Liberia - Agricultural sector review (Vol. 2 of 4) : Supporting papers

Report No. 4200-LBR Lib eria Agricultural Sector Review Vol. II: Supporting Papers Paper 1: The Food Economy Paper 2: The Forestry Subsector April 20, 1984 Western Africa Region FOR OFFICIAL USE ONLY Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  LIBERIA AGRICULTURAL SECTOR REVIEW CURRENCY EQUIVALENTS Currency Unit = United States Dollars WEIGHTS AND MEASURES 1 Metric ton = 0.98 long ton 1 long ton = 2,240 lb = 1.016 metric ton 1 hectare (ha) = 2.47 acres 1 acre = 0.405 hectare 1 kilometer (km) = 0.62 mile 1 mile = 1.609 kilometer ABBREVIATIONS ACDB Agricultural and Cooperative Development Bank ADPs Agricultural Development Projects BCADP Bong County Agricultural Development Project BOPC Buto Oil Palm Corporation CAO County Agricultural Officer CARI = Central Agricultural Research Institute CDA Cooperative Development Agency CMEU Central Monitoring and Evaluation Unit CS Cooperative Society DOPC = Decoris Oil Palm Corporation DPD = Department of Planning and Development of MOA GOL = Government of Liberia IFAD = International Fund for Agricultural Development LCADP = Lofa County Agricultural Development Project LCCC Liberia Cocoa and Coffee Corporation LPMC Liberia Produce Marketing Corporation LPPC = Liberia Palm Products Corporation LRDU = Liberia Rubber Development Unit M&E = Monitoring and Evaluation MOA = Ministry of Agriculture MOA Document = "Liberia's Agricultural Development: Policy and Organizational Structure" (MOA, June 1980) MRD = Ministry of Rural Development NCADP Nimba County Agricultural Development Project RCL = Rubber Corporation of Liberia RDB = Rubber Development Board RRIL = Rubber Research Institute of Liberia SRSP = Smallholder Rice Seed Project TCU = Town Cooperative Unit WARDA = West Africa Rice Development Association FISCAL YEAR July 1 - June 30  FOR OFFICIAL USE ONLY LIBERIA AGRICULTURAL SECTOR REVIEW Paper 1 The Food Economy T.h- dcument has a restrioted distribotion and may be useel by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.   Paper 1 LIBERIA AGRICULTURAL SECTOR REVIEW THE FOOD ECONOMY Table of Contents Page No. A. Production Estimates .............................. 1 B. Demand for Rice ...................... 1 Present Demand .............1.............. I Demand Projections .............................. 2 Population and Growth Assumptions ............... 3 C. Implications for Rice Imports ..................... 3 D. Organization of Production . . 3 Traditional Farms . ..................... 3 Upland Rice ..................4..... 4 Swamp Rice ......................., 6 Cassava ...................... , 8 Sugarcane ....................................... 8 Groundnuts ...................................... 8 Minor Crops ........................ .............. 9 Communal Farms .................................... 9 E. Rice Price Policy .. 10 Import Tariffs .................................. 11 Government Price Policy and Consumption ......... 12 Government Price Policy and Domestic Production ......... 12 F. Financial and Economic Returns to Rice ............ 13 G. Implications of the Economic Analysis ............. 15 H. Issues and Constraints . .......................... 16 (i) Technology . . ........ . 16 (ii) Inputs . . ...................................... 19 (iii) Research . . . ......... 20 (iv) Extension ........ ........................... 22 (v) Training .................................... . 23 (vi) Cultural Attitudes .......................... . 25 (vii) Inadequate Infrastructure .... 26 (viii) Labor Availability . . .......................... 26  - ii - I. Recommendations ................................... 27 (i) Research .................................... . 27 (ii) Extension ....29 (iii) Rice Seed Production . . 30 (iv) Technology .......................... . . .. 31 Tables Al-43; B1-3; C1 Figures Bl-2 Chart C-1 Annex 1: Labor Utilization Profile  Paper 1 LIBER IA AGRICULTURAL SECTOR REVIEW The Food Ehconomy A. Production Estimates 1. In the absence of recent crop survey data, it is difficult to estab- lish current food crop production, yields, and areas cultivated. The last "reliable" survey was in 1976. Most crop production comes from subsistence farming. Therefore, using as a base 1974 population census data, production estimates of primary crops can be estimated assuming: (a) production and cul- tivated areas increase at the same rate as the rural population, (b) climatic conditions are normal, and (c) the price structure is not conducive to cash cropping of the primary food crops. Rural population is defined to include all towns of population 2000 or less. 2. Based on the above assumptions and a 1.7 percent rural growth rate, the 1981 totals for rice cultivated area and paddy production were calculated at 218,000 ha and 262,000 mt, espectivel;y (Table A-1). Accordingly, the cal- culated average yield was 1.20 mt/ha. The cultivated areas and production by counties are shown in Table A-2. Data to support yields for individual tech- nologies were not generally available. The average yields for traditional swamp and traditional upland technologies (based on Bong and Lofa County 1978-80 ADP crop cuttings) were calculated at 1.84 mt/ha and 1.22 mt/ha re- spectively. 3. Other main food crops include cassava, sugar cane, groundnuts, maize, bananas, and various vegetables; all are frequently intercropped with upland rice. Cassava, next to rice in importance, is grown by most farm families to bridge the food gap between successive rice crops. 4. Unfortunately, no recent reliable cassava yield data, nor data for other crops, is available. The Agricultural Development Projects do not collect yield data on crops other than rice and various tree crops (no reli- able data are yet available for tree crops). However, using 1977 MOA data and similar assumptions as for rice (para. 1) we can calculate that in 1981, 37,300 ha were cropped with cassava for a total production of 167,000 mt (based on a yield estimate of 4.5 mt/ha). Data is insufficient to allow county production estimates. B. Demand for Rice 5. Present Demand. Rice is the major staple in the Liberian diet. No household consumption data exist but estimates of net availability based on production and import data suggest average per capita consumption in the range of 110-130 kg/yr, one of the highest consumption levels in Africa (Table A-3).  - 2 - These figures are probably overestimates as an unquantifiable amount of both domestically produced and imported rice is smuggled to Guinea and Sierra Leone. Nevertheless, the large amounts available for consumption illustrate the overwhelming importance of rice in the diet. At 120 kg per year the daily calorie intake from rice is about 1200. 6. The average consumption figures conceal some variability between regions and between urban and rural areas. Surveys suggest average per capita consumption of about 135 kg/yr with adults consuming as much as 225 kg/yr in the major producing areas of Bong, Lofa, and Nimba. Consumption levels are considerably lower in the urban areas and coastal counties where cassava serves as a substitute for rice. 7. Rice imports are required to meet a growing propcortion of overall demand. Most imports are consumed in urban areas and the growth in rice imports is highly correlated with the growth in the urban population. Rice was first imported to Liberia nearly 60 years ago but the quantities were small. As late as 1945 imports in some years were nil and the small urban population could be easily provisioned with domestic supplies. But rapid urban growth beginning in the post war years soon outstripped the capacity of the domestic market to provide adequate rice supplies and import levels began to increase. By 1965 import had reached 32,000 metric tons and in 1971 they grew to 54,000 tons. The dramatic world price increases in 1973/74 cut imports sharply in 1974 and 1975. Since then, however, imports have climbed steadily and at 95,000 metric tons in 1981 they were more than three times higher than 1975 levels. In addition to the inability of domestic production to keep pace with urban demand, imports have also risen in recent years in response to declines in real rice prices (para. 49), the large increase in public sector wages in 1980, and a possible increase in smuggling into Guinea and Sierra Leone. Currently imports compose about 35 percent of rice consump- tion and over 70 percent of marketed supplies. 8. The United States is the major supplier of rice to Liberia contribu- ting about 75 percent of total imports. The remaining shipments are scattered mainly among Asian exporters. Since 1980, much of Liberia's imports have come under the PL480 program at highly concessional terms. In 1980, 13,300 metric tons of PL480 rice were imported and in 1981 the figure rose to 30,500 metric tons. In 1982, a $15 million program had been approved, sufficient for about 43,000 metric tons. 9. The value of rice imports is second only to the value of oil imports. Yet in only three of the past 15 years did rice imports cost more than 5 percent of total export earnings. So far, the growth in imports has not outstripped Liberia's ability to pay. Even in 1981 with a 30 percent incerase in the value of rice imports and a 12 percent decline in exports over the previous year, rice imports were only 8.4 percent of total export value (Table A-4). 10. Demand Projections. Demand projections are commonly made on the basis of such variables as per capita income, population growth, prices, income distribution, and differences in rural and urban consumption patterns. However, data constraints and the inability to predict what the Government's  - 3 - future price policy will be make it possible to base the analysis on only two variables - population and per capita income. This does not mean that price is not an important variable. Urban consumers, in particular, are responsive to changes in the price of imported rice (para. 49). If the Government vigor- ously taxes imported rice in the future, consumption and import levels will be lower than projected. On the other hand, rice subsidies will stimulate greater demand for imports. 11. Population and Growth Assumptions. Of the two variables considered here, the growth in population has been and will continue to be the most important determinant of the growth in demand for rice. The population is currently growing at an annual rate of about 3.3 percent per annum. Urban growth rates are about 6.4 percent because of heavy migration from rural areas where the overall rate is estimated to be 1.7 percent (Table A-5). Demand for rice is also somewhat responsive to changes in incomes, though this factor tends to be overwhelmed by the effects of population growth. The doubling of military and most government salaries in 1980 has undoubtedly contributed to the growth in rice imports. But the income elasticity for rice is low at about 0.2 and the poor prospects for significant economic growth in the near term suggest that the effect of changes in income on rice demand will be small. 12. In projecting the demand for rice average per capita availability of rice was first estimated. Historical dal.a on production and rice imports were combined with assumptions about milling rates, seed requirements and losses to derive an average per capita consumption figure. Forecasts of future consump- tion were then based on this figure, assuming a population growth rate of 3.3 percent and a long term growth rate of 2.0 percent for per capita income. The resulting projections show that rice demand will reach 317,000 tons in 1990 and 439,000 tons by the turn of the century (Table A-6). C. Implications for Rice Imports 13. If historical production trends hold, the above demand projections imply a growing dependence on imports to meet future consumption requirements (Table A-7). Currently rice imports account for about 35 percent of rice consumption. By 1990 the figure would rise to 43 percent and by 2000 imports would be required to provide over half of total rice consumption. Domestic rice production would have to rise at an annual rate of 4.8 percent to keep 1990 imports at the estimated 1982 levels. Self sufficiency in rice by 2000 would require growth rates of 5.8 percent per annum. D. Organization of Production 14. The production of food crops is mainly by traditional smallholders. Since 1981, government-organized communal farms have also been in existence. There is virtually no large-scale commercial food crop farming in the private sector. 15. Traditional Farms. Small farmers employing traditional agricultural techniques dominate the food economy. They are responsible for nearly all food crop production, employ over 60 percent of the Liberian labor force and  - 4 - contribute about 18 percent of GDP. The number of agricultural households were estimated at 157,000 in 1978 with an average household size of 5.4. The agricultural population is estimated at 855,000 growing at an annual rate of about 1.7 percent per year. 16. Rice is the major staple and is grown by 90 percent of the agricul- tural households. Cassava, cultivated on about 70 percent of agricultural holdings, is the second most important staple. Coffee and cocoa, each grown by about 20 percent of small farmers, are major cash crops. Upland cultiva- tion, utilizing a bush fallow rotation, is the most important rice production technique, accounting for over 90 percent of total producltion. 1/ Swamp cultivation, employing both traditional and improved techniques, accounts for the remainder. The major rice producing areas in Liberia are in the interior counties of Bong, Lofa and Nimba which together account for about 60 percent of total production. 17. The size of the agricultural holding is limited by the physical condition of the household head and the number of available family laborers. As the primary source of household food supplies, upland rice has first call on family labor resources and the timing of all other cropping activities is adjusted around the upland rice cycle. A typical farm household with five to seven members has about 1.5 hectares of upland rice intercropped with cassava, maize, or vegetables and a second field devoted to cassava or groundnuts. It might also have sugarcane and vegetables planted in small plots near the family compound, and possibly a small area (0.25 to 0.5 hectares) devoted to cocoa or coffee for cash purposes. 18. There are few, if any, purely subsistence farms in Liberia. Virtu- ally all farm households take part in the monetized economy and market some produce. In addition to coffee and cocoa, sales of cassava (particularly in areas near Monrovia), fruits and vegetables are common. Rice, however, is largely grown for home consumption. Only about 25 percent sell rice. Yet few households are totally self-sufficient in rice production. Nearly two-thirds of the households taking part in the 1978 rice survey reported rice purchases. 19. Upland Rice. Upland rice is cultivated under rainfed conditions in a bush fallow system. Sites are usually selected in areas that have stood fallow for 8 to 12 years. Large trees are cut, and the bush is burned and cleared before planting. 2/ Burning returns some nutrients to the soil, and helps control weed and insect population. The long fallow also helps insure that the population of competing weeds and pests will be small. 