \nimprove the farming skills of persons expecting to work in \nor manage a farm after graduation. \t\n \nVocational schools design programmes based on careful \nassessment of the training needs of the labour market, \nincluding both the public and private sector and policies \nensure that women have access. In Cameroon, Agropastoral \nTraining Institutes aim for at least 40 percent of their \nstudents to be women (Takamgang and Lhoste, 2021). \t\nCurricula provide more practical than theoretical training; \na 70:30 ratio is considered a benchmark. Strong linkages \nwith the private sector are important; these include its \nparticipation in training and supporting internships. Strong \nlinkages with agricultural universities are important, \nparticularly for research.  \t\n \nTechnical agriculture, functional, business\t \nIncreased knowledge, skills, education, networks, social \ncapital\t\n \nLimited to moderate \t\n \nDifficult, especially given the lack of resources devoted by \nmany governments to agricultural vocational training. \nMSc and BSc level trainers and administrators are required. \nCosts include land, infrastructure, staff salaries, training \n \nand operations. Total costs and costs per trainee are high. \n \nIn Cameroon, agropastoral schools charge students \n \nUSD 358–448 per year for their two-year course while the \ntotal cost of training, including charges and costs the school \ncovers, is USD 5770 per year (Takamgang and Lhoste, 2021).\nSYNONYMS/\nSUB-CATEGORIES\nDEFINITION\nIMPLEMENTATION\nCAPACITIES \nREQUIRED  \nAND COST\nPRINCIPLES\n56   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nLow. Some recognise the low quality of primary education \nand offer foundational training in literacy and numeracy. \n \nHigh for youth as nearly all vocational schools target youth. \nModerate for women, many make special efforts to recruit \nwomen. \t\n \nStrengths include low costs relative to universities and \nflexibility in programming and provision of relevant skills, \nto respond to labour market demand. Many also have \nstrong internship programmes benefitting both students \nand their hosts. Challenges are that graduates lack the \nmeans to start businesses and schools often lack linkages \nto policymakers, the private sector and other educational \ninstitutions. Another problem is that the schools are \nsometimes viewed as second class or inferior, compared \nto universities. \t\n \nStrengths include low costs relative to universities and \nflexibility in programming and provision of relevant skills, to \nrespond to labour market demand. Many also have strong \ninternship programmes benefitting both students and their \nhosts. Challenges are that graduates lack the means to start \nbusinesses and schools often lack linkages to policymakers, \nthe private sector and other educational institutions. \nAnother problem is that the schools are sometimes viewed \nas second class or inferior, compared to universities.\nSUITABILITY FOR \nWORKING WITH \nLOW LITERACY \nPOPULATIONS\nSUITABILITY  \nFOR WORKING \nWITH WOMEN \nAND YOUTH\nSTRENGTHS AND \nCHALLENGES\nFINANCIAL \nSUSTAINABILITY\n   57\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nCertified community \npromoters\nCHANGES IN \nHUMAN CAPITAL \nSOUGHT\nREACH\nEASE OF \nIMPLEMENTATION\nFIELDS OF \nHUMAN CAPITAL \nDEVELOPED\nCertified farmer trainers\t  \nThese are farmer trainers or community promoters (see \nfarmer-to-farmer extension) who are accredited and have \nsuccessfully completed a professional programme that \nmeets the prescribed standard for an occupation.   \t\nCertification is the process whereby a professional society \nor other private or governmental body attests to the \nprofessional qualification of an individual. Certification \nprovides a credible, third party assessment of a person’s \nskills and knowledge. Individuals earn certification in an \noccupation by meeting the minimum standards of \neducation or experience. \t\n \n \t\nIn some places, such as Jharkhand State, India, certified \nmaster trainers and community promoters work in animal \nhealth, whereas in Ghana and Indonesia, certified cocoa \ndoctors advise farmers on improved cocoa management \npractices. In India, the trainers and promoters earn income \nselling products to farmers (such as medicine) whereas in \nother cases, such as cocoa doctors, they are volunteers. \nPrivate companies like Mars Inc. operate certification \nprogrammes, cocoa doctors, whereas the certification of \nanimal health workers in Jharkhand is managed by the \nAgriculture Skills Council of India, a governmental body \n(Amanah et al., 2021; Kumar et al., 2021).   \t  \nTechnical agriculture, business\t\n \nIncreased knowledge, skills\t\n \n\t\n \nModerate \t\n \nModerate to difficult. Certification programmes managed \nby professional bodies or government are generally more \ndifficult to implement than those run by private companies. \nSYNONYMS/\nSUB-CATEGORIES\nDEFINITION\nIMPLEMENTATION\nPRINCIPLES\n58   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nTotal costs and costs per beneficiary are low to moderate \nfor certification programmes run by private companies but \nmoderate to high for those run by professional or \ngovernmental bodies. They need kills in human resource \nmanagement. The cost to train a certified community \npromoter in livestock management in India is USD 975 for \na 30 day course and equipping the promoter with a \nsmartphone and kit costs USD 156 (Kumar et al., 2021).\t\nHigh, as community promoters have knowledge of local \nculture, practices and the local language.\nModerate. Can be high, particularly when women and youth \nare encouraged to become community promoters or when \npromoters are sought for enterprises with women in the \nmajority. In the example from Jharkhand State, India, raising \nsmall ruminants is traditionally women’s work and over 95 \npercent of certified animal health workers are women. \n \nCertification of community promoters is particularly \nappropriate for high risk and very technical innovations \nwhere the cost of an error may be high (e.g. treatment of \nlivestock diseases) or decisions are essentially permanent \n(location of water control structures). \t\n \nMedium. Companies managing certification systems may \ncover most or all certification costs making the process \nmore sustainable. Sustainability is more challenging where \nprofessional or governmental bodies operate certification. \nThese may require promoters to pay some of the costs \nthrough licensing or membership fees.\t\n \nCertification has the potential to increase the community \npromotor’s credibility, earning power and respect from \ncustomers and peers. It also helps improve a person’s \nconfidence, reputation and status. The major challenge is \nthe high cost of a certification programme, including \nsetting standards, managing a testing or accreditation \nsystem, registering certified persons and maintaining \ncertification over time, such as requiring attendance at \nrefresher courses. \nSUITABILITY FOR \nWORKING WITH \nLOW LITERACY \nPOPULATIONS\nSUITABILITY  \nFOR WORKING \nWITH WOMEN \nAND YOUTH\nSTRENGTHS AND \nCHALLENGES\nFINANCIAL \nSUSTAINABILITY\nOTHER \nSUITABILITY \nCONSIDERATIONS\nCAPACITIES \nREQUIRED  \nAND COST\n   59\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nCoaching\nCHANGES IN \nHUMAN CAPITAL \nSOUGHT\nREACH\nEASE OF \nIMPLEMENTATION\nFIELDS OF \nHUMAN CAPITAL \nDEVELOPED\nCoaching is a professional, collaborative and outcomes-\ndriven method of learning that seeks to help individuals \nachieve specific goals and improve performance.  \t\nA coach’s task is to help the client think through situations, \nso they can solve problems themselves. Trust, commitment \nand active involvement are key aspects of the relationship \nbetween a coach and a client. Coaches help clients to \nachieve personal growth, such as improved self-esteem \nand confidence, and to improve their business skills and \nperformance. A coach needs to have strong listening and \nquestioning skills.  Coaches also help clients to access new \nbusiness contacts and networks (van Coller-Peter, 2020).    \t\nMondelêz International uses full time coaches in its Cocoa \nLife programme to assist cocoa farmers in Côte d’Ivoire, \nGhana and Indonesia to improve production. Coaches and \nfarmers together draw up a farm development plan and \ncoaches carry out up to four follow-up visits over the \nfollowing year to help clients implement the plan (Mondelêz \nInternational, 2017). Coaches are either private or public \nagents who are trained in their role. Enterprise Uganda, a \npublic-private partnership, trains small-scale agro-\nentrepreneurs in their villages and then assigns coaches \nto visit them periodically.      \t\n \n \t\nTechnical agriculture, functional, business\t \nIncreased knowledge, skills, education, empowerment, \nnetworks \t\n \nLimited, because face-to-face, one-on-one interaction is \nrequired.  \t\n \nIdentifying suitable coaches may be difficult. \t\n \n\t\n \nHuman resource management skills are needed to identify, \ntrain and supervise coaches. Total costs and costs per client \nare high as coaches are often highly paid, need to be trained \nin coaching and work one-on-one with clients.\nDEFINITION\nIMPLEMENTATION\nCAPACITIES \nREQUIRED  \nAND COST\nPRINCIPLES\n60   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nHigh as interaction is face-to-face or by phone.\t\n \nHigh, particularly if female and young clients are matched \nto female and young coaches. \t\n \n\t\n \nWhile it is useful for a coach to have experience in the \nenterprise of their clients, it is not necessary. There are \nmany examples of coaches without such experience \nsuccessfully assisting their clients. \t\n \nLow, given its high cost and the fact that clients are often \nunable to pay the costs.\t  \nA strength of the coaching method is that coaches work \nwith clients on personal issues, such as building confidence \nand self-esteem, as well as technical and business issues. \nBecause they visit their clients at their workplace, they can \nengage them in depth and offer customised advice. \nChallenges of the method are its high cost and that it may \nbe difficult to find suitable coaches for some clients. \nSUITABILITY FOR \nWORKING WITH \nLOW LITERACY \nPOPULATIONS\nSUITABILITY  \nFOR WORKING \nWITH WOMEN \nAND YOUTH\nSTRENGTHS AND \nCHALLENGES\nFINANCIAL \nSUSTAINABILITY\nOTHER \nSUITABILITY \nCONSIDERATIONS\n   61\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nEdutainment  \ntelevision (TV)\nCHANGES IN \nHUMAN CAPITAL \nSOUGHT\nREACH\nEASE OF \nIMPLEMENTATION\nFIELDS OF \nHUMAN CAPITAL \nDEVELOPED\nEducational talk shows, contests and dramas. \t\n \nEntertaining TV programmes intended primarily for \neducational purposes.\t\n \n    \t\nEdutainment TV in agriculture seeks to change attitudes \nabout farming, increase people’s knowledge about \nagricultural practices, help them make informed decisions, \nlink farmers to support services and stimulate social action. \nTV is an important audiovisual aid. The uptake in improved \nagricultural practices is increased by showing their use in \nreal life, familiar settings. Messages need to be short and \nsimple to sustain viewer interest.       \t\n \n \t\nKey steps include research and planning, development, \nproduction (filming and editing), broadcasting and \nevaluation/feedback.  \nTechnical agriculture, business \t\n \nIncreased knowledge, skills, networks\t\n \n\t\n \nWide, where shows are broadcast on national TV networks \nand TV access is high. Social media such as YouTube can \nfurther increase reach. \t \t\n \nDifficult, due to the specialized skills required\t\n \nCapacities are required for directing, producing, researching, \nscriptwriting and editing. Skills in publicity, campaigning, \nfundraising and partnership building are also useful. \nProduction costs are high but those per viewer are often \nlow. Engaging the show Shamba (farm) Shape Up in Kenya \nto produce five six-minute segments for one broadcast cost \nUSD 50 000 in 2016 but with an audience of 3.5 million \nhouseholds the cost per viewing household was only \n \nUSD 0.014.\nDEFINITION\nIMPLEMENTATION\nCAPACITIES \nREQUIRED  \nAND COST\nSYNONYMS/\nSUB-CATEGORIES\nPRINCIPLES\n62   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nHigh, if they have access to TV and a good understanding \nof the language that the show is broadcast in.  \t\n \nHigh, but content should be relevant to both. Factors to \nconsider in producing the shows include topics selected, \ncharacters appearing and being interviewed and that the \nair time of the shows is convenient for women and youth. \n \nEdutainment TV is most appropriate for relatively simple \npractices or those with which farmers are familiar. For more \ncomplex practices or topics, edutainment TV serves mainly \nto raise awareness and guide viewers towards other \ninformation sources to learn more about the practices.  \t\nLow to medium. Financial sustainability is a major challenge \nbut can be overcome by selling company advertisements \nduring the show.\t  \nStrengths include edutainment TV’s wide reach, its appeal \nto youth and urban dwellers (many of whom farm or have \nstrong rural links), that it is entertaining as well as \neducational \nand \ncan \nbe \nintegrated \nwith \nother \ncomplementary \nmethods such as a call centre to respond to viewers’ \nquestions. Challenges include the method’s high cost, the \nlow penetration of TV in many areas and the difficulty in \ntranslating programmes into different languages.  \nSUITABILITY FOR \nWORKING WITH \nLOW LITERACY \nPOPULATIONS\nSUITABILITY  \nFOR WORKING \nWITH WOMEN \nAND YOUTH\nSTRENGTHS AND \nCHALLENGES\nFINANCIAL \nSUSTAINABILITY\nOTHER \nSUITABILITY \nCONSIDERATIONS\n   63\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nFarmer field schools\nCHANGES IN \nHUMAN CAPITAL \nSOUGHT\nREACH\nFIELDS OF \nHUMAN CAPITAL \nDEVELOPED\nJunior farmer field and life schools, farm business schools, \nfield schools\t\n \nA participatory education approach that brings together a \ngroup of small-scale producers to solve agricultural \nproblems and increasingly, other types of problems such \nas reducing gender inequality or improving non-farm \nincome generating activities like handicrafts.  The approach \ninvolves hands-on group learning and improving skills for \nobservation, critical analysis and decision-making.\t \n    \t\nFarmer field schools (FFS) emphasise learning by doing, \nthat is, through experience rather than passive listening. \nThe farmer group decides what the FFS should address and \nmeets regularly with a facilitator, observing, discussing, \nasking questions and learning together. Farmers examine \ndifferent options and make decisions based on agro-\necosystem analysis, a thorough analysis of an agricultural \nenvironment considering aspects from ecology, sociology \nand economics. Whereas past focus has been on solving \nagricultural problems, FFS has expanded to include such \ntopics as water management, climate change and house-\nhold livelihood security. Empowerment objectives and \nlearning how to solve problems are often as important as \nimproving crop or livestock yields.  \t\n \n      \t\n \t\nA typical FFS working on crop issues meets regularly at a \nfield or elsewhere for hands on training and experimentation \nthroughout the cropping season. The group typically \nnumbers between 20 and 30 and sessions are led by a \nfacilitator, often an extension worker who has undergone \ntraining in the FFS approach. Facilitators are in turn \nbackstopped by FFS master trainers. \t\n \nTechnical agriculture, functional, business \t\n \nIncreased knowledge, skills, empowerment, networks, \nsocial capital\t\n \n\t\n\t\n \nLimited to moderate as face-to-face interaction with \nfacilitators is required. \t\n\t\nDEFINITION\nIMPLEMENTATION\nSYNONYMS/\nSUB-CATEGORIES\nPRINCIPLES\n64   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nModerate to difficult \t\n \nMaster trainers (MT), who train the FFS facilitators, are \noften MSc or BSc level and facilitators often BSc level. In \nsome places, farmers from the communities are trained to \nbecome facilitators. Total costs are high and costs per \nfarmer are moderate to high. Costs vary by subject matter, \ncourse length and educational level of facilitators. Costs \ninclude needs assessment, curriculum development, \ntrainers, operations, supervision and follow-up. Costs of \ntraining FFS facilitators are USD 1000–2000 per facilitator. \nCosts per trainee are USD 20–40 per cropping season \n(Waddington and White, 2014).\t\n \nModerate to high; to fully benefit, participants should have \nbasic skills in reading, writing and numeracy, though \nstudies have shown good results for low literacy populations, \nlikely due to the hands on nature (Davis et al., 2012).   \t\nModerate to high. Women may face constraints concerning \ntiming of sessions and childcare. Both women and youth \nmay be constrained by social norms from participating in \nmixed groups. Participation in FFSs can improve gender \nequity and empowerment of women (Friis-Hansen and \nDuveskog, 2012).\t  \nModerate to low. Sustainable funding is challenging \nbecause of the high costs and skills required. Modalities to \nincrease sustainability include the use of community based \nfarmer facilitators and helping them establish federations \nto market their services, as was done in Rwanda (Khisa, \n2003; Neza et al., 2021).   \t \nTheir focus on problem solving and decision-making make \nthem relevant to a wide range of objectives and topics. They \ncan help build self-confidence and strengthen social \ncapital. Main challenges are the relatively high costs of \ntraining facilitators to provide the high quality of training \nrequired.\nSUITABILITY FOR \nWORKING WITH \nLOW LITERACY \nPOPULATIONS\nSUITABILITY  \nFOR WORKING \nWITH WOMEN \nAND YOUTH\nSTRENGTHS AND \nCHALLENGES\nFINANCIAL \nSUSTAINABILITY\nEASE OF \nIMPLEMENTATION\nCAPACITIES \nREQUIRED  \nAND COST\n   65\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nFarmer-to-farmer \nextension\nCHANGES IN \nHUMAN CAPITAL \nSOUGHT\nREACH\nFIELDS OF \nHUMAN CAPITAL \nDEVELOPED\nFarmer trainers, lead farmers, farmer promoters, farmer \nadvisers, community promoters \t  \nFarmer-to-farmer extension (FTFE) provides training to \nfarmers by farmers, often by creating a structure of farmer-\ntrainers (not formally certified). \t\n \n    \t\nFTFE can help build effective, farmer-centred extension \nsystems and empower farmers as change agents in their \ncommunities. Farmers and their organizations should \n \nplay a key role in selecting, monitoring and evaluating \nfarmer-trainers. Farmer trainers need strong support from \nextension systems for training and backstopping and \ncomplement existing extension systems, rather than being \na substitute for them. Farmer trainers may work for farmer \norganizations, NGOs, governments or private companies.        \t\n \t\nRoles and responsibilities vary but often include training, \nfollowing up, advising, conducting demonstrations, orga-\nnizing meetings and acting as a liaison between farmers \nand development agents. Farmer trainers often serve a \nfarmer group to which they belong. In some places they \nreceive a salary (e.g. Yachachiq community promoters in \nPeru) whereas in others, (farmer promoters in the Twigiri \nMuhenzi programme in Rwanda) they are volunteers \n(Salcedo du Bois and Zimmerman, 2021; Neza et al., 2021). \nTheir main motivations in such cases are access to \nknowledge, social recognition and altruism (Kiptot et al., \n2016). \t\n \nTechnical agriculture\t\n \nIncreased knowledge, skills\t\n \n\t\n \nModerate \nModerate\t\nDEFINITION\nIMPLEMENTATION\nSYNONYMS/\nSUB-CATEGORIES\nEASE OF \nIMPLEMENTATION\nPRINCIPLES\n66   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nTotal costs and costs per beneficiary are low to moderate. \nFarmer trainers need training in communication as well as \ntechnical skills. Most organizations start with several days \nof residential training. Refresher and on-the-job training \nare also common. Costs of training and incentives to \nmotivate farmer trainers (e.g. t-shirts and badges) in Africa \nhave been estimated at USD 100–260 per farmer trainer (or \nUSD 4 –10 per trainee) per year (Wellard et al., 2013; Franzel \net al., 2019). \t\n \nHigh, as farmer trainers have knowledge of local culture, \npractices and language.   \t\n \n\t\n \n\t\nModerate to high, particularly when a high proportion of \nwomen and youth are farmer trainers.\t\n \n\t\n \nFTFE may not be appropriate for very technical enterprises \n(e.g. certain crop spraying operations) or where the cost of \nan error may be high (e.g. treatment of livestock diseases). \n \nMedium. As the approach is low cost, it is often sustainable, \nparticularly when farmer trainers are based in local \ninstitutions and receive backstopping and training from \ngovernment or other organizations.\t\n \nThe approach is relatively low-cost, helps advisory services \nexpand their reach and may improve accountability in the \ncommunity, helps strengthen communities to access \ninformation and improve uptake of new practices. A main \nchallenge is that farmer trainers may perform poorly \nwithout adequate training and backstopping. Other \nchallenges may include expectations of financial benefits, \nhigh drop-out rates and conflicts between extension \nagents and farmer trainers. \nSUITABILITY FOR \nWORKING WITH \nLOW LITERACY \nPOPULATIONS\nSUITABILITY  \nFOR WORKING \nWITH WOMEN \nAND YOUTH\nSTRENGTHS AND \nCHALLENGES\nFINANCIAL \nSUSTAINABILITY\nOTHER \nSUITABILITY \nCONDITIONS\nCAPACITIES \nREQUIRED  \nAND COST\n   67\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nFarmer training \ncentres \nCHANGES IN \nHUMAN CAPITAL \nSOUGHT\nREACH\nFIELDS OF \nHUMAN CAPITAL \nDEVELOPED\nAgricultural training centres, rural resource centres, \npastoralist training centres\t\n \nTraining and demonstration hubs that create opportunities \nfor farmers to: \n•\t obtain technical advice, training and services; \n•\t link to value chain actors such as input suppliers and \nprocessors; \n•\t share experiences; and \n•\t access inputs such as seeds and seedlings. \nFarmer training centres (FTCs) may train farmers on a \nbroad range of enterprises (such as in Ethiopia) or have a \nparticular focus such as agroforestry (Rural Resource \nCentres in West Africa) or entrepreneurship (Songhai \nTraining Centre in Benin). They may be run by public sector \nextension agencies, NGOs, farmer organizations or public-\nprivate partnerships. Some have a narrow focus on training \nwhereas others have additional objectives: conducting \nfield research trials, promoting networking among farmers \nand other value chain actors or earning income to help \ncover training costs.       \t  \n  \t\n \t\nFTCs may have trial and demonstration plots, tree nurseries, \na training hall, a small library and office space. Some also \nhave processing units and provide accommodation and \ncatering services for training sessions. Training may be \nconducted through formal courses, fieldwork or through \ninformal visits by farmer groups. \t  \nTechnical agriculture, functional, business \t\n \nIncreased knowledge, skills, networks, strengthened social \ncapital \nModerate \nModerate to difficult\t\n\t\nDEFINITION\nIMPLEMENTATION\nSYNONYMS/\nSUB-CATEGORIES\nEASE OF \nIMPLEMENTATION\nPRINCIPLES\n68   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nBSc level trainers and administrators are often required. \nCosts include land, infrastructure, staff salaries, training \nand operations. Total cost and cost per trainee are high. \nCost recovery is possible through sale of products and \ntraining services.\t \nHigh\t\n \n\t\n \n\t\nLow to moderate. Women and youth may face financial \nconstraints preventing them from travel to FTCs. Women \nmay not have the time to travel to attend courses or they \nmay face cultural restrictions on travel. \t\n \nFTCs are particularly relevant for training in technologies \nthat are complex (high costs, high risk or involve decisions \nthat cannot easily be changed) or that take a long time to \ngenerate benefits. \t\n \nLow. Sustainability is challenging due to the high cost of \noperations. Some costs can be recovered by selling inputs \nand services but there is a risk that preoccupation with \nthese tasks can reduce the effectiveness of training and \nother objectives.\t  \nFTCs have proved effective in many countries for providing \nknowledge, training, inputs and services to a broad range \nof different types of farmers, including women and youth. \nFTCs managed by local organizations, such as the Rural \nResource Centres in West Africa, have been particularly \nstrong in responding to local needs and gaining the \nconfidence of local stakeholders. Challenges include the \nhigh costs of establishing FTCs, reaching out to farmers \nfurther away from the FTCs and the importance of strong \nand effective leadership and partnerships. \nSUITABILITY FOR \nWORKING WITH \nLOW LITERACY \nPOPULATIONS\nSUITABILITY  \nFOR WORKING \nWITH WOMEN \nAND YOUTH\nSTRENGTHS AND \nCHALLENGES\nFINANCIAL \nSUSTAINABILITY\nOTHER \nSUITABILITY \nCONDITIONS\nCAPACITIES \nREQUIRED  \nAND COST\n   69\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nInternships and  \napprenticeships\nCHANGES IN \nHUMAN CAPITAL \nSOUGHT\nREACH\nFIELDS OF \nHUMAN CAPITAL \nDEVELOPED\nInternships are positions taken by students or trainees who \nwork in an organization, often without pay, to gain work \nexperience or satisfy requirements for a qualification. \nApprenticeships are similar but are paid experiences that \nmay lead to full-time employment.\t\n \nInternships and apprenticeships offer benefits to both \nyoung interns and employers in the agricultural sector. \nInterns and apprentices can gain valuable work experience. \nEmployers can evaluate prospective new hires and leverage \nlower labour costs. Most programmes target students or \ngraduates of universities or vocational schools. Many \ninterns work directly with farmers, either on farms or as \nextension agents, sales or buying agents, or providers of \nservices such as credit, crop or livestock insurance. \nWhereas most interns in the agricultural sector are probably \nnot farmers, many are, such as those in the Agropastoral \nTraining Programme in Cameroon (Takamgang and Lhoste, \n2021).       \t\n \n  \t\n \t\nMany private companies, NGOs and government agencies \nworking in agriculture host interns without any assistance \nfrom outside organizations. Some government agencies or \ninitiatives, such as the Agropastoral Training Programme \nin Cameroon and the Rwanda Development Board have \ninternships for tertiary students or graduates, placing them \non farms, in private companies or government agencies. \nDonor agencies also sometimes help strengthen internship \nand apprenticeship programmes. For example, the United \nStates Agency for International Development’s Private \nSector Driven Agricultural Growth Project added value to \nthe Rwanda Development Board’s programme, increasing \nthe number of interns, providing orientation training and \nextending the internship from six months to one year. \t\nTechnical agriculture, functional, business \t\n \nIncreased knowledge, skills, empowerment, networking \nLimited, as available positions on farms and in firms and \norganizations are limited by the availability of funding and \nsupervisors.\nDEFINITION\nPRINCIPLES\nIMPLEMENTATION\n70   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nModerate \nMany organizations and programmes only take on interns \nwith university or tertiary degrees. Costs and costs per \nintern or apprentice are low when a company takes on an \nintern or apprentice. Organizing a programme matching \nstudents or graduates with companies and organizations \nmay involve moderate costs and costs per intern or \napprentice. Human resources management and networking \nskills are required.  \t\n\t\n \n\t\nLow \t\n \nHigh \n\t\n \nHigh, as both private and public sectors are often willing \nand able to take on the costs of recruiting and hosting \ninterns and apprentices.\t  \nInternships and apprenticeships offer an effective way for \nyouth to expand skills, gain experience, develop profess-\nional networks and enhance their self-employment and job \nprospects. They also help youth realise that there are \nfulfilling careers in farming and agribusiness. Interns \nbenefit their host companies because they are low-cost, \noften highly motivated and may bring cutting-edge ideas \nand technology from academia. Internships also help \ncompanies streamline their recruitment process, because \nfirms often hire them after they complete their service. \n \nOccasional problems arise when interns are not adequately \nsupervised, they are not given work to do or are unable to \nwork due to a limitation (e.g. lack of transport). Internships \nmay also have negative effects if interns are used as a \nsubstitute for employing people. \nSUITABILITY FOR \nWORKING WITH \nLOW LITERACY \nPOPULATIONS\nSUITABILITY  \nFOR WORKING \nWITH WOMEN \nAND YOUTH\nSTRENGTHS AND \nCHALLENGES\nFINANCIAL \nSUSTAINABILITY\nCAPACITIES \nREQUIRED  \nAND COST\nEASE OF \nIMPLEMENTATION\n   71\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nManagement advice  \nfor family farms \nCHANGES IN \nHUMAN CAPITAL \nSOUGHT\nREACH\nFIELDS OF \nHUMAN CAPITAL \nDEVELOPED\nThis is a participatory approach that uses principles from \nmanagement science to help farmers strengthen their \ncapacities to manage farm and non-farm resources. \t\nIn management advice for family farms (MAFF), farmers \nuse the phases of the management cycle, analysis, planning, \nmonitoring, adjustment and evaluation, to assess their \nfarm and non-farm activities and their economic and social \nenvironment. Record keeping is critical and farmers use \ndecision support tools to gain an in-depth understanding \nof their farming systems.       \t\n \n  \t\n \t\nThere is no standard model as tools and methods need to \nbe adapted to situations. Approaches often involve a needs \nassessment, group training on agricultural practices based \non farmers’ needs, management training including record \nkeeping and analysis tools, farm visits, and technical and \neconomic analysis. Farmers plan for the following season \nbased on results of the analysis. The learning process \ninvolves exchanges of experiences, self-analysis of farmers’ \nproduction and economic situation, field visits, on-farm \ntrials and group training. In Benin, the Ministry of Agri-\nculture’s MAFF advisors work with 7 to 9 groups (10 to 30 \nfarmers per group) (Faure et al., 2018). A farmer facilitator \nis selected and trained from each group and takes on \ncertain advisory functions.    \t\n \nTechnical agriculture, functional, business \t\n \nIncreased knowledge, skills, empowerment, networking \nLimited \nModerate to difficult\t\n \nThe main costs are for MAFF managers and advisers, \ntraining costs and backstopping activities. Costs and costs/\nbeneficiary are high, ranging from USD 20–80/beneficiary/\nyear for programmes in Africa. Once farmer facilitators take \non more functions, costs are lower, USD 2–20 per beneficiary/\nyear (Faure et al., 2015).\nDEFINITION\nPRINCIPLES\nIMPLEMENTATION\nEASE OF \nIMPLEMENTATION\nCAPACITIES \nREQUIRED  \nAND COST\n72   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nLow to moderate. Assessments are based on record \nkeeping, requiring literacy. MAFF has developed tools for \nilliterate farmers to use.\t  \nLow to moderate. Women and youth may not benefit \nbecause the approach focuses on a single member per \nhousehold who is usually the male household head.   \t\n\t\n \n\t\nMAFF is best suited to farmers who are literate and active \nin markets. \t\n \nLow. Sustainability is a major challenge as MAFF is highly \ndependent on international aid. There may be some scope \nfor funding from public sector extension agencies or \ndownstream, private-sector value chain actors marketing \nhigh value products.\t\n \nMAFF’s holistic approach considers all household enter-\nprises not just agricultural ones. MAFF’s analysis methods \nempower farmers to make sound decisions concerning \ntheir enterprises and practices. Farm-level data can be \nassembled to improve decision-making at the producer \norganization level as well. Main challenges are MAFF’s \nrelatively high costs, the need for highly qualified advisers \nto implement it and challenges servicing resource-poor \nfarmers, particularly those with low literacy levels. \nSUITABILITY FOR \nWORKING WITH \nLOW LITERACY \nPOPULATIONS\nSUITABILITY  \nFOR WORKING \nWITH WOMEN \nAND YOUTH\nSTRENGTHS AND \nCHALLENGES\nFINANCIAL \nSUSTAINABILITY\nOTHER \nSUITABILITY  \nCONSIDERATIONS\n   73\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nRadio\nCHANGES IN \nHUMAN CAPITAL \nSOUGHT\nREACH\nFIELDS OF \nHUMAN CAPITAL \nDEVELOPED\nRadio is one of the most popular information sources on \nagriculture, mainly due to its accessibility, affordability and \navailability in many different languages. Whereas tradi-\ntionally it was a one way communication tool, it can be \nintegrated with other ICTs, such as mobile phones and SMS, \nfor two way communication. Radio provides platforms for \ndialogue and discussions and for producing entertaining \nand interactive programmes such as dramas and talk \nshows. Participatory, demand-driven radio, such as that \npromoted by Farm Radio International, can elicit farmers’ \npreferences and opinions, raise awareness about services \nand events, host agricultural campaigns, link farmers to \nservice providers, disseminate information and facilitate \ndiscussion. \n \t\nConducting a needs assessment of potential audiences is \nan important starting point and can help guide decisions \non timing, formats, content and knowledge brokers (e.g. \nfrom research, private companies and educational insti-\ntutions). Skilled broadcasters can help extension and other \nagricultural specialists to package information into \nprogrammes that attract and engage listeners. Monitoring \nand evaluation of programming including audience surveys \nare essential for assessing impact and guiding improve-\nments.       \t\n \n  \t\n \t\nTechnical agriculture, business \t\n \nIncreased knowledge, networking\t\n \n\t\n \nModerate to wide, depending on the station(s) coverage \nPreparation of programmes and content may be easy for a \nsimple interview but difficult for other formats, such as a \ndrama. \t\nPRINCIPLES\nIMPLEMENTATION\nEASE OF \nIMPLEMENTATION\n74   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nCosts range from low to high, depending on the production \ncosts of a show (high for a drama, low for an interview). But \neven if costs are high, cost per listener is often low. An \nimportant prerequisite is that a radio station has the interest \nand ability to cover agricultural topics. \t\n \nHigh, particularly when programming is available in local \nlanguages. \n\t\n \n\t\nHigh, particularly when programmes address topics and \nenterprises of importance to women and youth. It is \nimportant to ensure that programming times suit the target \naudience. Where many women lack access to a radio, the \nformation of women’s listening groups has proved an \neffective means of increasing access, as with the IFAD Her \nRadio Project in Ethiopia, United Republic of Tanzania, \nMalawi and Uganda (IFAD, 2022a). \t\n \nProgrammes can be localized using community stations \nfor locally available information or presented via regional \nor national level stations in cases where the topic is relevant \nacross larger areas. \t\n \nMedium. Low costs and the possibility of recuperating \ncosts through advertising during broadcasts contribute to \nthe sustainability of radio programming, as does training \nradio broadcasters to produce agricultural shows.\t  \nRadio is inclusive, accessible, affordable and has a high \npotential to reach marginalized groups including the poor \nand those in remote areas. However, some radio stations \nlack the capacity to work in agriculture. Radio’s lack of a \nvisual feature means that it should often be complemented \nby visual approaches (face-to-face extension, videos or \ntelevision). \nSUITABILITY FOR \nWORKING WITH \nLOW LITERACY \nPOPULATIONS\nSUITABILITY  \nFOR WORKING \nWITH WOMEN \nAND YOUTH\nSTRENGTHS AND \nCHALLENGES\nFINANCIAL \nSUSTAINABILITY\nOTHER \nSUITABILITY  \nCONSIDERATIONS\nCAPACITIES \nREQUIRED  \nAND COST\n   75\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nStudy tours and farmer \nexchange visits\nCHANGES IN \nHUMAN CAPITAL \nSOUGHT\nREACH\nFIELDS OF \nHUMAN CAPITAL \nDEVELOPED\nStudy tours involve visits by farmers to other farmers or \nagricultural sites, such as research stations, processing \nplants or training centres. Farmer exchange visits, a \nsubcategory of study tours, are visits by farmers to other \nfarmers outside their location to observe their farming \npractices and exchange views and experiences. \t\n \n \t\nThe participants, both those visiting and those hosting, \nneed to be involved in planning, implementing and eval-\nuating the visit. Planners need to be explicit about how \nfarmers will benefit from the visit, avoiding the problem, for \nexample, of visiting a wealthy farmer who is implementing \npractices that the visitors cannot afford.  Attention also \nneeds to be given to practical logistics and the principles \nof adult learning and participatory development, to ensure \neffective peer-to-peer interaction leading to behavioural \nchange.       \t\n \n  \t\n \t\nStudy tours and exchange visits need to be carefully \nplanned to achieve the greatest impact. Before the visit, the \nfirst step is to define objectives and select participants. \nNext is to define roles and responsibilities, location, timing \nand duration of the visit, financial organization, materials \nrequired and preparation of visit content. During the visit, \nit is critical to ensure that all participants have the \nopportunity to listen, communicate, observe and interact \nwith the hosts. Documenting the process (notes, photos, \nvideo) helps ensure that highlights of the visit can be shared \nwith those who could not attend. Feedback meetings \n \nand impact assessments (e.g. determining if behaviours \nchanged) help assess the value of study tours and how to \nimprove them.\t\n \nTechnical agriculture, business \t\n \nIncreased knowledge, skills, networking, social capital\t\n\t\n \nLimited \nEasy to moderate. In some instances, farmers and their \norganizations plan and pay for such visits without outside \nassistance.\t\nDEFINITION\nPRINCIPLES\nIMPLEMENTATION\nEASE OF \nIMPLEMENTATION\n76   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nCosts and costs per participant are low to moderate. Costs \ninclude transport, meals and accommodation. In some \ncountries such as Kenya, farmers share or pay for all the \ncosts (Wambugu et al., 2001).  \t\n \nHigh, as literacy is not usually needed\t\n \n\t\n \n\t\nModerate. Efforts must be made to ensure that women and \nyouth can participate (e.g. specifically inviting them and, for \nwomen, providing childcare and overcoming cultural \nbarriers on travel).  \t\n \nHigh, as it is common for farmers and farmer organizations \nin many countries to organize and finance their own study \ntours and exchange visits.  Further, a visit does not imply \nongoing costs but can be organized each time there is \ninterest.\t\n \nStrengths are the opportunities to see how others manage \ntheir farms and interact with them discussing their problems \nand achievements. The tours and visits also allow farmers \nto discuss their work and the services they provide with \nother agricultural sector and value chain actors. Tours and \nvisits help farmers and their hosts to strengthen social \nnetworks. Challenges include ensuring that logistics are \nsmooth, that interaction and discussion are sufficient, and \nthat results and experiences are shared with those who \ncould not attend.\nSUITABILITY FOR \nWORKING WITH \nLOW LITERACY \nPOPULATIONS\nSUITABILITY  \nFOR WORKING \nWITH WOMEN \nAND YOUTH\nSTRENGTHS AND \nCHALLENGES\nSUSTAINABILITY\nCAPACITIES \nREQUIRED  \nAND COST\n   77\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nVideos\nCHANGES IN \nHUMAN CAPITAL \nSOUGHT\nREACH\nFIELDS OF \nHUMAN CAPITAL \nDEVELOPED\nDigital or videotape recordings provide an audiovisual \nmedium for disseminating information, knowledge and \npractices. Different types of videos include documentaries, \ninstructional videos, farmer learning videos and partici-\npatory videos made by farmers. \t  \n \t\nVideo content should be based on farmers’ needs and \nscientific and good practice principles. The more farmers \nare involved in producing the video and are depicted in it, \nthe more relevant it will be to viewers. Video producers \nneed to include a range of different types of people in the \nvideo, representing various groups in the community. To \nengage viewers, a video must have high quality audio and \nvisual, a relevant message and a compelling story.        \t\n  \t\n \t\nThere are six basic steps: choosing a topic, planning, \nproducing the video, validating, distributing, and monitor-\ning/evaluation. Videos can be just a few minutes long and \nshould not be longer than 20 minutes. Videos can be \ndistributed directly to farmers or through extension \nservices, television, smart phones, social media, value \nchain actors and farmer organizations. Some agencies use \na structured approach for video-based training with \nfarmers organized in video viewing clubs with support from \nfacilitators. The Government of Ethiopia, with support from \nDigital Green, operates such a video-based extension \nprogramme (Bernard et al., 2016). \t\n \nTechnical agriculture, business \t\n \nIncreased knowledge, skills, networking\t\n \n\t\n \nWide, if farmers have the means to view them.\t\n \nEasy to moderate, depending on the quality and degree of \nstructure desired. \t\nDEFINITION\nPRINCIPLES\nIMPLEMENTATION\nEASE OF \nIMPLEMENTATION\n78   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nCosts for producing and distributing videos may be \nmoderate to high but cost per viewer may be very low when \nvideos are widely viewed. For videos developed by film \nprofessionals, the team should consist of a camera operator \nand persons who understand local farming systems, \ncommunities and culture. Farmers developing videos \nrequire professionals to train them in using equipment and \ntechniques. Improved access to videos through mobile \nphones and the internet is reducing viewing costs.\t \nHigh as literacy is not necessary  \t \n\t\n \n\t\nGood if women and youth have access to the means of \nviewing them.\t\n \n\t\n \nThe proliferation and improved quality of mobile phones \nhas made it much easier to view videos, especially for youth \nwith access.\t\n \nMedium. Training a cadre of video producers who can \ndevelop agricultural programmes helps make high quality \nvideo sustainable.\t\n \nVideos complement more traditional approaches within \neducation, extension methods and mass media. Videos \ninvolve verbal and visual communication, making it possible \nto present and explain complex operations and underlying \nprinciples. Processes such as crop or animal growth that \ntake place over months or years can be depicted in just a \nfew minutes. The challenges are the cost of production, the \nfact that communication flow is one way, and that they rely \non devices to view the videos. Embedding video in an \nextension system as with Ethiopia ensures that farmer \ngroups can meet to discuss the video and ask the extension \nagent questions. \nSUITABILITY FOR \nWORKING WITH \nLOW LITERACY \nPOPULATIONS\nSUITABILITY  \nFOR WORKING \nWITH WOMEN \nAND YOUTH\nFINANCIAL \nSUSTAINABILITY\nSTRENGTHS AND \nCHALLENGES\nOTHER \nSUITABILITY \nCNSIDERATIONS\nCAPACITIES \nREQUIRED  \nAND COST\n   79\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nVillage agents\nCHANGES IN \nHUMAN CAPITAL \nSOUGHT\nREACH\nFIELDS OF \nHUMAN CAPITAL \nDEVELOPED\nSales agents, field agents \t\n \nPersons selling inputs or services. They are either self-\nemployed or work for private companies or NGOs. Some \nalso buy produce or link farmers to buyers.    \t\n \n \t\nWhile the main role of village agents is to sell inputs and \nservices, some also manage demonstration plots and \nadvise and train farmers on how to use the products and \nservices they sell, including seeds, fertiliser, plant pro-\ntection products, credit, insurance and marketing. \nProviding advice to farmers can be profitable for a private \ncompany if it helps the company to increase the volume of \ninputs they sell and produce they buy from farmers.         \t\n  \t\n \t\nIn Uganda, many village agents use digital apps for farm \nprofiling, that is, they map farmers’ fields and assemble \ninformation on their area under cultivation and input \nrequirements useful for estimating yields, marketable \nsurplus and income. They also help farmers link to other \ndevelopment actors and service providers. Some help \nfarmers to “bundle” services, as when they sell inputs to \nfarmers on credit and deduct the cost from sales of farmers’ \nproduce. Some employers provide their agents and \ncustomers with apps that provide farmers with agronomic \ntips and information on weather and market prices (Franzel \net al., 2020).  \t\n \nTechnical agriculture, business \t\n \nIncreased knowledge, skills, networking\t\n \n\t\n \nModerate\t\n \nModerate\nDEFINITION\nPRINCIPLES\nIMPLEMENTATION\nEASE OF \nIMPLEMENTATION\nSYNONYMS/\nSUB-CATEGORIES\n80   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nCosts include training village agents, salaries, commissions, \nequipment and supervision and backstopping costs. Costs \nof employing village agents are high and moderate to high \nper customer served. Many companies find that employing \nvillage agents is profitable because of their positive impact \non sales. \t\n \nHigh, since agents work face to face with farmers\t  \n\t\n \n\t\nHigh, for youth, many village agents are young people, over \n75 percent in Uganda. But moderate suitability for women \nas the number of agents who are women is often low, 16 to \n33 percent in Uganda (Franzel et al., 2020). \t\n \nHigh, particularly when they are employed by the private \nsector  \t\n \nStrengths are that village agents can link farmers to a range \nof inputs and services and help them determine the types \nand levels of inputs they need. Challenges are that village \nagents may not be able to provide valuable advice to \nfarmers without adequate training and backstopping. Also, \nthey may not have any incentive to promote practices that \nconserve public goods (e.g. soil conservation) and they are \nlikely to be biased regarding the inputs and services they \nsell (e.g. mineral fertilizer) as compared to other practices \n(e.g. compost and manure). \nSUITABILITY FOR \nWORKING WITH \nLOW LITERACY \nPOPULATIONS\nSUITABILITY  \nFOR WORKING \nWITH WOMEN \nAND YOUTH\nFINANCIAL \nSUSTAINABILITY\nSTRENGTHS AND \nCHALLENGES\nCAPACITIES \nREQUIRED  \nAND COST\n   81\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nWhatsApp and other social \nmedia discussion groups\nCHANGES IN \nHUMAN CAPITAL \nSOUGHT\nREACH\nFIELDS OF \nHUMAN CAPITAL \nDEVELOPED\nWhatsApp discussion groups are groups of individuals \ninterested in a particular topic who exchange information \nand experiences about it. Whereas these groups mainly \nuse WhatsApp, other apps, either public or proprietary, are \nalso used.     \t\n \n \t\nThe WhatsApp groups provide the means for as many as \n256 members to access information, ask and reply to \nquestions, buy and sell products and share experiences, \nproblems and solutions. In addition to texting or voice \nmessages, users can also share images, links, and videos. \nIn contrast to many human capital development methods, \ninformation circulates among users and not top-down from \nexperts to farmers.  Groups form communities of practice \nas: 1) they have an identity defined by a shared interest; 2) \nthey help each other and share information and experiences; \nand 3) they develop a shared stock of resources including \nexperiences, tools and practices.          \t\n  \t\n \t\nFarmers and others interested in exchanging information \non agriculture such as producer organizations or extension \nagents establish these groups. Groups may be organized \nby topic, region, or a combination of these. One or more \nadministrators may be tasked with keeping discussions on \ntopic. In Colombia, members of the Colombian Cattle \nGrowers’ Association use WhatsApp to buy and sell cattle \nwithout intermediaries, reducing costs and avoiding the \nrisks of moving cattle to markets. They also exchange \ninformation on practices (Davis et al., 2021). In Madhya \nPradesh State, India, over three-quarters of farmers \nsurveyed reported using new crop management practices \nafter learning about them on WhatsApp (Naruka et al., \n2017).  \t\n \nTechnical agriculture, business \t\n \nIncreased knowledge, networking\t\n \n\t\n \nMedium. Limited to persons with internet devices, most \ncommonly smartphones \t\nDEFINITION\nPRINCIPLES\nIMPLEMENTATION\n82   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nEasy, as groups may be formed by producers without \nexternal support.\t \nSmart devices are required and users must know how to \nuse WhatsApp. Costs of organizing a group are low but \noverall costs and costs per user are high because \nsmartphones are required. If the producer already has a \nsmartphone then costs are low.\t\n \n\t\nLow, as text messaging is commonly used. \t\n \n\t\n \nLow to moderate, depending on whether they have access \nto smartphones.   \t\n \nHigh, as costs are minimal and external support is not \nneeded. \nThe strength of WhatsApp groups is that they offer an \ninexpensive, easy and convenient way to communicate with \nother farmers. WhatsApp is useful for buying and selling \nproduce, reducing transaction costs since buying and \nselling can be done virtually instead of having to travel to \nmarkets. Challenges are that many farmers do not have \nsmartphones or live in areas without electricity or internet \ncoverage. Others have smartphones but are unaware of \nWhatsApp groups or how to join them. Challenges within a \nWhatsApp group include difficulties in assessing the validity \nof information provided, having to sift through an overload \nof information or not finding the information relevant or \ncomprehensible.\nSUITABILITY FOR \nWORKING WITH \nLOW LITERACY \nPOPULATIONS\nSUITABILITY  \nFOR WORKING \nWITH WOMEN \nAND YOUTH\nFINANCIAL \nSUSTAINABILITY\nSTRENGTHS AND \nCHALLENGES\nCAPACITIES \nREQUIRED  \nAND COST\nEASE OF \nIMPLEMENTATION\n   83\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\n3\t\nInternships and apprenticeships are not classified as formal methods in Section \n \n\t\n2 of this module but are grouped with formal programmes here because they are \n \n\t\noften required to obtain degrees in academic or vocational programmes or they \n \n\t\nfollow such programmes. \n\t\n\t PRINCIPLES FOR SELECTING WHICH HUMAN CAPITAL DEVELOPMENT \t\n\t\n\t METHODS TO USE  \nIt is not possible to create an algorithm to select which methods one should \nuse in developing human capital. However, in this section, we assemble data \nfrom the preceding sections into tables to facilitate systematic comparison of \nmethods across selected criteria. Data in the tables are organized according \nto four questions that many planners will ask when considering initiatives to \nimprove human capital in agriculture. \n•\t What if any formal educational or training programmes are needed? \t\n\t Options in the tables are for agricultural vocational schools, farmer \t \t\n\t training centres or internships and apprenticeships.3 \n•\t What if any extension methods with field staff are needed? Options  \n\t in the tables include certified community promoters, farmer field \t\n\t\n\t schools, farmer-to-farmer extension, management advice for family \t\n\t farms, and village agents. \n•\t What if any digital methods are needed? Options in the tables  \n\t include agricultural call centres, edutainment television, radio, videos \t\n\t or WhatsApp discussion groups. \n•\t What if any periodic methods are used? Options in the tables include \t\n\t agricultural fairs and shows, coaching and study tours and farmer \t \t\n\t exchange visits. \nThe first step in deciding which methods to use is to specify types of human \ncapital that are to be improved and changes sought in using different methods. \nThis is done based on a participatory and comprehensive assessment of the \nneeds of the target population, as discussed in the “framing building block” in \nModule 3. The assessment should define the target population’s main sub-\ngroups (e.g. women, youth, different types of producers), their assets, \nresources, literacy and access to digital technologies. It also needs to consider \nthe socioeconomic context including government policies, past initiatives \n \nto develop human capital and the activities of other institutions working in \n \nthe area. \n\t\nTable 4.1 breaks down the methods into four categories: formal \neducation or training methods (three methods), extension methods involving \nfield staff (five methods), digital methods (five methods) and periodic methods \n(three), that is, methods such as fairs. The table presents the potential of \ndifferent methods to develop producers’ capital in technical agriculture, \nfunctional and business areas. All methods are suited to helping producers \ndevelop capabilities in technical agriculture and nearly all, except for call \ncentres, farmer-to-farmer extension and village agents, can contribute to \ndeveloping capabilities in business. The weakest area is functional capabilities, \nonly six of the 16 methods can contribute to this.