Agriculture Development Challenges & Perspectives

1. 1
Armenian Agriculture Development
Challenges and Opportunities
2018-2025
Recommendations for Agriculture and Rural Development to improve the livelihoods and food security of
rural population’s in Armenia trough community livelihoods enhancement.
Yerevan
08 May 2018
Prepared by Dr. Armen Mehrabyan
International Expert on Agriculture Crisis and Rural Agriculture Development
(Chef Technical Adviser and International Expert for UN FAO, UNDP, WB, EBRD projects since 1998
and Special Adviser to the Minister of Agriculture of Moldova 2009-2011 and Adviser to the Minister of
Agriculture of Armenia 2017-2018)
PREFACE
The severity of the situation following the recent political changes, earlier financial crisis and ongoing
climate changes, has shown that the rural livelihoods system in Armenia is not capable of recovering from
such calamities without serious technical, scientific and financial support. This in turn has exacerbated the
already difficult living conditions of the rural population.
Therefore there is a need to design and implement a set of emergency measures to build up the necessary
coping mechanisms, and make more resilient the existing system of agriculture production and rural
livelihoods to prepare better for further economic crisis, extreme weather events and enhance sustainable
agriculture development in Armenia.
Agriculture is a vital development tool for economic development ( by considering share of agriculture
and agro-processing in country GDP) and rural livelihood enhancement that should call to halving the
share of people suffering from extreme poverty in Armenia and support income generation of rural
population by 2025.
By listening to the voices of rural people and assessing the existing situation in agriculture, we may able to
better prepared to reduce the risks of economic uncertainties, mitigate the negative impacted of climate
change, while accelerating progress towards a country without poverty.
There is no universal way for development and specific measures need to be tailored to specific contexts.
Our efforts will be more effective if we recognize rural people as effective custodians of the natural
resource base, and ensure they have access to the agriculture innovation, technology and market, by
financing they need to cope with economic crises and climate change.
Rural people can be part of the solution if they will have secure access to land and water, as well as to
financial resources, agricultural technologies, services and market. They also need effective institutions
and the organizational power and influence required to advocate for their own needs and take advantage of
emerging opportunities.
Rural people can play a key role in those activities, but the newly establishing government and public
policies must put the right incentives in place for this to happen.

2. 2
Looking forward
Addressing these challenges requires measures that should not be limited to the agricultural sector and
should also include alternative sources of income, diversification of productive assets to make available
systems to better adapt and response to the future economic precarious and climate change.
Yesterday was a time for adaptation but for the future, it is very important for Armenia to have a well-
developed and sustainable Strategy for Agriculture Development.
Implementing innovative, market driven and sustainable agricultural practices is more important now
than ever.
For supporting that subject there is a need to prepare a programmic package on Community Livelihoods
Enhancement by using Agriculture for Development tool to make possible to improve agriculture and
rural livelihoods, in the context of food security and food prices crises. Those will increase the resilience
of rural communities to mitigate price fluctuation, climate change and possible economic crises through
community empowerment, rural livelihoods diversification and the promotion of partnerships in
agriculture and rural development.
Attention will be paid to determine measures that increase the capacity of the rural population
(smallholders in particular) to cope with extreme climatic conditions and economic risks. Consideration
given to integrated agriculture management, adapting to climate change, rationalizing agricultural
production, increasing production and levels of disposable incomes, promoting alternative sources of
income and the sustainable use of natural resources.
Many lessons learned from previous year’s, but today it is particularly important to reflect on our exposure
to the possible food prices crisis and global climate change risks by using Sustainable Agriculture for
Development. Therefore, I would like to reiterate our commitment to advocate for and promote measures,
in support of the New Government of Armenia and the rural population, to increase the country’s
capacity to develop agriculture and mitigate natural disasters.
