Capacitating smallholder farmers on agri-business management in Mid-Hills, Nepal

Small-scale farmers in the mid-hills of Nepal produce crops and vegetables primarily for their own consumption, with surplus only occasionally making its way to local markets. Participation of farmers, especially women and marginal farmers in agri-business and their connection to markets, has been notably low due to a lack of entrepreneurship skills and their capacity strengthening in business management. Recognizing such a gap, CGIAR initiative on Mixed Farming System (MFS) through the International Water Management Institute (IWMI), recently organized a series of on-site Business Management Training programs targeting women farmers. 

Empowering women and marginal farmers with business management skills, financial literacy, and marketing strategies is crucial for achieving better market integration and increased productivity. These training programs seek to develop entrepreneurial skills among small-scale producers and contribute to gender equality in the agricultural sector through economic development. 

The training programs were held at three initiative sites – Gurbakot Municipality, Surkhet  and Halesi Tuwachung Municipality, Khotang. Another training program was organized at Sunakothi, Lalitpur where a collective action of women-led households, mostly widowed-led, are involved in farming. The capacity-building training sessions, tailored to the specific needs and interests of farmers across three sites, aimed to equip smallholder farmers with essential entrepreneurial skills, market knowledge, and an understanding of value chain dynamics.  These sessions are conducted through Multi-stakeholder Agriculture Knowledge Hubs in the MFS research sites.  

In Gurbhakot and Halesi Tuwachung municipalities farmers learned essential entrepreneurial skills, market knowledge, and an understanding of agricultural value chain dynamics. In Sunakothi, women farmers not only learned to maintain daily book-keeping and calculate production costs but also developed comprehensive business plans for their small enterprises such as vegetable farming, goat-rearing, and spice-making industry. The training events also focused on enabling them to maintain detailed farm records and calculate production costs. Another highlight of the training was the bargaining role play, which provided participants with practical negotiation skills in selling agriproducts.  

During the bargaining play sessions as group works, some farmer groups found themselves unable to negotiate effectively with wholesale shops. Participants observed that one of the key reasons for this was a lack of awareness of the cost of the products they produce. Additionally, some groups had little to no communication with other farmer groups regarding the prices at which they sold their products, which often resulted in them receiving lower prices of their prodects. However, after the training, the farmers felt more empowered to negotiate with shopkeepers. One farmer from Sunakothi, Lalitpur shared, “Previously, we never considered things from the shopkeepers’ perspective; we were only focused on our products. But through this capacity-building activity, we now feel empowered.” 

As a result of the training, 102 farmers, more than 77% women among them, are now better equipped to plan both long-term to immediate expenses in agri-business, assess the financial viability of their businesses, and determine their need for financial support. They have gained insights into sustainable agricultural practices, particularly in vegetable cultivation and goat farming, allowing them to enhance their productivity and market competitiveness. As part of the participatory action research in MFS sites, following the training events, farmers consistently track their farm expenses, document material support, and develop business plans for their small enterprises. A farmer from the Haltemalo Agriculture Group in Aiselukharka, Haleshi, Khotang, mentioned that they previously did not keep any records of their investments and benefits from farming. However, after attending the recent start and improve your business (SIYB) training, they now understand the importance of tracking expenses and revenues. The farmer expressed that they have started maintaining these records and are getting support from the MFS team in preparing a business plan for their communal farm. 

In addition to the training events, the agri-technicians, and farmers in Surkhet and Khotang who participated in the training have shared their learnings with wider farmer groups through Multi-stakeholder Agriculture Knowledge Hub (MSAKH) monthly meetings. Four MSAKHs were formed with MFS initiative support, independent informal agriculture stakeholder groups where farmers are connected to the agriculture-related stakeholders and meet monthly. 

Addressing the lack of capacity building through comprehensive training programs and follow-up support is key to empowering farmers to transition from subsistence to market-oriented farming. These efforts ultimately enhance food security, improve livelihoods, and contribute to the development of the local economy in the mid-hills of Nepal. 

Thanks to the IWMI-led program, Sunakothi, Lalitpur has now embarked on its journey with the Business Improvement and Business Plan Development program and is set to benefit from a series of planned activities, including solar technology improvement, farm designing, and aquaculture. These interventions aim to provide farmers with the tools and knowledge they need to thrive in the agricultural sector, ensuring sustainable farm development, improved livelihoods of single women, and safe food access for consumers.  

Featured image: Participants engaged in bargaining role play with women farmers posing as wholesalers for better product prices during business management training held from July 31 to August 2 at Sunakothi, Lalitpur, Nepal. Photo by Ramesh Tamang/IWMI

Authors: Jibesh K.C., Manohara Khadka, Surendra Phuyal and Gloriana Ndibalema