Centro de inversiones de la FAO

Rural Invest in São Paolo, Brazil: measuring impact of business plans

01/07/2015

Are we making a difference? - Is a critical question facing those who invest in and implement rural development projects.  Equally as important is the question from the farmers’ perspective – What difference does this make for me?  FAO’s participatory assessment methodology Rural Invest helps shed light on the answers.

In May 2015, World Bank consultant Maria Presmanes travelled to the state of São Paolo to monitor the performance of the Bank-funded project “Sustainable Rural Development” (Microbacias II – Acesso ao Mercado).  She was tasked to support the technical assistance and rural extension institution of the state Ministry of Agriculture, Coordenadoria de Assistência Técnica Integral (CATI), with assessing the economic viability of the Banks investment with a view to extending the project. "The World Bank needs this assessment since the loan agreement with the state of São Paulo, defined that a key indicator of success would be a measurable increase of farmers’ income. This assessment is critical since it will provide the necessary evidence to extend the deadline for project implementation” said João Brunelli Junior, Technical Coordinator of CATI.

The project and participating farmers have a vested interest in assessing results.  Ms Presmanes applied a tested participatory methodology to assess the impact of the projects on farmers’ livelihoods. This methodology is a key element of Rural Invest toolkit of FAO’s Investment Centre.  "It is a methodology applied worldwide by the Food and Agriculture Organization of the United Nations (FAO) to assess costs and revenues of production units. With the results obtained, I will prepare the final report to be submitted to the World Bank." said Maria Presmanes. This participatory methodology, initially developed to prepare and analyse investment project profiles (a first step toward a full project design), is also suitable for the participatory assessment of results. 

Ms Presmanes worked with farmers and a team of regional directors of CATI.Together,they elaborated on flip charts tables of revenues, operation and investment costs. Such a visual and simple analysis helped farmers to provide reliable information, but also to understand and monitor the results assessment process themselves. (see photo)

“For us it is very important because we are interested in enhancing farmers’ wellbeing and growth, and having reliable estimates of improvements on income and productivity, (among other benefits) is crucial" said João Brunelli Junior.  Regional directors, extension officers and farmers now have the skills to undertake further assessments and the Bank also has the results it required.   “The data [obtained] clearly shows how the objectives of project Microbacias II are being achieved and how the roject is making a difference to the farmers’ lives through increased income and better access to markets" concluded Ms Presmanes.