\n84   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nTable 4.1 presents the potential for different methods to generate changes in \ncertain capabilities, that is, increasing knowledge, skills, education, \nempowerment, networks and social capital. All methods contribute to \nincreasing knowledge and all contribute to some extent to improving producers’ \nskills. Of course, there is considerable variation in each one’s potential \ncontribution to learning a particular skill. For example, since radio lacks a visual \nelement, its contribution is limited when learning skills that require observing \nthe skill being performed.\nTable 4.1\t\n \nPotential for methods to improve human capital, and changes sought\nTypes of capital\nChanges in human capital sought: increases in\nTech. Ag\nFunctional\nBusiness\nKnowledge\nSkills\nEducation\nEmpower-\nment\nNetworks\nSocial  \ncapital\nEducation methods\nAgricultural  \nvocational schools\nFarmer training \ncentres\nInternships and \napprenticeships\nExtension methods involving field staff\nCertified community \npromoters\nFarmer field schools\nFarmer to farmer \nextension\nManagement advice \nfor family farms\nVillage agents\nDigital methods\nAgricultural call \ncentres\nEdutainment TV\nRadio\nVideos\nWhatsApp and other \nsocial media \ndiscussion groups\nPeriodic methods\nAgricultural fairs and \nshows\nCoaching\nStudy tours and farmer \nexchange visits\nSOURCES: \nAuthors’ \nown \ndata. \n   85\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nThree methods contribute to formal education – agricultural vocational schools, \ncoaching and internships. Other methods such as video are commonly used \nin education but these three are highlighted because of their importance.  Only \nfour methods contribute significantly to enhancing producers’ empowerment: \ninternships, farmer field schools, management advice for family farms and \ncoaching. All methods except two, farmer to-farmer extension and certified \ncommunity promoters, contribute to enhancing farmers’ networks. Only four \nmethods make significant contributions to increasing farmers’ social capital: \nagricultural vocational schools, farmer training centres, farmer field schools \nand study tours/farmer exchange visits. But, as stated in Module 1, tools that \naim specifically at improving producer organizations’ capabilities are excluded \nfrom this study although some, such as FAO’s Dimitra groups (FAO, 2019), can \nhelp to strengthen producers’ social capital. \n\t\nTable 4.2 presents the performance of human capital development \nmethods across selected assessment criteria introduced in Section 2 of this \nmodule. The reach of different methods is evenly distributed across the wide, \nmedium and limited categories with digital technologies (edutainment TV, \nradio and videos) having the widest reach.  Only a few methods were easy to \nimplement, such as WhatsApp groups and study tours. The implementation \ncosts were mostly high, but some, particularly digital methods such as \nedutainment TV and call centres, had low costs per user because they can be \ndisseminated widely. Most methods were suitable to producers with low \nliteracy levels. \n\t\nMost were also suitable to women and youth, though efforts are often \nneeded to ensure they are included, such as separate groups for youth where \ntheir participation in the presence of elders is limited due to social mores. \nEnsuring training sessions take place at times convenient to women can help \nboost their participation.  Poor producers’ access to smartphones is also an \nimportant constraint limiting their use of digital technologies. Some initiatives \nfound innovative ways to reduce such barriers, such as promoting women’s \nlistening groups to hear radio shows (IFAD, 2022a).  \n86   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nTable 4.2\t\n \nPerformance of human capital development methods across selected assessment criteria \n\t\nReach\nEase of \nimplementation\nCost\nCost/user\nSuitability low \nliteracy\nSuitability \nwomen (W) and \nyouth (Y)\nWide\nMod.\nLimited\nEasy\nMod.\nDiff.\nLow\nMod\nHigh\nLow\nMod\nHigh\nHigh\nMed\nLow\nHigh\nMed\nLow\nEducation methods\nAgricultural  \nvocational schools\nY\nW\nFarmer training \ncentres\nY/W\nY/W\nInternships and \napprenticeships\nY/W\nExtension methods involving field staff\nCertified community \npromoters\nY/W\nFarmer field schools\nY/W Y/W\nFarmer to farmer \nextension\nY/W Y/W\nManagement advice \nfor family farms\nY/W\nY/W\nVillage agents\nY\nW\nDigital methods\nAgricultural call \ncentres\nY/W Y/W\nEdutainment TV\nY/W\nRadio\nY/W\nVideos\nY/W Y/W\nWhatsApp and other \nsocial media \ndiscussion groups\nY/W\nY/W\nPeriodic methods\nAgricultural fairs and \nshows\nY\nW\nW\nCoaching\nY/W\nStudy tours and farmer \nexchange visits\nY/W\nSOURCES: \nAuthors’ \nown \ndata; \ncriteria \nadapted \nfrom \nDavid \nand \nCofini. \n2017. \nA \ndecision \nguide \nfor \nrural \nadvisory \nmethods. \nResearch \nand \nExtension \nUnit. \nRome, \nFAO. \n   87\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nIt is also possible to broadly rank methods according to the contribution they \nmake to improving human capital. In Table 4.3, methods are grouped into three \ncategories: high, medium/high, and medium. Of course, the contribution that \na method makes will vary depending on how it is implemented, what other \ncomplementary methods are used and a host of other factors. But it is possible \nto generalise to some extent and say, for example, that a method using highly \ntrained master trainers and facilitators, such as farmer field schools, will on \naverage, contribute more to increasing producers’ capabilities than one with \nminimal facilitator training, such as most farmer to farmer extension \napproaches.  \nTable 4.3\t\n \nUsefulness of methods in developing human capital\nDegree of usefulness in developing human capital\nHigh\nMedium–High\nMedium\nEducation methods\nAgricultural vocational schools\nFarmer training centres\nInternships and apprenticeships\nExtension methods involving field staff\nCertified community promoters\nFarmer field schools\nFarmer to farmer extension\nManagement advice for family farms\nVillage agents\nDigital methods\nAgricultural call centres\nEdutainment TV\nRadio\nVideos\nWhatsApp and other social media \ndiscussion groups\nPeriodic methods\nAgricultural fairs and shows\nCoaching\nStudy tours and farmer exchange visits\nNOTE: \nUsefulness \nis \nthe \ndegree \nto \nwhich \nthe \nmethod \nhelps \nproducers \ndevelop \nhuman \ncapital \nand \napply \nit \nto \nimprove \ntheir \nlivelihoods.\nSOURCES: \nAuthors’ \nown \ndata. \n88   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n1\n2\n3\n4\n5\n\t\n\t PRINCIPLES FOR USING MULTIPLE METHODS  \nIn developing human capital, it is almost always beneficial to use multiple \nmethods. The principles below provide some guidelines on which methods \nand which types of methods to use together. \nUse multiple methods to reinforce learning. \t\nDifferent methods often reinforce each other. Farmers learning about how to \nprepare silage for their cattle from an extension agent will benefit from learning \nabout the same practice from members of their WhatsApp group or from \nwatching a video on YouTube. Receiving similar information from different \nchannels helps ensure it is retained and the required steps taken, for example \nto purchase recommended inputs.  \nUse multiple methods to offer validation. \nA farmer hearing about silage preparation from a single agent may wonder \nhow valid the information is. Getting more information from the video and \ndiscussing with several farmers on WhatsApp about preparing silage helps \nvalidate the original source. \nUse multiple methods to offer elaboration.  \nIn the above example, whereas the extension agent describes how to prepare \nsilage, watching a video adds the visual aspect. Videos are particularly useful \nbecause they can show the silage process at different stages – how to dig the \npit, how to pack the grass into the pit, how to cover the pit and what the silage \nlooks like when it is ready for feeding. The visual aspect and showing the \nprocess at different stages are particularly important for innovations and \nprocesses that take a long time to yield benefits, such as tree and livestock \nenterprises. \nUse digital methods to complement face to face methods.\nThe two digital methods, video and the WhatsApp group, offer reinforcement, \nvalidation and elaboration of the first method, the extension agent. They also \nhave important advantages – they can be used over and over at the producers’ \nconvenience, the video can show different stages of an agricultural practice \nover time, and the WhatsApp group allows farmers to exchange views and \nexperiences by text, images and videos. Both allow the farmer to store and \nretrieve information on their smartphones although the main disadvantage is \nthe need for smartphones, although videos can also be viewed on other devices \nif the producer has access to them.   \nSelect methods that target different audiences, particularly to reach marginal \ngroups. \nSome methods are more appropriate for certain audiences than others. Study \ntours are a valuable way for farmers to learn about new practices, but they \noften attract more men than women because of social taboos restricting \nwomen from travelling or because women have domestic responsibilities that \nkeep them at home. Organizing training events through women’s group \nmeetings in which videos featuring new practices are shown may be a more \nappropriate way of helping women in such cases. The problem of low women’s \nparticipation in a particular human capacity development method may have \nmore to do with the way women were approached to participate than the \nmethod itself. Coffee training events in Uganda tended to attract a very high \n   89\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\n6\n7\nproportion of males until Technoserve, the organization managing the sessions, \ntook proactive steps to motivate women and make it easier for them to attend. \nEvent organizers explicitly encouraged women to attend, changed the timing \nof training events to suit women and offered childcare services during the \nsessions. As a result, the proportion of women attending significantly increased \n(Technoserve, 2012). Such programme tweaks can also ensure training reaches \nother marginalized groups, such as youth, the disabled and Indigenous \nPeoples. For example, with support from several donor organizations, NGOs \nand private companies, Mediae Ltd launched a TV show in Kenya and United \nRepublic of Tanzania in 2017 aimed at increasing agricultural entrepreneurship \namong youth. The show, called “Don’t Lose the Plot”, follows young farmers \nas they put their farming skills to the test to compete for cash prizes. \t\n \nUse higher cost, higher quality human capital development methods alongside \nlower cost, lower quality ones when resources are limited. \nHuman capacity development is expensive and many initiatives face the \nproblem of a shortage of staff or the resources to pay them. For example, in \nRwanda, the government appreciated the FFS approach as a means to improve \ncrop yields and farmer livelihoods but could not afford to implement it in all \n \n14 200 of Rwanda’s villages. Instead, they chose to introduce it on a limited \nscale, recruiting and training about 2500 FFS facilitators. At the same time, \nthey recruited and trained 14 200 farmer promoters, one for each village. \nFarmer promoters are less qualified and work voluntarily but play an important \nrole hosting demonstration plots, providing training on a few practices, and \nlinking farmers to development agents. Farmer trainers were linked to nearby \nFFS facilitators so they could benefit from the FFS findings and experiences \nand share these with their peers (Neza et al., 2021).\n\t\nSimilarly in Jharkhand State, India, the Jharkhand Opportunity for \nHarnessing Rural Growth Project recruited and trained livestock advisers at \ntwo different levels for similar reasons as in Rwanda. Both master trainers and \ncommunity service providers in Jharkhand are certified but master trainers \nhave more training and experience and are thus able to carry out tasks that \nthe community service providers cannot, such as vaccinations and castrations. \n \nThere are currently 63 master trainers and 1500 community service providers \nin Jharkhand (Kumar et al., 2021). \nFormal training and vocational education programmes often need to be \naccompanied by other methods to ensure students can find a job or become \nself-employed.  \nPlanners often assume that students on training or vocational programmes \ncan easily enter employment or self-employment at the end of their studies. \nBut needs assessments often find that students need further support to \ndevelop their human capital before, during and after they complete their \nstudies (Figure 1). First, it was sometimes found that their primary and \nsecondary education was inadequate. Agropastoral vocational training \nschools in Cameroon addressed this problem by providing coaches to develop \nstudents’ foundational skills such as literacy and numeracy (Takamgang and \nLhoste, 2021). Coaches also helped the students with other skills they needed, \nsuch as writing and public speaking. \n90   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nAt the end of training, “one on one” interventions to help trainees settle into \njobs or develop businesses are often needed, such as apprenticeships, \ninternships, or job coaching. The Cameroon programme used both internships \nand job coaching successfully to help graduates develop their skills and \ntransition into jobs or self-employment. Also frequently needed is help to \naccess financial services, particularly for those who are self-employed (Figure \n4.1). This not just about obtaining loans but includes opening a bank account, \njoining a savings and loan group or learning to keep financial records to \nestablish creditworthiness.\t\n \n\t\nMany methods are available to improve human capital. It matters a \ngreat deal which ones a programme uses depending on which fields and types \nof human capital are needed, the target groups in the population, the available \nresources including partner capacities and the importance of different \nassessment criteria such as a method’s reach, ease of implementation and \ncost. A further complication is that while some methods are more effective \nthan others, the performance of each depends on its design and implementation. \nThis highlights the importance of thorough, participatory assessments to \ndecide which methods to use, careful implementation of those methods and \nrigorous monitoring, evaluation and learning during and following the \nprogramme. \nUsing different methods reinforces learning as these are often highly \ncomplementary, in the way they promote learning and reach different target \ngroups.     \nMultiple methods are almost always desirable as no single \nmethod is a silver bullet. \n   91\nAGRICUL\nTURE HUMAN CAPITAL INVESTMENT DEVELOPMENT METHODS\n\n\nFigure \n4.1\nHuman \ncapital \ndevelopment \nmethods \nuseful \nfor \nsupplementing \ntechnical \ntraining \nand \neducation \nto \nachieve \nself- \nand \nwage \nemployment\nSOURCE: \nAdapted \nfrom \nEDC \n(Education \nDevelopment \nCenter). \n2018. \nUSAID \nHuguka \nDukore \nAkazi \nKanoze \nAnnual \nReport. \nWashington, \nDC, \nUSAID \nand \nKigali, \nEducational \nDevelopment \nCenter. \nwww.edc.org/\nusaid-huguka-dukore-akazi-kanoze-annual-report-2018.\nNeeds assessment\nIdentifying different target groups and aspirations of each; understanding context\nFoundational  \ntraining\n• Numeracy/literacy\n• Work readiness\n• Goal setting\n \nTechnical training/ \neducation \nSelf-employment\nCoaching and \ninternships\nWage employment\nAccess to  \nfinancial services\nTraditional approach \nAdditional steps in \nimproved approach\n92   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n©FAO/Luis Tato\n© FAO/Lucie Chocholata\n\n\n\n\nModule 5 \nA deep dive into  \ntwo agriculture  \nhuman capital \ninvestment cases\n\t\n\t INTRODUCTION\nThe first case is an example of a human capital development method through \nuse of certified community promoters. This is referred to as the Jharkhand \nOpportunities for Harnessing Rural Growth (JOHAR) project and community \nservice providers (see Module 4) in the state of Jharkhand in India. This case \nstudy was analysed in detail by Kumar et al. (2021). In the toolkit we apply the \nlessons learned from the various modules to this model. \n\t\nThe second case is farmer to farmer extension (Haku Winay/Noa \nJayatai) using Yachachiq, who are local promoters hired to implement comm-\nunity projects in Peru.  More can be seen on this case in Salcedo Du Bois and \nZimmerman (2021). \nLearning objective \nTo be able to cite examples from these cases and apply  \nthem to other modules. This module provides two in-depth \ncase studies to apply learning from the other modules  \nand to give examples.  \n!\n   95\n\n\nBoth are examples of extension methods involving field staff. However, JOHAR \ninvolves more formal, certified community providers of extension services, \nwhile Haku Winay/Noa Jayatai uses farmer to farmer extension. The community \npromoters are trained but not formally certified. JOHAR community service \nproviders are certified by the Agriculture Skills Council of India and paid by the \ncommunity, with a supplementary payment of INR 1200 (USD 15) per month \nfrom JOHAR along with profits from the sale of inputs to livestock farmers. \n\t\nAnother difference is in the type of AHCI (Module 1). JOHAR is a typical \nproject financed through an international financial institution with an \nimplementing partner and strong local government involvement. It is a six-year \nproject (2017–2023).\n\t\nHaku Winay/Noa Jayatai is an example of strong government comm-\nitment and support to developing AHC over a much longer period. The \nGovernment of Peru has run the programme since 2014, financed by the \nCooperation Fund for Social Development (FONCODES), an executive branch \nof the Ministry of Development and Social Inclusion of Peru. \n96   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n©CIFOR/Faizal Abdul Aziz\nJharkhand Opportunities for Harnessing \nRural Growth Project in India\nCase study 1\n\t\n\t BRIEF PROJECT DESCRIPTION\nJOHAR is an encompassing public project, initiated in 2017. Its “project dev-\nelopment objectives” are to enable rural producers and producer collectives \nto diversify and add value to their production, achieve resilience, access \nmarkets, participate in the private sector and finally to develop skills. The latter \nis particularly relevant within a specific sub-component of the JOHAR project, \nnamely the  livestock development  component, which is our focus in this case \nstudy. \n\t\nThe Jharkhand State Livelihoods Promotion Society (JSLPS) imple-\nments the livestock development component of JOHAR, focusing primarily on \nwomen livestock farmers. Its overall objectives are asset creation, productivity \nenhancement, risk reduction related to climate change via diversification and \nmarket access for selected livestock (broilers, layers, pigs, goats and dual \npurpose backyard poultry). These objectives are achieved partially through a \n \n \nhuman capital development method of certified community promoters  (see \nModule 4). \n\t\nFemale livestock farmers in Jharkhand are trained and certified in \nparaveterinary skills and called  Ajivika Pashu Sakhis  (APS) or livestock friends. \nThe APS offer inputs, advice and support on productivity issues (breeding, \nfeeding, animal health, shed construction) and are responsible for training \n50–100 other female livestock farmers in their respective villages. Some APS \ngo on to become  master trainers  (MTs) through additional training, and they \nin turn train new APS. The JOHAR project thereby invests in the AHC of women \nlivestock farmers in Jharkhand through a cascading farmer to farmer method. \n\t\nThe next section follows the building block structure of Module 3 but \nskips certain building block elements as they are less relevant to this case.\n©Unsplash/Gyan Shahane\n   97\nA DEEP DIVE INTO TWO AGRICUL\nTURE HUMAN CAPITAL INVESTMENT CASES\n\n\n\t\n\t FRAMING BUILDING BLOCK\n\t \t\n\t\n \nA  Farmers: Jharkhand, the livestock sector and women\nLivestock is one of the fastest growing sectors and a promising sector for small \nand landless farmers in Jharkhand. It accounts for a quarter of household \nincome and the primary source of earnings for about one-fifth of agricultural \nhouseholds with small parcels of land. Nevertheless, at 37 percent Jharkhand \nhas the second highest poverty rate in the country. Progress across social \ngroups is uneven, with scheduled castes, scheduled tribes and women \nperforming significantly worse than other social groups. Half of tribal peoples, \n27 percent of all households in Jharkhand, are poor. \n\t\nSeveral challenges exist within the livestock sector and limit its \ncontribution to rural household incomes. Firstly, livestock farmers have limited \naccess to irrigation, skills, markets and finances. Secondly, productivity is low \n(less than 12 percent of that in other states) due to domestication of local \nbreeds and inadequate quality and access to veterinary services. This has \nmeant high livestock mortality (over 30 percent loss of goats, and up to 80 \npercent of pigs and poultry), egg production at 30 percent below its potential \nand livestock for meat products requires 4–6 times longer to reach ideal \nmarket weights.  \n\t\nWomen livestock farmers, the JOHAR target group, face additional \nchallenges. They live in a typical rural patriarchal society with gender biases \nagainst women and have limited decision-making power and opportunities. \nWomen are expected to stay at home and do household work while income \nand skill related activities are considered men’s domain. Many of the targeted \nwomen also face challenges from limited or no access to land as well as biases \nagainst their ethnic groups.\n\t\nThe main opportunity for change from the JOHAR project lies within \nthe nexus of the livestock sector and women, who account for over 70 percent \nof production. Local market prices in India for meat and eggs have increased \nby 70–100 percent in the past decade and pushed up farm gate prices. \nDiversification to high-value livestock breeds could more than double a \nhousehold’s primary income. Livestock rearing is an activity where women \nplay a critical role and represents an opportunity to enhance their human \ncapital to acquire new skills, take decisions that increase family income and \ncontribute towards women’s empowerment. \nB  Institutions: an existing institutional platform of  \n\t\nwomen livestock farmers\nWomen in Jharkhand are organizing into  self-help groups. These typically have \n10–20 members, meet weekly and save around INR 10 per week per person in \na personal savings – the total amount saved by all members is treated as a \ncommunity fund. Apart from the savings, the members deal with gendered \nroles in their communities, livelihood issues, credit requirements and access \nto government schemes.  At district level, 10–15 self-help groups are organized \ninto village organizations and 20–30  village organizations  are in turn organized \ninto a cluster level federation. The latter two group formations meet twice a \nmonth to manage financial transactions and livelihood plans. There is thus a \nwide three-tiered network of female livestock farmers in Jharkhand. \n98   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n©CIFOR/Faizal Abdul Aziz\nThis institutional platform of self-help groups derives from another institution, \nthe National Rural Livelihoods Mission, a national poverty alleviation \nprogramme also implemented by JSLPS and funded by the World Bank. The \nMission shows that community managed institutions for poor smallholders or \nlandless farmers can function as efficient partners in livelihood enhancement. \nThis institutional platform of self-help groups has facilitated a large cadre of \nwomen community leaders, mobilizers and resource personnel as well as \ngreater participation by women in decision-making. This network is therefore \nhighly relevant for implementing JOHAR. The cluster level federations are \nregistered as societies under the Societies Registration Act, 1860, giving them \nformal non-profit status.\n \nC  Providers: existing human capital development –  \n\t\nor lack thereof\nVeterinary services and basic animal care services are extremely limited in \nJharkhand. There are very few private paravets and they are poorly trained, \nremote and their services expensive. Government paravet services are almost \nnon-existent in remote villages, and the very few hospitals/veterinary centres \nare far from those villages. The required skills for efficient animal husbandry \nand effective support services for livestock farmers are also missing from \nremote areas. Smallholders lack access to key services like advice, training \nand access to quality inputs supporting nutrition, health, breeding, and \nmanagement. The ratio of veterinarians and paravets to livestock in the state \nis among the lowest in India, with limited resources and services that mostly \nfocus on cattle and buffaloes. There is an immense opportunity for skill \nenhancement for farmers and community service providers to deliver effective \nsupport services. \n \nE  Implementers\nWhile the JOHAR project is legally implemented under the Rural Development \nDepartment of the State Government of Jharkhand, the JSLPS is the de \n \nfacto implementer. It is registered and funded by the  Rural Development \nDepartment and designated as the special purpose vehicle for project \nimplementation. JSLPS is responsible for the overall outputs and outcomes of \nthe project, sourcing co-financing through convergence and technical support \nthrough partnerships. It is also implementing the ongoing National Rural \nLivelihoods Mission.\n\t\nThe key line implementing departments are listed in Table 5.1. These \ndepartments provide technical support through training and extension \nservices as well as finance through convergence with government schemes. \nF  Partners\nThree main partners collaborate in implementing JOHAR. Heifer International \nand its subsidiary Asset & W both provide training, skills development and \ncapacity building. Heifer International has over 10 years of experience in \ntraining community service providers in India. The Agriculture Skills Council \nof India sets the exams and certification of community service providers.