1/ Bong Project Monitoring and Evaluation Report of 1982 (Table 12) indicates that of the traditional farmers 94 percent plant upland rice with an average farm size of 1.2 ha and at least 59 percent grow, in addition, swamp rice, coffee, cocoa or a combination of these crops. 2/ The sequence of cultivation activities are listed in Tables A-8 and 9. The timing of activities, particularly of burning and sowing, is re- lated to the seasonal rains. Burning cannot proceed after the onset of heavy rains and sowing must follow the early light rains. Equally impor- tant, rice must germinate and become well established before the onset of heavy rains in order to prevent erosion.  20. The sites are only cultivated one to two years with rice planted only during the initial year. Declining soil fertility and increased weed competi- tion make a second rice crop impractical. Cassava or groundnuts are usually cultivated in the second year before the site is allowed to revert to bush. 21. Soils in upland sites are generalLy sandy in texture and low in fertility. They also have poor cation exchange capacity and do not retain moisture well. The long fallow period is required to restore site ferti- lity. Because of their sandy texture and kaolinitic clay fraction these soils have a low plant nutrient storage capacity (CEC 5-10meq/100 g). Additionally, high soil acidity (low pH) renders phosphorous largely unavailable. A prolonged fallow period permits the accumulation of plant organic matter on the soil surface and in the surface horizons. Through subsequent decomposi- tion, mineralization, and brush burning sufficient nutrients are returned to support a single crop of traditional rice. 22. The bush fallow system has evolves from untold generations of expe- rience and is well-adapted to the environmental conditions characteristic of Liberia. Despite the fact that cultivation often takes place on steeply- sloped sites, there is minimal evidence of erosion. Given a sufficiently long fallow period and proper timing of the traditional cultivation practices the system establishes a sustainable equilibrium with its environment. It pro- tects the thin and fragile soils, minimizes weed and pest competition, and conserves limited soil fertility. The exception occurs closer to towns where, with high population, competition for sites may result in a shorter fallow, an extended cultivation period, and subsequent site degradation. 23. For traditional production techniques, seed, land and labor are the principal factors of production. Capital stock is limited to a few hand tools and seed is the only other input. The use of chemical inputs such as ferti- lizer or pesticides is extremely limited. Most labor is supplied by the family or by labor pooling arrangements where farmers join to work on each other's farms. The use of hired labor on traditional farms is rare. Men are traditionally responsible for clearing and brushing upland farm sites, and will often assist in harvesting. Women do most of the planting, weeding, harvesting and threshing. Overall women supply about 3/4 of the labor for upland cultivation. They are also primarily responsible for swamp rice, cassava, groundnut, and vegetable cultivation while men concentrate on coffee, cocoa, and sugarcane. Overall, the availability of female labor may be the most important factor determining the size of traditional holding (Annex 1). 24. The semi-improved technology uses the improved rice variety, LAC-23. Based on 1978-80 crop cutting in Bong and Lofa Counties, LAC-23, as a sole input, increased yields 27 percent (1,527 kg/ha vs. 1,202 kg/ha). The superior yielding ability of LAC-23 is att;ributed to a more extensive root sys- tem which extracts both nutrients and water from and increased soil volume. Farmers who plant LAC-23 are aware of its high-yielding characteristics and they rate its eating and cooking qualities equal to that of traditional  - 6 - varieties. However, they refuse to switch to LAC-23 because their old varieties offer security against unexpected crop failure. Complete reliance on one new variety could prove hazardous. 25. The improved upland rice technology consists of inputs of LAC-23 plus fertilizers. Fertilizer seems to depress yields below those of the semi- improved package (1,470 kg/ha vs. 1,527 kg/ha combined average, Lofa and Bong ADPs). This result is not surprising since LAC-23 is poorly responsive to fertilizer (see Tabel A-10). Furthermore the recommended rates of fertilizer application, as originally in the Bong and Lofa Projects, seem excessive for upland rice: Recommended Rates of Application N E KpO ---------------kg/ha--------------- BCADP 1/ 60 60 0 (125 kg/ha (125 kg/ha urea) TSP) LCADP 2/ 60 40 0 (125 kg/ha (85 kg/ha urea) TSP) Numerous reported cases of lodging support this conclusion. Understandably this technology has not been readily accepted by farmers and has consequently been dropped in both Lofa and Bong ADPs. Obviously, the recommendation did not evolve from local research. Smaller nitrogen treatme!nts would have been more logical. Preliminary WARDA evidence from Suakoko shows upland yields of 2,500 kg/ha in response to 20 kg N/ha. Where fallow periods are short, ferti- lizers are recommended. 26. Swamp Rice: Swamps provide 10 percent of Liberia's rice produc- tion. Two swamp rice technologies are used: traditional and improved. The required activities for each are listed in Tables A-11 and A-12. The tradi- tional technology differs little from upland rice. The major differences are that pre-germinated seed is broadcast onto a saturated swamp soil, and scratching or hoeing are frequently omitted. Improved nutrient availability and retention by the swamp soils makes fallowing necessary only every 4 or 5 years, with fallow periods being only 1 or 2 years. Based on crop cuttings from both Bong and Lofa Counties the average yield is 1-6 m.t./ha. Fertili- zers are not applied. 1/ Bong County Agricultural Development Project Technical Reminder No. 8. 2/ Lofa County Agricultural Development Project Annual Report 1979-1980.  27. The improved swamp technology differs radically from traditional swamp. It is an imported irrigated technol]ogy imported from Asia which requires construction of bunds, irrigation and drainage canals, paddy inlets and outlets as well as soil leveling and puddling, etc. Larger swamps may require water scheduling. Labor requirements for first year development are approximately 521 mandays/ha with subsequent year requirements of 318 mandays/ha (Table A-22). This technology recommends high yielding varieties (IR-5, Suakoko 8 - Tables A-13, 14), row planting, timely fertilizer and pesticide inputs, and precise water contro:L measures. The system is sophisticated with a heavy dependence on proper and timely management. The ADP fertilizer recommendations are: N P205 Kv ------------- --kg/ha--- BCADP 60 60 0 (125 kg/ha (125 kg/ha urea) TSP) LCADP 40 40 40 (85 kg/ha (85 kg/ha (80 kg/ha urea) TSP) K2S04) The reason for the above difference in recommendations is not known. Presumably it reflects differing perceptions of the natural fertility of swamps. 28. Approximately 15 percent of BCADP farmers cultivate improved swamp rice with an average swamp size of 0.43 ha. LCADP reports that 20 percent of the project hectares were planted to swamp rice. From Bong and Lofa crop cuttings the average weighted yield was 2,645 kg/ha. Lofa County improved swamp average yields (1977-1980) decreased with increasing years of cultiva- tion as per the following regression equation: Y = 2,862 - 313 t r2 = 0.95 where Y = Yield in kg/ha t = time in years Similar decreases were noted in Bong County. The reasons for declining yields are not entirely clear but one reason may be that farmers become increasingly less precise in their management and inputs due to competition between upland and improved swamp for available labor.  29. Swamps with available water throughout the year, have a double cropping potential for rice. Based on the above average yield (para 28) and BCADP combined first and second crop yields, the second crop yield is esti- mated at 1951 kg/ha. Two suggested reasons for reduced yields are: (1) farmers apply 50% less fertilizer, and (2) the second crop which extends into the off season, exerts an "Oasis effect" on pests. 30. Numerous individual crop cuttings show that with proper management swamp rice produces as a single crop 3.2-3.5 mt/ha. Since the recommended varieties are non-photoperiod sensitive there are no technical reasons con- straining double cropping. Where water is available and management is timely and proper the double crop should yield 2.5-3.0 mt/ha. 31. Cassava. The second most important crop is cassava. While eaten at all times of the year it is the primary food during the "hungry season" just prior to rice harvest. It is usually intercropped with upland rice and har- vested up to 18 months after planting. Cassava has several distinct advan- tages. It is drought resistant, well adapted to the infertile upland soils of Liberia, and can be stored for prolonged periods in the ground. Both leaves and tubers are edible. Cassava yields from 3 to 4 tons per hectare when it is intercropped and up to 10 tons when grown in pure stand. Labor requirements are approximately 72 md/ha for single crops and 50 md/ha for intercropped cassava (Table B-1). High yielding mosaic varieties wil:L soon be available from CARI with potential yields of 20-30 mt/ha. 32. Sugarcane is frequently intercropped with uplancd rice or grown as a single crop following rice. Since it lacks the drought resistance of cassava it is restricted to deep soils on the lower uplands and well drained bottom lands. There are few estimates of intercropped yields, single crop estimates are 11 to 12 m.t./ha. Most sugarcane is used to produce cane joice, a local rum. Ministry of Agriculture estimates of total country production in 1977 and 1978, excluding production by the Liberian Sugar Company, were 225,000 and 191,000 mt. respectively. However, these figures are considered unreliable; actual production is thought to be much less. There is no current production statistics. 33. Groundnuts are also cultivated by small farm holders, frequently following rice. Observations indicate the field size is usually small; less than 0.1 ha. The sandy well-drained upland soils are well-suited for ground- nuts cultivation. Since it is nitrogen fixing, it shows little response to nitrogen fertilizers but responds well to concentrated superphosphate both because of its phosphorous and calcium contents. The Nimba County ADP is cultivating groundnuts in annual swamps following rice by using residual soil moisture. The intent is to secure an additional crop, and to fertilize the soil for the next rice crop. Unfortunately when the crop is harvested much of the nitrogen is lost, minimizing the effect on the subsequent rice crop. On mission's visit to a NCADP farm, the groundnut crop looked very good, but its roots had few and very small modules. Rhizobia are adversely effected by prolonged submergence and low pH. While there are no production records available, shelled yield estimates are 730 kg/ha. The labor requirement is 74 md/ha.  - 9 - 34. Minor Crops. Other smallholder crops include maize, bananas plan- tains, yams, eddoes, peppers, okra and various vegetables. Most are inter- cropped with rice for the farm family use. The vegetables, however, are a suitable rotation crop for improved swamps. In the seasonal swamp they can be grown following rice on the residual soil moisture. Vegetables are frequently grown as a local cash crop. There has developed a considerable market for vegetables in Monrovia which is supplied by farmers living near the city. Communal Farms 35. Communal farms were initiated in 1981 through proclamation by Liberia's Head of State and administratively are the responsibility of the Ministry of Internal Affairs. To judge the communal farm concept without a clear understanding of its purpose is difficult. At least two rationales have been advanced for their existence: (1) to Lncrease food production; (2) to generate funds for use by counties and districts for public works. To increase production by "Command" appears a simplistic solution to a complex problem and ignores price and market considerations, labor constraints, logistic support, etc. The second reason, generation of public funds, is viewed as a substitute of the now defunct "hut tax". This previous tax, five dollars per house, served the purpose of funding public works but was rescinded by the new Government. This tax forced minor increases in production, parti- cularly vegetables, for cash purposes since the tax had to be paid in cash. 36. In lieu of money the communal farm requires labor. There are prece- dents in Liberia where, to feed the destitute, labor donations were required for certain Chiefs' farms. However, the present magnitude of assessments far exceeds any historical precedent. At one Bong County communal farm, the mission was told that farmers were required to donate 3 day's labor per week throughout the season. Apparently some coercion is applied. It was reported in Nimba County that a minimum fine of $25 and/or a jail sentence is levied for non-compliance. Reportedly, each of 9 counties in 1982 had communal farm assignments of 1,420 ha (3,500 acres) with an unknown amount assigned to each territory. If true, the total was at least 12,780 ha (31,500 acres) of which most were to be planted to upland rice. With a labor requirement of approxi- mately 236 md/ha, the total approached 3.0 million mandays. With the existing labor constraints, labor donated to communal farms is labor lost, and hence lost production from privately operated farns. It is difficult to perceive that communal farming will increase food production. 37. An additional concern is seed supply. With planting rates of 60 kg/ha, the seed requirement is 767 mt. ThiS quantity is not currently avail- able in Liberia. Farmers reserve only enough seed for their own needs. In 1982, the Ministry of Interior Affairs requisitioned almost all Lac-23 seed produced by the Ministry of Agriculture. 38. It is possible that the communal farm concept will quickly die when its inefficiency becomes obvious. (If, however, the communal farm proposal is in reality an ideological concept, its earl;y demise cannot be taken for granted). It should be emphasised that communal farming is a wasteful concept as it competes for critically short labor and seed supplies and provides no  - 10 - incentives to farmers for increaed production through the communal system since precedures for sale of produce and expenditure of proceeds have not been formalized and leave ample scope for irregularities. E. Rice Price Policy 39. The evolution of government policy on rice prices and imports illus- trates the difficult tradeoff between the conflicting objectives of cheap urban food supplies and increased domestic production. In the past few years, the policy has vascillated between taxes on imported rice! as high as $148/m.t. in 1976 to consumer subsidies that totalled about $90/m.ton in 1980-81. 40. Pricing policy for both domestic and imported rice is formulated by the Rice Committee. Established in 1968, the Committee is currently chaired by the Minister of Commerce. Members include the Minister of Agriculture, the Minister of Planning and Economic Affairs, and the Managing Director of LPMC. A representative of the Provisional Revolutionary Council (PRC) acts as an observer. 