To understand the cause of crisis and importance of agriculture for development in Armenia we need to
understand four basic points:
a) How can Armenia's agriculture sector respond to the current world/ regional demand for
food security?
b) What are the key steps that the government needs to take to ensure it maximizes the
performance of the agricultural sector with minimum effort (minimum effort maximum
result)?
c) What are the main challenges faced by but also the opportunities in the food production and
processing industry in Armenia?
d) What are the main opportunities for Armenian agriculture development in short period of
time?
and based on those build up and develop PRIORITY AREAS FOR AGRICULTURE DEVELOPMET.
1. How can Armenia's agriculture sector respond to the current world/ regional demand for food
security?
• by improvement and diversification of crop variety or species; focusing to value add agriculture
crop production and processing

3. 3
• by development agriculture calendar according to the seasonal changes caused by climate changes;
• new crop varieties that may increase income of rural poor
• increasing the quality and quantity of cattle breeding production, applying biotechnologies in the
zootechnic sector, using non-polluting growth stimulators, active biological and veterinary
substances.
• by improvement of irrigation system and water supply management;
• inputs management (fertilizer, tillage methods, grain drying, other field operations);
• by promotion of agro forestry, adaptive management with suitable species and practices
• policy development and capacity building
2. What are the key steps that the government needs to take to ensure it maximizes the performance
of the agricultural sector?
• identifying present vulnerabilities;
• adjusting agricultural research priorities;
• protecting genetic resources and intellectual property rights;
• strengthening agricultural extension and communication systems;
• adjustment in commodity and trade policy;
• increased training and education;
• reduction of food security risk;
• identification and promotion of (micro-) climatic benefits and environmental services of trees and
forests
• liberalization of agriculture market and prices, enhancing competition in agro production and
processing
3. What are the main challenges faced by but also the opportunities in the food making industry in
Armenia?
The need of the Government of Armenia that are presented in Agriculture Strategy are following:
1.Development of market infrastructures and improvement of forms of economic activity; 2. Increase in
level of physical and economic availability of food, taking the following issues into account: food safety
and minimum level of self-sufficiency of basic food; 3. Food safety system development; 4.
Implementation of land reclamation complex measures; 5. Creation of conditions and legal basis for
Organic Production; 6.Crop production development-application of advanced agro-technologies;
cultivation of crops ensuring high level of added value; development of seed production and breeding,
introduction of operational control mechanisms in seed quality; implementation of plant protection and
quarantine measures; crop genetic diversity, including crop wild relatives conservation; 7. Livestock
production development-support to inter-correlation of livestock sub-sectors and their rational operation;
implementation of pedigree breeding development complex measures; improvement of animal health
sector and increase of efficiency of veterinary activities; development of fodder system; support to
commercial livestock production organizations; ensuring conservation of agricultural animals genetic
diversity; 8.Development of the agro-processing sector - application of progressive technologies; 9.
Improvement of tax and credit systems in the agrarian sector-improved access to agricultural credit
mechanisms; 10.Improvement of research activities and extension services in agrarian sector;
11.Improvement of the agricultural registration system through implementation of agro-census and
development of relevant legislation for the legal status of entities dealing with agriculture and measures
regulating legal relations.
The programs developed in this areas are well grounded, but the objectives and the tasks are impossible
to be achieved, since the real possibilities of the State Budget and capacity to credit of commercial banks

4. 4
providing them with financial resources were not taken into account. Often, actions provided in programs
cannot be carried out because of the insufficiency of organizational activity of institutions in this area, of
state and local state authorities.
