Section 3
Getting started

When is the best time to form an SFGA? Usually it is when several small farmer groups start to see distinct benefits to be gained from inter-group cooperation, and have clearly defined, common objectives. But getting to that point can take time - small farmer groups usually operate in isolation from one another and have little idea of what other groups are doing.

That situation changes as members from one group begin to make contact with members or friends in other groups, and realize that they share similar problems or ideas. Normally, the process of interaction develops slowly. The IGP can stimulate the process by encouraging inter-group meetings to discuss common problems, organizing inter-group training sessions on topics of common interest, or arranging for exchange visits between groups or their leaders. The interaction phase is the first step towards establishing an SFGA.

A common goal and purpose

Once group members begin to see the potential benefits of inter-group cooperation, the IGP can encourage them to start more formal discussions on common problems. These problems might include:

• lack of agricultural extension services in the area
• need for a road to the marketplace
• the high price of farming inputs
• low cost for the groups' produce

Overcoming common problems is a goal that all can focus on. It helps bind people together, gives them a shared purpose, and strengthens group solidarity.

There may be many common problems to solve. Therefore, the groups should prioritize them - i.e. indicate which is the most important or urgent, which second, which third, etc. Once the groups have identified their most important problems, they can decide what actions need to be taken and how an inter-group association might help them achieve their goals.

They might need to discuss:

• what activities or services can the SFGA provide its member groups?
• what will be the social and economic benefits, and the costs, of participating in the SFGA?
• do we want the SFGA to solve just a short-term problem or a long-term problem as well?
• how will each group participate?
• where will they find the resources to finance the activities?

The groups might also consult with local authorities and development agencies that could provide technical and other support. It is up to the groups to decide how much these outsiders should be involved in their discussions. Nevertheless, these actors should be kept informed - their exclusion from the process could lead to suspicion and mistrust.



Defining objectives

In their initial discussions, the groups identify and prioritize common problems. The groups should also have a rough idea of how forming an SFGA might benefit them. Now they need to sit down and define more clearly the SFGA's objectives and its proposed activities and services. If the groups have a clear idea of how inter-group cooperation can help accomplish their goals, then the SFGA is much more likely to succeed. This is a critical stage in SFGA formation, and requires concentrated effort. But the time is well spent.



To get the process moving, interested groups are encouraged to study the list of shared problems, then see whether the groups have the collective capacity to solve them. They will then be able to work out a strategy to solve each problem, and to assess the expected benefits and costs. After this assessment, they may decide that the expected benefits of their proposed strategy are not attractive. They can then explore alternative strategies until they are satisfied. This is how the process might look:



The above process may take several rounds of discussion before all points have been covered. The result should be a clear statement of goals, such as: "We want to improve our members' incomes " or "we want to help members market their crops."



Deciding on SFGA services to members

Once they have defined their broad objectives, the groups will need to ask themselves: what type of services should the SFGA undertake to help us achieve our objectives? They will need to reach a consensus on what should be done, and prepare a draft work plan on how to do it.

SFGA activities and member services vary, but tend to fall into the following categories:

• Direct income-raising activities. This involves support to existing or new enterprises that produce income. For instance, by working together, groups may increase production of food or cash crops, develop small-scale animal husbandry, small-scale aquaculture, agro-forestry or agro-processing. Enterprises may include rural micro-industries such as blacksmithing, the making of small-scale farm implements, or repair of motor vehicles.
• Cost-saving services. These are services that increase group income by reducing costs - e.g., through bulk purchase of inputs or consumer goods, and collective marketing of several groups' crops.
• Production-support services. These services aim at creating favourable conditions for inter-group production. They include consolidating member landholdings for joint cultivation, cleaning irrigation canals, repairing roads, and village electrification. At the policy level, SFGAs might campaign for the reform of land laws.
• Community development services. Groups may decide to cooperate in social and cultural activities - for example, improving education, health and sanitation, promoting family planning, and solving environmental problems. In many areas, there is an acute need for inter-group action to promote better nutrition and food storage, and install clean water supplies.

Selecting the right member service

Selecting the "right member service" - i.e. the one best suited to the member groups' financial resources and technical skills - must be done very carefully. Key questions to be studied, and answered, include:

What services do the groups want?

• Does the SFGA have the technical capacity to provide those services?
• Are others already providing the services? If so, can the SFGA provide the services more cheaply or more efficiently, while still covering its running costs and even making a small profit?
• How would the services be financed - initially, by member contributions and later through user service fees or agents' commissions? Or in some other way?
• What resources will be needed, and how will they be mobilized?
• How should the service be organized and managed? Who should do what?
• Who will be the users or buyers of SFGA services or products, and what information is needed about them?
• How, and by whom, will progress be monitored?

The decision on which activities or services to undertake will depend on many factors. Some of those factors may change as the SFGA expands and matures. The SFGA may well have to adjust its objectives, activities and services as it develops.



Some points to consider

Remember that SFGA activities and services aim at satisfying the needs of all the groups who want to join together. If they do not satisfy the groups' needs, the groups will soon lose interest and leave.

In deciding on an activity or service, the groups need to consider:

• Income should cover costs. For the SFGA to become economically sustainable, the income generated by member service fees or member dues must cover the costs of providing services. If the SFGA cannot generate enough income, it will lose money and - if that continues for long - it will not survive. If, on the other hand, the SFGA succeeds in generating revenue in excess of its costs, it will have extra funds to invest in expanding its services or in undertaking community activities.
• · Single or multiple services? Delivering only a few services to members means fewer problems - managing multiple services can be more difficult. Once SFGA leaders and members gain more experience and learn management skills, they can increase the number of activities. But keep it simple to start with!

SINGLE OR MULTIPLE SERVICES? IT ALL DEPENDS ON THE GROUP...