The objective of this component is develop ability and capacity of farmer organizations and farmer federations of the NE to improve productivity, sustainability and competitiveness of agriculture. In order to address the major challenges and constraints in the agriculture sector of the NE and capture opportunities to improve productivity, sustainability and competitiveness of agriculture, this component will include four subcomponents: a) Capacity building of FOs and FFs, Provincial Agriculture agencies and private-sector service providers; b) Technical Assistance in FO development; c) Provision of infrastructure for training, research and seed production and quality monitoring; and d) Supply of

vehicles, equipment and facilities. This component will provide budgetary support necessary to: institute the changes in orientation of farmers toward commercial agriculture; develop institutional capacity, technical knowledge and resources of farmers, FOs and FFs to establish market linkages and capture market opportunities; enhance their ability and capacity to respond rapidly and competitively to market signals; and help become self-reliant and independent of public sector agricultural support and services.

This component will include the formation, training and strengthening FOs and FFs. It will finance training and skill development and resources and technology needed to manage agriculture as a productive, sustainable and competitive business activity. The focal FOs will be selected from major irrigation schemes on the basis of a commodity or geographic focus. This component will finance the training and services required for agricultural development planning and demonstrations in focal villages, including the preparation of Village Agriculture Development Plans (VADPs), and exposure visits and academic training to selected entrepreneurial farmers in regional countries. It will also finance and administer a revolving fund to provide larger loans to FOs and FFs commencing in the third year of project implementation.

This subcomponent will finance international and local technical assistance required to develop training curriculum, techniques and material, monitoring and quality control/enhancement. An international agency, such as the FAO or any other regional international agency that has a proven track record and experience will be hired.

This subcomponent includes: a) minimum and essential provisions required to upgrade buildings and facilities, and reconstruct damaged buildings at district-level agriculture research and training centers of provincial agriculture department and provincial department of animal production and health; and b) development of a market information systems.

This subcomponent includes provision for procurement of vehicles and motorcycles to ensure adequate and efficient mobility of field-level staff engaged in farmer capacity-building program, and supply of equipment and facilities to district, segment and divisional offices.