To be realistic and feasible it is suggested that nowadays the main objective of Government must be
focused on Community Livelihoods Enhancement by Rural Agriculture Development that will
contribute sustainable economic growth and reduction of vulnerability to economic threats and climate
change by promoting partnerships in rural development. It will also improve the livelihoods and food
security of rural population’s trough:
• Promoting ecological production and implementation of non-polluting GMO free technologies;
• Improving and complete the legal framework according to the International standards (norms
on emissions)
• Using of recyclable energy sources (solar, wind, biogas, natural freeze) as a means to reduce
traditional fuel consumption
• Using of agricultural and processing industry waste
• Promoting value add crop production and processing practices
Hence, to meet above mentioned objectives that will increase food security level and income of rural
population through creation of favorable environment for the entities operating in agricultural sector the
following tasks are essential:
1. Support on reorganization of agriculture industrial enterprises aimed at raising the efficiency of their
activity and attracting foreign and local investments
2. Implementation of quality management systems within enterprises according to ISO 9000 standards.
3. Creation of the legislative basis on promoting innovative centers and parks of technological transfer
aimed at supporting advanced technology production with minimum consumption of energy resources and
non-polluted technologies.
4. Modification of legislation aimed at improving mechanisms for stimulating local and foreign
investments.
5. Improvement of the legislative framework on the transparency of investment mechanisms,
reformulation the land and agro-enterprise privatization and objective information on the activity of
enterprises and equity market.
6. Creation of a national system of integrated monitoring of pollutants, including GHG emissions and
industrial wastes.
7. Improvement of packing industry aimed at natural resources conservation and capitalization of glass,
cardboard, paper, plastic, polyethylene, wood, and other waste products. To establish technical
committees to develop and approve appropriate technical instructions and standard in the field that will
support also development of packing standards.
8. Development of the infrastructure to promote export of industrial products, render informational
services and consultations, preferably in purer technologies.
4. What are the main opportunities for Armenian agriculture development?
- USING MINIMUM EFFORT TO REACHING THE MAXIMUM RESULTS.
Developing countries such as Armenia vulnerable to macroeconomic instability and international market
shocks and remaining dependent on short-term external assistance instead of improving their overall
economic and socio-political stability trough investment in agriculture productive capacity and risk
management.

5. 5
The main opportunity is to enhancing investment in sustainable agriculture and rural development
trough innovations in food and agriculture.
Nowadays, the opportunities to change the situation in agriculture in rural areas advantageous, by
considering that Armenia have unique geographical location witch bridges Europe and Asia, favorable
climatic condition and fertile soil for agriculture development as well as encouraging political positioning
for trade that make available to strengthening collaboration between CIS countries (considering Russian-
led Eurasian Economic Union established since 2015), Free Trade Agreement with its neighboring
Georgia and Iran, Trade and Investment Framework Agreement between the Government of the United
States of America and Comprehensive EU and Armenia Enhanced Partnership Agreement that completed
in February 2017. Those are allows having the valuable technical assistance and support provided by
donor community and EU to adopt new technologies and build the necessary institutions to generate
income. It should mobilize political will to ensure the key decisions on investment and policies.
Armenia should create conditions for a gradual increase of investment in primary agriculture, up and
downstream sectors and rural infrastructure. A key question confronting government, farmers and the
private sector at large is which level and composition of investment will be required to achieve the
production needed to meet future demand. Rural investment climate can be improved trough the
enhancement of institutions, stability and transparency. There is a need to focus government investment or
expenditures on market infrastructure, research and innovation. Public investment has a decisive role in
generating a supply of public goods which is conductive for private investment and for improving
smallholder technology.
By investing in stable all year round crops and vegetable farming programs instigated at the community
level, by developing alternative farming systems that improve productivity and simultaneously protect soil
and water resources, by development of drought resistant perennial aromatic plant community plantation
programs, Armenia may increase income generation of rural stallholders and strengthen food security.
Introducing such methods would enable to build the local capacity of farmers in communities and provide
opportunities to share and increase knowledge of agricultural and high value food production. The
availability of alternative farming methods and systems in communities through farmer field schools and
demonstration plots will help support this initiative across the country.
By increasing competitiveness of the high value-added agricultural production through new technologies,
inovations, modernization, income generation from alternate crop production and market integration
trough nich product positioning is an advantage.
The time to act is now!