41. Price policy for domestic rice has been limited to producer price support through a purchasing scheme operated by the LPMC. Begun in 1973/74 the program initially drew little farmer response. Prices in 1973/74 were $0.11/kg and had increased to $0.26/kg in 1976. But purchases remained small. In 1976 they were about 3,000 metric tons of paddy or about one percent of total production and they declined in subsequent years with the three government mills standing virtually idle. The price was held constant until September 1981 when a new price of $0.40/kg was established. There has been some response to the new price with LPMC mills in May/June 1982 reporting about 1,500 tons of paddy in store. The lack of interest in the program in the past was partly due to its organization. Licensed bu;ying agents and cooperatives are responsible for initial paddy purchases on behalf of LPMC and receive a handling allowance and a commission for their searvices. However, unauthorized discounts, a lack of objective grading, and delayed payments were commonplace and soon resulted in a lack of farmer trust and interest in the program. 42. A more important factor limiting the program was the price structure. Official prices are held constant throughout the crop year at levels that are attractive to farmers for only brief periods immediately after harvests. At all other times of the year, farmers can make more money by processing their rice and selling it on the private market. The program also imposes heavy costs on LPMC. In 1976 program costs were estimated at about $80/m.ton. In 1982, LPMC's costs were estimated to be in excess of $300/m.ton on domestic operations:  - 11 - LPMC: Projected Margins on Domestic Buying Program (4/kg) LPMC Selling Price Domestic Rice 53.76 Purchase Price (milled equivalent at official price of 040/kg paddy) 60.18 Loss per kg 6.42 Estimated LPMC Milling and Handling Costs 1/ 27.37 Negative Margin 33-79 or $338.00 per mt 1/ Based on 1981 operations of LPMC's Ganta mill. These costs were to be reimbursed through tariffs on imported rice. 43. In contrast to the domestic program, the government's price policy for rice imports had a more tangible impact. Since imports make up such a large share of marketed supply, government control of import price has a major impact on market prices in both rural and urban areas. There are four catego- ries of rice imports: concessional imports under the PL480 program; commercial rice in bags; luxury rice in small packages; and rice imported by rubber, tim- ber and mining industries for use as a wage good. PL480 rice is distributed by LPMC while commercial imports are regulated through a tender system oper- ated by the Rice Committee. No attempt is made to restrict annual import levels as the Committee will invite bids whenever stock levels in Monrovia fall below a certain level (about 9,000 metric tons in 1982). 44. Import Tariffs. After a short-lived attempt in the early 1970s to restrict imports and implement a rationing system, the Government in 1974 embarked on a pricing policy that had a profound effect on import levels, government revenues, and marketing patterns for domestic rice. The Government implemented a system of import levys by first allowing domestic prices for imported rice to rise with world market prices during the 1973-74 "World Food Crisis." They then kept domestic prices at the 1973-74 levels when the world supply situation subsequently eased and world prices began declining. In 1975, CIF prices were $444/mt and the levy was $43/mt. By 1977, CIF prices were down to $281/mt with tax revenues of $145, a tariff rate of 52%. 45. The tariffs generated government revenues of about $5 million annual- ly by 1977, nearly one third of total government expenditure on agriculture. By driving a wedge between world and domestic rice prices the Government was able to subsidize domestic producers at consumers' expense. But the producer subsidy was short-lived, as domestic prices were held constant when world prices began increasing again in 1978. By 1979, world prices exceeded the  - 12 - domestic price for imports. Consequently, tax revenues dried up, private imports dwindled and LPMC's financial situation rapidly disintegrated as it was forced to import rice and sell at a loss. The producer subsidy financed by consumers was replaced by a consumer subsidy solely financed by LPMC. 46. When the full impact of subsidies became apparent in early 1979, the Rice Committee began deliberations on possible price increases to eliminate the consumer price subsidies. Rumors that a massive price increase was about to be implemented helped to spark the "rice riots" of April, 1979. The Gov- ernment immediately responded by lowering the domestic price even further. The new Government which came to power in April 1980 was evidently sensitive to the pricing issue and it continued to maintain the subsidy for some time after it came to power. The subsidy in 1979-80 was estimated at about $52 per m.ton or about $3 million based on imports of about 57,800. In the following year the subsidy increased to about $90/m.ton or nearly $5 million in total. 47. Faced with a deepening financial crisis, the Government found that it could no longer afford the subsidy. In September 1981 the Monrovia prices were raised from $448/mt to about $528/mt, sufficient to wipe out the subsidy and replace it with a tariff of about $46/metric ton on the c.i.f. Monrovia rice price in May 1982 (Table A-15). 48. At the time of the price increase the Government also announced its intention to increase domestic prices for imported rice whenever world price movements warranted it. In so doing the Government has apparently placed greater emphasis on adequate and regular supplies instead of on the concept of "fair" consumer prices. The Government's new policy has yret to be tested as world prices have moved steadily down since the price increase was announced. 49. Government Price Policy and Consumption. Earlier evidence suggests that urban demand for imports is quite responsive to price changes. Real prices of imported rice in 1974-76 increased by about 30%. As a result average annual imports decreased from 48,000 mt in 1970-73 to 34,000 mt in 1974-76, suggesting an import price elasticity of demand in the range of -0.8 to -1.0. It is also likely that stable nominal prices between 1978 and 1981 (declining real prices) contributed significantly to the increased import levels of the past few years. 50. Changes in the price of rice also directly influence the price and demand for cassava. As a less preferred substitute for rice, demand for cassava increases whenever rice prices increase. When the real price of rice increased (1972-74) the real price of cassava also rose suggesting that the substitution of cassava for rice in the diet helped contribute to the decli- ning rice imports. In the more recent period of declining real rice prices, real cassava prices also fell indicating that a shift out of cassava contri- buted to the increased rice imports. 51. Government Price Policy and Domestic Production. Government control of rice prices has also elicited strong producer response. Before tariffs on imports were first imposed, only about 16 percent of rice farmers reported  - 13 - sales and the amount sold was only about 5 percent of the total rice produc- tion. Estimates of total sales of domestically produced rice in 19711-72 were only about 17,000 mt of paddy. But by 1976-77, market participation increased dramatically. The proportion of farmers selling rice nearly doubled to 29 percent and total sales were nearly 40,000 mt paddy or about 16 percent of total production. The increase in marketed supply occurred in response to a real change in prices of about 75 percent. The magnitude of the increased sales suggests a marketed supply elasicity of 1.8. 52. No recent data on domestic rice marketing are available, but field observations indicate that the ensuing period of import subsidies substantial- ly reduced the level of domestic sales. tUnlike the earlier period of high prices, virtually no domestic rice could be found in the Monrovia markets as lower priced imports made domestic shipments to Monrovia unprofitable. Furthermore, imports penetrated much deeper into rural markets than in the earlier period, largely replacing domestic supplies. 53. While marketed supply is quite responsive to price changes, aggregate supply is not. Most of the increase in domestic production between 1973-74 and 1976-77 can be explained by increased farm population and not increased productivity. The price elasticity of supply probably does not much exceed 0.1. This does not mean that farmers lack price responsiveness. Instead, they are unable to overcome the constraints of the traditional system to increase productivity. The "improved" technological packages currently avail- able have also failed to address many of these constraints. The result of an aggressive price policy under such conditions is limited supply response and inflation in the factor market for the constraining factor (in this case labor). Thus, during the early period of high import tariffs, rural wage rates doubled, though high prices for coffee, cocoa and rubber also help explain the upward pressure on wage rates. F. Financial and Economic Returns to Rice 54. Financial and economic returns have been calculated for both upland and swamp techniques. The results are suramarized in Table A-16. Background data are found in Tables A-17 through A-41. These calculations are at the official exchange rate. For upland rice two techniques, traditional and seed exchange, were analyzed. For swamp rice, four basic models were tested including traditional techniques, project swamps, advanced swamps and improved swamps. Project swamps use improved techniques to produce a single crop. Yields, fertilizer use and costs are based on data from the Bong and Lofa County projects. The advanced swamps are double cropped and based on hypothetical yields since there is little actual double cropping currently practiced. The improved swamp calculations are based on a single crop but use the original appraisal yield estimates for Bong and Lofa Projects rather than those actually achieved over the past five years. The improved and advanced techniques were also tested with an improved harvest and post harvest package which included sickle harvesting and pedal threshing. 55. Financial returns were calculated as returns to labor and were based on the official producer price for paddy. The economic analysis involved  - 14 - calculation of net social profitability and domestic resource cost coeffi- cients (DRC). The DRC is a simple ratio of the cost to the domestic economy of saving or earning a unit of foreign exchange. In the case of rice, the DRC equals the cost of domestic factors (mainly labor) to produce a ton of rice divided by the net value of the rice. When the DRC is less than one, the technique is efficient. When it is greater than one, the value of domestic resources expended in producing the rice is greater than the net value of the rice itself and the technique is inefficient. DRCs have been calculated at both the official exchange rate (Tables A-38 and A-39) and an adjusted exchange rate of $1.20 to reflect the estimated overvaluation of the Liberian dollar (Tables A-42 and A-43). Since the objective of the Government's efforts to expand rice production is to reduce dependence on imports, the analysis focusses on the economic efficiency of production for import substi- tution. Most imported rice is consumed in Monrovia. Thus the economic analysis of the various techniques has been based on the cost to produce, process and deliver domestic rice to Monrovia. For comparison, calculations are also made for rice production for home consumption. Processing costs for the economic analysis are calculated for both Monrovia delivery and home consumption. Costing of Monrovia delivery is based on processing in small privately-owned mills using rubber roller technology. Processing for home consumption involves handpounding (Tables A-34, 35, 36, 37). 56. The economic price of rice is based on the delivered price for par- boiled 35 percent brokens imported from the U.S. (Tables A-17, 18). The economic price of labor is estimated at $2.00 a day and reflects the market wage rate currently prevailing. Capital is valued at its opportunity cost which is estimated at 10 percent. 57. Upland Rice. It requires about 236 mandays of labor per hectare to cultivate upland rice using traditional techniques (Table A--20). No improved inputs are used and capital consists of simple hand tools. Yields average about 1220 kg per hectare. 58. The financial returns per manday are low at about $1.90 a day re- flecting low yields and heavy labor requirements. These returns are somewhat below the prevailing wage rates suggesting that a risk premium is attached to production for family consumption requirements. The economic analysis for the traditional upland technique shows it to be extremely inefficient for import substitution. Net social losses are $307/metric ton and the DRC equals 1.67 (Table A-16). 59. The seed exchange technique simply involves substitution of improved seed for the traditional varieties. No other improved inputs are used and the tool requirements are the same as for the traditional techniques. Labor re- quirements are slightly higher at 251 mandays per hectare because of increased harvesting and threshing times associated with higher yields. Average yields with the seed exchange techniques are about 1,500, an increase of more than 20 percent over the traditional technique (Table A-21). 60. The higher yields push the private returns to manday to $2.32. They are not high enough however, to make upland cultivation socially profitable as an import substitute. Net social losses are $235/ton and the DRC is 1.52 for seed exchange rice delivered to Monrovia (Table A-16).  - 15 - 61. Swamp Rice (Tables A-22, 23, 24, 25, 28 - 3). Traditional swamp rice cultivation was introduced from neighboring Guinea in the late 19th century and is practiced in small swampy areas throughout the country. Swamp rice plays a secondary role in household production and is generally grown by women for cash sales. Financial return to traditional swamp cultivation is about $2.50 per manday or about 30 percent higher than the returns to traditional upland cultivation. The increase is due primarily to the higher yields which are only partially offset by higher labor requirements. Yields are about 27 percent higher than upland yields while labor requirements increase by less than 10 percent. 62. Swamp rice cultivation using traditional techniques also earns better economic returns than the upland techniques, but it is still socially unpro- fitable for import substitution with a DRC equal to 1.4 and social losses of about $200/ton. 63. Improved Cultivation Techniques (A-22 - 25, 29 - 33). In an attempt to achieve food self-sufficiency the Government has focused on improved culti- vation techniques for swamp rice. In support of this objective the Bank- financed projects in Bong and Lofa have concentrated most of their resources on promoting swamp cultivation. The results so far have not been promising. The increase in yields over traditional techniques has not been nearly as large as anticipated at appraisal and the resulting returns to labor of $2.43 per manday are actually lower than those earned in traditional swamps. The lower returns are largely the result of high swamp development costs and increased labor associated with transplanting and maintenance of canals and bunds. 