\n   99\nA DEEP DIVE INTO TWO AGRICUL\nTURE HUMAN CAPITAL INVESTMENT CASES\n\n\n \nG  Funding\nJOHAR is a six-year project ending in 2023, where the World Bank is investing \nUSD 100 million as a loan to the Government of India which has committed \nUSD 43 million. Investment in the livestock component is USD 15.6 million. See \nthe funding flow in Figure 5.1. The important stakeholders involved in the \nproject and their contribution are detailed in Table 5.1. \nFigure \n5.1\nFunding \nflow \nsystem \nof \nJOHAR\nSOURCE: \nWorld \nBank. \n2017. \nProject \nappraisal \ndocument \non \na \nproposed \nloan \nin \nthe \namount \nof \nUSD \n100 \nmillion \nto \nthe \nRepublic \nof \nIndia \nfor \na \nJharkhand \nopportunities \nfor \nharnessing \nrural \ngrowth \n(JOHAR) \nProject. \nAgriculture \nGlobal \nPractice, \nSouth \nAsia \nRegion \nReport \nNo: \nPad2273. \nInternational \nBank \nfor \nReconstruction \nand \nDevelopment. \nWorld Bank\nDistrict Mission \nManagement Unit \n(DMMU) \nProducer  \norganizations\nProducer  \ngroups\nBlock Mission  \nManagement Unit\n(BMMU) \nCAA & A,  \nGovernment of India (GoI)\nGovernment  \nof Jharkhand\nJSLPS State Mission  \nManagement Unit (SMMU)\nAdvance and replenishments \ninto designated account\nBack to back  \ntransfers\nClaims \nsubmitted to GoI\nFunds drawn from State \nTreasury against approved \nannual budget\nGrant released  \nas per operational \nguidelines\nFunds in single state level project \nbank account operating at district \nand block levels through zero \nbalance child account\n*CAA & A, Controller of Aid \nAccounts and Audit\n100   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nTable 5.1\t\n \nMain stakeholders in the JOHAR project \n \nStakeholder \nRole \nContribution \nCommunity stakeholders\nProducer groups\n(these did not exist before JOHAR, and \nare described in section M)\nCommunity institutions\nLivestock production, practice skills \nlearned, engage services of APS  \nand MTs for enhanced production  \nand income\nSelf-help groups\nCommunity institutions\nFinancial transactions, livelihood \nplans, support on gender issues \nAPS and MTs\nTrainee and beneficiary \nProvide skills, services and products \non farmers’ doorsteps\nImplementation actors\nRural Development Department  \nof Jharkhand  \nImplementer (de jure) \nHost the project, provide fiduciary \nsupport as required \nJharkhand State Livelihoods \nPromotion Society \nImplementer (de facto) \nImplement with the farmer and \ncommunity groups supported by \nJSLPS \nDepartment of Agriculture \n(encompassing the directorates of \nhorticulture, animal husbandry, \nfisheries and soil conservation)\nPartners for implementation \nTechnical support through training \nand extension services as well as \nfinancial support through conver-\ngence with government schemes \nDepartment of Environment, Forest, \nand Climate Change\nDepartment of Water Resources\nDepartment of Higher and Technical \nEducation\nDepartment of Energy \nPartners\nHeifer International\nPartner \nDeveloping the technical training \ncontent and modules for APS  \nand MTs\nAsset & W\nPartner for training \nProvide technical training to the \nlivestock farmers, APS and  MTs\nAgriculture Skills Council of India\nPartner for certification  \nA government accredited training  \nand certification agency \nConducts exams and provides \ncertification of APS and MTs as \ncertified paravets \nWorld Bank\nFinancier \nFinancing \nSOURCES: \nAuthors’ \nown \nelaboration. \n \n \n   101\nA DEEP DIVE INTO TWO AGRICUL\nTURE HUMAN CAPITAL INVESTMENT CASES\n\n\n\t\n\t ASPIRATIONAL BUILDING BLOCK\n\t \t\n \nH  Impacts\nThe JOHAR project aims to enhance and diversify household income through \nthe livestock component by targeting about 57 000 women livestock farmers \nand APS and MTs. It aims to improve livestock production, productivity and \naccess to markets with its main objective empowerment of women. \nI  Outcomes: changes in actions and behaviours\nThe JOHAR project aims to change actions and behaviours among women \nlivestock farmers through improved livestock rearing, reinvestment of incomes \ninto production, price negotiations as well as seeking help and community and \nmarket engaging behaviour. The changes sought in actions and behaviours \namong APS and MTs are to provide paraveterinary services to other farmers, \nteaching and taking on leadership roles.\nJ  Outputs: development of human capital\nThe human capital investments in JOHAR revolve around enhancing the \ntechnical, functional, business and managerial capacities of farmers. They \nlearn  technical skills  such as improved animal care, animal and shed \ncleanliness, correct use of feed supplements and clean drinking water. They \nacquire   functional skills  like the confidence to seek timely veterinary services \nand first aid for their animals, taking pride in their contribution to family income, \nleaving home to participate in training sessions, communicating with other \npeople and attending self-help group meetings. They also learn  business skills \nlike selling goats based on body weight, investing income from livestock in \nimproved farming, as well as decision-making skills in other areas of investment \nand sending children to school instead of relying on their help with livestock.   \n\t\nBoth the APS and MTs develop technical, functional and business skills. \nThe  technical skill  focus is on building capabilities as paraveterinary service \nproviders, including skills in deworming, nutrition, teeth conservation, timely \ncastration, animal first aid, basic diagnosis and shed design and construction. \nFunctional skills include: using a computer and digital training content; \ndesigning and conducting training sessions; presenting oneself at training \nsessions; valuing contributions towards the betterment of society; dealing with \ngender biases in society (e.g. having the courage to leave home for meetings/\ntrainings, talking to people other than family members taking independent \ndecisions); and communication skills. Business skills for APS include dev-\neloping marketing linkages for livestock, valuation of animals based on body \nweight, and having a business plan for veterinary services and products. The \nMTs acquire advanced skills like group facilitation and are teachers for APS \nand farmers. Both APS and MTs gain skills in how to reinvest in their own \nbusinesses as livestock farmers.\n\t\nMTs have all the skills required by an APS and are also skilled in \ncommunity facilitation and conflict resolution. As trainers, they have the skills \nto present themselves at training sessions, prepare the content, deliver the \nprogramme and use computers and ICT materials. MTs have the confidence \nto travel from their villages to different blocks (administrative units) and \ndistricts, staying overnight if necessary. \n102   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nFigure 5.2 gives a broad overview of the connection between the outputs, \noutcomes and impacts in the JOHAR project. It likewise alludes to the choices \nof development methods under “Input”, described in more detail in the \nfollowing design building block.\nImpact\nChanges  \nresulting from \nadopted  \nactions and \nbehavours\nOutcome\nActions  \nand behaviours \nadopted by \nfarmers due  \nto new human\ncapital \nOutput\nAgriculture  \nhuman capital\ndeveloped\nInput\nImplementation  \nof project  \ndesign strategies\nTechnical Service Providers provide \ntraining for APS and MTs at the \nTechnical Support Agencies  \nAgriculture Skill Council of India \nprovide certification exams of  \nAPS and MTs\nAPS and MTs provide training  \nat structured training events at \ntraining centres\nAPS and MTs provide continued \nextension in farmer field schools in \nhome location\nImplementation actions\nTechnical agricultural skills\n•\t improve animal care\n•\t animal and shed cleanliness \n•\t feed supplements and clean \ndrinking water \nFunctional skills\n•\t seeking timely veterinary services\n•\t self-confidence as an \nincome-earner\n•\t self-confidence to participate  \nin out-of-home trainings, PG \nmeetings\n•\t communication skills\nBusiness skills\n•\t selling goats based on weight\n•\t reinvesting income in production\nTechnical agricultural skills  \n(para-vet skills)\n•\t deworming\n•\t nutrition\n•\t teeth clipping\n•\t timely castration\n•\t animal first aid \nFunctional skills\n•\t operating computers and using \ndigital training content\n•\t designing and conducting training \nsessions\n•\t presenting during training sessions\n•\t valuing their contribution towards \nbetterment of their society\n•\t dealing with gender related biases \nin the society\n•\t communication skills\n•\t Group facilitation and teaching \nskills (MTs)\nBusiness skills\n•\t developing marketing linkages for \nlivestock\n•\t valuation of animal based on body \nweight\n•\t having a business plan of their \nveterinary services and products\n•\t networking with other experts in \nthe sector and seek support from \nthem whenever required.\n•\t How to reinvest in own businesses \nas livestock farmers\nSkills developed\nFarmers with access to APS/MTs \nservices improve their livestock \nrearing practices \nFarmers with access to APS/MTs \nreinvest incomes in their production \nFarmers negotiate for better market \nprices, spending whole days outside \nof houses, talking to new people and \ntraders\nHelp-seeking behaviour\nAPS and MTs start providing \npara-vet services to livestock \nfarmers - also beyond JOHAR\nAPS and MTs take on teaching, \nnetworking and leadership roles, \nconduct training programs, set \nexamples for good rearing practices \nAPS and MTs reinvest in their own \nbusinesses \nAPS and MTs search for better jobs \ndue to certification\nWhat farmers now do\nImprovements in livestock \nproduction and productivity  \nIncreased incomes for farmers  \nand APS and MTs \nAcceptance and self-confidence, \nempowerment of women farmers\nAPS and MTs gain self-confidence \nand recognition from families and \ncommunity, acceptance as experts\nAPS and MTs become empowered\nImproved and supportive \ncommunity networks  \nIncrease in livestock businesses \nImpacts\nHuman capital development “add-on”\nprovision of grants to producer \ngroups\nHuman capital development “add-on”\nEstablishing Livestock Service \nCentres (small shops) run by \nproducer groups helps APS and  \nMTs to provide necessary inputs  \nand medicine\nLIVESTOCK FARMERS\nAPS AND MT\ns\nFigure \n5.2\nTheory \nof \nchange \nin \nJOHAR\nSOURCE: \nAuthors’ \nown \nelaboration.\n   103\nA DEEP DIVE INTO TWO AGRICUL\nTURE HUMAN CAPITAL INVESTMENT CASES\n\n\n\t\n\t DESIGN BUILDING BLOCK\n\t \t\n \nK  Targeting women livestock farmers, APS and MTs\nAs a target group, the 57 000 women are smallholder/livestock farmers with \nland holdings from 0.1 ha to 1.2 ha and all members of self-help groups. They \nare between 20–53 years of age, have education levels ranging from no \nschooling to graduates and are willing to invest in improving animal rearing \npractices. They are traditional animal farmers with livestock consisting of a \nfew goats, cattle, pigs, hens and ducks. \n\t\nFrom the 57 000 female livestock farmers, each village selects APS \nbased on eligibility criteria that include: (i) a minimum of nine years schooling; \n(ii) belonging to the same village; (iii) membership of a local producer group; \n(iv) being a livestock farmer with at least two animals; (v) willing to travel for \ntraining and exposure visits; and (vi) actively looking for increased cash income. \n\t\nMTs are all previous APS selected for further training according to the \nfollowing criteria: (i) proven training skills based on earlier experience in farmer \ntraining; (ii) hands-on experience with livestock; (iii) female between 30–45 \nyears of age; (iv) education level of at least 10 years schooling; and (v) ability \nto travel to various parts of the state. \n\t\nMTs are all women in the 28–34-year-old group, all are smallholder \nfarmers, holding around 1.5 acres of land and having 10–15 years of formal \neducation.  \n\t\nA few male livestock farmers are involved in the JOHAR project, however \n95 percent of trained ASP and thereby MTs are female.\nL  Method\nThe method of agriculture human capital development in the JOHAR project \nhas two distinct components according to who the primary learner is: (i) how \nthe APS and the MTs acquire their skills and capabilities; and (ii) how other \nlivestock farmers do so. See Figure 5.2.\nHow APS and MTs develop their agriculture human capital\nTo become an APS, MTs train the women in groups of 15–20. Each APS receives \n30 days training over 18 months in five sessions of 4–7 days each. After \ncompleting the third training session and six months’ experience, the APS is \neligible to take the certification examination with further preparation from the \nAgriculture Skills Council of India over seven days. Certification offers many \nbenefits, it professionalizes the APS and helps standardize their quality across \nthe country. The cost of training an APS includes that for training an MT in \ntrainer-of-trainer mode and is INR 75 000 (USD 975). This includes acco-\nmmodation, travel expenses and all associated costs such as the services of \nAsset & W in preparing materials, training MTs and coaching support for APS. \nMTs are responsible for training the APS such as preparing the venue, planning \nthe 6–7 days, deciding training content, sub-group activities, setting tests \nduring training, feedback forms, field assignments, logistics and handling the \nparticipants’ urgent needs. \n\t\nMTs obtain additional certification, giving the added benefit that they \nare recognized as the most professional trainers and can work anywhere in \nIndia. To learn community facilitation skills and conflict resolution, they under-\ngo ten days special training with Asset & W.\n104   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nBoth APS and MTs are trained at  Technical Support Agencies,  where  technical \nservice providers, generally staffed by Asset & W, oversee teaching and \ncapacity building. Heifer International and Asset & W provide training materials \nand training for MTs, APS and livestock farmers, capacity building and technical \nadvisory support in raising goats, pigs and backyard poultry. Asset & W employ \ntechnical service providers, who select and offer training to APS and MTs as \nwell as input delivery and APS demonstrations.\nHow livestock farmers develop their agriculture human capital\nThe rest of livestock farmers are trained by the APS in training centres within \nthe State Rural Institute for Training. Back home, the farmer field school \napproach is adopted to educate livestock farmers where the APS facilitates \nthe field schools and arranges regular get-togethers at different farms, where \nfarmers meet to learn skills (“learn to do by doing”) covering the areas of animal \ncare and improved practices. Thereafter the APS supports farmers with \nongoing services and inputs. Since the APS is a part of the livestock farming \ncommunity, she can readily follow up with farmers to remind them of the new \nskills and lessons learned. Farmer training to develop and help them adopt \nnew skills is a long-term activity. The farmer field school approach supported \nby APS has led to high acceptance rates of new efficiency and marketing \npractices. \n\t\nThis method of certified community promoters ensures services at \nfarmers’ doorsteps for animal vaccination, castration, teeth maintenance, \ndeworming, basic diagnosis, first aid, and advising the farmer about animal \ncleanliness, clean drinking water, feed supplements, shed design and \nconstruction, The aim is to motivate farmers to adopt improved animal rearing \npractices and deal with gender related social and cultural stresses. Whenever \nfarmers have a particular need about a specific issue, APS seek support from \nMTs and veterinarians. They also help develop market linkages and the \nestimated sale value of animals and advise farmers accordingly. \n\t\nAs a part of JOHAR, many livestock farmers organize into producer \ngroups  which benefit from the training and services provided by the APS and \nMTs. They develop skills and expertise within producer groups, hence they \nhave a big contribution to make in capacity development. Producer group \nmeetings held by the APS and MTs are learning events where participants can \nshare experiences. These are the main community institutions with which \nJOHAR works and most are not exclusive to women. The skills development \nspecific to producer group meetings are added agriculture value, diversification, \nintensification, competitive advantage, easier access to finance, entrepre-\nneurship and agribusiness skills.\n\t\nBoth APS and MTs have a business plan around the services and inputs \nthey provide. MTs are paid based on their training work, INR 750 per training \nday (USD 10). They also provide medicines/feed supplements to farmers at a \ncost. Both APS and MTs are paid partly by livestock farmers for their services \nand the inputs or products they deliver and partly from the JOHAR project. It \nis expected when the project is over, they will maintain their income with \npayments from farmers for their services and products.\n   105\nA DEEP DIVE INTO TWO AGRICUL\nTURE HUMAN CAPITAL INVESTMENT CASES\n\n\nFundamental to the human capital development supported by APS and MTs \nis providing equipment including a smartphone and a kit containing a blue sari, \napron, hat, cool box for medicines, weighing scales, castrator, and a basic initial \nstock of first aid supplies. Ayurvedic treatments are provided when available. \nEquipping each APS costs INR 5000 (USD 65) for the kit and another \n \nINR 5000–7000 (USD 65–91) for a smartphone, totalling about INR 12 000 \n(USD 156). After the first inventory of supplies is complete, the APS uses her \nincome to maintain her supplies which she purchases from the Livestock \nService Centre.  \nIn addition to human capital development JOHAR’s work with producer groups \ninvolves providing grants. The JOHAR livestock development activities are as \nfollows:\n1.\t provision of sub-grants to producer groups to procure improved stock \t\t\n\t\nfor pig and goat breeding;\n2.\t provision of sub-grants to producer groups for demonstration units on \t\t\n\t\nlivestock housing and improved breeds;  \n3.\t provision of sub-grants to producer groups to finance input and service \t\n\t\ncosts of livestock rearing;  \n4.\t helping establish livestock service centres, product outlets for the \t\n\t\n\t\nproducer groups with access to inputs, services and markets through \t \t\n\t\naggregation. These centres are part of the producer organization;  \n5.\t capacity building and technical support on productivity enhancement \t \t\n\t\nand marketing; continued extension support is provided to producers \t \t\n\t\nthrough APS; \n6.\tpartnerships with  technical support agencies  to provide end-to-end \t \t\n\t\nsolutions, capacity building and technical support and with private sector \t\n\t\nagencies to supply quality inputs; support through convergence  \n\t\nwith Government of Jharkhand programmes is likely for several activities  \n\t\nin this sub-component including livestock housing, introduction of  \n\t\nimproved animal breeds, and establishment of feed plants.\n106   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nFigure \n5.3\nLayering \nand \nphasing \nof \nJOHAR \nproject \nactivities\nSOURCE: \nAuthors’ \nown \nelaboration.\n\t \t\n \nM  Organizing\nThe project implementation architecture of JSLPS is spread over various levels \n(Figure 5.3).  \nState level\nA High-Level Steering Committee steers the project, headed by the Chief \nSecretary of Jharkhand State, co-chaired by the Development Commissioner, \nand comprising the Principal Secretaries of the relevant departments (Rural \nDevelopment, Agriculture, Environment, Forest and Climate Change, Water \nResources, Energy and Higher and Technical Education). A State Mission \nManagement Unit (SMMU) for JOHAR, headed by the Chief Executive Officer \nof JSLPS, has a multi-disciplinary team of staff and technical consultants \nworking exclusively for JOHAR. \nWomen  \nlivestock \nfarmers  \nfrom SHGs\nSHG members\nFormation and \nstrengthening  \nof producer  \norganizations (PO) \nStabilization of producer \norganizations (e.g. product \ndiversification, value addition, \naggregation of input as \nenterprises within PO)\nConsolidation and post \nproject sustainability, \ncontinue to work with PO  \nfor business development, \nlinkages\nExpansion of  \nmarketing  \ninterventions, moving \nfrom local to more \nlucrative markets\nHigher order skills \nfor service delivery, \nenterprise \ndevelopment\nIntroduction  \nof interventions \nin livestock \nactivity, skill \ndevelopment, \nfinancial  \naccess and \nmarket linkages \ncontinue \nthroughout the \nproject period\nFormation  \nof producer  \ngroups\nSelection  \nand training  \nof APS\nTrained APS  \nand MT\nPay membership fee\nTraining and services to livestock farmers\nOrientation by BMMU staff\nYEAR 1 AND 2\nYEAR 3 AND 4\nYEAR 5 AND 6\n   107\nA DEEP DIVE INTO TWO AGRICUL\nTURE HUMAN CAPITAL INVESTMENT CASES\n\n\nDistrict level\nThere is a  District Mission Management Unit  (DMMU) for JOHAR in each of \nthe 17 districts. It is staffed by a multi-disciplinary team of technical consultants \nwhose expertise focuses on the specific sub-sectors in the district and includes \nexperts in high-value agriculture, irrigation, livestock, fisheries and non-timber \nforest products. \nBlock level\nEach of the 68 blocks (administrative units of state governments) has a \ndedicated JOHAR Block Coordinator reporting to the Block Project Manager \nof JSLPS in the  Block Mission Management Unit (BMMU).  Three cluster-level \nfield coordinators provide technical support and coordination services to \nensure smooth implementation, working closely with APS at village level and \nsenior APS at cluster level. The APS in turn are responsible for the formation \nand functioning of producer groups and provide the last mile link delivering \nproject services like advice, paravet services and inputs like medicines and \nnutrient supplements to producer groups. \nVillage level\nJOHAR works with and supports community institutions of self-help groups \nand  village organizations  and  cluster level federations  with training in \nlivestock rearing. Small producers are aggregated around key subsectors to \nform producer groups and larger producer organizations such as companies \nand cooperatives. Farmer field schools are formed once APS are selected and \ntrained. \nFigure \n5.4\nImplementation \nstructure \nof \nJOHAR\nSOURCE: \nAuthors’ \nown \nelaboration.\nDistrict Mission \nManagement Unit \n(DMMU) \nProducer  \norganizations\nProducer  \ngroups\nBlock Mission  \nManagement Unit\n(BMMU) \nPlan, \nreview, \nfinance\nJSLPS State Mission  \nManagement Unit (SMMU) JOHAR\nAggregation and \ntransactions\nTraining \nand coaching\nCertification\nTechnical \nsupport  \nagency TSA\nFarmer\nCSP\nASCI\n108   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n\t \t\n \nN  Scaling and sustaining\nThere are ongoing efforts to scale up this model in India, together with the \nMinistry of Rural Development. This is an opportunity to share detailed \nconcepts and learning notes with the Ministry to build bridges with national \nprogrammes such as the National Rural Livelihoods Mission (NRLM). JSLPS \ncan scale up the project in Jharkhand since it already has a large livestock-\nbased livelihoods programme in place. As JOHAR is a small project \nimplemented under the NRLM, the learning from it can be shared with other \nplaces through NRLM systems, provided it is fully informed about JOHAR.\n\t\nThe project interventions build on the existing social capital of women’s \nself-help groups and their federations, and through them develop local \nproducer groups and higher order producer organizations (collections of \nproducer groups) to facilitate collective production, increase bargaining power \nand employ economies of scale. The producer organizations function as \nentities that will continue to operate through business activities supported by \nlinkages to formal financial institutions like banks and microfinance institutions. \nThe project design emphasizes building community capacity through local \nAPS and MTs who will be paid based for their services and thus are primed to \nwork with producer organizations as business associates. The project builds \nsustainability of production systems through investments in community \ncapacity as well as infrastructure for diversification, productivity enhancement, \nclimate resilience and market responsiveness. More information is needed on \nthe financial viability of the existing APS model since the project is ongoing \nand may need some time to make them financially stable. \n\t\nThere are opportunities for scaling up the APS model beyond the State \nof Jharkhand. It can be replicated in regions with livestock farmers where \neducated women are willing to be trained and provide veterinary services to \nlivestock farmers. In implementing similar initiatives, there is a need for \nstructured investment and capacity enhancement for the women community \nservice providers. \nO  Keep improving: monitoring and reviewing\nInstitutional support, monitoring and review system\nThe project and local veterinarians provide emergency back up support, for \nanimal injuries or complicated births through smartphones and WhatsApp. It \nenables vets to focus on cases they are best trained to handle.  \n \t\nFarmer producer groups monitor the APS delivery of services and \ninputs through broad criteria such as the number of farmers trained and the \nnumber of animals marketed or vaccinated. An app can support service \ndelivery as well as monitoring and evaluation. \n   109\nA DEEP DIVE INTO TWO AGRICUL\nTURE HUMAN CAPITAL INVESTMENT CASES\n\n\n\t\n\t LESSONS LEARNED AND EVIDENCE OF IMPACTS\nAt the centre of the intervention are women livestock farmers, who were \nstrategically identified, trained, and coached as APS under JOHAR to provide \ndoorstep technical, marketing and risk reduction support to other women \nlivestock farmers. \n\t\nCertified MTs support the APS a model that is almost unique, offering \nevidence of capacity enhancement in the form of changed practices by \nlivestock farmers (Kumar et al., 2021). The improved practice changes included \ntimely vaccinations, deworming, castration, animal cleanliness and provision \nof feed supplements and clean drinking water for livestock. These changes \nincreased income significantly and enhanced animal survival rates. They also \nreduced production time, recognized the role of women in families and their \ncommunities, offered a supportive network to livestock service providers, \nincreased investments in businesses, education of children and confident APS \nand livestock farmers. The model enhanced the economic and social well-\nbeing of poor rural women working as livestock farmers and APS. \n\t\nSince human and animal health are now seen as a continuum, there is \nneed for strategic interventions and collaboration with ministries responsible \nfor animal and human health. Animal husbandry departments should support \ndisease diagnosis, since it is a public good and requires considerable \ninvestment. APS can supplement animal husbandry departments by suppor-\nting livestock farmers. \n\t\nThe work of APS under the JOHAR project shows that it is possible to \nenhance human capacities in agriculture, even among the poorest, most \nmarginalized groups, such as women and Indigenous Peoples who raise \nlivestock on very small farms in remote villages. This was made possible by: \n1.\t training  local people only as APS; \n2.\t direct involvement in all activities, as APS are also livestock farmers \t\n\t\n\t\nbelonging to producer groups so there is peer pressure to maintain \t\n\t\n\t\nsupport;  \n3.\t structured training and coaching by one of the best firms in the business \t\n\t\ne.g. Asset & W; \n4.\t effectiveness of training evaluated by an independent appraising agency \t\n\t\nsuch as the Agriculture Skills Council of India; \n5.\t technical training in functional skills and values; \n6.\t opportunities for progression from APS to MT; \n7.\t supplementary income and earnings from services rendered; \n8.\t opportunities to work anywhere as a certified APS or MTs; \n9.\t development of a supporting network with MTs and external experts; \n10.\tongoing support through regular reviews and producer group meetings; \n11.\t structured intervention along the entire value chain from shed  \n\t\nconstruction, veterinary services, feed supplements to marketing;  \n12.\tpotential for APS and MT interventions to apply their skills for their own \t\n\t\nwell-being and that of livestock farmers in their village. \n110   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n©FAO/Jordi Vaqué Rabal\n\t\n\t BRIEF PROJECT DESCRIPTION\nThe Government of Peru has run the Haku Wiñay/Noa Jayatai programme \nsince 2014. Built upon lessons from previous programmes and funded by the \ngovernment and international cooperation (FAO, IFAD), it comprises a set of \ninterventions combining social protection with agricultural development. By \nthe end of 2020, Haku Wiñay/Noa Jayatai covered 140 000 households in the \nsubsistence economy, while more than 130 000 have completed the three-year \ncycle, covering more than 270 000 households between 2014 and 2020. \n\t\nThe programme is implemented by the Cooperation Fund for Social \nDevelopment (FONCODES) of the Ministry of Development and Social Inclusion \nand is a results-oriented budget programme, meaning the Ministry of Econo-\nmics and Finance is directly involved in design, monitoring and budget \nallocation to ensure good value for public expenditure. Haku Wiñay/Noa \nJayatai has four components:\nComponent 1 – Improved agricultural systems\t\n \nTechnical assistance to implement simple, low-cost technology innovations\nComponent 2 – Healthy housing\t\n \nTechnical assistance for household innovations, such as safe cooking stoves, \nwater and solid waste management, vegetable gardens, and barns for small \nanimals\nComponent 3 – Improved financial capacity\t\nTechnical assistance to develop savings plans and basic accounting skills \nComponent 4 – Inclusive rural business\t\nTechnical assistance to organize business associations, prepare business \nplans and apply for grants by participating in government competitive funding \nprogrammes\t  \nThe Haku Wiñay/Noa Jayatai\nCase study 2\n   111\nA DEEP DIVE INTO TWO AGRICUL\nTURE HUMAN CAPITAL INVESTMENT CASES\n\n\nThe first two components take place during the first two years of the programme \nand the last two in year three. After the three-year cycle is complete, the \nprogramme finishes in that community. \n\t\nThe following subsections provide further insights about contextual \nfactors (framing building blocks), programme purpose (aspirational building \nblocks) and programme design (design building blocks).\n\t\n\t FRAMING BUILDING BLOCK\n\t \t\n\t\n \nA  Farmers\nFamily farming in Peru covers more than 95 percent of farms, or about 2.1 \nmillion families and employs more than 3 million people. Most family farms, \nabout 1.9 million, are in the subsistence economy, which means most are \nsmallholders, have limited access to markets and are chronically poor. Haku \nWiñay/Noa Jayatai focuses on improving the human capital of family farms and \nrural households in the subsistence economy. The programme defines them \nas households which derive more than 75 percent of their income from \nagriculture, have less than 1.3 hectares, less than 10 percent of their production \nis sold in markets and more than 75 percent of their labour is devoted to \nagriculture. Around 65 percent of rural households meet these four criteria, \nabout 1.3 million households, including Indigenous People from the Highlands \nand Amazon regions. \n\t\nThe target population has limited access to extension services: only 3 \npercent  of subsistence farmers used extension services in 2012.3 They have \nlimited access to irrigation (0 percent), certified seeds (0 percent), fertilizers \n(30 percent), land titles (29 percent) and credit (4 percent). Only 21 percent \nconsider they have sufficient income to meet basic household needs.\n \nB  Institutions\nHaku Wiñay/Noa Jayatai contributes to the implementation of Pillar 4 of the \nNational Policy for Development and Social Inclusion, which refers to economic \ninclusion. \nE  Implementer\nFully implemented by FONCODES, the programme design allows for co-\nimplementation by other institutions, such as municipalities, governmental \nprogrammes and the private sector. Although FONCODES provides institutional \nsupport and financing the programme is implemented through community \nprojects managed by the community (see Design building blocks).\n112   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nF  Partner\nThe main partners of FONCODES are local municipalities. They do not make \nany intervention and rarely allocate funds to the programme, but are involved \nin selecting villages and the design of community projects and choose one \nmember of the Community Implementation Committee Board, (see Design \nbuilding blocks). \nG  Financing\nThe Peruvian Government funds the programme fully. The total budget \nallocation between 2014 and 2022 was USD 490 099 461, with an average \nannual spend of USD 54 455 496 (constant 2015). Average expenditure per \nhousehold between 2014 and 2020 was USD 1410 during which the programme \ncovered about 270 000 households.  \n\t\nThe programme gathers information for the framing building blocks \nfrom several sources: at district level, using secondary data such as the census \nof agriculture, population census or district-level records from the Ministry of \nAgriculture and Regional Agricultural Statistics Offices. Village information is \ngathered through the participatory diagnostic, part of the design phase of the \ncommunity project. \n   113\nA DEEP DIVE INTO TWO AGRICUL\nTURE HUMAN CAPITAL INVESTMENT CASES\n\n\nImpact\nOutcome\nOutput\nInput\nImplementation  \nof project  \ndesign strategies\nYachachiqs* provide agriculture \ntechnical assistance + training on:\n•\t Irrigation systems (sprinkler, drip)\n•\t Water harvesting\n•\t Permanent and seasonal crops\n•\t Vegetable gardens and \ngreenhouses\n•\t Pastures\n•\t Animal husbandry\n•\t Agroforestry\n•\t Organic fertilizers\n•\t Aquiculture\n•\t Conservation of native varieties\nYachachiqs provide training in \nhealthy housing:\n•\t Nutrition\n•\t Stove making\n•\t Health practices, e.g., hand \nwashing\n•\t Water safety\n•\t Solid waste management\n•\t Time management\nFinancial Yachachiqs provide \nfinancial education according the \nthe Financial Education Plan\nLocal marketing advisors provide \nbusiness training to sub-target group \n(those who apply for funding for their \nbusiness plan)\nImplementation actions\nTechnical agricultural skills\n•\t Install and maintain irrigation \nsystems (sprinkler, drip)\n•\t Harvest water\n•\t Install and maintain permanent \nand seasonal crops\n•\t Install vegetable gardens and \ngreenhouses\n•\t Manage pastures\n•\t Raise small animals\n•\t Install agroforestry systems\n•\t Produce organic fertilizers\n•\t Develop aquiculture\n•\t Conserve of native varieties\n“Livelihood skills” on how to\n•\t Prepare healthy diets\n•\t Install and use improved stoves\n•\t Undertake healthy practices\n•\t Improve home’s organization\n•\t Secure safe water\n•\t Manage solid waste\n•\t Organize household activities to \nsave time\nBusiness and household financial \nskills\n•\t Basic accounting skills\n•\t Knowledge of how to make \nsavings plans\nBusiness development skills on\n•\t Where and how to apply for \nfunding\n•\t How to form and organize \nbusinesses (3–4 ppl.)\n•\t How to prepare business plans \n•\t How to brand products\n•\t Packaging\n•\t How to ensure food safety \n•\t Other crafts for sale\n \nMindset\nOpenness to undertake production  \nas a business\nSkills developed\nAdoption of improved practices of\n•\t Irrigation systems (sprinkler, drip)\n•\t Water harvesting\n•\t Permanent and seasonal crops\n•\t Vegetable gardens and \ngreenhouses\n•\t Pastures\n•\t Animal husbandry\n•\t Agroforestry\n•\t Organic fertilizers\n•\t Aquiculture\n•\t Conservation of native varieties\nAdoption of healthy housing \nmanagement\n•\t Cook more healthy diets\n•\t Build and use improved stoves\n•\t Undertake health practices\n•\t Securing safe water\n•\t Manages solid waste\n•\t Allocate and organize their time \nmore efficiently\nWhat farmers now do\nIncreased crop productivity\nFarmers gain access to local markets\nWomen empowerment as all four \ninputs target women\nImproved health of family members \n Improved agricultural performance \n(due to better health) \n \nHouseholds have more time \n \nImproved well-being\nAdoption of record-keeping \n Better financial management \n Farmers start up savings\nAdoption of record-keeping \n Better financial management \n Farmers start up savings\nImprove agricultural performance \n(due to better management) \nImprove household resources’ \nmanagement\nImprove agricultural performance \n(due to better management) \nImprove household resources’ \nmanagement\nImpacts\nImpacts from all 4 inputs\nHuman capital development “add-on”\ninvestments in agricultural \ninfrastructure, e.g., small irrigation \nsystems, low cost greenhouses\nHuman capital development “add-on”\ninvestments in agricultural \ninfrastructure, e.g., small irrigation \nsystems, low cost greenhouses\nHuman capital development “add-on”\naccess to funding\nCOMPONENT 1 \nIMPROVED AGRICUL\nTURAL \n SYSTEMS\nCOMPONENT 2 \nHEAL\nTHY HOUSING\nCOMPONENT 3 \nIMPROVED \n FINANCIAL CAPACITY\nCOMPONENT 4 \nINCLUSIVE RURAL \nBUSINESS\nFigure \n5.5\nSummary \nof \naspirational \nbuilding \nblocks \nof \nHaku \nWinay/Noa \nJayatai\nSOURCE: \nAuthors’ \nown \nelaboration.\n*Yachachiqs = local promoters\nAgriculture  \nhuman capital\ndeveloped\nActions  \nand behaviours \nadopted by farmers \ndue to new  \nhumancapital \nChanges  \nresulting from \nadopted  \nactions and \nbehavours\nA newly developed local market in \nagricultural extension services \n(Yachachiqs) \nBONUS: Social capital development \nECE gained management skills of \nhow to implement a project, how to \nlook for funding, who to hire, from  \nthe project implementation itself,  \nnot from an input\n114   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n\t\nASPIRATIONAL BUILDING BLOCK\n\t \t\n\t\nH  Impacts\nHaku Wiñay/Noa Jayatai’s theory of change seeks to address the challenges \nfaced by the target population. The main problem is “rural households in a \nsubsistence economy with limited access to markets”, based on the current \nstatus of family farms gathered while developing the Framing building blocks. \nThe programme document includes a problem tree with the direct and indirect \ncauses supported by the best available evidence. These are as follows.\nDirect cause 1: Decapitalization of assets\n•\t unsustainable natural resources management;\n•\t limited access and low quality of assets;\n•\t low asset management and preservation capacities;\n•\t limited access to financial assets.\nDirect cause 2: Weak capacities to develop productive activities\n•\t low organizational capacities to manage resources;\n•\t low technology management capacities to guarantee production quality; \n•\t limited access to technical assistance;\n•\t low capacities to access financial assets and improve production.\nDirect cause 3: High transaction costs to access markets\n•\t high transport costs;\n•\t limited road infrastructure;\n•\t limited telecommunications infrastructure;\n•\t limited access to market information.\nBased on the identified main problem, the final impact of the theory of change \nfrom the programme is: “Rural households in a subsistence economy with \nopportunities to access local markets”. This is achieved through the following \nresults from the programme:\n•\t increased crop productivity;\n•\t improved linkages with agricultural value chains.\nIn addition, several studies report additional impacts not originally identified \nin the programme’s theory of change: \n•\t improved health of family members;\n•\t improved agricultural performance due to better health;\n•\t women’s empowerment;\n•\t improved well-being;\n•\t development of market for agricultural extension services;\n•\t community managerial skills development.\n   115\nA DEEP DIVE INTO TWO AGRICUL\nTURE HUMAN CAPITAL INVESTMENT CASES\n\n\n\t \t\n\t\n \nI  Outcomes\nThe programme seeks to achieve these impacts by transforming the agricultural \nsystem of family farms in a subsistence economy. As farmers adopt the \ninnovations and technologies promoted by the programme, this leads to \nchanges not only in agricultural production but also in household and business \nmanagement. Farmers are adopting technologies and innovations in the \nfollowing topics. \nImproved farming production systems: \n•\t irrigation systems (sprinkler, drip); \n•\t water harvesting; \n•\t permanent and seasonal crops; \n•\t vegetable gardens and greenhouses;\n•\t pastures; \n•\t animal husbandry; \n•\t agroforestry; \n•\t organic fertilizers; \n•\t aquaculture; \n•\t conservation of native varieties. \nDeveloped and maintained healthy housing: \n•\t healthy diets; \n•\t improved stoves;\n•\t healthy practices;\n•\t home organization;\n•\t safe water;\n•\t solid waste management.\nGreater financial capacity: \n•\t adoption of record keeping;\n•\t improve financial management;\n•\t savings;\nPromotion of inclusive rural businesses:\n•\t organization for business development; \n•\t preparing business plans; \n•\t pursuing grants by participating in governmental funding programmes; \n•\t developing “business behaviour”. \nJ  Outputs\nThe outputs of the programme refer to the development of a set of skills in the \nfields mentioned above, summarized as follows.\nOutput 1: Technical agricultural skills:\n•\t how to install irrigation systems (sprinkler, drip); \n•\t how to harvest water; \n•\t how to install and maintain permanent and seasonal crops; \n•\t how to install vegetable gardens and greenhouses; \n•\t how to manage pastures; \n116   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n•\t how to raise small animals; \n•\t how to install and maintain agroforestry systems; \n•\t how to produce organic fertilizers; \n•\t how to develop aquaculture; \n•\t how to conserve native varieties. \nOutput 2: Livelihood skills:\n•\t how to devise healthy diets; \n•\t how to install and use improved stoves; \n•\t how to undertake healthy practices; \n•\t how to improve home organization;\n•\t how to source safe water;\n•\t how to manage solid waste; \n•\t how to organize household activities to save time. \nOutput 3: Business and household financial skills:\n•\t how to keep records;\n•\t how to manage financial resources;\n•\t how to save.\nOutput 4: Business development skills: \n•\t where and how to apply for funding; \n•\t how to prepare business plans; \n•\t how to brand products; \n•\t how to use packaging; \n•\t how to ensure food safety; \n•\t how to develop other crafts for sale. \nNote the different fields of human capital developed and described here differ \nslightly from the three field categories in Module 3. This is due to the more \nholistic approach of the Haku Wi/Noa Jayatai project and the inclusion of \nhuman capital beyond agriculture such as livelihood and household skills.\n   117\nA DEEP DIVE INTO TWO AGRICUL\nTURE HUMAN CAPITAL INVESTMENT CASES\n\n\n\t\n\t DESIGN BUILDING BLOCK\n\t \t\n \nK  Targeting\nThe selection of the programme participants is based on three steps.\t\n \n1.\t Villages are invited to participate in the programme based on the  \n\t\nfollowing three criteria:  \n•\t towns and villages in districts with more than 40 percent monetary \t\t\n\t poverty rate, based on the District Poverty Map of 2013;\n•\t towns and villages within agricultural registration areas from the 2012 \t\n\t Agricultural Census with an average land possession of 1.3 ha; and \n•\t towns and villages comprising Indigenous Peoples. \nThese criteria yielded 11 191 towns and villages with 533 962 households \nconsidered eligible for the programme. This number covers about 40 percent \nof subsistence economy households.\t\n \n2.\t FONCODES decides which villages will participate each year based  \n\t\non the budget allocated to each region, synergies between villages \t\n\t\n\t\nselected in previous years and potential new villages, and dialogue  \n\t\nwith municipalities and other local actors, mostly NGOs. \n3.\tAt household level, the Community Implementation Committee  \n\t\n(CIC) selects the households for a given year with the participation  \n\t\nof a community assembly, based on the participatory diagnostic  \n\t\n(explained below).\nThe programme runs nationwide, but most households are in the highlands \nand the Amazon Region. While the programme does not target women and \nyouth directly it recognizes this limitation and is implementing ad hoc targeting \nstrategies to increase their participation. \nM  Organization for delivery\nCommunity participation\nIn making a selection FONCODES teams visit the villages, meeting community \nleaders and the mayor of the district to guarantee the community approves \ntheir participation. If all are in favour, an agreement is signed between \nFONCODES, the community and the municipality. \nCommunity Implementation Committee\nThe CIC in selected villages develops programme activities through projects \ndesigned with the participation of the community. Each CIC works with \napproximately 100 households and is managed by community members under \nthe supervision of FONCODES. A CIC board comprises a President, Treasurer \nand a Secretary as well as a member designated by the local municipality. Once \nthe board is up and running and the Operations Manual written, the CIC must \nbe registered on the National Registration System, which means it has legal \nresponsibility for the funds it receives. The CIC then appoints a manager, who \nleads all the activities performed in the community. \n118   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nCIC board members receive training by FONCODES staff in accounting and \nmanagement. Since they have legal responsibility for how the funds are used, \nthey must be aware of and understand the procurement process.\t\nParticipatory diagnostic\nThe first CIC activity is the participatory diagnostic of the community, to identify \nmajor problems faced by the community regarding agriculture and access to \nmarkets. All community members participate and provide information about \ntheir situation. \nCommunity project design\nThe information is used to design community-specific projects and implement \nComponents 1 and 2. The CIC manager leads the design of the project rooted \nin community needs and a “menu” of pre-selected possible activities, based \non the skills the project aims to develop (see Outcomes at the “Aspirational \nbuilding blocks”). CIC members must approve the project and the project \ndocument which outlines the activities to be performed and the funding \nrequired from FONCODES. Community projects are implemented during the \nfirst two years of intervention. \nYachachiq\nFollowing a selection process, the CIC hires Yachachiq as local promoters to \nimplement community projects. They have direct contact with programme \nparticipants and provide all the technical assistance and training to improve \nagricultural productive and household management skills. Yachachiq receive \ntraining from FONCODES technicians, come from the same or surrounding \ncommunities and speak the same language. The average monthly salary of a \nYachachiq is USD 428 plus transport and a per diem when they travel to other \nvillages.\n\t\nYachachiq are the basis of the programme organization. They need to \nbuild trust among programme participants, not always an easy task. They must \nconstantly prove the techniques that farmers will learn are effective and easy \nto implement. Also, household management skill development is fundamental, \nespecially the installation of improved cook stoves, a key icebreaker. \nFinancial education\nComponent 3 is implemented with all adult community members. The CIC \napproves a financial education plan that considers advice and training on \nsavings, funding, accountability and asset management. It hires a financial \nyachachiq who is trained by FONCODES staff. These activities take place \nduring the third year of the programme. \nInclusive rural business plans\nComponent 4 is implemented through business plans selected by community \nmembers via a public contest and funded from programme resources. The \nCIC hires a local marketing adviser with funding from the programme. The \nadviser leads the design of the business plans, providing technical assistance \nto those community members (self-organized in small groups) who participate \n   119\nA DEEP DIVE INTO TWO AGRICUL\nTURE HUMAN CAPITAL INVESTMENT CASES\n\n\nin this process. Potential businesses are not exclusively agricultural although \nmost are.  Others include small animal husbandry (usually guinea pigs or cuy) \nand many relate to handcrafts, clothes, bakeries, restaurants, tourism and \neven hairdressing.\nLocal Committee of Resources Allocation\nAll groups that receive technical assistance and designed business plans can \nparticipate in an all-day public contest to select one business which will receive \nstart-up funding. The selection committee, the Local Committee of Resources \nAllocation (CLAR), is composed of staff from FONCODES, the local municipality \nand community members. \nBusiness development\nWinning groups receive funding to start their business. The average grant \nreceived by each group between 2015 and 2019 was USD 3216 which covered \nabout 65 percent of the cost of the business plan.  Entrepreneurs receive \ntechnical assistance and training in accountancy and finances, management, \nbranding, food safety and other aspects of business-. Technical assistance \nand training are provided during the last year of the intervention. Once training \nis finished and the business is up and running, the programme moves on from \nthe community. \nFigure \n5.6\nSummary \nof \ncomponents \nand \nprocesses \ndeveloped \nby \nHaku \nWiñay/Noa \nJayatai\nSOURCE: \nAuthors’ \nown \nelaboration.\nSelection of \nvillages by \nFONCODES and \nMunicipalities\nInstallation  \nof CIC and  \nCIC Board\nHiring of \ncommunity \nproject \nmanager\nParticipatory \nDiagnostic\nYEAR 1 AND 2\nYEAR 3\nCommunity \nproject \nfunding\nTechnical \nassistance on \nproduction \ntechniques\nTechnical assistance  \non dwelling organization \nand healthy practices\nCOMPONENT 1  \nImprove agricultural \nsystems\nCOMPONENT 3  \nImprove financial \ncapacity\nCOMPONENT 2 \nHealthy housing\nCOMPONENT 4 \nInclusive rural \nbusiness\nHiring of \nYachachiqs\nTraining on \nfinancial \neducation\nCommunity \nproject \ndesign\nFinancial \neducation \nprogram \ndesign\nCall for \nbusiness \nplans\nTechnical \nassistance on \nbusiness plan \ndesign\nBusiness \nplans funding\nInstallation of CLAR \nand selection of \nbusiness plans that \nwill be funded\nTechnical \nassistance  \nto rural \nbusiness\n120   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n\t \t\n \nL  Method\nYachachiq provide technical assistance, advice and training in Haku Wiñay/\nNoa Jayatai through informal meetings, workshops and one-to-one training \nsessions. It is considered a farmer-to-farmer learning by doing method, given \nthat Yachachiq meet with farmers and together apply the techniques to be \nlearned. They also use written and visual materials to communicate basic \nconcepts and key messages, but sessions are mostly hands-on. After the \ngroup sessions, Yachachiq visit each household during the following days to \nprovide technical advice not only on agricultural techniques, but on household \nmanagement and organization. Each Yachachiq works with 35 households on \naverage.