To be better prepared to log-term sustainable growth and to ensure that rural population will be able to
produce and have access to adequate food, the new challenges that transcend the traditional decision
making horizons to producers, consumers and policy makers must be addressed to ensure sustainable
agriculture development, use of natural resources, maintaining biodiversity, developing infrastructure for
markets, improving agriculture information and communication system, strengthening research for
technological breakthroughs and disseminating new technologies that will help farmers to produce more
from less land with fewer hands.
In spite of many challenges and risks, the opportunity to ensure long-term food security trough agriculture
for development is following:
1. Motivation –success stories, tangible result and trust based incentives may promote high value
agriculture production that is the future of rural stallholders’ income generation activities.

6. 6
2. Innovations - lack of technological (HV agriproducts, ecofriendly dynamic agriculture, etc.) and
institutional innovations (PPP initiatives, professional association, etc) should be ripen and
challenges of technologies should be reverse this decline. That’s why investment in agriculture
R&D would be one of the productive instruments that may ensure farmers access to new
technologies.
3. Markets – market trend information, high value products and non-traditional exports potential,
access to the niche product market, positioning and sales initiatives must be deepened. By
supporting agro-producers with new technological tools to having an easy access to the market, we
can mitigate future price spike and ensure that they can compete on a more equal footing. Hence,
there is a need to move towards a global trading system that is fair and competitive.
In view of changes in lifestyle, diversification of diet, consumption pattern, growth tendency of
urbanization in combination with income growth, the traditional demand for agriculture produce will put
growing pressure on already scarce agriculture resources.
Inovation is the future of Armenian Agriculture Development
The “new economy”, in contrast to the traditional economic system, focuses on two interrelated things: the
transformation of knowledge into a commodity and the generation of new knowledge. Agents of
innovation policy in territorial aspect are regional innovation centers, incubators or technology parks.
Government of Armenia and Local Administration supporting innovative initiatives by: a) increasing
competitiveness of the agro-food sector through modernization and market integration, where importance
of high value-added agricultural production underlined and in this sense, the strategy places particular
emphasis on modernizing the sector, improving education and associated systems, as well as facilitating
access to markets for inputs and outputs; b) supporting environmentally friendly production technologies,
organic production and products ensuring biodiversity and support to adaptation and mitigation of climate
challenges effects on agricultural production.
Nowadays, the food industry has become an increasingly complex arena in which to operate: with global
competition, a greater focus on price, complicated procurement and increasing ethical and environmental
concerns; developing or growing a food business in this context is a real challenge. It is no surprise, then,
that companies may fail due to lack of expertise or resource in specific areas.
The rewards of successful research and development (R&D) can be significant for those producing food
and developing new food products. But it is also a risky business. R&D requires investment in resources,
people and expertise. There is a need to supports food businesses to exploit R&D to help them open up
new markets, boost sales and increase profitability. Funding is essential to take businesses through every
phase of R&D from initial feasibility to market exploitation, including experimental development.
Underpinning this strategic ambition is an impressive infrastructure of food innovation centers, university
R&D and skills training, right across the nation.
This wide range of support means that new and established businesses can gain practical industry advice
and guidance about any aspect of setting up a business.
Armenia have all conditions to become an Agriculture Inovation Centre for Europe and Asia. Therefore, it
is proposed to establish the “Agriculture and Food Production Innovation Centre” that dedicated to
helping agro producers, food businesses, particularly SME’s, to grow, innovate, compete and reach new
markets.

7. 7
Each region of Armenia will have region specific objectives and may hosts by experienced and steadfast
team of experts and equipment, to advise and support agro production and agro-businesses in Armenia, by
bringing valueable experience and knowladge of Europe and World. Services should include: product
development; labelling and packaging advice; sensory evaluation; legal advice; nutritional analysis; food
preparation training and process and factory design.
In this respect, support to increasing the competitiveness of Armenian agricultural producers’ trough
environmentally friendly and technologically effective agriculture practices, food production and
processing is a new challenge that also stand better realizing the export potential for agricultural output
and job creation in rural areas that also reflected in Armenian Agriculture and Rural Development
Strategy objectives, SME development strategy as well as EUs Horizon 2020 Policy Support Facility.