64. With the yields currently being achieved the project swamps are even less economically efficient for import substitution than traditional upland techniques. DRCs for project swamps are 1.75 compared with 1.67 for the up- lands. Social losses are $326 per metric ton. The high social cost for the fully subsidized extension service contributes to the poor showing (Table A-39). 65. While the average yields are low, the variation is quite large among project farmers. One-third achieved appraisal yield levels. With appraisal yield estimates of 3,000 kg per ha, private returns rise to $3.54 per manday (improved swamps). The DRC improves to 1.43, much better than the results for project swamps, but still socially unprofitable for import substitution. 66. A small percentage of swamps can potentially be doublecropped using improved techniques. Assuming combined yields of about 5,500 kg paddy per hectare, private returns to labor for doublecropping are about $4.29 per man- day. Doublecropping offers a slight improvement over single crop swamps in economic returns with the DRC equal to 1.27 and net social losses equal to $116 (Table A-16). G. Implications of the Economic Analysis 67. The results for both upland and swamp rice show them both to be poor investment choices if import substitution in Monrovia is the objective. They are also fairly insensitive to changes in yield requirements, labor require- ments and prices (Table A-41). For example, yields for improved upland rice  - 16 - would nearly have to double or labor requirements would have to be reduced by over half before it would become competitive with imports for Monrovia deliveries. Similarly the delivered price of imports would have to increase to nearly $800 per ton from $491 before upland rice could compete. Project swamps are even more insensitive to changes in the above variables. With current yield levels labor requirements for project swamps would have to drop to 78 mandays per hectare from 301 mandays before the technique would be profitable. Wages would have to fall from $2.00 per manday to $0.50. 68. Clearly rice production as it is currently practiced is not economi- cal as an import substitute. Monrovia can be supplied with imports at much less cost to the economy. But when rice production for home consumption in rural areas is considered a different picture emerges (Table A-38). Rice grown for home consumption is much more economical than for Monrovia delivery. High transport and distribution charges make it much more (difficult for im- ported rice to compete with domestic rice in rural areas. Some imported rice is sold on local markets in rural towns, but the bulk of the rural population only consumes rice grown on their own farms. 69. The primary reason rice does so poorly in the economic analysis is the extremely high labor requirements. The improved swamp technique, as it is currently practiced, yields a small improvement in labor productivity (7.4 kg per manday for project swamp compared to 6.4 kg for traditional swamp), but not nearly enough to offset the increased costs to the economy for swamp deve- lopment, extension and improved inputs. As mentioned earlier, the techniques currently used are an incomplete adaption of Asian rice technology. Rice harvesting and threshing are still practised using time-consuming traditional techniques. Traditional techniques of harvesting and threshing account for about 40 percent of the total labor requirements. 70. Large labor savings could be achieved with the introduction of sickle harvesting and pedal threshers. The improved and advanced techniques using these techniques would experience about a 35 percent reduction in total labor requirements (Table A-24). The DRC for improved swamp would drop to 1.3 and for advanced swamps it would drop just below one (Table A-16). However, these techniques would be difficult to introduce. They require a relatively pure stand of rice that matures at the same time to facilitate sickle harvesting and customary sex roles would likely have to be altered for the successful introduction of pedal threshers. So far the few attempts to introduce these techniques have failed. H. Issues and Constraints (i) Technology 71. Upland Rice. Traditional upland rice evolved as a "risk-aversion" system. The long fallow period minimizes fertility constraints; timely plant- ing protects against erosion and yield reductions due to drought; harvest technique compensates for variations in maturity; storage tschniques provide protection against pest and mold losses; and finally inter-cropping protects against crop loss or early depletion of rice reserves. An efficient sub- sistence system has evolved which reduces the environmental risks. Unfortu- nately, the resulting low yields are a major contraint to a rice production  - 17 - program. The yield constraints can be alleviated by the substitution of Lac-23 for traditional varieties. With its potential for increasing yields 0.3 mt/ha, planting 200,000 ha with Lac-23 could increase paddy production by 60,000 mt/yr. The substitution of Lac-25;, while compatible with traditional technology, is constrained by its low availability. To plant and sustain 200,000 ha with higher yielding varietieEs, such as Lac-23, requires a minimum of 3,000 mt/yr; this is far beyond presernt capability. The seed availability constraint is further addressed under "inputs" below. 72. Earlier attempts by the ADPs to extend the improved technology (Lac- 23 fertilizers) also reflect the constraints of limited production capacity. The introduction of fertilizers seemed a minor but acceptable revision of the traditional practices which could provide higher returns without altering the bush-fallow equilibrium. Its failure on the farm and subsequent withdrawal as a project recommendation reflect a knowledge constraint rather than a concep- tual error. There is no evidence that upland fertility recommendations were research based. That the Bong County ADIP recommended the same fertility applications for both upland rice and improved swamp (60 kg N/ha and 60 kg P205/ha) appears as a judgemental error for both technologies. Both Bong and Lofa ADPs have dropped their upland fertilizer recommendations (para. 25). Thus, the lack of adequate prior regional and on-farm fertility research has constrained the development of a viable improved upland technology package. 73. Swamp Rice. The constraints of the swamp techniques are both cul- tural and technical. Frequently related cultural constraints included the perception of water related diseases, swamp farming regarded as women's work, farmers' dislike of working in water, swamps not allowing intercropping etc. In short, it presents a departure from traditional practices. For the im- proved swamp technique a primary constraint is the high initial and continuing labor requirements (para. 27). Of the Bong ADP farmers presently cultivating swamp rice, 73 percent are engaged in other types of farming. Competition for labor between the various farming operatLons is a major reason restraining farmers from properly managing their improved swamp rice operations. Conse- quently, many developed swamps have decreased in size or have been abandoned. Data from LCADP indicate that by the fourth project year, 435 ha, of a total 1,370 ha developed, had been abandoned; a loss of 32 percent. BCADP also noted a 10 percent abandonment of developed swamp area in the third year. Also contributing to swamp abandonment has been the low financial return from rice plus the traditional attitude to rice as a subsistence crop rather than a cash crop. 74. The labor saving components of the original Asian irrigated techni- ques (i.e. animal power or tiller power, sickle harvesting, and pedal or rack threshing) have not been successfully adopted. Unfortunately, there is no present support base for the maintenance of power tillers. However, sickle harvesting should prove feasible providing it proves compatible with accept- able drying and storage procedures. It has been adopted in other West African Countries. Its adoption would decrease the harvesting labor requirements for improved swamp by approximately 50 percenat. To achieve high yields, this irrigated technique requires improved varieties, row planting, timely applica- tion of fertilizers and pesticides, precise water level control, timely weed- ing etc. The management required is complex; but in its absence yields are drastically reduced.  - 18 - 75. A related production constraint is decreasing yield with time. Why yields on improved swamps decrease with years is not entirely clear, but certain interacting factors stand out. Farmers are decreasing the fertilizer rate. In the first year BCADP farmers applied only 78 percent of the recom- mended amount; in subsequent years 60 percent or less. Applications have not been timely, particularly the critical TSP basal dressing which stimulates root development and plant establishment. BCADP reports yield reductions of 58 percent due to a late TSP basal application. As implied above reduced yields relate partially to the constraints of poor management and labor avail- ability. 76. Cassava. Historically, cassava is a substitute crop for rice. Farm families rely on cassava as a food source during the "hungry season" preceed- ing rice harvest. However, there are two Liberian tribes for which cassava is the main food. As food, the cassava tuber has a high energy content (twice as high as potatoes because of its lower moisture content) but contains only 1 percent protein. The young leaves, however, are edible and serve as a source of vitamins, minerals, and proteins. The leaf protein content is 10.7 percent on a fresh weight basis and contains all essential amino acids exept methionine. 1/ The importance of cassava beyond its present utili- zation, would be to fill the national food gap should rice become expensive. From the production standpoint, there are no present major constraints. Cassava has excellent drought resistance, is adaptable to low fertility con- ditions, requires a low level technology, and stores well in the field. With mosiac resistant varieties available from CARI, the major disease could be controlled. Spider mites and mealy bug, although recently found in Liberia, are not yet a major problem. The new varieties have a yield potential of 20- 30 m.t/ha. Thus, either intercropped or single cropped, the production increase per unit area should be 200-300 percent. The immediate constraint concerns marketing. Cassava is a perishable crop which deteriorates rapidly once harvested. Since the major point of substitution for rice would be in the larger cities and since there exist transport and storage problems, increased cultivation should occur near the major cities. At present some processed cassava (gari) is sold in the markets. If the urban demand in- creased, it seems likely that present processors would most rapidly expand their processing capacity. 77. A minor constraint to increasing cassava production is labor avail- ability. Present labor estimates are 72 mandays/ha (Table B-1). Since these new varieties increase yield approximately 3 times, the required harvesting labor increases proportionately; an increase of about 49 md/ha. No additional increases are anticipated in the other production activities. In the absence of a ready market the new varieties would cause a reduction in area planted with production maintained at previous subsistence levels. The labor savings could be channeled into other production functions. No serious constraint is anticipated in the availability of improved varieties. If the demand is pres- ent, CARI can increase the supply of cuttings through tissue culture techniques. 1/ Guide for Field Crops in the Tropics and Subtropics. Technical As- sistance Bureau, Agency for International Development, Washington, D.C., November 1974.  - 1 9 - 78. Liberia is favorably located to compete for the European cassava feed market. While nearness to market offers a transportation advantage, the labor requirements and the lack of processing and marketing infrastructure are enormous constraints. Because cassava deteriorates rapidly after harvest, processing must proceed quickly. In other supplier countries, established processors rapidly collect harvested tubers for transport to a chipping and drying plant. This system has not been organized in Liberia; its feasibility depends on road access. With Liberian farmers being small-holders, many re- motely located, the rural road system is not sufficiently developed to support this system. If market considerations prove favorable, a Liberian cassava- feed industry should focus on farm or village chipping and drying where weight reduction through drying would facilitate transport to a central collection point and reduce storage hazards. Two simple feasible processing methods for the Liberian farm or village are: (1) concrete pad drying; (2) tray drying. The processing procedures are illustrated and described in Table B-2, and Figure B-1. Figure B-2 illustrates the tray installation. Both processes require a chipper such as the low cost Malaysian type 1/ which could be fabricated locally. The labor requirement for tray and platform drying, 14.5 and 11 manday/mt, respectively, are shown in Table B-3. While the initial expense is greater for the tray process, its greater productive capacity presents an advantage. (ii) Inputs 79. Seed. To achieve the most immediate increase in rice production this paper proposes an upland rice production program with a primary intervention of improved seed alone. Using the present recommended variety, Lac-23, a 60,000 mt/year increase in paddy production is possible if cultivated exclu- sively by every upland farmer. Experience indicates the difficulty of reach- ing every farmer directly, but a realistic project goal is that 50 percent of the total upland rice cultivated area should be planted with improved vari- eties and seed replacement every fourth year. Hopefully increased farmer confidence and seed diffusion will in due course account for the other 50 per- cent. Under these conditions, and with present seeding rates (60 kg/ha) the annual requirement is 1,500 mt. This greatly exceeds the supply. Present producers include the Bong and Lofa Agricultural Development Projects and the Ministry of Agriculture whose combined present production is estimated at 250- 300 mt/yr. Additionally, the seed quality is suspect. Most of this seed is descended from repeated farmer plantings over a 10-12 year period. With a possible 2 percent/year outcrossing the genetic purity could have degenerated to approximately 78 percent. 2/ Although the ADPs claim the germination of their seed is 90-95 percent, the recent increase in seeding rate from 50 to 60 kg/ha suggests a lower percentage. 80. Recently IFAD's Liberia Smallholder Rice Seed Project has been ini- tiated for the purpose of providing high quality improved rice seed to support 1/ Best, R. 'Cassava Drying', Centra International De Agriculture Tro- pical (CIAT), Columbia. 2/ % Genetic Purity = (1.00 = 0.2)12 X, 100 = 78.4.  - 20 - increased production. The project goal is by PY-6 to provide 736 mt of pro- cessed upland seed and 99 tons of swamp seed. The final upland seed produc- tion is less than half the amount required (para. 79). Additional seed sources are required if a national rice production program is initiated. 