\n\t\nIt is worth noting that investment in human capital in Haku Wiñay/Noa \nJayatai is provided along with physical capital, such as small agricultural \ninfrastructure and dwelling improvements. Yachachiq are crucial to identify \nthe specific farm and household needs, not just skills but also physical needs. \nN  Scaling and sustaining\nThe programme has already covered almost half of the target population, with \nabout 35 000 new households each year. Its success relies on the effectiveness \nof CIC and community project managers to develop procurement processes. \nThe design of Haku Wiñay/Noa Jayatai gives the programme a significant \namount of flexibility so as to adapt to each territory. Although Yachachiq need \nto address community needs, there is no fixed study plan, in the sense that \nthey can adapt training sessions based on local needs, given their previous \nwork with participating farmers. \n\t\nRegarding sustainability, the intention was to run the programme along \nwith Juntos, a cash transfer programme. If they had run together, households \ncould have invested their monthly payment from Juntos (USD 30 per month) \nin farm improvements and technology adoption. This did not happen and it is \nrare for households to participate in both programmes. \nO  Keep improving\nThe programme records all the information on tasks and activities, as well as \ndisbursements and budget spending with great detail on participating \nhouseholds and their members. Nevertheless, it does not assess farmers’ \nperformance after the programme ends. After year three no follow-up \ninformation is recorded nor provided by community members. External \nagencies have filed assessment and impact evaluation reports, showing \nimprovements with respect to the baseline or in comparison to the control \ngroup vis-a-vis the treatment group for experimental studies. \n\t\nWith respect to planned improvements, the programme is considering \ninvesting in natural capital, such as reforestation to conserve water or reduce \nhillside erosion. \n   121\nA DEEP DIVE INTO TWO AGRICUL\nTURE HUMAN CAPITAL INVESTMENT CASES\n\n\n\t\n\t LESSONS LEARNED\nBased on the impact evaluation studies and assessment reports, the \nprogramme shows positive impacts on farm households’ well-being through \nseveral mechanisms, with improvements in agricultural human capital the \nmajor drivers of change. Higher agricultural sales are one of the major impacts \nreported, achieved mainly because of the training and technical assistance of \nYachachiq. However, interventions in business development do not show \nsignificant positive impacts. Possible reasons are that community members \ndo not welcome the formation of business development groups. Some studies \nhave shown that community members forming a group to develop a business \nplan believed erroneously they could split any funding received between them \nwith each using their share separately.  This is not allowed. Other studies \nsuggest that one year may be too short for business development.\n\t\nWhile the programme indicates success in the highlands, results in the \nAmazon Region are mixed. It appears the organization of the programme is \nnot suitable for the idiosyncrasies and difficulties of the Amazon, such as \nlimited access and connectivity, resulting in higher implementation costs. \nAdapting the programme to Amazon conditions requires further analysis. \n\t\nCommunity approval of projects is key. From the start of the three-year \nintervention, the community not only makes decisions on how to use resources \nbut also decides what will be developed and who benefits. This feature ensures \nthere is community empowerment and transparency in the processes adopted. \n122   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n©Unsplash/Evgeny Nelmin\n©Unsplash/Drew Masmar\n\n\n\n\nModule 6 \nAppraising agriculture \nhuman capital \ninvestments in the \ncontext of economic  \nand financial analysis \nSound economic and financial analysis (EFA) during project design, appraisal \nand implementation plays a key role in achieving the desired economic \noutcomes and increasing the likelihood of sustained economic benefits from \na project.  The main goal of financial analysis (FA) is to examine the financial \nreturns to project participants (beneficiaries, project entity, institutions and \ngovernments) to ensure all actors have enough financial incentive to participate. \nEconomic analysis (EA) on the other hand assesses the project’s efficiency in \nterms of its net contribution to national economic and social welfare. The subtle, \nyet important differences between FA and EA are discussed in Box 6.1. Box 6.2 \nprovides an example of EFA. \nLearning objective \nTo be able to understand and use EFA in AHCI related \nprogrammes and projects.\n!\n   125\n\n\nEFAs are typically a requirement of most project investors. They provide the \ngrounds for making decisions on investment financing for any project based \non its financial and economic viability. The FAO Investment Centre and \ninternational financing institutions have developed several tools to aid in \ndeveloping EFAs (FAO, 2022a). \n\t\nEFAs are challenging to undertake for “soft” investments such as \nhuman and social capital programmes and projects.  First, some costs may \nbe difficult to identify while second, the benefits may be even more difficult to \nmeasure. Monetary costs come directly from input or training costs, which are \nvery tangible. Other costs can be estimated, for example, time devoted by \nfarmers to training. But monetary benefits could come from changes in direct \nincome from agricultural sales. Other benefits may be difficult but not \nimpossible to estimate.  Attributing certain changes, such as productivity, \nincome, and empowerment to the project or programme interventions will be \nchallenging.  Nonetheless, there are numerous examples of the use of EFAs \nand impact evaluations with AHCI related projects.  Seminal studies and meta-\nanalyses of extension, research and innovation investment projects have \npointed to high rates of return, using  net present value  and internal rates of \nreturn calculations (McNamara, 2020).  \nDIFFERENCES BETWEEN FINANCIAL AND ECONOMIC PARTS OF THE EFA IN \nINVESTMENT PROJECTS\nFinancial part of the EFA \nA key objective of FA is to determine the viability of the proposed investment  \nthroughout its entire life, based on a particular analytical timeframe. This is usually  \nthe first part of the EFA, and thus all concepts and data must be in order and  \nconsistent. Normally an inflow and outflow profile over a minimum of ten years.  \nIt aims to understand the distributional impacts of the proposed investment. \nEconomic part of the EFA \nThe economic analysis focuses on impacts of the proposed investment on the \neconomy and society. It aggregates costs and benefits to the national economy to \ndetermine the level of improved well-being after the investment is made. EA is \ngrounded in information developed from financial cash flows, but takes them a step \nfurther and adds the principles developed in applied welfare economics.  If the gains \noutweigh the costs, the investment is considered economically viable and justifiable.\nBOX 6.1 \nSOURCE: \nAuthors’ \nown \nelaboration.\n126   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nRigorous analysis of extension and technology transfer interventions, using \nrandomised control trials (RCTs) have provided more robust evidence on the \nimpact of a variety of programmes and projects (McNamara, 2020). While \nthese are not the classic ex-ante EFAs, they do provide a wealth of information \non project impacts and lessons learned which can drive future work.\n\t\nUp until now we have discussed EFA generally for any investment \nproject. Below we provide an overview of the potential methods for calculating \nEFAs with AHCI projects. There are two cases where the training or extension \nactions are embedded within a package of interventions and one where the \nintervention focuses solely on human capital investments. This section also \nprovides links to EFA analyses completed on projects with considerable AHC \ncomponents or activities. It also contains a more detailed presentation of the \noverall approach to EFAs in projects.  \n\t\n\t Potential methods to identify and quantify AHCI costs and benefits\nThe quantification of benefits and costs associated with investments in human \ncapital (e.g. education, training) is a challenging exercise in the economic \nanalysis of project appraisals. Quantification of AHC costs and benefits is often \nomitted from direct EFA valuations and discussed in qualitative terms only or \nevaluated in the “package approach” (as in Case 1 below). However, there are \noptions to include AHC valuations in project appraisals. These will depend on \nthe nature of the project with two potential cases discussed below.\nPERU’S AGRICULTURE INNOVATION PROJECT AND AHCI EFA \nBetween 2015 and 2021 the Peruvian Government partnered with the World Bank  \nand others to implement a National Agriculture Innovation System Support \nProgramme valued at USD 129.95 million (World Bank: USD 40 million, Government of \nPeru: USD 56.95 million, beneficiaries: USD 30.75 million). This project is emblematic \nof AHCI. The Ministry of Agricultural Development and Irrigation (MIDAGRI) and its \nagriculture research arm, the National Institute of Agriculture Innovation (INIA), were \nthe main implementers. The FAO Investment Centre provided technical assistance  \nin project design, supervision and evaluation. An innovative ex-post EFA analysis \ncaptured the full array of costs and benefits for this project. It also documented the \nchallenges of identifying different technology adoption rates with their associated \nstreams of benefits and costs.  More details are in Annex A and the cited document. \nBOX 6.2 \nSOURCE: \nWorld \nBank. \n2021. \nFuelling \nan \nengine \nof \nsustainable \ngrowth: \nagricultural \ninnovation \nin \nPeru. \nResults \nBriefs. \nwww.worldbank.org/en/results/2021/11/04/fue-\nling-an-engine-of-sustainable-growth-agricultural-innovation-in-peru \n \n \n   127\nAPPRAISING AGRICUL\nTURE HUMAN CAPITAL INVESTMENTS \n\n\nCASE 1\nCALCULATION OF AHCI COSTS AND BENEFITS WHEN THE INTERVENTION  \nOR PROJECT IS TREATED AS A “PACKAGE SOLUTION”\nWITHOUT PROJECT (WOP), WITH PROJECT (WP) AND INCREMENTAL SCENARIOS\nWOP scenario \nThis scenario shows the situation before introducing the proposed investment or \nintervention and the situation if the status quo continued. (Generally, a dynamic WOP \nscenario, not a static one, should be modelled as the situation is likely to change even \nwithout any intervention.) \nWP scenario \nThis scenario outlines the predicted situation after introducing the investment or \nintervention. In the ex ante modelling, this scenario needs to be based on well \nsupported assumptions about the future situation (e.g. how the status would change \nin future if the intervention was implemented). These assumptions are usually based \non a combination of sources: interviews with various actors, literature research, \navailable data (national and international) and inflation forecasting.\nBOX 6.3 \nThe project or intervention assumed in Case 1 constitutes a package solution \ndelivered to direct beneficiaries (farmers) as a set of well-coordinated \ncomponents that may include: support (a loan or grant, for example) to obtain \nimproved inputs (seeds, fertilizer, irrigation) plus appropriate farm management, \nstorage and marketing training (e.g. when to seed, how to tend to crops, how \nto store, pack, market). With such a package solution the AHC benefits and \ncosts are embedded in the overall benefits and costs for these farmers will \nexperience.4 The separate AHC valuation in these cases is very hard to \ncalculate as it is difficult to directly capture the pure effect of training on the \nincome increase for a beneficiary farmer. There are too many confounding \nfactors (e.g. better seeds, better fertilizer and other farmer-specific factors) \nthat may influence the income increase. Investors, whether government or \ninternational financial institutions will not pursue a separate analysis of costs \nand benefits. However, the appraisal of an intervention or project is relatively \nstraightforward and usually pursued in financial and economic terms. This \nassumes the realization of AHC benefits and costs is accounted for in the net \nproject or the gains for the direct beneficiary; that is, what the farmer gained \nfrom the intervention and the income increase. As described in Box 6.3 and \nFigure 6.1, one can use the WOP, WP and incremental scenario to analyse the \npackage. As many development projects bring a package solution, there is \nless need to disentangle these potential benefits. In such cases, the appraisal \ngenerally takes place in financial and economic terms using a standard form.\n4\t\nSee excellent example of the Government of Pakistan in IFAD. 2021. Khyber \t\n\t\nPakhtunkhwa Rural Economic Trans-formation Project. Project Design Report. Annex \n \n\t\n12, pp. 53-68. www.ifad.org/en/-/pakistan-2000002333-kp-retp-project-design-\t\n\t\nreport-november-2021   \n128   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nCASE 2\nCALCULATION OF AHC COSTS AND BENEFITS WHEN INTERVENTION  \nOR A PROJECT COMPRISES SOLELY A TRAINING COMPONENT\nThe project or intervention in Case 2 differs from Case 1 because the \nquantification of the project or intervention’s benefits and costs have to be \ntransferred to the sphere of evaluating intangible effects (economic valuation). \nEven though the costs of preparing and implementing such training are usually \nwell known, the economic costs may need to be estimated for training recipients \n(e.g. the value of time spent training). The most challenging task will include \nevaluating the economic benefits from the training. To disentangle benefits \nfrom AHC improvements, one needs to use experimental techniques such as \nRCTs and non-experimental ones such as regression discontinuity, propensity \nand score matching. There may be several designs depending on the context \nand nature of the project but these are usually expensive and time consuming. \nThere may be reservations from government officials, beneficiaries, and other \nabout using RCTs. As part of an ongoing project, FAO is working with Innovations \nin Poverty Action (IPA) to examine RCTs that aim to isolate the impact of training \nand technology transfer programmes on human capital development. Usually, \nif evaluators do not have enough time to prepare such an analysis (without the \nluxury of running an RCT) they conduct a literature search, referencing past \nresearch and projects with assumptions on the potential yield increase to \nfarmers who receive training and calculating the economic benefits from \nincreased income. The analyst usually runs a sensitivity analysis on this \nassumption of yield from training to show several “what if” scenarios (e.g. what \nwould the situation be if training increased the yield by 50 percent, 40 percent \nor 30 percent).Another way of doing a training EA is to assess \"the added \nbenefit of having incremental levels of training\". Through reference studies \none can understand how incomes have increased for farmers who received \nmore intensive training, those who received less intensive training or none at \nall and then compare the effect of yield/incomes on the degree of training. For \nmore information about sensitivity analysis, please refer to Box 6.5. \nIncremental scenario \nThis constitutes the difference between the WP and WOP scenarios (WP-WOP) and \nshows the expected impact of the investment or intervention on individuals or groups \nof individuals. The incremental changes are the most important to examine from the \ninvestment point of view as they predict the impact of the investment or intervention.\nFor more details, please refer to Figure 6.1.\nSOURCE: \nAuthors’ \nown \nelaboration.\n   129\nAPPRAISING AGRICUL\nTURE HUMAN CAPITAL INVESTMENTS \n\n\n\t\n\t Overall approach to economic and financial analysis, ex ante investment \t\t\n\t\n\t appraisals in projects\nIn their standard forms, investment appraisal methodologies commonly \nknown as EFAs use multiple tools to estimate ex ante financial, economic, \nsocial, and environmental impacts. The widely used methods postulate \nseparate analyses to tackle financial, economic, social, and environmental \nstudies individually rather than as a part of a bigger and interconnected entity. \nIntegrating all these analytical building blocks and their joint consideration in \ninvestment appraisal is the key to a more thorough analysis. The standard EFA \nshould be considered a cost-benefit analysis (CBA) but taken one step further \nto provide an evaluation in the form of an integrated investment appraisal (IIA). \nAn IIA typically includes three scenarios: WOP scenario, WP scenario and \nincremental scenario (see Box 6.3 and Figure 6.1 for more detail on these \nscenarios). Additional analytical steps like sensitivity analysis and stakeholder \nand distributional analysis are natural analytical extensions. \nFigure \n6.1\nIntegrated \ninvestment \nappraisal \nmethodology\nSOURCE: \nAuthors’ \nown \nelaboration.\nFinancial analysis\n(individual level)\nFinancial analysis\n(individual level)\nFinancial analysis\n(individual level)\nStakeholder and \ndistributional \nanalysis\nFinancial analysis\n(aggregate level)\nFinancial analysis\n(aggregate level)\nFinancial analysis\n(aggregate level)\nSensitivity\nanalysis\nEconomic analysis\n(aggregate level)\nEconomic analysis\n(aggregate level)\nEconomic analysis\n(aggregate level)\nWOP scenario\nWP scenario\nIncremental  \nscenario:  \nWP–WOP\nAdditional  \nIIA steps\nEconomic analysis\n(individual level)\nEconomic analysis\n(individual level)\nEconomic analysis\n(individual level)\n130   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n\t\n\t The three scenarios\nThe  WOP scenario  should show the situation before the intervention or project. \nHowever, all inflows and outflows in the financial part of the analysis of benefits \nand costs and the economic part should also predict how these variables may \nchange over time. The analytical steps look the same in the case of the WP \nscenario (after the intervention or project starts). This requires modelling of \nsome level of forward looking expectations about the measurable effects. This \nusually involves various assumptions concerning yield and expected prices. \nThis is where field interviews are crucial as are other secondary sources of data \n(e.g. statistical offices, various ministries, websites of international \norganizations, literature, reports, project impact evaluations, and many more). \nThe  incremental scenario  is the difference between the WOP and WP scenarios. \nIt shows the incremental change after the intervention or project. Depending \non the type of analysis (financial and economic or economic only), the \nincremental scenario will show financial and economic or economic results \nonly.\nFurther analyses\t\n \nBeyond these basic analyses, sensitivity and stakeholder distributional \nanalyses are possible. Sensitivity analysis should move certain influential \nvariables and recalculate all net present values (NPVs), internal rates of return \n(IRRs) and all the profitability measures using new levels of these variables. At \nthe minimum analysts examine varying increases in costs and decreases in \nbenefits and conduct sensitivity analysis around these changes but it is \npossible to use much more nuanced considerations to conduct the analysis. \nDistributional analysis can show which stakeholders will benefit from the \nproject and by how much, recalling that the standard group of stakeholders \nare project beneficiaries, the government, and the entire economy. Stakeholder \ndistributional analysis can take place if there is a financial and economic part \nto the analysis. Further descriptions on distributional analysis can be found at \nthe Investment Centre, Investment Learning Platform (FAO, 2022a).\nDefining direct beneficiaries and attribution of costs and benefits \nOne of the critical elements of any investment appraisal is defining the direct \nbeneficiaries of the project or intervention whose perspective forms the basis \nof the analysis. The definition of direct beneficiaries is key as analysis from a \nfarmer’s perspective will be different to that of a commercial bank that provides \na loan to the farmer. Attribution, being able to say with certainty a project \nintervention led to greater production, productivity, empowerment and other \ndesired outcomes, is very challenging.  The WP and WOP scenarios can attempt \nto analyse this, using arguments from the theory of change but these cannot \naccount for costs and benefits in all cases.\nThe rationale for pursuing a financial and economic analysis\nA financial analysis is necessary and justified when the proposed intervention \nor project will yield financial inflows (or revenues) to direct beneficiaries. A very \ncommon example is a project where a farmer receives a loan with a subsidized \ninterest rate to improve farming (e.g. via increased production efficiency). Such \na loan is likely to increase the farmer’s income in years to come. It is possible \nto estimate cash flows because there is an expectation about actual financial \n   131\nAPPRAISING AGRICUL\nTURE HUMAN CAPITAL INVESTMENTS \n\n\ninflows and outflows. The natural extension of such an analysis would be to \nconvert all financial prices (financial cash flows) into economic ones using \nconversion factors (CFs) and to construct economic resource flows. The \nappraisal could include both financial and economic parts in such a case.\nThe rationale for an exclusively economic analysis\nThere are projects where beneficiaries will not observe a tangible income \nincrease as they will not observe direct financial inflows from the project. An \nexample of such a development project is providing Wi-Fi to a community. In \nthis case, farmers will gain some economic benefits, but no financial inflows \n(revenues) are recorded, even though the financial costs are likely to be known. \nConsequently, the analysis needs to economic terms in such a case. Therefore, \nestimation of financial cash flows is not possible. The rationale for the financial \nanalysis is that beneficiaries observe financial inflows and outflows so the \ntangibility of these flows is essential. The financial part of the analysis should \nadhere to at least some basic accounting principles, where all entries are \nincluded in a common denominator. For the economic analysis, tangibility is \nnot necessary as costs and benefits can be present without observing actual \ncash flows. While the valuation of financial inflows and outflows is relatively \nsimple, being based on observed market prices, the valuation of economic \nbenefits and costs frequently uses indirect methods, some of which may be \nintensive and time-consuming.\nQuantify intangible benefits and costs\nIntangible benefits are those attributed to the project or intervention, but \ncannot be measured in direct financial terms. They bring an additional level of \ncomplexity to investment appraisals. The first issue relates to a proper definition. \nThis definition and determining applicable intangible costs and benefits are \nlikely to be specific to each project or intervention. The second issue concerns \nhow to value them accurately. While field interviews, similar projects and peer-\nreviewed literature can offer an assessment of the potential spectrum of costs \nand benefits, their valuation can be a significant obstacle as methods applied \nelsewhere may not be suitable. Box 6.4 contains further details on possible \nsteps to evaluate intangible benefits.\n \n132   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nSTEPS IN VALUING INTANGIBLE BENEFITS AND COSTS\nDefine applicable costs and benefits. All potential intangible costs and benefits that \naccrue to beneficiaries from the AHCI intervention need to be defined. The definitions \nusually come from field interviews, past literature, similar projects pursued elsewhere, \nand other secondary resources. For AHCI projects, potential costs may include the \nfarmer’s time spent attending training. The value of this time subtracted from regular \ndaily tasks does not have an immediate price, but it is possible to estimate it using  \nthe indirect valuation method (see Step 2). An intangible AHCI benefit might be better \norganization of the project’s community of farmers after training when they may be \nmore willing to cooperate. Cooperation, in turn, can bring more cohesion to a commu-\nnity and decrease the number of disputes. There is a method to value time savings \nfrom reducing the number of such conflicts.\nDecide which costs and benefits can be quantified. Among the potential costs  \nand benefits in Step 1, there will be some that can be quantified using indirect \nmethods and some that cannot because there are no methods to value them. In the \nEFA, only quantifiable costs and benefits are included in economic resource flows.  \nAll other potential costs and benefits are usually discussed only in qualitative terms \n(in qualitative analysis, as per Step 4 below). Depending on the type of costs and \nbenefits, there may be different ways to quantify them, the most popular is to use  \nthe concept of opportunity cost.\n1.\t Value time (gains or losses) using the opportunity cost of \t\n\t\nlabour measured as the average daily wage in the area.\n2.\t Use cost savings arising from switching from the standard \t\n\t\ntechnology/management in the WOP scenario and them as \t\n\t\nbenefits in the WP scenario. \n3.\tValue forgone wages as the economic costs of implementing \t\n\t\nautomation or digital solutions that diminish labour demand.\n4.\t Some other methods may include more time consuming and \t\n\t\nelaborate methods.\n5.\t Use future potential income gains due to educational  \n\t\nattainment as benefits of the education or training. \n6.\tEmploy contingent valuation methods and surveys of farmers \t\n\t\nwho received training.\nChoosing a suitable valuation method depends on multiple factors like data \navailability, the time for the analysis and funding. For ex ante EFAs, time is usually a \nlimiting factor and valuations usually occur without any surveys or an actual valuation \nof future potential income gains due to training. Quantifying these benefits and costs \nusually follows methods 1–3, described above and the effects observed elsewhere \n(past projects, literature review).\nSTEP 1\nSTEP 2\nBOX 6.4 \n   133\nAPPRAISING AGRICUL\nTURE HUMAN CAPITAL INVESTMENTS \n\n\nChoosing proper discount rates\nA discount rate is the opportunity cost of funds invested in a project. It is a \ncritical variable in applying investment criteria to select an investment. \nChoosing the right discount rate is essential as even a slight variation can \nprofoundly affect the net incremental results (Box 6.5).\nInclude quantified costs and benefits in economic resource flows. All derived \npotential costs and benefits valued using methods in Step 2 are included  \nin the resource flows as economic costs or benefits, respectively. The standard \nmeasures of investment sustainability (economic NPV, economic IRR) are then \ncalculated as in the case of costs and benefits priced directly.\nQualitative discussion of costs and benefits that could not be valued. All costs and \nbenefits that cannot be quantified are normally excluded from the economic resource \nflows as there are no numerical values assigned to them. However, the expected size \nof these costs and benefits is normally discussed in a qualitative analysis.