However, a holistic and coordinated approach amongst the Government and concerned national
institutions, donors and development organizations required.
CONCLUSSIONS
There is a need to design programmatic package that will improve agriculture and rural livelihoods, in the
context of food security and soaring food prices. Attention must be paid to determine Short Term
Immediate measures that increase the capacity of the rural small-holders to cope with economic variations
and Medium-Long Term measures to mitigate the impacted of extreme climatic conditions and
rationalising agricultural production, increasing levels of disposable incomes and promoting alternative
sources of income.
The following areas are proposed for integration into the programmatic response:
a) Short Term Immediate measures
The agricultural sector accounts for a significant proportion of the livelihoods of the rural community.
However, overall contribution to the national economy remains low and is especially vulnerable to
structural conditions and climatic circumstance.
The goal is to contribute to improved food security, at household and individual level, by decreasing
poverty and improving the livelihoods of the rural population.
This can be achieved by: boosting productivity, efficiency and by generating added value.
Envisaged results, could include, inter alia:
• Improved knowledge dissemination of good agricultural practices, new technologies and access
to market and other information;
• Stimulated and strengthened farmer and grower organisations; Improved agricultural
infrastructure, especially small and medium scale irrigation schemes and water catchments;
• Replacement of obsolete farming equipment to reduce significant harvest and post-harvest
losses;
• Improved agriculture financing mechanism;
• Improved management of (communal) grasslands and increased forage and protein availability
for livestock;
• Increased production through the diversification of crops and varieties with better resistance to
changing climatic conditions, by fostering seed certification and multiplication;
• Adoption of sustainable production practices taking into account land-use and land tenure
patterns, soil, water and environment conservation;
• Establishment of alternative income-generating initiatives in rural areas.

8. 8
b) Medium-Long Term measures
1) Develop Alternative Sources of Income
Private agricultural production and processing enterprises are oriented on a few commodities.
Diversification and development is constrained by lack of investment and investor confidence; the level
of skills and capacities, limited access to markets and export markets largely due to food safety (SPS)
barriers. The goal is to promote enterprise development in rural areas, to reduce regional imbalances
and to support the development of national and international trade, by improving the system of food
safety, fostering the development of SMEs, and providing training and information so as to increase
trade and access to markets.
Envisaged results, could include, inter alia:
• Proposals for the diversification of production capacities by revitalising local entrepreneurship
using existing assets or providing infrastructure investments and workforce re-training;
• Potential explored for non-farming activities in rural livelihoods to diversify sources of income and
so reduce dependency on self-sufficiency agriculture;
• Study of the capacities of the fresh produce and food processing industry (packhouses,
slaughterhouses, canning, freezing, drying, storage, handling and distribution) taking into
consideration appropriate standards and regional demand;
• Determination of priorities within the various food product value chains, internal and export
markets, information and food safety barriers;
• Best use of the state subsidy system and ongoing area-based/local development programmes is
analysed and linked to existing micro-credit schemes and other financing instruments.
2) Adaptation to Climate Change
Agriculture damage and losses from natural hazards demonstrated the high level of vulnerability of
existing production systems and a lack of alleviating support mechanisms, including improved weather
forecasting.
The goal is increased resilience to the effects of natural crises through adapted production systems and
diversification of sources of income.
Envisaged results could include, inter alia:
• Training of farmers in drought-resistant crops and provision of advice on agricultural risk
management techniques and instruments;
• Information dissemination and training in water use and conservation practices;
• Building capacities for pest and disease management;
• Afforestation and its role in minimising droughts effects and soil conservation;
• Use of renewable energy resources (biomass).