81. Seed distribution is a necessary companion to seed production. The "Small-holders Rice Seed Project" will sell 60 percent of its production directly to the ADPs and distribute the remainder to farmers in counties not served by the ADPs. The project will maintain 10 small seed stores at the county and district level for distribution and short term seed storage. If other seed sources are developed, then additional outlets must be provided; assumedly this could be a temporary MOA responsibility through county and district extension offices. Seed distribution is more than Just providing outlets. It is a complex operation which interacts with production schedules to ensure that adequate seed a delivered to each region in time for their particular planting date. (iii) Research 82. Basic to any national agricultural production programs, are viable research and extension organizations. Although the Central Agricultural Research Institute (CARI) was organized in 1951, with assistance from USAID, they have not generated a local research base. For 30 years following its organization, CARI received considerable assistance from U'SAID, FAO, UNDP, etc., and yet, in 1981, conditions were as follows: (i) The research program was very limited. The only area from which some contribution was evident was rice varietal selection. (ii) There was linkage with the international research centers in varietal testing, but these linkages were weak and required strengthening. (iii) There was virtually no extension component since CARI had little to extend. (iv) With exception of land area, facilities were inadequate; office space was insufficient; laboratories were too few and poorly equipped; seed storage was not satisfactory, etc. (v) There was insufficient research equipment in all areas. (vi) The library was worthless for support of research. Many important agricultural research journals were entirely missing and other sets were incomplete. Research publications from the International Centers were also missing. (vii) The CARI Liberian professional staff was short in numbers and lacked adequate training. Many of the section heads were expatriates. (viii) There were severe organizational and administrative problems. Lines of operation and responsibility were poorly definecd. The CARI Director did not have complete operational control of the program and  - 21 - facilities. Hiring of staff and Eetting their salaries was done at the Ministry of Agriculture. (ix) Budgetary levels were inadequate and difficulty was encountered in getting approval to spend these funds. Approval for expenditures came from the Ministry of Agriculture and the Ministry of Finance. The lag time between need and approval made it virtually impossible to do meaningful research. 83. CARI's research deficiencies were recognized by USAID which committed $4,209,000 to reorganize the institution (Chart C-1) and strengthen its re- search capability over a 4-year period; i.e., FY81-84 (Table C-1). Specifi- cally the components of this project include: (i) to develop linkages with international and regional research centers and utilize their research find- ings as a starting point for adaptive research in Libera; (ii) to upgrade the institute's capacity to conduct applied research on crops and livestock; and (iii) to develop effective two-way linkages between research, extension, farm- ers and development programs. The developmient of this institutional capabi- lity is seen as a 12-15 year effort of which this project is only the first phase. Inputs into Phase I include 232 man months of technical assistance to be provided under contract by Louisiana State University, 477 man months of participant training of which 420 will be at the M.S. and Ph.D level, field and laboratory equipment, vehicles and supplies. From a total four year budget of $9.38 million, the U.S. Government will provide 45 percent and the Government of Liberia 55 percent. The U.S, contribution is specifically earmarked for technical assistance, inputs, participant training, and con- struction of buildings; the GOL will finance local personnel, equipment, vehicle operation and maintenance, supplies, and services. 84. As a result of the USAID assisted project, some improvement at CARI is evident. The library is under improvement; laboratory and field equipment have been procured; linkage with the international organizations have been strengthened; staff members have been sent to the U.S., for graduate studies; expatriate housing has been constructed; extension linkages (although present- ly informal) have been strengthened; seed storage facilities have been improved, etc. The research and extension activities made modest progress as follows: (a) high yielding mosiac-resistant cassava varieties to be released soon; (b) facilities for tissue culture established; (c) recommended kits of vegetable seed, including pesticide and fertilizers to be distributed through extension; (d) rice varietal and evaluation trials initiated; WARDA cooperat- ing; (e) field and pot rice fertility trials for response to N, P, K, and Mg initiated; (f) superior citrus root stock to be made available to farmers and training offered in grafting; (g) no-till experiments on upland rice initi- ated; and (h) milling trials initiated on apland and swamp rice varieties. 85. Autonomy. Despite modest progress, there remain constraints which, unless resolved, wil' severely delay or prevent any lasting research improve- ment. These issues are long standing and have plagued CARI since its begin- ning; they are autonomy and budgets. USAID recognized the constraints related to autonomy and required as conditions precedent to disbursement or the  - 22 - issuance of any commitment documents the following "(a) evidence that the Ministry of Agriculture has placed all program budgets and personnel at the Institute under the Research Council and the Director; and (b) evidence that the Ministry of Agriculture has given the Director of the Institute the bud- getary authority to expend funds for the research program in a timely and pro- pitious manner". Despite these stipulations, there appaLrently is considerable direct interference in the CARI operation without benefit of prior Director or Research Council approval. Reported examples include demand to pay bills for items not previously approved, placing unneeded and unwanted personnel on the CARI payroll, request for gasoline for non-CARI vehicles, etc. 86. Budget. Equally important is the constraint of insufficient GOL budget. Most of the GOL budget contribution goes for personnel salaries (Table C-1). In the unskilled categories there are far more people than can be profitably utilized. Thus non-productive labor depleted the budget; the result was a severe shortage of funds which restrained research progress. 87. That CARI, after 30 years of existence, has achieved so little may raise questions as to the commitment of policy-making levels of Government to research needs. Now when the country urgently needs to increase crop produc- tion, there are no local research results on which to base production pro- grams. Considerable money including donor contributions and 30 years of time have been spent. (iv) Extension 88. There are presently, within Liberia, two different extension servi- ces; the Governmental service under the Department for Regional Development and Extension and the extension components of the Agricultural Development Projects. The Government service is under reorganization (details in Support- ing Paper 5: The Institutional Framework) in order to perform its dual but complementary responsibilities of providing extension services to farmers and discharging the responsibilities of the Ministry of Agriculture withinthe national development framework. 89. Since there was no central direction and coordination of agricultural extension and training, these components were built into individual projects and the information and services extended were usually generated only within the project. No broad information-base existed. The current view within the MOA is that agricultural development must be broad-based with large numbers of farmers participating and that increased production is dependent on the mobi- lization of such groups of farmers. The ongoing re-organization is field oriented and designed to serve the needs of three broad farmer groups: sub- sistence, mid-level, and commercial farmers. 90. Presently this extension service is virtually nonfunctional. The primary constraint is not organizational structure and concept but rather logistical support, inadequate training, absence of technical packages, poor work ethic, etc. Field personnel have no available transport nor inputs and thus no means of extension. As with research, until the Government places a higher priority on funding extension activities progress towards production will remain constrained.  - 23 - 91. It has been suggested that the extension service has nothing to extend. This is only partially true. Due to a prior inadequate research support, there are few technical packages available for extension. Obviously research has constrainted extension and vice versa - a temporary condition whose duration depends on the development of CARI's research capacity and adequate GOL support to both organizations. This does not infer that exten- sion has no present role. In addition to its farmer-to-research feedback role, there are other important activities through which they can contri- bute. If seed is available, an important activity is educating farmers to the production potential of quality improved seed through demonstrations and personal contact. Additionally, they could assist in seed distribution. Present concerns should not be with terminating extension but rather with strengthening it for an important crop production role. 92. In contrast to the national extension service, problems related to Agricultural Development Projects are of a lesser degree. Due to adequate donor funding there are no constraints of transport, inputs, etc. The ex- tension organization is an adaptation of the Training and Visit (T & V) sys- tem. The ADPs provide their own extensior, training and farmer training and maintain farmer contact through fortnightly meetings, etc. Obviously there is much activity with excellent farmer contact and support. However, one primary constraint is the over-emphasis on targets. This perhaps is a fault of the model more than the particular project. IThe result of target orientation is the continuing promotion of non-perfected packages, as apparently is the case with the improved swamp technology. While targets may be necessary for motivational purposes, promotional efforts must be tempered with an overriding requirement of quality and appropriateness. (v) Training 93. A number of institutions are involved in agricultural education and training at various levels, with little irLter-communication. The College of Agriculture and Forestry, University of Liberia, provides a degree course in Agricultural Sciences. A Rural Developmernt Institute established in 1979, at the Cuttington University College campus, near Suakoko, offers a two-year "Associate Degree Course," with specialization either in plant science or animal science. Other institutes engaged in lower intermediate level training are Booker Washington Institute at Kakata,, offering a four-year vocational training program in agriculture; Multilateral High Schools (two comprehensive high schools at Voinjama and Zwedru with curriculum in agriculture); and Tech- nical Training Center of the College of Agriculture and Forestry, which in col- laboration with the Home and Community Devrelopment Department of the College has conducted 2-year preservice training programs for Home and Community Devel- opment Extension Agents. The Lofa and Bong County Agricultural Development Projects have their own staff and farmer training facilities. The West African Rice Development Association (WARDA) Training Centre at Fendal offers annual six-months Rice Production course and 8-weeks Research Assistant's course, in which each WARDA member country nominates two trainees. In addition to these two permanent courses, WARDA also arranges special 2-4 weeks courses on Seed Multiplication, Post-Harvest Technology, Water Management, Farm Management and Integrated Pest Management. The continuation of WARDA activities is vital as the national rice program relies heavily on them, both for the inflow of  - 24 - research materials for its own varietal improvement program as well as for the training of Liberian staff in research and production techniques. Facilities for three-weeks courses for rice technicians (extension workers), and farmer training are also available at MOA-run Panama College (Sinoe County). Although this college is well equipped with staff houses, student accommodation, class- rooms and demonstration farm, it has ceased to function due to lack of suitable staff for teaching and inadequate operational budget. In the absence of any coordination among the various national institutions offering training, there are considerable differences in their curricula and course contents and as a result the quality of training offered has varied greatly. 94. The quality of teaching at the College of Agriculture and Forestry (CAF), has been adversely affected by a number of factors, of which shortage of qualified staff and lack of transport and field equipment are more prominent. Most of the Liberian staff members of the College are presently out for advanced training. The College had a number of expatriates on its faculty, but most of them have left since, given financial constraints, it was difficult to offer them adequate incentive to continue. The situation is particularly serious in the Agriculture section of the College where for instance for the past few years there has been no teacher in Plant Breeding, a discipline which is expected to produce qualified people to run the country's crop improvement programs. A number of UN volunteers have joined the faculty, but few of them have the required competence in terms of qualification arnd experience. Al- though there is adequate farm area attached to the CAF, the practical training of the students is very weak, due to shortage of supervisory staff, lack of equipment, inadequacy of resources for its operation and maintenance, and in part, to students' attitude towards field work. Because of various con- straints, there are few opportunities for the students to visit farmers fields and get acquainted with the realities of rural life and practical agricul- ture. The CAF moved to its new campus at Fendal, about 17 miles north of Monrovia, in 1974, but up until now the students have continued to reside in Monrovia. Their transportation, back and forth, has been frequently interrup- ted by petrol shortages and breakdown of vehicles, thus adversely affecting their lecture schedules and field practicals. 95. The Rural Development Institute (RDI), which started operation in 1979, is administered by the Cuttington University Colleges and the Episcopal Church, and is jointly financed by the Church, USAID and Government of Liberia. The Institute has an annual enrollment of 80 students, for training as middle level management personnel. Initially the focus has been on agri- culture, but in its future development plans RDI envisages inclusion of train- ing and other components of rural development such as cooperatives, marketing, farm planning and management, home economics and rural health. Because of its location in the vicinity of CARI, RDI is ideally suited for its ultimate devel- opment into a major centre of training for intermediate level manpower for the agriculture sector. Although the MOA has identified RDI as its principal training centre, at the present moment, there seems to be no formal linkages between MOA or CARI and the Institute, for any kind of interaction.  - 25 - 96. A National Council for Vocational/Technical Education and Training (NCVTET), under the chairmanship of Minister of Planning, has existed since 1975, to coordinate, monitor and standardize vocational training and technical education (including agricultural) at all levels. Apparently not much has been achieved, in this regard, in the agriculture sector. To enable the Council to play a more effective role, an "Agricultural and Industrial Training Board" (AITB) was established in February 1981 as an administrative and technical secretariat of the Council and was made responsible to promulgate and execute the Council's decisions regarding coordination, monitoring and standardization of Vocational/Technical Training and Education in the country. AITB comprises these specialized units, viz.: Apprenticeship and In-plant Training, Trade Testing and Standards, Curriculum Development, Industrial Supervisory Training, Agricultural and Rural Youth Training, and Commercial and Vocational Centres Administration. The Agricultural and Rural Youth Training unit is just being assembled and is in need of technical advisory assistance to organize its activities. 97. The training of extension staff is not well coordinated and in the absence of any survey of manpower requirement there is lack of understanding as to the number and type of needed extension personnel and a training program appropriately designed to meet these needs. The AITB has planned to initiate such a survey. (vi) Cultural Attitudes 98. Traditional farming has evolved into a minimal-risk system designed to assure survival. This system, though of low productivity, is well adapted to a harsh environmnt and minimizes the probability of crop failure. The farmer, as part of the system, is survival oriented; he must, consciously or subconscious- ly, assess the risk in accepting new technologies. Seemingly positive inter- ventions, such as sickle harvesting and rack threshers, may upset the system's equilibrium. Sickle harvesting is not compatible with varieties which mature over extended periods; its adoption requires variety changes. Rack threshers are not compatible with panicle storage and may require changes in storage facilities and methods. Interventions intended to improve one component such as labor savings or increased yield must be assessed in terms of the whole system. Because a farmer is traditional and by heritage and experience con- ditioned to think in terms of risk-avoidance, he is reluctant to accept inter- ventions which he perceives may stress the system. Interviews with upland farmers who plant Lac-23 revealed an intense attachment to their traditional varieties. Even though they recognized the superior yielding ability of Lac- 23, liked its flavor, found its cooking qualities acceptable, etc., they refused to completely relinquish the old varieties because of what was inter- preted as security issues (only 21 percent of upland rice farmers in the Bong County Agricultural Project exclusively plant Lac-23). 99. Of the production interventions suggested, Lac-23 is the least dis- ruptive. Improved swamps require not only a new and labor demanding technology but also new varieties. Of those farmers who developed improved swamps, 70 percent still plant upland rice. Traditional agricultural attitudes focussed on survival are difficult to change and will constrain acceptance of new tech- nologies until the new intervention proves as reliable as traditional methods.  - 26 - Additionally, because the farmer is subsistence oriented, he is not motivated to adopt new high production system intended to promote cash cropping of rice. (vii) Inadequate Infrastructure 100. The lack of rural roads is the most constraining infrastructure defi- ciency. It impacts directly on the production of marketable crops in terms of accessibility to market and the transport of production inputs, i.e., seed, fertilizer, etc., to the farm. While in a shifting agriculture it is imposs- ible to reach every farm, the construction of roads throughout a rural area will reduce the transport constraints even for farms located away from the roads. The Agricultural Development Projects are addressing these issues through a substantial road building component. Obviously, rural roads inter-- act with extension activities in addition to commodity transport. 101. The power tiller is widely used in paddy preparation in Asia. In- deed, because of scarce labor, it could have applicability to improved swamps in Liberia. While its use is constrained by costs, inadequate maintenance facilities, and cultural attitudes, the lack of roads mus-t also be considered a major constraint to its adoption. Those who have used power tiller such as the Kubota or Yanmar know that their movement across rough or unleveled land, even though they are self-powered, is extremely difficult. In the absence of roads, this intervention would be difficult to extend. 102. The constraint of inadequate roads was mentioned in relation to the cassava-feed industry. It applies equally to any farm based industry which requires bulking and hauling from farm to plant. It will also constrain the use of "outgrowers" in the IFAD Smallholders Rice Seed Project since periodic field inspection as well as transport of seed to the proposed plant will be difficult. 103. The constraints of credit, markets and cooperatives are addressed elsewhere. (viii) Labor Availability 1/ 104. Farm labor is in short supply. Heavy migration to urban areas and employment opportunities in the rubber, mining, forestry, and service sectors has slowed the growth of farm communities that grow rice. The growth rate of the overall population is nearly twice the growth rate of the rural popula- tion. Those left in farm communities are mostly the old or the very young, and their task is as difficult as ever. Farm labor productivity has not in- creased. It takes most upland rice farmers about 1,700 hours of labor to produce a ton of rice; this is more than four times the labor required in Thailand. 105. Rice is still largely a subsistence crop. Little domestically pro- duced rice is marketed and the supply of imported rice in rural markets is erratic. Few farmrs are prepared to rely solely on the market for their 1/ See Annex 1 for a labor utilization profile.  - 27 - consumption requirements. Although labor intensive, upland farming meets the subsistence needs of the farm family while reducing the risk of crop or market failures. But because of low labor productivity, it takes nearly all avail- able family labor to produce the required rice supplies. 106. For the Bank-supported projects the focus on swamp rice has created conflicts with the traditional allocation of labor. In particular, few farmers have totally abandoned upland rice in favor of swamp rice cultiva- tion. Instead they continue with upland cultivation while attempting to develop the swamps. But because the upland remains the priority, the swamps are often left untended at crucial times. T'he varieties recommended for use in the swamps are very responsive to proper management. The time conflict with upland rice makes good management of the swamps extremely difficult and yields are adversely affected. I. Recommendations (i) Research 107. The important constraints on CARI are the lack of autonomy and in- sufficient budget since these factors influence every research activity. It is important that the original Government agreement to place all program bud- gets and personnel at CARI under the Director and Research Council, and give Director of CARI the budgetary authority to expend funds for the research program in a timely and propitious manner (para. 85) is adhered to. Decisions on personnel, budgets, expenditures, etc., must be supportive of the estab- lished research programs and goals. Within the limits of the agreed budgets it is research which is best able to determine program needs and priorities. 108. CARI's research potential never developed because adequate funding, personnel, or motivation were not available. While the staff is critically short of trained professionals, it is over-staffed with unskilled field workers. At least one-third of the non-professional labor is superfluous. With the urgent need for research, it makes no sense to waste limited research funds on personnel who cannot contribute to research. It is strongly recom- mended that only essential personnel be retained and the saving be used in support of research needs. 109. Presently, several CARI staff members are pursuing graduate degrees at Louisiana State University. To facilitate a more rapid development of Liberian research, these students, on completion of their course work and pre- liminary examinations, should return to CARI to complete their thesis research requirements. The five or more LSU faculty members at CARI are sufficient to guide research and satisfy graduate school committee requirements; thus final oral examinations and degree could be given in Liberia. Other benefits in- clude saving project funds due to their early departure from the U.S., and assurance that they will return to CARI. This policy has been implemented in many other USAID funded research projects. 110. Promotion of the improved swamp rice technology is viewed as a long- term endeavor. The constraints to its acceptance are social as well as tech- nical and must be identified. CARI research presently adresses only the  - 28 - production problems. While the ADP Monitoring and Evaluation units have assessed some of the attitudinal and cultural constraints, this area of in- vestigation needs strengthening. Thus it is recommended that either CARI or the ADPs employ an anthropoligist or rural sociologist to identify the social constraints and help devise extension techniques or modify technologies to overcome the attitudinal constraints. Ill. A framework for strengthening research has already been established through the USAID assisted "Liberia Agricultural Research and Extension Project". With AID's assistance, there are priority areas on which CARI should focus their research and support for food production programs. These priority areas are: (a) Improved Swamp Technology: Since improved swamps offer the greatest long-term potential for increasing rice production, it is important that a technically sound and socially acceptable package be devel- oped. The research package should include all technical aspects from varietal selection to harvesting procedures. Special emphasis should be placed on double cropping and the development of labor saving techniques. (b) Upland Rice Varietal Selection: Upland varietal testing and selec- tion should be intensified, as a protective measure, to genetically diversify the rice varieties and to provide varietal recommendations suitable to the different regional environments. (c) Breeder and Foundation Seed: With assistance from WARDA, increased quantities of breeder seed of recommended varieties should be pro- vided so that increased quantities of quality foundation seed can be provided to IFAD, MOA and other possible producers. (d) Upland Rice Fertility Trials: Economic fertilizer recommendations for recommended varieties in various ecological zones should be de- veloped through both experimental plots and on-farm trials. Because of the sandy soils and their low nutrient holding capacity, slow release fertilizer should be evaluated. In areas where deficiencies have been observed, the yield response in Mg and S should be evalu- ated. (e) Upland Farming System: Rotational systems and technologies using rice, cassava, groundnuts, pigeon peas, etc., shcould be devised to extend the cultivation period and reduce the fallow period without incurring site degradation. (f) Improved Swamps Farming Systems: Farming systems suited to the rotation of vegetables and legumes with single or double rice crops should be evolved. (g) Vegetables: High yielding vegetable varieties adaptable to Liberia's environment and compatible with local food preferences should be selected. For a source of varieties and breeder's seed, linkages should be established with the Asian Vegetable Research Center in Taiwan.  - 29 - (h) Swamp Mechanization and Appropriate Technology: In support of the improved swamp technology, appropriate equipment and procedures to decrease the labor requirement should be developed and tested. Emphasis should be on leveling weeding, harvesting and threshing. (i) Cassava: 'High yielding cassava varieties should be released and plant materials should be increased through tissue culture techniques. The varietal testing program should be continued. (j) Cassava-Feed: A cassava-feed industry feasibility study, including production, processing and marketing should be undertaken. (k) Extension: Formal linkages with both the national and project ex- tension services should be developed. The linkages should include regularly scheduled meetings for cooperative planning and information transfer and discussions of research needs. Field days should be organized both for extension personnel and farmers. (ii) Extension 112. National Extension Service. Increased crop production can only be achieved and sustained through the effective delivery of appropriate technical packages and supporting inputs. The delivery/feedback role of extension requires field transport to maintain farmer contact. Other developing coun- tries, faced with similar transport constraints, have allowed tax free, inter- est free, credit purchases of small Japanese motorcycles (100 cc) by field extension personnel for use as a personal and official vehicle. An adequate allowance is given for depreciation, maintenance, and gasoline. A similar plan should be considered in Liberia. By whatever method, resource must be found to provide adequate field transport. 113. An effective extension agent must be knowledgeable. While attempts have been made to recruit agriculturally trained prsonnel at the B.S. level, the available supply is minimal; most agents are trained at the diploma level. The inactivity of the extension service has not contributed to the development of required skills. The present interim period, while research is developing extendable packages, is appropriate for intensive in-house retrain- ing. With present emphasis on increased rice production, in-house training should include seed multiplication, post-harvest technology, rice production technology, extension techniques, etc. Such retraining could be held at the Bong County Agricultural Development Project training facility where classroom and dormitories are available and in-the-field training could be provided. WARDA should be requested to assist in course design and presentation. 114. Linkages should immediately be established with research. Meetings should be periodically shceduled between CART, the ADPs, and the National Extension Service to review the status of research progress and findings and the needs of farmers. Decisions should be made as to where and how approved research recommendations will be extended and assignments made to each organi- zation concerning their contribution in the extension procedure. CARI's contribution to the extension procedure would be through participation in radio programs, field days, discussion meetings, etc. At each subsequent  - 30 - meeting a review should be held on the progress and problems in implementing the previous extension assignments. 