\nSTEP 3\nSTEP 4\nSOURCE: \nAuthors’ \nown \nelaboration. \nFINANCIAL AND ECONOMIC DISCOUNT RATE\nFinancial discount rate \nIn the context of the financial part of the EFA, the proper discount rate is the one  \nthat applies to equity holders. The relevant cost of funds is the return on equity earned \nfrom its alternative use. \nEconomic discount rate \nIn the economic part of the analysis, the economic discount rate is the economic \nopportunity cost of capital (EOCK). Estimating this is an uneasy task as it needs to \nstart with the capital market as the marginal source of funds. In practice most \ngovernments set the social discount rate used in the calculation of cost benefit \nanalysis. For example, the Office of Management and Budget of the Government of \nthe United States of America has set it at 7 percent (OMB, 1992), while in Peru's  \ncase it is 8 percent for projects with 20 years or less impact and analysis (MEF, 2019). \nAlthough the most recent EOCK is not known, a sensitivity analysis on the latest \nknown value assumes different levels to see how profitability and economic \nsustainability change under different EOCK values. \nBOX 6.5 \nSOURCE: \nAuthors’ \nown \nelaboration.\n134   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nDeciding on an analytical timeframe\nInvestment decisions are fundamentally different from consumption decisions \nas a unit of money spent or received today is worth more than one sometime \nlater. For EFA modelling, the typical analytical timeframe is a minimum of ten \nyears. A shorter time is not advisable as it is hard to show the entire stream of \ninvestment benefits. However, the analysis can be extended over a number of \nyears, 15 or 20, if need arises and a rationale exists to pursue this analysis \n \nfor longer.\nDealing with uncertainty and risk\nFinancial cash flows and the economic resource flows of each EFA model can \ninclude only one entry per year for each inflow or outflow. But this is not realistic, \ngiven that uncertainty in the price of inputs and outputs, inflation and exchange \nrates etc., is the norm. It is important to address these uncertainty issues \naround the proposed investment as the results and recommendations should \nnot be based on deterministic values. Sensitivity analysis tools are there to \nhelp tackle this problem (Box 6.6). \nSENSITIVITY ANALYSIS\nSteps in conducting a risk analysis \nWhile it is not possible to predict upfront the exact variables that need to be sensitized, \nit is possible to outline the task. The following steps will help assess the risk level for \nan investment or intervention.\nIdentifying risk variables through sensitivity analysis \nThis step evaluates how sensitive are the project outcomes (e.g. FNPV, ENPV) to \nchanges in the value of one parameter (also known as “what if” analysis). This process \nis repeated for each variable expected to impact on the outcomes of the investment. \nThe sensitized variables must constitute a large share of cash receipts or \ndisbursements, and their impact on the investment must be significant within the \nrange of probable values.\nScenario analysis \nThis involves analysing changes in two or more variables and the combined effect of \nthese changes, investigating how sensitive are the project’s outcomes (e.g. FNPV, \nENPV) to changes in the value of these variables.\nMonte Carlo analysis \nThis is a natural extension of sensitivity and scenario analysis. Monte Carlo simulation \ncreates multiple versions of the future based on what may happen by studying and \ndefining the expected variability in the input parameters of the EFA modelling.\nBOX 6.6 \nSOURCE: \nAuthors’ \nown \nelaboration.\n \nSTEP 1\nSTEP 2\n \nSTEP 3\n   135\nAPPRAISING AGRICUL\nTURE HUMAN CAPITAL INVESTMENTS \n\n\nAs noted by McNamara (2020) it important to include full intervention costs \nsuch as project management, training of trainer costs, institutional \nimplementer costs (i.e. ministries and/or NGOs) and direct farmer and \nopportunity costs, to fully capture the costs of interventions.  Often it will be \nnecessary to use estimations, proxies and information from prior analyses to \nprepare estimates of financial and economic benefits.  \n\t\nAHCI related appraisals are challenging and the results are \napproximations (unless using experimental or quasi-experimental methods), \neven when essential for programme and project preparation. Such results will \nbe context specific, probably inaccurate on the benefits side and somewhat \ntrue only under stated assumptions. These assumptions need to be strong \nand rather inflexible. But even when there is an RCT involved, the results are \nlikely to be region and training specific. This complicates things when striving \nfor a template-like approach. See Box 6.7 for further considerations when \nconducting EFAs with AHCI projects.\nADDITIONAL USEFUL EFA MODELLING REMARKS\nThe WOP scenario and its challenges \nThe challenge with the WOP scenario is that analysts often do not create it at all or \nwhen they do, set up unrealistic WOPs (showing negative returns) that compound \nbenefits due to the mathematical construction of the incremental scenario (WP-WOP). \nIf WOP = -200 and WP = 100, the result of 100-(-200) = 300 is an incremental gain, \nhence an incremental benefit. The illogic of such a setup is clear. If an analyst cannot \nestablish a WOP scenario due to lack of data, it is advisable to appraise only the WP \nscenario and treat it as an incremental scenario to avoid this problem.\nFinancial versus economic prices \nFinancial prices of inputs and outputs come from the meeting of supply and demand \nin any given market. They normally include various taxes (including trade taxes), \nsubsidies, market power and other distortions and are used in the financial part of  \nthe analysis (financial cash flows). The economic prices of inputs and outputs, in turn, \nshould exclude all taxes, subsidies, market power and other distortions and should \nconstitute so called “shadow prices”. It is possible to calculate these through CFs  \nthat adjust financial prices to economic ones by excluding market distortions in \nfinancial prices. It is important not to mix financial and economic prices nor combine \nthem in one flow of cash or resources. Special diligence is advised.\nGreenhouse gases and other quantified environmental effects \nWhenever possible the economic part of the analysis should include a valuation  \nof environmental impacts. If the volume of carbon emissions is known, it should  \nbe priced using proper shadow pricing and included in the resource flows of the \neconomic part of the EFA.\nBOX 6.7 \nSOURCE: \nAuthors’ \nown \nelaboration.\n136   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nCost effectiveness analysis\nAnother option to assess AHCI benefits is cost effectiveness analysis (CEA). \nThis can be used instead of a standard EFA (or CBA) if quantifying benefits is \nimpossible. However, these methods should apply to all the project’s \ncomponents, not only the AHCI part of estimations.\n \t\nThis method analyses investment possibilities after setting the \nproject's goals (e.g. competency scores, accreditation standards, learning \ncosts, standardized test scores.) It is used when benefits from expenditure \nare hard to measure but the costs are obvious. It helps to choose the least \nexpensive option among a group of alternatives that produce the same result \n(a set of predetermined objectives). For AHCI cost effectiveness it can assess \nthe mode of dissemination and location after the project's goal, such as \nlearning outcomes, to determine the best investment alternative (e.g. digital \nclassrooms or farmer field schools.). It is a less data demanding technique \nand indicates the least costly way to achieve an objective within a specified \nlevel of costs. \n\t\nThe process entails first listing and quantifying the costs of the \ndifferent options in monetary terms before contrasting them with those \nincurred in the base scenario or with threshold costs. The results are then \ncompared to determine the least expensive intervention after total costs are \ndiscounted at year 1. In other words, valuation by cost effectiveness compares, \non a present worth basis, all alternatives that can achieve the same benefit \n(Gittinger, 1985) and selects the least costly.\n\t\nBoth CEA and CBA can be used on the same project and are compatible. \nAfter a CBA has determined a particular public investment is warranted, CEA \nlooks at project design possibilities to deliver anticipated outcomes at the \nlowest cost. However, any cost savings through CEA from selection of an \nefficient option can be used as benefits while conducting the CBA. \nExample of cost effectiveness analysis\nA programme manager plans to introduce new training in ag-tech for  \n25 young agripreneurs, approved by the Skills Council with a budget of  \nUSD 1000 per trainee. The manager has two options for conducting the \ntraining: (a) computer-based training followed by a three-day practical \nworkshop; and (b) an intensive, two-week workshop followed by two on-site \ntraining sessions. Table 6.1 presents all the costs associated with each type \nof training. A graduate who scores 80 percent on the evaluation meets the \nstandards set by the Skills Council.\n   137\nAPPRAISING AGRICUL\nTURE HUMAN CAPITAL INVESTMENTS \n\n\nTable 6.1\t\n \nComparative costs for two distinct approaches to training\nTotal cost of conducting the training\nComputer-based training \nand three-day workshop\nIntensive two-week \nworkshop and two on-site \ntraining sessions\nCost of training\nUSD 12 025\nUSD 20 000\nCost of follow up support\nUSD 8000\nUSD   2000\nTotal cost of transfer of learning\nUSD 20 025\nUSD 22 000\nTrainees\n25\n25\nCost per trainee\nUSD 801\nUSD 880\nTrainees who meet the Skills Council standards\n15\n22\nCost per trainee who meets the performance standard\nUSD 1335\nUSD 1000\nSOURCE: \nAuthors’ \nown \nelaboration. \n \nIn spite of post-training support, only 15 graduates of the computer-based \ntraining met the required standard, whereas 22 graduates of the intensive \ntraining did so. A simple cost analysis shows the computer-based training \nfollowed by a three-day practical workshop is the more efficient method \nregarding total costs as well as the cost per training programme. But after \ntaking account of the training programme objectives, the cost per \nsuccessfully trained and accredited graduate of the computer-based training \nis USD 1335 versus USD 1000 for the intensive training. \n\t\nThe key to this result is collecting cost data on all the activities in the \ntraining and measuring effectiveness in terms of accredited candidates. \nMeasuring success simply by the number of trainees means the lower cost \nper trainee may displace competence as the basis for selecting a training \noption.\n138   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n©Pexels/sippakorn-yamkasikorn\n©Pexels/Thor Garlan\n\n\n\n\nModule 7 \nKey messages and \nrecommendations on \ninvesting in AHCI\nThis toolkit and the other studies in this AHCI series provide a rich base for key \nmessages on improving the quality and impact of AHCI. We present seven key \nmessages from the global synthesis report as recommendations. Box 7.1 \ndetails areas for further evidence building as new projects or programmes \ncome on stream. \n   141\n\n\nPartnership and \ncollaboration are \ncrucial for \ngreater impact\nProvide \nincentives for \nlearning\nThe delivery \nmethod matters\nUnderstand \nimpacts  \nof investing  \nin farmers\nInvest more  \nin agriculture \nhuman capital \nEnsure no one  \nis left behind\nPartnering \ncan \nensure \nholistic \nintegration, \nprovide \nincentives \n \nfor \nlearners, \nhelp \nsustain \nefforts \nthrough \nmultiple \nfunding \nchannels, \nand \nhelp \nto \nscale \nup. \nPolicies \n \ncan \nmake \nagriculture \nhuman \ncapital \ninvestment \nmore \nconducive, \nthus \ncollaboration \nis \nneeded \nto \nensure \nthe \nright \npolicy \nenvironment.\nMotivation \nand \nincentives \nare \nkey \n \nto \neffective \nparticipation \n \nin \nagriculture \nhuman \ncapital \ndevelopment \nprogrammes. \nAppropriate \ndelivery \nmethods \nneed \nto \nconsider \nthe \naudience \nand \nadapt \n \nto \ntheir \nneeds. \nSkills \n \nmust \nbe \nreinforced. \nDigital \napproaches \nare \ngood, \nbut \nmust \nbe \napproached \nwith \ncare. \nMore \nresearch \nis \nneeded \non \nagriculture \nhuman \ncapital \ndevelopment, \n \nand \nevaluations \nshould \n \ngo \nbeyond \neconomic \nmeasures \nand \ninclude \nsocial, \nhuman \nand \nenvironmental \nimpacts.\nDue \nto \ndisruptors \nand \nopportunities, \nthe \ntime \n \nto \ninvest \nin \nagriculture \nhuman \ncapital \ninvestment, \ncompared \nto \nother \nsectors \n \nin \nagriculture \nis \nripe \nand \nneeds \ngreater \ninvestment.\nProgramme \ndesign \n \nshould \nunderstand \ncultural, \nsocietal, \n \nand \neconomic \nlimitations \nto \nparticipation \nby \nmarginalised \ngroups. \nYouth \nshould \nbe \ntargeted \nat \nan \nearly \nage.\n1\n4\n2\n5\n3\n6\nFigure \n7.1\nKey \nrecommendations \nfor \ninvesting \nin \nfarmers \n \nSOURCE: \nDavis \net \nal. \n2021. \nInvesting \nin \nFarmers: \nAgriculture \nHuman \nCapital \nInvestment \nStrategies. \nRome, \nFAO \nand \nIFPRI. \nhttps://doi.org/10.4060/cb7134en\n142   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n1\n2\nPromote agriculture human capital and invest more in it.  \nThis may seem obvious coming from this toolkit, but it is important to \nadvocate for including human capital in programme and project designs \nbecause we have seen that these activities may be hidden or not explicitly \nincluded when in fact AHCI can be the key to their success. We have seen this \nmay refer to an entire programme/project, sub-components or just key \nactivities within an initiative but it is important to advocate for using the \nelements from this toolkit to design the intervention.  It is also important to \nidentify the benefits and costs of the intervention, within the scope of larger \ninitiatives.  Use the evidence of the impacts to justify the intervention (see \nModule 4). \nCritical point. Agriculture human capital investment leads to outcomes and \nimpacts in the medium and long term and has many positive societal \nspillovers, such as increased citizen participation, empowerment and rural \nincomes, literacy improvements, food security and better health. While the \neffects of human capital investments may be difficult to measure with return \nframeworks that are hard to predict, it is critical to invest in such capital \nbecause the results are long-term and wide-reaching. Unlike other types of \ncapital, it is not easy to erode or destroy human capital. This is particularly \nrelevant today with frequent human displacement and population movements \nas human capital is both personal and portable. It is thus important to \nincorporate AHCI in most types of agriculture and rural development \ninvestment projects (e.g. value chains, market access and climate mitigation \nand adaptation).\nPartnership and collaboration are essential. \nThe complex, holistic nature of AHCI programmes means partnerships and \nmulti-stakeholder platforms are necessary to advance human capital \ninitiatives. They are essential to public and private partnerships with rural \nentrepreneurs (like community workers in India), value chain actors and \nproducer groups (IFAD, 2022b. Include explicit linkages and  key performance \nindicators (numerical evidence of progress towards the desired result \nalongside more direct farm productivity/resilience actions. \nCritical point. Partnering can ensure holistic integration, provide incentives \nfor learners, help sustain efforts through multiple funding channels and \nscaling up. Collaborative policies can make AHCI more conducive because of \nthe numbers of actors potentially involved, each of whom can contribute \ntechnical and financial resources. Digital service providers, producer \norganizations and private sector players each have their own assets and \napproaches that can help to make a programme stronger and richer. However, \nto achieve sustainable partnership beyond the programme, it is important to \nreflect on the motivations and incentives for each member, considering the \nvalue propositions of the extension/human capital development (IFAD, 2016).\n   143\nKEY MESSAGES AND RECOMMENDATIONS ON INVESTING IN AHCI\n\n\nDelivery methods matter.   \nAppropriate human capital development methods need to be client driven \nand adapt to the needs of the clientele.  Each method also has an enabling \nenvironment, policies, operational considerations, costs, benefits, inclusion, \nand sustainability considerations. Module 4 contains 16 potential methods \nand tools with their advantages, range of costs, target audiences, and the \ntoolkit provides a rich set of background resources to draw from, including \nconcrete cases. Different methods are often complementary and reinforcing, \nas when using digital media such as videos and radio with farmer field schools \nor other face-to-face extension approaches.  \nCritical point. Implementation (especially as initiatives are scaled up) should \nnot be static but adapted to the needs of participants. It helps to standardise \nthe core principles but adapt the methodology, much like the farmer field \nschool approach. A customised approach may be more difficult and costly, \nbut it is important to facilitate human capital development according to the \nclientele. Minimally, programmes need to develop adequate stakeholder \nengagement and feedback from beneficiaries and adapt accordingly. Several \ncases from the global synthesis mentioned the importance of practical \nlearning. Experiential learning and alternating from theory to practice and \nrelating experience back to theory can help to reinforce learned skills, as can  \nthe power of social interactions and a community of practice. Initiatives from \nKenya, Rwanda, and Peru used group approaches and/or community leaders \nto reinforce learning objectives. The use of digital tools to deliver agriculture \nhuman capital development should be thoughtfully explored. Digital techno-\nlogies bring many benefits, such as the ability to reach wider audiences at \nlower costs (Sylvester et al., 2021). They also have caveats: many people do \nnot have access to or cannot afford digital tools. However, the COVID-19 crisis \nhas induced digital innovation. It will be beneficial for the building blocks \n(policies, legislation, public/private incentives, infrastructure, training prog-\nrammes and others) and access to digital technologies for future human \ncapital investment. \nLeave no one behind. \nThe case studies and other evidence in this toolkit showed AHCI that \nsuccessfully targeted groups of farmers whose inclusion in development \nprojects or programmes is not always a given and these are key to \nstrengthening AHC. While selecting a typically marginalised target group is \none thing, designing and implementing a model of human capital \ndevelopment that actually facilitates these groups’ inclusion is another. \nCulturally relevant training/educational methods should be used. FAO and \nthe African Union Commission offer sound guidance on how to involve \nmembers of marginalized groups, such as youth and women, in the design, \nimplementation and evaluation of programmes (FAO and AUC, 2022).\n3\n4\n144   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nCritical point. When investing in or designing an AHCI model, it is crucial to \nfirst understand the cultural, societal, and economic limits to the participation \nof youth, Indigenous Peoples, remote, poor, or female producers. The \nmethods, timing and location of the interventions can limit participation. \nUnderstanding how to develop skills and also build confidence among \nlearners is a key feature of a model targeting farmers with unrecognised \npotential. Other limitations may be logistical or financial – a model that \nsucceeds in overcoming all these limitations will be truly inclusive. Human \ncapital development is a long-term investment and this is one reason it is \nvaluable to invest in young people, offering them learning opportunities to \nacquire hands-on experience they otherwise may lack. Integrating vocational \ntraining, apprenticeships or work-study mixed training in an AHCI model may \nbe valuable. A variety of entry points and approaches may be necessary to \nreach all the intended participants.  This implies using multiple methods and \napproaches.\nProvide incentives for learning.   \nFor AHCI to be successful in building farmers’ capital as well as sustaining its \nimpact, motivating learners and incentives for participation in learning is key. \nThis can be seen in the AHCI series case study on Chile with access to stable \nmarkets and specialised technical support and India’s market access and \ninsurance services.\nCritical point. One way to ensure motivation is to promote ownership of \nlearning by incorporating participation and decision-making into the model. \nA key lesson from the AHCI series is the need for farmers to design their own \ndevelopment plans or choose the crops they want to produce, thereafter \nproviding the tools and skills for this. . Feedback is another important aspect \nof learner participation. It is essential this type of participatory approach \nremains relevant to be able to empower local communities and adapt to \ndisruptive changes. Actions must be based on a vision and values shared by \nall the actors. Ensuring participation while communicating incentives for \nlearning is also fundamental to motivation. As we learned from the ACHI \nseries case studies, farmers who clearly understood the opportunities their \nnew skills can offer enjoyed high levels of self-determination and endurance \nwhen taking on the challenges of learning something new or a change of \nmindset. \n\t\nWhen implementing human capital development models, make sure \nthat: a) there is an incentive for learning rooted in the needs and aspirations \nof farmers; b) incentives are clearly communicated and explored with farmers; \nand c) such incentives are attainable. If they remain out of reach despite \nbuilding human capital, chances are farmers will see no reason to learn the \nnew practices. Many models integrate market access as a successful learning \nincentive. But while economic incentives (increased sales, yields, or incomes) \nare crucial, especially for poor households, there are many other valid \nreasons for learning. Greater self-confidence, recognition in the community, \na better division of labour within families, or the preservation of cultural \ntraditions are all incentives that relate broadly to well-being, identities, and \nlivelihoods, all of which can be realised when developing human capital (Friis-\nHansen and Duveskog, 2012).\n5\n   145\nKEY MESSAGES AND RECOMMENDATIONS ON INVESTING IN AHCI\n\n\nUse the evidence on AHCI in programme and project design  \nAs noted in the EFA section, government officials, international financial \ninstitutions and others seek evidence of programme and project worthiness \nbefore investing in them.  This is more so the case with AHC.  This means \nusing existing and new evidence on the variety of AHC investment options.  \nFurther, it means answering new questions on potential programmes and \nproject interventions.  \n\t\nQuality ME and continuous feedback allow for improvement and \nupdating to optimise the implementation mechanism. One example from the \nglobal AHCI synthesis, used an app-based monitoring system.  Local \nimplementers or trainers can also provide important feedback on how the \ntraining is received and what else may be needed. International knowledge \nexchange allows the most relevant and current knowledge to inform \nexperiences in the field.\nCritical point. Impact evaluations can be costly especially if using RCTs. They \nimply the availability of robust baseline information with or without project \ninformation. This may not be realistic in all cases.  Decision-makers may rely \non existing studies or earlier project designs to make their case. The EFA \nsection provides a good range of existing materials and examines the use of \nRCTs. \n\t\nThere are a number of areas which need more information regarding \nAHCI (Box 12). While this is not the task of the project or programme designer \nit is useful to know some of the research gaps where such information is \nneeded. It is important to encourage the use of ME tools to at least record \nfarmers’ participation, learning and key results (knowledge, attitudes and \npractice indicators) as part of a logical framework. This can be done more \neasily thanks to ICT simple data collection tools used by community workers \nand group leaders.\n6\n146   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nTHE NEED FOR MORE AGRICULTURE HUMAN CAPITAL RESEARCH \nNew project designs are an excellent opportunity to seek answers to questions  \nand provide further evidence on outcomes from human capital investment. We \ninclude here a number of areas where further evidence would be very useful in AHCI. \n•\t What is the interaction between different types of human capital generated?  \n\t Is there an ideal mix between human and social capital?\n•\t What are the economic trade-offs to consider when designing human capital \t\n\t\n\t investment projects? \n•\t Which investment options are high impact? \n•\t What is the best way to capture AHCI costs and benefits when actions are subsumed \t\n\t into other larger project components?\n•\t What are the long-term impacts of investing in farmers, for individuals but also \t\n\t\n\t society, some 10–20 years after the investment? \n•\t Are there particular human capital investment needs to support climate  \n\t smart agriculture?\n•\t Which sectors are investing in AHCI? \n•\t How much do national and subnational governments finance agricultural human \t\n\t\ncapital investment and how do those amounts compare to donor financing? \n•\t Does donor funding for agriculture human capital development mobilise country \t\n\t\nfunding or crowd it out? \n•\t What are the private sector and civil society (e.g. farmers’ organizations)  \n\t\ncontributing to AHCI? \n•\t With regards to younger people, do agricultural human capital programmes lead  \n\t to \tmore of them staying in rural or peri-urban regions instead of migrating to urban \t\n\t areas? \n•\t Does agriculture human capital invested in women lead to enhanced outcomes  \n\t and impacts? \n•\t What are the best ways to build human capital in fragile or marginalised contexts \t \t\n\t such as Indigenous Peoples, pastoralist or nomadic husbandry groups, \t\n\t\n\t\n\t displaced people and in post crisis situations? \n•\t Is there a role or interrelation between human capital and conflict mitigation or \t\n\t\n\t peacebuilding? \n•\t Which unique skills and attributes are needed among human capital development \t \t\n\t actors to accelerate success? \nBOX 7.1 \nSOURCE: \nAuthors’ \nown \nelaboration.