3) Additional general considerations to be factored in the exercise include:
• Defining the role of women and activities to increase their incomes;
• Determining the socio-economic infrastructure needs (feeder roads, health centres, schools,
drinking water, etc.) and the income-generating activities required for community development;
• Determining credit requirements and operational mechanisms;
• Clearly defining the role of operator and producer organizations for agricultural and non-
agricultural activities;
• Studying the technical, economic and environmental feasibility of the different project activities,
as well as their social and environmental impacts and any mitigating measures.

9. 9
GENERAL CONSIDERATION
1. A country wanting to develop its rural agriculture sector needs to perform an in-depth integrated
assessment of its general agriculture policies, programmes and plans, to understand how they affect the
competitiveness and the conditions of the value add agriculture sector.
2. The objectives for government involvement for the development of the rural agriculture, particularly
value add agriculture sector needs to be clarified before actions are undertaken. All stakeholders should be
involved in the policy development and development of plans and programmes.
3. General and rural agriculture policies should support each other to the greatest extent possible to
promote effective policy coherence, especially if values add agriculture is promoted as a mainstream
solution.
4. An action plan for the rural agriculture sector should be developed based on analysis of the state of the
sector, participatory consultations, a needs assessment and proper sequencing of actions. The action plan
should state measurable targets for the rural agriculture sector to help agencies and stakeholders focus
their efforts.
5. One government ministry or agency should be assigned a leading role and rural agriculture desks should
be established in other relevant ministries and agencies.
6. Governments should recognize the diverse interests represented in the rural agriculture sector and
ensure that all of them are considered properly as well as direct special attention to disadvantaged groups.
7. A permanent body should be established for the consultations between the Government and the private
sector.
8. Governments should actively contribute to awareness rising for rural agriculture development on all
levels.
9. Data about value add agriculture production and markets need to be collected over the years, analyzed
and made available to the sector and policymakers.
RECOMMENDATIONS
Recommendations on the short-medium term agriculture resilience package that will include
1. Scale up investments for sustained community agricultural growth, trough strengthening farmer
base organization and SME’s.
To transform the crisis into an opportunity for farmers and to build resilience to future food crises, a
transition to viable long-term investments in support of sustained agricultural growth is urgently needed.
Such investments are particularly needed in view of the emerging stress factors for agriculture from
climate change that threaten to perpetuate the current crisis. Investments for sustained agricultural growth
include expanded public spending for rural infrastructure, services, agricultural research, science, and
technology.
New and innovative crop insurance mechanisms should be introduced and tested at a larger scale.

10. 10
Information technology, improved weather data, and the expected high returns to insurance make
innovation in this field now much more feasible.
The needed supply response is not just a matter of the farm-level expansion of production, but must
comprise the whole food value chain, with private sector actors in the food-processing and retail industries
playing key roles. New—and much broader—concepts of corporate social responsibility are called for.
What could be expected from these measures? These investments would have high returns not only in
terms of agricultural growth, but also in terms of poverty reduction in both rural and urban areas through
increased production and employment and lower food prices.
Who would be the key actors? Donors, Investors, regional organizations, foundations, and the private
sector.
2. Calm markets with market-oriented regulation of speculation and strengthened food production
and export financing.
Speculation is mainly a consequence, not a cause, of the price crisis, so overregulation and market
policing would be inappropriate responses. Surveillance and regulatory measures, however, such as
monitoring speculative capital or limiting futures trading, should be taken to curb excessive speculation in
agricultural commodity markets.
Under the current Euro-Asian Union market regulation the Food Import and Export should be renegotiated
and reformed in a way that will meet joint benefited for Armenia and for Partner Countries while current
commitments should be expanded.
What could be expected from this initiative? Free and Fair trade complemented by an import-financing
facility, would allow countries with greater food deficits in a particular region to gain access to food
supplies at reasonable and stable prices in times of crisis.
Who are the key actors? The EAU, EU, UN, IMF and sub-regional organizations.
3. Invest in rural social protection.
Comprehensive rural social protection initiatives are required to address the risks facing the poor due to
reduced access to food as a consequence of high prices. A hierarchy of appropriate social protection
interventions includes both protective actions to mitigate short-term risks and preventative actions to
preclude long-term negative consequences.