115. Through personal contact, demonstrations and extension radio pro- grams, a "seed awareness" program should be initiated to inform farmers of the potential yield increase through the use of high quality improved seed and sources of seed. 116. Agricultural Development Project Extension. The ADP extension or- ganizations are dynamic groups which maintain excellent contact with project farmers. While the correctness of their technical message may, in some instances, be questioned, this is the fault of research. For research to address the problems and appropriateness of various proposed technological packages immediate formal linkages must be established with research. 117. In discussions with project extension personnel, it was difficult to get a clear picture of the project status. Questions concerning past yields, fertilizer applications, field sizes, etc., could not be easily answered. Computer techniques could provide a method for rapid retrieval of project data. Extension aides can categorize in computer compatible code, farmer concerns and problems expressed at the fortnightly village level meetings, field data such as yield, area planted, dates, fertilizer treatments, etc. The Monitoring and Evaluation Sections must be strengthenedi so that they can present, on request, a current, clear, and accurate review of the project status. (iii) Rice Seed Production 118. Because rice produced on the upland is nine times that of swamp rice, national improved production programs should initially focus on the upland areas. Crop cuttings in both Bong and Lofa County have established that up- land rice yields can be increased 25 percent by the input of Lac-23 seed only. Since the seed intervention causes little disruption of the traditional bush- fallow system, significant production increases could be achieved in the up- lands. As indicated above, the primary upland constraint to increased produc- tion is seed availability. Even at peak production the Smallholders Rice Seed Project can only support 50,000 ha. Therefore, the proposed processing plant should be of modular design to allow expansion of processing capacity to meet program needs should the demand develop. 119. Alternative improved upland rice seed sources could also be developed if a decision is made to immediately initiate a national rice production pro- gram. The Crop Multiplication Division of the MOA could produce improved seed as an outgrower to the IFAD project. Additional possible sources include the county extension services using local contracted outgrowers. This system is presently used by both Lofa and Bong County Agricultural Development Projects to produce a combined total of approximately 200 m.t./yr. Field inspection would be by MOA and extension personnel. Processing would include drying and field cleaning only using portable "clipper cleaners'. Seed germination should be monitored bi-weekly to ensure a minimum 80 percent germination. This seed should be directly descended from the sequential production of breeder's seed, basic seed, and Certified I seed or its equivalent.  - 31 -. 120. A necessary component of a seed program is distribution. The IFAD seed project will sell to the projects directly and distribute the remaining seed in other countries through 10 small stores. Distribution of other produced seed would be a function of the Ministry of Agriculture and County Extension. Aside from the proposed IFAD system and ADPs, no distribution system exists. Seed distribution not only requires storage facilities but also a transport system which can assure delivery and availability at each terminal in time for farmers need. Thus, the Ministry of Agriculture and County extension personnel need to immediately make plans for production and distribution facilities for those areas not covered by the IFAD project. Seed should be available to farmers either through a direct sales or seed exchange. 121. Seed Production Training. In preparation for a temporary seed pro- duction/distribution role, MOA selected personnel should receive training in seed multiplication principles. Training is available through the West Africa Rice Development Association (WARDA) Training Center in Monrovia. Upon request a special training session could be organized to satisfy all MOA and Extension needs in one training session. (iv) Technology 122. Improved Swamp Rice. The primary constraints can be classified as non-compatibility with traditional methods, labor intensiveness, need for sophisticated management, and, possible inappropriate technical recommenda- tion. Despite its slow acceptance, the inherent yield potential of the im- proved swamp technology (2-3 times that of upland rice) cannot be dismissed. At present 50 to 60 percent of the ADP extension effort is expended in support of improved swamp rice. Rather than continue supporting a non-perfected pack- age at such an intensive extension level, it is recommended that the promotion rate be temporarily restrained to allow a careful reassessment and revision of the extension and technical components and development of a more acceptable total package. 123. Consideration of the present technique reveals a non-economic tech- nology resulting from excessive labor requirements and diminishing yields. Revision in technique should, therefore, seek to increase profitability by decreasing labor and increasing yield. Suggested interventions include pro- motion of sickle harvesting and the treadle or, alternatively, rack thresher and double cropping where possible. Anticipated single and double crop savings are respectively 60 and 113 mandays/ha. It is recognized that sickle harvesting and treadle or rack threshing is contrary to tradition, but hope- fully high profitability will promote its acceptance; these interventions have been adopted elsewhere in West Africa. Nevertheless, it is recommended that a research social scientist (anthropologist or rural sociologist) be assigned to study the social-economic implication of all the improved and traditional rice technologies for the purpose of devising improved extension techniques and particularly an acceptable improved swamp rice technology. 124. Both CARI and WARDA should assist in developing swamp rice fertilizer recommendations for the common soil types.  - 32 - 125. Upland Rice. To increase total rice production, rice programs should initially promote the semi-improved upland technology (adapted high yielding seed only). 126. For better adaption to varying regional environments additional high yielding upland varieties should be introduced into the program. Diversifica- tion of genetic material is also viewed as a protective measure against crop loss. 127. With assistance from CARI, the response of upland varieties to low fertilizer applications should be determined (20-30 kg N/ha; 20-30 kgP205/ha).  - 33 - TABLE A-1. Total Rice Production - 1981 AREA 21.8,000 ha Yield/ha 1,203 kg/ha Production 262,000 m.t. Losses (10%) 26,030 m.t. Seed (60 kg/ha) 1L3,000 m.t. Paddy available for consumption 223,000 m.t. Clean rice available for consumption (67% con- version) 149,000 m.t.  - 34 - TABLE A-2. Rice Production and cultivated areas by counties (1981) COUNTY AREA (ha.)- PRODUCTION (m.t.)- ('000) ('000) Bong 45.1 54.1 Grand Bassa 16.3 19.6 Cape Mount 10.2 1:2.3 Grand Gedeh 16.8 20.2 Lofa 40.8 48.9 Maryland 10.4 12.5 Montserrado 16.5 19.8 Nimba 51.7 62.1 Sinoe 10.0 12.0 1/ Based on average of MOA area percentages for 1974-1975 and 1977-78. 2/ Assumes constant yield of 1.2 m.t./ha.  - 35 - Table A-3: LIBERIA - RICE AVAILABILITY AND CONSUMPTION (1000 mt) milled equivalents Year Production Seed and Imports Net Consumption Losses Availability Per Capita (kg) 1970 127 19 49 168 125 1971 134 19 54 176 127 1972 141 19 42 166 116 1973 151 19 46 170 116 1974 166 20 35 168 112 1975 153 21 31 176 114 1976 161 20 38 179 113 1977 168 21 56 203 125 1978 161 20 61 202 121 1979 171 22 74 223 130 1980 144 19 87 212 120 1981 168 21 95 242 132  - 36 - Table A-4:LIBERIA - VOLUME AND VALUE OF RICE IMFPORTS COMPARED WITH VALUE OF EXPORTS Year Quantity Value Value of Rice Imports Exports as % of Exports ('000 mt) (mil $) (mil $) 1965 32 6.3 135.4 4.7 1966 46 7.5 150.5 5.0 1967 34 6.6 158.8 4.2 1968 45 8.7 199.4 4.4 1969 27 5.2 232.8 2.2 1970 49 9.7 235.9 4.1 1971 54 10.9 246.6 4.4 1972 42 7.6 269.8 2.8 1973 46 12.3 324.0 3.8 1974 35 15.8 400.0 4.0 1975 31 13.6 394.4 3.5 1976 38 12.9 457.1 2.8 1977 56 19.8 447.4 4.4 1978 61 22.9 486.4 4.7 1979 74 26.0 536.6 4.9 1980 87 34.4 600.4 5.7 1981 95 44.6 529.2 8.4  - 37 - Table A-5: LIBERIA - RURAL AND URBAN POPULATION"- (1970-:L990) o00( Year Urban Rural Total 1970 324 996 1,320 1971 351 1,013 1,364 1972 379 1,030 1,409 1973 407 1,048 1,455 1974 438 1,065 1,503 1975 469 1,084 1,553 1976 502 1,102 1,604 1977 536 1,121 1,657 1978 572 1,140 1,712 1979 609 1,159 1,768 1980 647 1,179 1,826 1981 688 1,199 1,887 1982 730 1,219 1,949 1983 773 1,240 2,013 1984 819 1,261 2,080 1985 865 1,283 2,148 1986 915 1,304 2,219 1987 965 1,327 2,292 1988 1,019 1,349 2,368 1989 1,074 1,372 2,446 1990 1,132 1,395 2,527 1/ Mission estimates based on 1974 census and assumed growth rate of 1.7% rural and 3.3% overall.  - 38 - Table A-6: LIBERIA - DEMAND PROJECTIONS FOR. RICE Year Population Consumption Incremental Total Requirements 1/ Demand Due To Demand Income Growth ('000) ('000 metric tons) 1982 1,949 244 1 245 1983 2,013 252 1 253 1984 2,080 260 1 261 1985 2,148 268 1 269 1986 2,219 277 1 278 1987 2,292 287 1 288 1988 2,368 296 1 297 1989 2,446 306 1 307 1990 2,527 316 1 317 2000 3,496 437 2 439 1/ Based on average per capita consumption of 125 kg.  - 39 - Table A-7: LIBERIA - PROJECTED RICE IMPORT REQUIREMENTS Year Estimated Domestic Seed & Net Domestic Total Import Production Levels Losses Availability Demand Requirements 1982 180 22 158 245 87 1983 182 23 159 253 94 1984 186 23 163 261 98 1985 189 24 165 269 104 1986 192 24 168 278 110 1987 196 25 171 288 117 1988 199 25 174 297 123 1989 202 26 176 307 131 1990 206 26 180 317 137 2000 244 33 211 439 228  TABLE A-8: Description of upland rice cultivation activities Activity Description Land clearing (a) Brushing Cut brush and small trees (Jan.-Feb.); must be left to dry. (b) Tree felling Trees felled with hand axes. (c) Burning and clearing Brush and trees burned (March-May) prior to heavy rains. Stumps remain in field; branches gathered and saved for fencing material. Burning returns plants nutrients (potassium and phosphorus). Planting (sowing and Broadcast seed after light rains begin (May-June). Follow by light scratching) hand hoeing (scratching). As a control practice some farmers delay broadcasting until after weeds emerge; scratching kills weeds. Crop stand protects site against erosion. Weeding Hand weeding usually begins 6-8 weeks following planting. Only one weeding usually required since long fallow and burning suppress weeds. Pest control (bird Bird watching required 2 weeks following germination and 4 weeks watching and fencing) before harvest. Usually performed by children from elevated platform. Most severe damage to early and late maturing varieties. Following early bird watching fence,are built around fields to prevent rodent damage. Harvesting Panicles harvested (Oct-Dec) with small knives and tied in bunches for storage in rice kitchens. Harvest period is long because heads mature at varying times. Ratooning is reported but no estimate of ratoon yield available. Threshing Panicles threshed just prior to use. Threshing is either by flailing or drawing panicles through the feet.  I/ TABLE A-9: TIMING OF UPLAND RICE MAJOR CROPPING ACTIVITIES FOR VARIOUS COUNTIES' COUNTY BRUSHING BURNING CLEARING PLANTING HARVESTING BONG JAN.-FEB. APRIL-MAY MAY JUNE-JULY OCT.-DEC. GRAND BASSA JAN.-MARCH APRIL-MAY MAY MAY-JULY OCT.-DEC. CAPE MOUNT JAN.-FEB. MARCH APRIL MAY-JUNE SEPT.-NOV. LOFA JAN.-FEB. MARCH MAY MAY-JUNE SEPT.-DEC. MONTSERRADO JAN.-FEB. MARCH-APRIL APRIL MAY-JUNE OCT.-DEC. NIMBA JAN.-FEB. MARCH-APRIL MAY JUNE OCT.-DEC. GRAND GEDEH DEC.-JAN. MARCH APRIL APRIL-MAY JULY-SEPT. MARYLAND DEC.-JAN. MARCH MARCH APRIL JULY-OCT. SINOE NOV.-JAN. JAN.-FEB. FEB-MARCH FEB-MARCH JUNE-JULY 1/ Jeanette Carter; Profile of Liberian Women and the Development Project. 1981  - 42 - Table A-10: Characteristic of LAC 23 I/ Place of Origin: Liberia: Ecological Adaptability: Upland Parentage: local selection Life Cycle (sowing to maturity): 133 days Photoperiod Sensitivity: non-sensitive Plant Characters: Plant height: 138 cm Plant type: tall, erect Tillering ability: poor Lodging: lodges at higher fertility level Leaf type: long, semi-droopy, broad leaves Fertilizer response: poor Growth: quick growing at early stage Grain Characters: Length: 9.5 mm Width: 3.7 mm 1,000 Grain weight: 34.7 gr. Colour: moderately resistant Awn: awnless to ip awn Dormancy: 3-4 weeks Milled rice: red grain, coarse type Yield Potential: 2-2.5 t/ha Resistance: Blast (Pyricularia): moderately resistant Leaf Scald (Rynchosporium): moderately susceptible Stemborers: susceptible Remarks: Moderately tolerant to drought. LAC 23 is also grown in valley swamps with little or no standing water. Tolerant to iron- toxicity at swamps. 1/ Rice Varieties Recommended in the WARDA Region. Second Edition, February 1982. West Africa Rice Development Association, Monrovia, Liberia.  TABLE A-li: Description of traditional swamp activities Activity Description Land clearing (a) Brushing Handcut brush and small trees and leave to dry (Jan March) (b) Treefelling Tree hand cut first year. Stumps are not removed. (c) Burning Burn brush and trees before swamp is saturated or flooded. If previously cultivated,grasses are cut and pulled from swamp in July after upland planted. Planting (Sowing Pregerminated seed broadcast when swamp is saturated (July-Aug.) and scratching) Hand hoeing frequently omitted. Transplanting occasionally practiced in flooded_swamips. Traditional varieties and Lac-23 planted. Weeding Weeds frequently severe where swamp not flooded. Handweed- as required. Pest Control If not flooded, bird watching required during 2 weeks following (birdwatching sowing. Also required 4 weeks prior to harvest. Fencing against - and fencing) rodents usually not practiced. Harvesting Panicles harvested with small knives (Dec-Jan). Extended harvesting period because panicles from traditional varieties mature at varying times. Threshing Panicles threshed just prior to use. Threshing is by flailing or drawing panicles through the feet.  TABLE A-12 Description of improved swamp development and cultivation activities, Activity Description -Development- Land Preparation Cut brush and trees by hand; burn and clear. Remove all stumps and roots by digging. Bund and canal Build main drain, floodway bunds, head and tail dikes, peripheral bunds and canals, construction and return bund and canals according to engineers design. ADPs have prepared designs for smaller swamps. Construction is by hand. Construct paddies bunds; swamp should be divided into 20m x 20m bunds for convenient leveling. Cut and install hollow bamboo sections into each paddy bund for water control. Inlets and outlets are required for each paddy. Level paddies and Flood paddies and level by hand digging.. Puddle soil by continuous hand working puddle soils while wet. Soils are puddled to facilitate transplanting and impede infiltration. -Recurrent Activities- Repair bunds Repair all breaks in paddy bunds, irrigation and drainage canal bank so they can and canals hold water Brush bunds and Clean all brush from bunds to prevent leakage. Clean sediments and weeds from clean canals canals to allow free flow and prevent over-topping. Seed nursery Prepare seed nursery equal to 1/20 area to be planted. Broadcast good quality seed at heavy rate (50 kg/ha of transplanted area) and cover with thin layer of soil. Lightly fertilize with 15-15-15 or equivalent (5-10 grams/m2). Keep saturated. Remove seedlings at 16-21 days for transplanting. Leveling and Flood paddies and by hand digging level and puddle soil Remove all high spot to puddling prevent weed growth. Soils must be well puddled to impede infiltration so water can be retained in paddy for weed control. Planting Transplant 16-21 day seedlings in rows with plant spacings 20 cm x 20 cm. Plant two seedlings per hill. (Despite recommendations most farmers still broadcast). Row planting facilitates later weeding.  