Agricultural Development Fund (ADF)
The Agricultural Development Fund (ADF) was established in July 2010 with a $100 million grant from the United States Agency for International Development (USAID) to Afghanistan's Ministry of Agriculture, Irrigation, and Livestock (MAIL).[1] In order to provide financing to Afghan farmers and small-scale agricultural businesses, ADF helps them acquire resources such as seeds, fertilizers, and equipment. A technical support effort under a $50 million Agricultural Credit Enhancement (ACE) project was also established with this award.[2] This project – ACE oversees ADF loans and provides support to agricultural value chains, particularly those involved in the production, processing, and export of high-value commodities. ADF distributes credit through financial and non-financial institutions.[1]
Mission
Afghanistan has seen violence, drought, and floods since the Soviet-Afghan War in 1979. This semi-arid, landlocked country's economy is focused on agriculture, and more than three quarters of the population lives in rural areas. Poverty is rampant in the country, which is experiencing rapid population expansion. In rural areas, an estimated 21% of the population lives in extreme poverty, and 38% of rural households confront food shortages. Agricultural output is the primary source of income in rural areas. Years of conflict have slowed agriculture's development, which is additionally hampered by natural calamities and a lack of investment. Because landholdings are often limited, agriculture is truly the primary source of food or money for a family. Approximately two-thirds of households own cattle, and farmers sell their labor as well.[3]
The ADF's aim is to fund agriculture and agribusiness in Afghanistan in order to contribute to the country's economic development. While commercial farmers are the ADF's principal client, it also helps other small and large farmers, cooperatives, agricultural input suppliers, equipment dealers, processors, wholesalers, and exporters, as well as businesses that serve agriculture, such as storage facilities and transporters.[4]
Numbers
Through the Agricultural Development Fund, the Ministry of Agriculture, Irrigation, and Livestock (MAIL) lent 1.1 billion Afghan Afghanis to 14,300 farmers for three- and five-year terms in 2021. Dr. Anwarul Haq Ahadi, the ex-Minister of MAIL, asserted that the loans will support four particular agricultural sectors. The first small lending bank received 500 million Afghanis, Access Afghanistan received 300 million Afghanis, FINCA received 100 million Afghanis, and New Plan Company received around 200 million Afghanis. Over 14,000 farmers, on average, were predicted to profit from these loans. Meanwhile, Dr. Emal Arman, the Agricultural Development Fund's CEO, said in a statement that the ADF has lent 13.2 billion Afghanis since its creation. Over 10.4 billion Afghanis have been distributed to 55,066 farmers across 32 provinces.
According to a farmer, Mohammad Shafi Aminzadeh, who was granted money through this initiative, has benefited from loans from the Agriculture Development Fund, and the Ministry of Agriculture has enhanced livestock and agricultural operations through the granting of different loans. He said that a number of struggling agricultural and livestock businesses were now progressing due to financing from the Agricultural Development Fund.[5]
References
- ↑ 1.0 1.1 "Agricultural Development Fund (ADF) and Agricultural Credit Enhancement (ACE)". www.usaid.gov. 2019-05-07. Retrieved 2022-04-20.
- ↑ "Agricultural Development and Fund".
- ↑ "Afghanistan". IFAD. Retrieved 2022-04-20.
- ↑ "Afghanistan Directory - Directory". OOYTA SYSTEM. Retrieved 2022-04-20.
- ↑ ترین, فروغ (2021-05-30). "وزارت زراعت به بیش از ۱۴هزار دهقان قرضه میدهد" (in فارسی). Retrieved 2022-04-20.
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