\n   147\nKEY MESSAGES AND RECOMMENDATIONS ON INVESTING IN AHCI\n\n\n\n\n©Pexels/Ishay Botbol\n©CIFOR/Axel Fassio\n\n\n\n\nReferences \nAlemayehu, N. 2013. 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Western Kentucky University. \nBowling Green, KY. https://digitalcommons.wku.edu/theses/1117/\nJICA (Japan International Cooperation Agency). 2008. Agricultural extension \nmethodology: A reference manual. Agricultural Support Assist Project. \nTokyo, JICA. https://ershad.moa.pna.ps/downloads/reports/2013 \n0728122608.pdf\nJones, K. 2013. The role of agricultural technical and vocational education \nand training in developing countries: A review of literature, issues and \nrecommendations for action. USAID InnovATE Project. USAID, \nWashington, DC. https://innovate.cired.vt.edu/wp-content/\nuploads/2015/08/ATVET-CCS-Kristal-Jones-11-12-2014.pdf \nKhisa, G. 2003. Self-financing farmer field schools. In: Farmer field schools: \nThe Kenyan experience. Report of the farmer field schools \nstakeholders’ forum, 27 March 2003, Nairobi, Kenya.\nKiptot, E., Franzel, S., Nora, C. & Steyn, A. 2019. Edutainment television for \ndisseminating information about agricultural technology. In: Davis, K., \nBohn, A., Franzel, S., Blum, M., Rieckmann, U., Raj, S., Hussein, K. & \nErnst, N. (eds) What works in rural advisory services? Global Good \nPractice Notes. Lausanne, Switzerland: GFRAS. www.g-fras.org/en/\ngfras/1040-what-works-in-rural-advisory-services.html\nKiptot, E., Franzel, S., Nzigamasabo, P.B. & Ruganirwa, C. 2016. Farmer-to-\nfarmer extension of livestock feed technologies in Rwanda: A survey of \nvolunteer farmer trainers and organizations. ICRAF Working Paper No. \n221. Nairobi, World Agroforestry Centre. DOI: http://dx.doi.org/10.5716/\nWP16005.pdf\n   155\nANNEX\n\n\nKirui, J., Franzel, S., Kiptot, E., Kugonza, J., Ongadi, P.M., Wambire, R., \nNanjekho, S.W., Karanja, E., Nzigamasabo, P.B. & Ruganirwa, C. 2016. \nThe Volunteer Farmer-Trainer Extension Approach: A User Guide. \nTechnical Manual. World Agroforestry Centre, Nairobi. http://dx.doi.\norg/10.5716/TM16068.pdf   \nKumar, A., Kumar, A. & Kumar, M. 2021. Investing in women livestock \nadvisers and farmers – Jharkhand Opportunities for Harnessing Rural \nGrowth Programme in India. Rome, FAO and IFPRI. https://doi.\norg/10.4060/cb7116en\nMaguire, E., Bell, M. & Crump, A. 2015. Agricultural call centers: An \ninfrastructure and demand audit. Champagne-Urbana, IL, USAID.\n\t\nhttps://meas.illinois.edu/wp-content/uploads/2015/04/MEAS-EVAL-\nEsoko-Call-Center-Aug-2015.pdf\nMatras, F., Sidi, F. & Treinen, S. 2013. Exchange visits: Advice for improving \nthe impact. Knowledge management and gender. Good Practice fact \nsheet. Rome, FAO. www.fao.org/docrep/019/aq213e/aq213e.pdf\nMcNamara, P. 2020. Economic evaluation of agricultural human capital \ninvestments: Challenges and approaches. FAO [unpublished].\nMEF (Ministry of Economy and Finance, Government of Peru). 2019. Anexo \n11. Parámetros de evaluación social. www.mef.gob.pe/contenidos/inv_\npublica/anexos/anexo11_directiva001_2019EF6301.pdf \nMondelêz International. 2017. Exploring a new model of farmer engagement: \nFrom training to coaching. Chicago, Mondelez International. www.\nidhsustainabletrade.com/uploaded/2017/04/From-training-to-\ncoaching_Mondelez-Ecom.pdf\nMyers, B. & Jones, L. 2004. Effective use of field trips in educational \nprogramming: A three stage approach. Institute of Food and \nAgricultural Sciences. Gainesville, University of Florida. http://edis.ifas.\nufl.edu/wc054\nNaruka, P.S., Shilpi, V., Sarangdevot, S.S., Pachauri, C.P., Shilpi, K. & Singh, \nJ.P. 2017. A study on role of WhatsApp in agriculture value chains. Asian \nJournal of Agricultural Extension, Economics and Sociology, 20(1): 1-11 \nhttps://journalajaees.com/index.php/AJAEES/article/view/27473 \nNEPAD (New Partnership for Africa’s Development). 2013. Review of \nagricultural technical and vocational education and training in Africa: \nBest practices from Benin, Ethiopia, Namibia and Sierra Leone. \nPlanning and Coordinating Agency, Midrand, South Africa, NEPAD. \nwww.nepad.org/publication/review-of-agricultural-technical-\nvocational-education-and-training-atvet-best\n156   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nNeza, B.N., Higiro, J., Mwangi, L.W. & Ochatum, N. 2021. Institutionalizing \nfarmer field schools – Twigire Muhinzi national extension system in \nRwanda. Rome, FAO and IFPRI. https://doi.org/10.4060/cb7131en\nNkonu, M. 2014. Guidelines for agricultural call centers. London, Global \nSystem for Mobile Communications. www.gsma.com/\nmobilefordevelopment/wp-content/uploads/2014/08/Guidelines-for-\nAgri-Call-Centres.pdf \nOdubote, K., Mulila-Mitti, J., Ajayi, O. & Kadzamira, M. 2019. Seed fairs: an \ninnovative climate-smart practice to obtain stress-tolerant seeds.  \nWageningen, Netherlands, CTA. www.cta.int/en/blog/all/article/\nseed-fairs-an-innovative-climate-smart-practice-to-obtain-stress-\ntolerant-seeds-sid0a92f1424-a108-40de-b61d-4db397fe8544\nOlorunfemi, O.D. & Oladele, O.J. 2018. Knowledge of extension agents \nregarding professionalization of extension services: Evidence from \nSouth West Nigeria. Journal of International Agricultural and Extension \nEducation. 25:3:33-49.\nOMB (Office of Management and Budget, Government of the United States \nof America). 1992. Circular A-94 Guidelines and Discount Rates for \nBenefit-Cost Analysis Of Federal Programs. www.wbdg.org/FFC/FED/\nOMB/OMB-Circular-A94.pdf \nRao, S. 2019. Using radio in agricultural extension. In: Davis, K., Bohn, A., \nFranzel, S., Blum, M., Rieckmann, U., Raj, S., Hussein, K. & Ernst, N. eds. \nWhat works in rural advisory services? Global Good Practice Notes. \nLausanne, Switzerland: GFRAS. www.g-fras.org/en/gfras/1040-what-\nworks-in-rural-advisory-services.html\nReddy, M.N. & Swanson, B.E. 2006. Strategy for up-scaling the “ATMA” \nmodel in India. Paper presented at the 22nd Annual Conference \nProceedings of the Association for International Agricultural and \nExtension Education, Clearwater Beach, Florida, USA.\nSalcedo Du Bois, R. & Arca Zimmermann, A. 2021. Investing in rural \nhouseholds through community promoters: The Haku Wiñay/Noa \nJayatai Programme in Peru. Country Investment Highlights No. 3. \nRome, FAO and IFPRI. https://doi.org/10.4060/cb5744en\nScheer, J. & Ariko, J. 2019. Village agent model study: Likely effect on the \nUgandan agricultural sector. Developing Local Extension Capacity \nProject. Washington DC, USAID. www.agrilinks.org/sites/default/files/\nresources/dlec_village_agent_model_study.pdf \nSen, A. 1992. Inequality reexamined. New York, Russell Sage Foundation. \n   157\nREFERENCES\n\n\nSylvester, G., Davis, K., Gammelgaard, J. & Preissing, J. 2021. Smart farmers \n– Learning with digital technologies. Investment brief. Rome, FAO and \nIFPRI. https://doi.org/10.4060/cb7947en\nTakamgang, M. F. & Lhoste, F. 2021. Investing in youth vocational training \nprofessional training programme in the agropastoral and fisheries \nsectors in Cameroon. FAO Investment Centre. Country Investment \nHighlights No. 11. FAO, Rome. https://doi.org/10.4060/cb7819en\nTechnoserve. 2012. The coffee initiative: Lessons learned. Washington DC, \nTechnoserve. www.technoserve.org/resources/lessons-learned-the-\ncoffee-initiative-2008-to-2011\nUnited Nations. 2021. Secretary-General’s Chair Summary and Statement of \nAction on the UN Food Systems Summit. www.un.org/en/food-\nsystems-summit/news/making-food-systems-work-people-planet-\nand-prosperity\nUnited Nations Development Group. 2021. Results-based management \nhandbook. Harmonizing RBM concepts and approaches for improved \ndevelopment results at country level. \nUNCDF (United Nations Capital Development Fund). 2020. Digital extension \nservices improve farm productivity. New York, United Nations Capital \nDevelopment Fund. www.uncdf.org/article/6617/farmer-call-centre-\nand-digital-extension-agents-delivering-extension-and-agronomic-\nservices-in-uganda\nvan Coller-Peter, S. & Cronje, J.P. 2020. The contribution of coaching and \nmentoring to the development of participants in entrepreneurial \ndevelopment programmes, International Journal of Evidence-based \nCoaching and Mentoring 18 (2) 51-67 DOI: 10.24384/bg74-fc70\nVan Mele, P., Okry, F., Wanvoeke, J., Barres, N.F., Malone, P., Rodgers, J., \nRahman, E., Salahuddin, A. 2018. Quality farmer training videos to \nsupport South–South learning. Barres3 CSIT 6(3–4):245–255. https://\ndoi.org/10.1007/s40012-018-0206-z\nWaddington, H. & White H. 2014. Farmer field schools: From agricultural \nextension to agricultural education. Systematic Review. London, \nInternational Initiative for Impact Evaluation. \nWambugu, C., Franzel, S., Tuwei, P. & Karanja, G. 2001. Scaling up the use of \nfodder shrubs in central Kenya. Development in Practice 11:4. \nWellard, K., Rafanomezana, J., Nyirenda, M. 2013. A review of community \nextension approaches to innovation for improved livelihoods in Ghana, \nUganda and Malawi. J. Agric. Educ. Ext. 19(1):21–35. \n158   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nWordofa, M. G, & Sassi, M. 2018. Impact of farmers’ training centres on \nhousehold income: Evidence from propensity score matching in \nEastern Ethiopia. Social Sciences 7, no. 1: 4. https://doi.org/10.3390/\nsocsci7010004 \nWorld Bank. 2019. The changing nature of work. World Development Report \n2019. Washington, DC. The World Bank.\nWorld Bank. 2020. Nutrition smart agriculture: When Good Nutrition is Good \nBusiness. [online]. www.worldbank.org/en/topic/agriculture/\npublication/nutrition-smart-agriculture-when-good-nutrition-is-good-\nbusiness \nWorld Bank. 2021. Fuelling an engine of sustainable growth: agricultural \ninnovation in Peru. Results Briefs. www.worldbank.org/en/\nresults/2021/11/04/fueling-an-engine-of-sustainable-growth-\nagricultural-innovation-in-peru   \n   159\nREFERENCES\n\n\nGlossary \nConcept/Term\nDefinition\nReference\nAgriculture human \ncapital\nThe skills and capabilities of small-scale agricultural producers to \nsuccessfully manage agricultural enterprises.\nDavis et al., 2021\nAgriculture human \ncapital development \nmethod\nA systematically applied technique to provide information, knowledge, \nadvice, skills, training, education and other services to producers and  \nto facilitate problem-solving and learning.\nDavid and Cofini, 2017\nAgriculture human \ncapital investment\nPolicies and investment actions which focus on improving skills, \ncapacities, and capabilities of agricultural producers with the idea that \nthis will provide increased income, productivity, access to markets,  \nsocial capital, and economic, environmental, and social returns to \nindividuals and society.\nBusiness skills\nExpertise and abilities relating to farming as a business including \nplanning, recordkeeping, marketing, finance and budgeting.\nDavis et al., 2021\nCapability\nThe ability to perform certain basic functions in life.\nSen, 1992\nCapacity\nThe ability of people, organizations and society as a whole to manage \ntheir affairs successfully.\nOrganization for \nEconomic Cooperation \nand Development/\nDevelopment Assistance \nCommittee (OECD/DAC) \nas cited in FAO Corporate \nDevelopment Strategy\nEducation\nExpertise in a discipline by undergoing systematic instruction and \nlearning, especially at a school or university.\nDavis et al., 2021\nEmpowerment\nA process that increases the capacity of people to make choices and \ninfluence collective decisions towards desired actions.\nDanida, 2004\nFunctional skills\nSocial capabilities relating to communication, leadership, public speaking, \nconflict resolution and empowerment.\nDavis et al., 2021\nHuman capital\nThe skills, knowledge, ability to work and enjoy good health that together \nenable people to pursue different livelihood strategies and achieve their \nlivelihood objectives; from an economic perspective, this refers to assets \nthat improve individual productivity and produce economic value.\nDFID, 1999; Goldin, 2014\nImpact\nWider socioeconomic effects resulting from the change in behaviour, \nwhich may entail changes in productivity and incomes, but also more \nintangible impacts such as changes in health and well-being.\nDavis et al., 2021\nInput\nActivities associated with implementing a given AHCI model such as \ntraining or workshops, based on project design strategies\nDavis et al., 2021\nInternal rate of return \n(IRR)\nThe rate of return on an investment adjusted to the times that receipts \nand expenditure occur, the discount rate makes the net present value of \nan investment equal to zero.\nFAO, 2022b\nInvestment\nAccumulating assets that generate increased income or other benefits in \nthe future.\nFAO, 2012\n160   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n \nConcept/Term\nDefinition\nReference\nKey performance \nindicators\nA performance indicator specifies what is to be measured along a scale or \ndimension but does not indicate the direction or change.  It is a qualitative \nor quantitative means of measuring an output or outcome, to gauge the \nperformance of a programme or investment.\nUnited Nations \nDevelopment Group, \n2021\nKnowledge\nTheoretical or practical understanding of a subject through an active \nlearning process.\nModel of AHCI\nOverlapping components (target group, skills providers, agriculture \nhuman capital development method, type of human capital, implement-\ners, funders) that make up an agriculture human capital development \nproject or programme.\nDavis et al., 2021\nNet present value (NPV)\nDerived by discounting the net benefit stream by a factor equal to the esti-\nmated opportunity cost of capital.\nFinancial and economic \nanalysis,  FAO Investment \nLearning Platform \nNetworking\nAbility to link with people or entities that affect their well-being such as \ninput suppliers, off-takers, government agencies, and financial services.\nOutcome\nActions and behaviours adopted by the target group from new or \ndeveloped human capital.\nDavis et al., 2021\nOutput\nChanges in the stock of agriculture human capital among the target \ngroup.\nDavis et al., 2021\nSkills\nExpertise often occupation-based and focused on competencies for \neconomic value, may be technical, functional or business-related.\nDavis et al., 2021\nSocial capital\nAbility to strengthen trust and cohesion with others through groups, \nnetworks and associations to achieve social and development outcomes.\nDFID, 1999\nTechnical agricultural \nskills\nExpertise and abilities relating to practices that improve incomes and \nlivelihoods while protecting and minimizing harm to the environment.\nDavis et al., 2021\nTraining\nTraining imparts a special skill, often at occupational level.\nDavis et al., 2021\n   161\nGLOSSARY\n\n\n\n\nAnnex\nEconomic and financial analysis:  National Agricultural Innovation System \nSupport Project (Peru, USD 174.04 million; World Bank: USD 40 million;  \nInter-American Development Bank (IDB): USD 40 million; other funders:  \nUSD 94.04 million). \nAnalytical approach  \nThe cost-benefit study included both financial analysis using actual market \nprices inclusive of taxes, subsidies, and other distortions, as well as economic \nanalysis using economic prices adjusted in some instances to correct for \ntaxes, subsidies, and other distortions in the Peruvian economy. This analysis \nwas designed to estimate standard measures of project worth including net \npresent value (NPV), financial and economic internal rates of returns, benefit/\ncost ratio, payback period, and incremental benefits per beneficiary in terms \nof present value. These indicators were estimated: (i) for the overall project; \n(ii) by project components; (iii) by subproject type; (iv) by commodity \ngrouping/value chain; and (v) by type of training provided to extension and \nresearch agents. Sensitivity analysis explored the likely impacts of possible \nchanges in key variables such as benefits, costs, technology adoption rate, \ntraining days, success training rate, social discount rate, and evaluation \nperiod.\nA. IDENTIFICATION OF INCREMENTAL PROJECT COSTS AND BENEFITS\nThe ex post cost-benefit analysis considered incremental costs and benefits \nattributable to the project, identified based on activities taking place during \nit as well as developments expected to occur in future years, as reflected in \nthe theory of change. The main expected incremental costs and benefits for \neach type of subproject and activity, organized by the Project components, \nare summarized in Table A.1. \n   163\n\n\nTable A.1\t\n \nExpected incremental costs and benefits for each type of subproject and activity \nSubprojects/activities\nBenefits/costs \nComponent 1. Strengthening the capacity of INIA to lead the National System of Agriculture Innovation (SNIA)\nIncremental benefits were not identified for Component 1, since it is assumed activities implemented under this component aim to \ncreate the enabling institutional capacities and regulatory conditions whose direct and indirect benefits are reflected in those \ngenerated by activities financed under Components 2 and 3. Costs associated with implementing Component 1 were included in \nthe overall cost-benefit analysis as part of total project costs.\nComponent 2. Consolidating the market for innovation services\nAdaptive research subprojects\nBenefits: Increased revenues due to higher yields, increased production, improved quality, \nreduced losses, and/or increased prices\nCosts: Labour (60 percent of total cost), tradable goods and services used as production \ninputs (40% of total cost) \nLabour characterized as: (i) low skilled (extension subprojects); or (ii) semi-skilled \n(adaptative research subprojects, seed enterprise pilots)\nExtension subprojects\nSeed enterprise pilots\nComponent 3. Strategic capacities in the SNIA\nStrategic research subprojects\nBenefits: Increased revenues are projected for future innovation adopters, plus increased \nincomes of researchers directly involved in implementing strategic research subprojects. \nCosts: Increased labour and input costs are projected for future adopters of innovations.\nNote: It is assumed innovations developed by strategic research subprojects will be \nadapted and then disseminated using the same mechanisms found in adaptive research \nand extension subprojects. \nCapacity building subprojects \nBenefits: Increased income for extensionists after receiving training during the project \nthrough capacity-building subprojects\nCosts: The opportunity cost of training, calculated as income foregone during participation \nin capacity-building subprojects \nScholarships and internships \nBenefits: Increased income for agricultural professionals as a direct result of the training \nCosts: The opportunity cost of graduate study or internship, calculated as income foregone \nduring participation in a graduate programme or internship \nSOURCE: \nAuthors, \nbased \non \nWorld \nBank. \n2021. \nImplementation \nCompletion \nand \nResults \nReport \n(ICR). \n \nhttps://documents1.worldbank.org/curated/en/399891636578418140/pdf/Peru-National-Agricultural-Inno-\nvation-Project.pdf \n \nB. KEY ASSUMPTIONS AND PARAMETERS\nAll cash flows were estimated using nominal prices. The exchange rate for \nconverting soles to US dollars was determined considering the annual \naverage value prevailing during the project. For baseline scenarios, the cost \nof capital was set at 10.5 percent and the social discount rate at 8 percent, \nwith an evaluation period of 10 years. The factors used to convert market \nprices to social prices were those stipulated by the Peruvian public investment \nsystem: (i) currency: 1.08; (ii) tradable goods: 0.867; (iii) investment: 0.83; (iv) \noperating costs: 0.8475; (v) skilled labour: 0.81; (vi) semi-skilled labour: 0.665; \nand (vii) unskilled labour: 0.5. Positive externalities generated by the project, \nsuch as technology spillovers and environmental and social benefits, were \nnot included in the analysis due to the complexity quantifying them and \nlimited information. \n164   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\nC. DATA SOURCES, SAMPLING STRATEGY, AND DATA ANALYSIS\nThe ex post cost-benefit analysis relied on information from three sources: (i) \na survey of 70 collaborative subprojects randomly selected from among the \n541 subprojects financed using the competitive grants mechanism; (ii) a \nsurvey as part of the independently conducted final impact evaluation of 190 \nresearchers and extension agents who benefited from capacity strengthening \nfinanced by the project; and (iii) project records. The survey instruments \nincluded questions designed to allow comparison of “with project” and \n“without project” scenarios. For every subproject, data were collected on \nyields, production volume, and the value of sales, prices paid and received, \nproduction costs, and other variables. The data collected at subproject level \nwere supplemented with information taken from the project records to \naggregate subproject level results to the overall project level, including the \ntotal number of subprojects financed, direct and indirect investment costs, \nthe project implementation period, technology and adoption rates.\n\t\nThe streams of costs and benefits associated with collaborative \nsubprojects and strategic research subprojects, were adjusted to reflect \naverage implementation periods for each type of subproject, and the \nassociated technology adoption rates estimated by surveying participants. \nThe results are presented in Table A.2.\nTechnology adoption rates were estimated by subproject typologies as those \nfor practices and technologies are not exclusively for a crop (crop rotation/\nassociation). It means farmers adopt technologies for different activities: soil \npreparation, integrated pest management or post-harvest practices.  The ex \nante EFA analysis considered only some crops, the real demand was \ncompletely different.\n\t\nLikewise, cash flows associated with capacity-building subprojects \nand scholarships and internships were adjusted based on data collected \nthrough the survey of extensionists and researchers on the duration of \ntraining activities and the success rate. \nTable A.2\t\n \nTechnology adoption rates from the participants’ survey\nFunding cycle\nSubproject type\n2015 (year 1)  \n(n = 154)\n2016 (year 2)  \n(n = 156)\n2017 (year 3)  \n(n = 156)\nTotal\n (n = 466)\nAdaptative research (n = 100)\n37.5\n75.3\n59.3\n64.2\nExtension (n = 320)\n87.2\n77.6\n79.8\n79.9\nSeed enterprise pilots (n = 46)\n53.8\n95.1\n90.0\n86.2\nTotal (n = 466)\n77.1\n79.1\n73.9\n76.7\nSOURCE: \nAuthors, \nbased \non \nWorld \nBank. \n2021. \nImplementation \nCompletion \nand \nResults \nReport \n(ICR). \n \nhttps://documents1.worldbank.org/curated/en/399891636578418140/pdf/Peru-National-Agricultural- \nInnovation-Project.pdf; \nand \nWorld \nBank. \n2021. \nFueling \nan \nEngine \nof \nSustainable \nGrowth: \n \nAgricultural \nInnovation \nin \nPeru. \nResults \nbrief. \nwww.worldbank.org/en/results/2021/11/04/fueling- \nan-engine-of-sustainable-growth-agricultural-innovation-in-peru.\n   165\nANNEX\n\n\nRESULTS\nTable A.3\t\n \nEFA indicators: overall project  \nFinancial indicators\nFNPV (USD million)\nFIRR (percent)\nBenefit/cost ratio\nPayback period \n(years)\nIncremental NPV \nper beneficiary \n(USD)\n48.2\n24.6\n1.26\n7.3\n1121\nEconomic indicators \nENPV (USD million)\nEIRR (percent)\n \nBenefit/cost ratio\nPayback period \n(years)\nIncremental NPV \nper beneficiary \n(USD)\n86.2\n31.2\n1.48\n6.8\n2007\nSOURCE: \nAuthors, \nbased \non \nWorld \nBank. \n2021. \nImplementation \nCompletion \nand \nResults \nReport \n(ICR). \nhttps://documents1.worldbank.org/curated/en/399891636578418140/pdf/Peru-National-Agricultur-\nal-Innovation-Project.pdf; \nand \nWorld \nBank. \n2021. \nFueling \nan \nEngine \nof \nSustainable \nGrowth: \n \nAgricultural \nInnovation \nin \nPeru. \nResults \nbrief. \nwww.worldbank.org/en/results/2021/11/04/ \nfueling-an-engine-of-sustainable-growth-agricultural-innovation-in-peru.\nTable A.4 \nEFA indicators: capacity-building component  \nFinancial indicators\nFNPV (USD \nmillion)\nFIRR (percent)\nBenefit/cost \nratio\nPayback \nperiod (years)\nIncremental \nNPV per \nbeneficiary \n(USD)\nCapacity-building subprojects\n1 996 224\n22.0\n1.44\n6.5\n1639\nScholarships and internships\n1 661 439\n20.3\n1.33\n8.3\n4774\nEconomic indicators \nENPV (USD \nmillion)\nEIRR (percent)\n \nBenefit/cost \nratio\nPayback \nperiod (years)\nIncremental \nNPV per \nbeneficiary \n(USD)\nCapacity-building subprojects\n2 836 261\n23.9\n1.65\n6.5\n2329\nScholarships and internships\n2 496 187\n21.9\n1.51\n7.4\n7173\nSOURCE: \nAuthors, \nbased \non \nWorld \nBank. \n2021. \nImplementation \nCompletion \nand \nResults \nReport \n(ICR). \n \nhttps://documents1.worldbank.org/curated/en/399891636578418140/pdf/Peru-National-Agricultur \nal-Innovation-Project.pdf; \nand \nWorld \nBank. \n2021. \nFueling \nan \nEngine \nof \nSustainable \nGrowth: \n \nAgricultural \nInnovation \nin \nPeru. \nResults \nbrief. \nwww.worldbank.org/en/results/2021/11/04/ \nfueling-an-engine-of-sustainable-growth-agricultural-innovation-in-peru.\n166   \nHOW TO INVEST IN FARMERS? A GUIDE FOR AGRICUL\nTURE HUMAN CAPITAL INVESTMENT PROJECTS\n\n\n©Pexels/Thor Garlan\n©FAO/Ezequiel Becerra\n\n\nInvesting in farmers – or agriculture human capital – is crucial  \nto addressing challenges in our agrifood systems. A global study  \ncarried out by the FAO Investment Centre and the International  \nFood Policy Research Institute (IFPRI), with support from the CGIAR \nResearch Program on Policies, Institutions, and Markets (PIM)  \nand the FAO Research and Extension Unit, looks at agriculture  \nhuman capital investments, from recent trends to promising initiatives. \nThis toolkit aims to provide investors including policymakers,  \ngovernment officials, international and national development banks  \nand the private sector, with the evidence, analysis, guidance  \nand processes to make sounder investment decisions on projects, \nprogrammes and policies that strengthen farmers’ capacities.  \nThis publication is part of the Investment Toolkits series under the  \nFAO Investment Centre's Knowledge for Investment (K4I) programme.\nCC4381EN/1/03.23\nISBN 978-92-5-137662-1\n9\n7 8 9 2 5 1\n3 7 6 6 2 1","difficulty":"hard","domain":"Single-Document QA","length":"medium","question":"In analyzing the systemic implications of neglecting investments in agricultural human capital within a developing economy, which of the following scenarios best captures the intricate relationship between human capital, economic resilience, and social equity in the context of global market dynamics and internal socio-political structures?","sub_domain":"Financial"}

Source: https://huggingface.co/datasets/zai-org/LongBench-v2

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