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Innovations in financing mechanisms for demand-driven agricultural advisory services

Framework for analysis and synthesis of experiences











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    Book (stand-alone)
    Innovations in financing mechanisms for demand-driven agricultural advisory services
    The Chile case, 1978–2014
    2018
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    The Research and Extension Unit (AGDR) of FAO has commissioned a series of case studies on the reform of extension systems in the past decade and the shift towards innovative financing systems for extension. The studies have focused on the relations between the empowerment of farmers and their organizations, their new roles in the advisory systems and the innovative financial mechanisms in extension required to achieve effective pluralistic and demand-led extension and advisory systems, with quality services being relevant for male and female smallholder producers. Four case studies of different modalities of innovative financing mechanisms were undertaken: Danish Agricultural Advisory Services, evolution of the Danish model. The study describes the historic development of the Danish Agricultural Advisory Services (DAAS). This is the case of a national advisory system owned and managed by the farmer organizations and financed with public subsidies combined with farmer/user payments, gradually developed to full user payment. Agricultural Services and Producer Organizations Support programme (PSAOP) from Senegal is the case of reforms towards decentralized demand-led services with structures, procedures and finances for farmers’ demand, negotiation and contracting of advisory services. The farmer organizations were the main drivers of this reform process. Both the supply and demand side are supported with public funding. Financing advisory services for family farmers in Chile. The study describes the programmes of the Institute for Agricultural Development (INDAP) from Chile (1978-2014). The case shows the development of a pluralistic system for extension and advisory services. The system uses competitive grants provided by Government combined with users’ financial contribution to cover the costs of the services. Nariño Dairy Products Cooperative (COLACTEOS) in Colombia is a case of producers’ cooperative-based advisory services as embedded services fully financed through their own processing and marketing activities. A team of advisors is hired by the cooperative for regular services; while other services are contracted on a short term basis. Furthermore, a synthesis was established with a conceptual framework for analysis used to develop a synthesis of the experiences from the four case studies. The synthesis also supplements the cases with a literature review on other cases of similar financing mechanisms and drawsconclusions and recommendations.
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    Book (stand-alone)
    Innovations in financing mechanisms for demand-driven agricultural advisory services
    The Case of Nariño Dairy Products Cooperative (COLACTEOS) in Colombia
    2018
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    At the request of FAO, the Latin American Center for Rural Development (RIMISP) conducted a case study on the financing mechanisms for the technical advisory services that the Nariño Dairy Products Cooperative (COLACTEAOS) makes available to its members. The purpose is to illustrate the experiences of COLACTEOS’s way of financing advisory services, some of its major effects, and to identify lessons learned that could motivate and guide other countries engaged in reforming their innovation systems and agricultural advisory services in particular. In order to carry out this analysis, information from available secondary sources was used as well as primary sources gathered during a visit to the COLACTEOS headquarters. Interviews were conducted with administrators, technicians responsible for providing technical assistance, staff that oversee and link producers to financial entities and key informants, and individuals familiar with the system and the Bogotá dairy production sub-sector. The study reviews the policies for the agriculture and livestock sector in Colombia and the evolution and current state of rural extension services. In this context, it describes the services offered by COLACTEOS to its members, with an emphasis on technical advisory services and the main financial services, along with the influence of some free trade agreements on the milk sub-sector. The study provides a brief summary of the portfolio of services provided by COLACTEOS and discuss the details of technical advisory services and financial services provided to producers, and describe the relationships between technical advisory services and financial services. The study describes the mechanisms for financing the technical advisory services, how the producers participate in influencing the services and some of the effects on dairy production. Finally, the study present a section containing conclusions and lessons learned.
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    Brochure, flyer, fact-sheet
    Making extension and advisory services demand-driven 2020
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    Faced with changing environmental and socio-economic conditions, rural producers must continuously innovate and adapt, calling on improved technical, marketing, or managerial skills and strategies. Effective Extension and Advisory Services (EAS), designed to address the varied and complex needs of actors – especially producers – throughout the agri-food system, are critical to facilitating that change. They also play a key role in helping producers formulate their demands, communicate them to other actors, and respond as required. However, our view of producers’ needs may not always reflect their actual demand.

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