Introducing or scaling up these interventions is complex, associated with substantial costs, and dependent
on knowledge base and capacity. At the core of the protective actions are conditional cash transfer
programs, pension systems, and employment programs. However, targeted cash transfer programs should
be introduced in the short term.
Microfinance, which includes both credit and savings, is also advisable to permit the poor to avoid drastic
actions such as distress sales of productive assets that can permanently damage their future earning
potential. The large global networks of microfinance institutions should consider responding to the price
crisis by temporarily loosening repayment conditions, as the poor need access to food consumption credit
and debt relief.
Preventative health and nutrition programs targeted to vulnerable population groups (such as mothers,
young children, and people living with HIV/AIDS) should be strengthened and scaled up to ensure
universal coverage.

11. 11
This measure is essential to prevent the long-term consequences of malnutrition on lifelong health and
economic productivity.
What could be expected from these measures? These steps can prevent the long-term adverse
consequences of early childhood malnutrition, protect the assets of the poor, and maintain school
participation rates.
Who would be the key actors? The UN, Local Public Administration, Donors and civil society
organizations.
Recommendations for medium-long term development that should considering from now:
BUILDING BETTER RURAL PLACE IN ARMENIA
(Financial tools for supporting Agriculture, Forestry and Entrepreneurship)
Summary
1. Ministry of Territorial Administration of the Government of Armenia with the interested
private financial institutions should established Rural Development Financial Support
Program.
Þ Beginning Farmer Development Program.
Þ Rural Business and Industrial Guaranteed Loan Program.
Þ Community Food Grant and Non Interest Loan Program
Þ Direct Farm Ownership and Operating Loans
Þ Down payment Farm Ownership Loan Program
Þ Guaranteed Farm Ownership and Operating Loans
Þ Intermediary Relenting Loan Program
Þ Rural SBA Microcredit Program
Þ Rural Economic Development Loans
Þ Small Business Loan Guaranty Program
Þ Rural Business Opportunity Grant Program
For successful implementation of Rural Area Financial Support Program, the following activities
programs and activities for rural development needs to be created:
2. Agriculture Extension Centre of the Ministry of Agriculture with close collaboration of the
Ministry of Territorial administration and commercial banks should improve capacity of
Agriculture Extension Centre and support to Marz Agriculture Department to established:
Þ Risk Management Partnership Agreements (R&D, Education, Outreach, etc)
Þ Rural Cooperative Development Program
Þ Emergency Conservation Program & Conservation Reserve Program
Þ Cooperative Extension System & Cooperative Services Progrann
Þ Regional Integrated Pest Management Alternatives
Þ Farmers’ Market Promotion Program
Þ National Marketing Improvement Program
Þ Marketing Services Community Program
Þ National Organic and Faire-Trade Certification Cost-Share Program
Þ Value-Added Development Programs
Þ Community Food Security Initiative Program

12. 12
3. Ministry of Territorial administration with co-operation of the Ministry of Environment, the
Ministry of Agriculture and close collaboration with financial institution should establish:
Þ Coastal Program
Þ Forest Land Enhancement & Forest Legacy Program
Þ Forest VAD Production and Export Promotion Marketing Program
Þ Forest Service Rural Development Program
Þ Forest Service Urban and Community Forestry Program - In partnership with state foresters
and equivalent state officials, providing financial and technical assistance to local governments
and others to encourage stewardship of urban and community trees and forest resources.
Þ Forest Conservation Program - Helping private forest landowners develop plans for the
sustainable management of their forests.
Þ Wild Fruit and Vegetable Pilot Program - Increasing consumption of fresh and dried fruits and
vegetables by schoolchildren.
Þ Partners for Fish and Wildlife - Providing technical and/or financial assistance for wildlife
habitat restoration.