Table A--12 cont'd Fertilizer Apply TSP and potassium sulfate at recommended rates 2 days before transplanting. Application Incorporate into soil by trampling. Irrigate. Broadcast nitrogen fertilizer at recommended rates 10 days after transplanting onto drained paddy. Irrigate two days later. Broadcast nitrogen and potassium fertilizers at recommended rates at panicle initiation. Irrigate 2 days after application. Irrigation Maintain water level in paddies at 5-cm. Drain water prior to each fertilizer application; irrigate 2 days after application. Drain water at least one week prior to harvest. Weeding Maintain 5 cm water depth for weed control. Hand weed as necessary. Pest control Broadcast 10 kg/ha of 10% granular dia inon at first sign of caseworm or stemborer infestation. Maintain flowing water in peripheral canals to keep out rodents. Cut vegetation in bond 10 meters wide around swamp. Birdscaring during 4 week period prior to harvest. Keep birdwatchers 4 weeks before harvest. Harvesting Recommend sickle harvest cutting stalks at ground level. However most farmers still harvest panicles and tie into bundles for storage. Threshing Treadle or rack threshing recommended but must thresh as needed by flailing or pulling panicles between feet.  - 46 - TABLE A-13:Characteristics of IR 5 (also FARO 23) 1/ Place of Origin:- IRRI (Phillippines): Ecological Adaptability:- Irrigated and irtland valley swamp Parentage:- Peta/Tangkai Rotan Life Cycle (sowing to maturity):- 140 days in wet season 135 days in dry season Photoperiod Sensitivity:- weakly sensitive Plant Characters: Plant height:- 105 cm Plant type:- erect, stiff Tillering ability:- good Lodging:- resistant Leaf type:- long, medium broad, semi-droopy flag leaf Fertilizer response:- very good Growth:- slow growing Grain Characters: Length:- 8.6 mm Width:- 3.1 mm 1,000 Grain weight:- 28 gr. Colour:- straw Shattering:- resistant Awn:- awnless to short awn Dormancy:- 6 weeks Milled rice:- white medium grain occassionally with white belly Yield Potential: 5 - 6 t/ha, higher yields can be obtained under better management. Resistance: Blast (Pyricularia): moderately susceptible Stemborers:- susceptible Remarks:- panicle excertion is severely affected by cold, has some drought tolerance, susceptible to all problem soils, droopy panicles, protein content of brown rice 9.3% amylose content 25.9%. 1/ Rice Varieties Recommended in the WARDA Region, Second Edition, February 1982, West Africa Rice Development Association, Monrovia, Liberia.  - 47 - TABLE A-14:Characteristics of SUAKOKO 8 (also 2526) 1/ Pla,ze of Origin:- Malaysia: Ecological Adaptability:- Irrigated and inland swamp. Percentage:- Siam 25/Malinja3 Life Cycle (sowing to maturity):- 140 days Photoperiod Sensitivity:- non-sensitive Plant Characters: Plant height:- 125 cm Plant type:- semi-tall, erect Tillering ability:- good Lodging:- may lodge at maturity Leaf type:- long, erect, narrow Fertilizer response:- good Growth:- quick seedling growth Grain Characters: Length:- 9.6 mm Width:- 2.9 mm 1,000 Grain weight:- 25.8 gr. Colour:- light brown, blackish brown before maturity Shattering:- resistant Awn:- awnless Dormancy:- 4 weels Milled rice:- medium long, slender grain, light brown coat Yield Potential:- 4.5 - 5.5 t/ha Resistance: Blast (Pyricularis):- susceptible to leaf blast, moderately susceptible to neck blast. Leaf Scald (Rynchosporium):- moderately susceptible. Stemborers:- susceptible Remarks:- 66.2% milling return, tolerant to iron-toxicity, resistant to sheath rot and glume discolouration; good variety for peasant farmers in the coastal zone. 1/ Rice Varieties Recommended in the WARDA Region, Second Edition, February 1982, West Africa Rice Development Association, Monrovia, Liberia.  - 48 - Table A-15: IMPORT PRICE OF RICE May 1982 Per Bag Metric Ton FOB Gulf 15.71 351.90 Freight 3.34 74.82 Insurance 0.38 8.53 CIF Monrovia 19.4:3 435.23 Landing Cost 0.2'3 6.52 Port Charges 0.293 6.52 Consular Fees 0.29 6.52 Import Duty 0.50 11.20 Stevedoring 0.25 5.60 Port Administration 0.15 3.35 Warehousing and Handling 0.19 4.25 Freeport Distributor's Margin 0.35 7.84 Wholesaler's Margin 0.60 13.40 Cost of Operation 0.25 5.60 Miscellaneous 0.1'3 2.90 22.72 508.93 Rice Stabilization Fund 1.28 28.67 Value at Monrovia 24.00 537.60  l/ Table A-16 LIBERIA: Summary Results of Financial and Economic Analysis for Rice - Monrovia Delivery - Technique Yield Returns to Labor Net Social DRC (Kg/ha) ($/Manday) Profitability ($/ Metric Ton) Traditional Upland 1220 1.92 - 307 1.67 Seed Exchange 1517 2.32 - 235 1.52 Traditional Swamp 1595 2.52 - 197 1.43 Project Swamp 2225 2.43 - 326 1.75 Improved Swamp 3000 3.54 - 183 1.43 Improved Swamp 3000 4.91 - 125 1.30 with Sickle harvest and pedal threshing Advanced Swamp 5500 4.29 - 116 1.27 Advanced Swamp 5500 8.60 11 0.97 with Sickle harvest and pedal threshing 1/ At the official exchange rate.  - 50 - Table A-17: LIBERIA - FINANCIAL AND ECONOMIC PRICE OF RICE - Farmgate - ($/mt) 2/ 3/ Financial Economic Economic - FOB Gulf 351.90 351.90 351.90 CIF, Monrovia 435.23 1/ 435.23 522.28 Port Costs 34.74 34.74 34-74 Distributors Margins 21.24 21.24 21.24 Duties and Taxes 46.39 - _- Landed Cost 537.60 491.21 578.26 Value at Monrovia 537.60 491.21 578.26 Transport From Monrovia to Ganta 33.00 27.06 27.06 Local Distribution and Storage Costs 34.35 31.68 31.68 Value of Metric Ton Milled Rice, Farmgate 604.95 549.95 637.00 1/ Actual May 1982 c.i.f. price. Since then world prices of rice have declined steadily. However, the price above has been used for the economic analysis since it corresponds to the projected 1990 price (EPD) of Thai. rice, 5% broken, FOB Bangkok ($425 in 1981 constant dollars) adjusted downwards; for 35% broken (which is imported into Liberia) and adding freight and insurance costs. 2/ At the official exchange rate. 3/ With an adjusted exchange rate of $1.20.  - 51 - Table A-18: LIBERIA - FINANCIAL AND ECONOMIC PRICE OF RICE - Monrovia Delivery - (US$/irt) 1/ Financial Economic FOB Gulf 351.90 351.90 CIF, Monrovia 435.23 435.23 Port Costs 34.74 34.74 Distributors Margins 21.24 21.24 Duties and Taxes 46.39 - Landed Cost 537.60 491.21 Value at Monrovia 537.60 491.21 1/ At the official exchange rate.  - 52 - 1 / Table A-19:LIBERIA - FINANCIAL AND ECONOMIC PRICE OF FERTILIZER May, 1982 ($/mt) UREA TSP FOB 170.00 155.00 CIF, Monrovia 253.33 238.33 Port Costs 34.74 34.74 Distributor's Margins 71.02 59.58 Duties and Taxes Landed Cost 360.09 332.65 Farmgate Value at Monrovia 360.09 332.65 Transport to Ganta 33.00 33.00 Local Collection and Storage Costs 34.35 34.35 Farmgate Price 427.44 400.00 1/ At the official exchange rate.  - 53 - TABLE A-20 Labor requirements for upland rice cropping activities Activity Traditional Semi-improved Improved (Seed Exchangle) Land clearing-/ 60 60 64 Scratching 2/ 30 30 30 and sowing Fertilizer - - I Weeding 31 31 32 Pest control-3/ 43 43 43 Harvesting 41 50 42 Threshing 27 32 30 Hauling 4 5 4 TOTAL 236 251 246!/ 1/ Land clearing includes brushing, felling trees, burning, and clearing 2/ Sowing and scratching are usually done at the same time to cover the seed and protect them from birds and rodents 3/ Pest control includes both bird watching and fencing 4/ Decreased total reflects yield suppression due to excessive fertility recommendations  - 54 - Table A-21:FARM BUDGET - UPLAND RICE (1.0 hectare) Physical Unit Traditional Seed Exchange Outputl/ kg 1220 1517 (Yield of Paddy) Inputs: 2/ Labor-' mandays 236 251 Land Preparation 60 60 Planting 30 30 Weeding 31 31 Pest Control 43 43 Harvesting 41 50 Threshing 27 32 Transport 4 5 3I Seedz' kg 53 60 Fertilizer-/ kg Tools na Financial ------------------ US $ ------------ -- Value of Padd 5/ $0.4032/kg 492 612 Expenditures: Seed $ 0.4032/kg local 21 27 $ 0.45/kg improved Fertilizer - - Tools-/ 16 16 Hired Labor 2.00/manday 46 88 Total Expenditures 83 131 Net Return per Hectare 408 481 Net Return to Family Labor (per manday) $1.92 2.32  - 55 - Footnotes to Table A-21 1/ Yield estimates are based on data from crop cut surveys undertaken by the Monitoring and Evaluation Units of BCADP and LCADP. Four hundred seventy four samplescovering the period 1978-81 were collected for traditional techniques and 349 samples covering the same period were collected for seed exchange. 2/ Labor inputs were estimated on the basis of work by Monke and surveys of farmers in BCADP and LCADP. Most labor is supplied by the family or through labor sharing practices known locally as "KUU". A survey in Lofa indicated that hired labor accounts for about 10 percent of total requirements for traditional uplands and 18 percent for seed exchange farms. 3/ Seeding rates are based on LCADP survey data. 4/ Fertilizer is not included in the current seed exchange package. 5/ Production is valued at LPMC's official buying price for paddy. 6/ Tools costs are the same for both techniques. They were estimated using an interest rate of ten percent and the following assumptions: Tool Number Per Service Life Cost Per Capital Charge Farm (years) Unit per Farm Axe 2 5 7.20 3.80 Hoe 2 3 3.75 3.02 Knife 2 2 0.50 0.58 Cutlass 3 :2 4.75 8.21 Total Capital Charge = 15.61 = 16.00  - 56 - TABLE A-22 Labor requirements for swamp rice preparation Improved Traditional Activity 1st Year Other Years Double Crop Land preparation- 137 47 -- 47 Bund and Canal 87 -- -- Construction Bund and Canal -- 4 1 repair Leveling and puddling 41 16 4 Brushing bunds 6 2 2 Cleaning canals 6 4 4 Irrigation 3 3 3 Fertilizer 2 2 2 Application Transplanting 2/ 40 39 39 Broadcasting -/ (5) (5) (5) 2U Weeding 35 30 30 44 Pest control 4/ 34 34 40 34 Harvesting 69 80 62 59 Threshing 50 50 45 40 Hauling 7 7 6 6 TOTAL 521 318 238 250 1/ Land preparation includes brushing, felling trees and digging stumps. 2/ Transplanting also includes the seedling nursery. 3/ Bracketted broadcasting estimates are not included in total. Its listing is in recognition that many farmers broadcast in improved swamps. 4/ Pest control includes both bird watching and fencing for rodent control.  Table A-23:FARM BUDGET - SWAMP RICE (1.0 hectare) Physical Unit Traditional Project a/ Improved b/ Advanced c/ Output 1/ kg/paddy 1595 2225 3000 5500 Inputs: Labor 2/ mandays 250 301 318 565 Land Preparation 3/ 47 47 47 47 Maintenance and Levelling - 25 25 36 Planting/Fertilizing 4/ 20 41 41 82 Flooding - 3 3 6 Weeding 44 30 30 60 Pest Control 34 34 34 74 Harvesting 59 69 80 150 Threshing 40 45 50 95 Transport 6 7 8 15 Seed kg 50 50 50 100 Fertilizer TSP 5/ - 56 100 175 UREA 54 100 175 Pesticides 6/ Tools NA Financial -----------------------------------------US$------------------------------ Value of Paddy $0.4032 642 897 1210 2218 Expenditures: Seed $0.4032/kg local 20 22 $0.4500 kg improved 22 45 Fertilizer TSP 0.3300 kg - 18 33 58 UREA 0.3080 kg - 17 31 54 Pestic.ides Tools 7/ 16 20 20 30 Hired Labor 8/ 2.00/manday 150 180 190 452 Development Costs 9/ 16 126 126 126 Total Costs 202 383 422 765 Net Returns Per Hectare 440 514 788 1453 Net Returns Per Manday of Family Labor 2.52 2.43 3.54 4.29 a/ Actual average yield in Lofa and Bong Projects based on monitoring and evaluation data. b/ Based on obtainable yields with reasonably complete adoption of recommended technology, single cropping. c/ Same as b/but with double cropping.  - 58 - Footnotes to Table A-23 1/ Yield figures for the traditional and improved techniques based on crop cut samples in Bong and Lofa counties. For the period 1978-81, 184 samples were used for traditional swamp estimates. 2/ Labor coefficients based on work by Monke as well as LCGDP and BCADP surveys. 3/ Land preparation includes brushing and clearing of annual weed growth. Heavy clearing is done only once and is included in development costs. Preparation of improved swamps also includes maintenance of bunds, dikes and canals. 4/ In traditional swamp seed is pregerminated and broadcast with some soil turning. In improved swamps, nurseries are established and the seed transplanted three weeks after germination. Some row planting is undertaken. 5/ Fertilizer use in the improved techniques based on surveys of actual use in LCADP and BCADP. 6/ There has been virtually no use of pesticides in project: swamps. 7/ Tool charge for traditional swamps is the same as for upland rice. The charge for improved swamps provide for four shovels at $3.75 a piece, with a five year life for an additional annual charge of $4.00. The charge for advanced swamp takes heavier use associated with double cropping. 8/ A Lofa survey indicates that approximately 30% of all labor (exclusive of threshing) is hired for both traditional and improved swamps. It is assumed that 40% of the labor for the advanced technique will be hired. 9/ Development costs for the traditional swamp includes 40 mandays of heavy brushing and clearing. For the 'improved' and advanced techniques, farmers must also stump the swamp for a total of 70 mandays of clearing and brushing. For improved swamps contract labor at $600 a hectare to level the fields, dig the canals and raise the bunds. Development costs are annualized at 10% over a ten year period.  - 5 9 - Table A-24: FARM BUDGET - SWAMP RICE IMPROVED HARVESTING AND THRESHING TECHNIQUES (1.0 ha) Physical Unit Improved - Advanced 2/ Output kg 3000 5500 Inputs: Labor mandays 231 310 Land Preparation 47 47 Maintenance and Levelling 25 36 Planting and Fertilizer 41 82 Flooding 3 6 Weeding 30 60 Pest Control 34 74 Harvesting 28 52 Threshing 15 28 Transport 8 15 Seed kg 50 100 Fertilizer TSP 100 175 UREA 100 175 Pesticides Tools Financial TSP Value of Paddy $0.4032 1210 2218 Expenditures: Seed 0.4032/kg local 0.4500 kg improved 22 45 Fertilizer TSP $0).33 kg 33 58 Urea $0.31 kg 31 54 Pesticides Tools 3/ 23 33 Pedal Thresher 4/ 41 55 Hired Labor $2.00/manday 138 248 Development Costs 126 126 Total Costs 414 619 Net Returns Per Hectare 796 1599 Net Returns Per Manday of Family Labor 4.91 8.60 1/ Single cropping. 2/ Double cropping. 3/ Tool charge for both techniques includes $3.00 for sickles used in sickle harvesting. 4/ Cost $500; 10-year life for improved swamp, 7-year life for advanced swamp; cost includes capital cost, installation, maintenance and repair.  - 60 - Table A-25. PHYSICAL AND FINANCIAL RETURNS TO LABOR Rice Technique Output/manday Private Returns to Family Labor (kg paddy) ($/manday) 1. Traditional Upland 5.17 1.92 2. Improved Upland 6.04 2.32 3. Traditional Swamp 6.38 2.52 4. Project Swamp 7.39 2.43 5. Improved Swamp 9.43 3.54 6. Improved Post-harvest 12.99 4.91 7. Advanced Swamp 9.73 4.29 8. Advanced Post-harvest 17.74 8.60  Table A-26:PRODUCTION COSTS - TRADITIONAL UPLANDS (US$/ha)