An Introduction
Entrepreneurship is the key to success in sustainable agriculture, and the success or failure of sustainable
agriculture will largely decide the fate of rural Armenia. Sustainable farmers know that in addition to the
personal satisfaction they get from working with the soil, they are also stewards of the land and water and
a crucial economic force in rural communities, providing consumers with a healthy diversity of
conscientiously produced foods and fibers. Sustainable farmers have proved themselves creative and
resourceful in developing, adapting, and adopting successful production systems, but few have had the
opportunity to hone their entrepreneurial skills—business evaluation and planning, record keeping,
marketing, financing, managing human resources, and the scores of other details necessary to a going
concern. However, if sustainable agriculture and rural Armenia are to thrive, these are the very skills that
farmers have to learn.
While entrepreneurship has widely been viewed by policy makers and educators alike as the creative act
of an independent businessperson, we are now learning that the roots of entrepreneurship extend deep into
a community’s civic structure. It takes more than good ideas and some market savvy to be a successful
entrepreneur. Indeed, successful entrepreneurs almost always draw upon the knowledge and resources of
others.
This annotated resource list is for agriculture entrepreneurs who want to expand, improve, or add a new
enterprise to their farm operations. Especially for smaller farms, these enterprises are often non-
traditional—adding pastured poultry to a beef operation, turning the barn into a bed-and breakfast, or
creating a corn maze to attract tourists. But whatever the innovation, it will require both money and
entrepreneurial skills. The resources discussed in this publication-–books, Web sites, organizations,
government and nonprofit programs—can provide the information you need to learn business skills and
understand the possibilities for financing new ventures.
4. Ministry of Territorial Administration of the Government of Armenia with the interested
private financial institutions should established Rural Development Financial Support
Program.
For that reason different type of financial support program should be created, like:

13. 13
- Beginning Farmer Development Program. It’s the other than farm credit/debt financing programs
and will targeted specifically to beginning farmers. The program should establishes education
“teams,” consisting of representatives of colleges and universities, cooperative extension, non-
governmental organizations, and agencies, whose task is to develop curriculum and educational
modules geared to different regions and farming systems for use in a variety of educational settings.
It’s an Entrepreneurial, Financial management and Business training for enthusiastic farmers:
• Mentoring, apprenticeship, and internship programs and referral services
• “Land link” assistance to match retiring farmers and ranchers with new farmers
• Risk management education Innovative farm transfer tools and transition strategies
• Whole farm planning, training, and technical assistance with holistic conservation system
• Enterprise diversification and alternative marketing strategies
• Curriculum development
• Other means of assisting beginning farmers
- Rural Business and Industrial Guaranteed Loan Program. Rural Business and Industrial
Guaranteed Loan program guarantees loans by commercial local lenders to businesses in rural areas.
By guaranteeing loans made by commercial lenders against a portion (up to a maximum of 90
percent) of loss resulting from borrower default, the B&I Guaranteed Loan program is meant to
expand the available credit for businesses. B&I guarantee can result in a number of benefits to such
businesses. The loan guarantee can be used for business and industrial acquisitions, construction,
conversion, expansion, repair, modernization, or development costs; purchase of equipment,
machinery, or supplies; startup costs and working capital; processing and marketing facilities;
pollution control and abatement; and refinancing for viable projects, under certain conditions. It may
be used also for: the purchase of startup cooperative stock for family sized farms where commodities
are produced to be processed by the cooperative. Ineligible loan purposes include lines of credit,
agricultural production that is not part of an integrated business involved in processing of agricultural
products, or any project likely to transfer employment from one area to another.
- Community Food Grant and Non Interest Loan Program- This Program will provide 0% interest
loan and grants to develop community food projects in low-income areas. It will focused to supports
the development of community food projects designed to meet the food needs of low-income people;
to increase the self-reliance of communities in providing for their own needs; and to promote
comprehensive responses to local food, farm, and nutrition issues. It also supports efforts to meet
specific state, local, or neighborhood food and agriculture needs for improving and developing
infrastructure; planning for long-term solutions; or creating innovative marketing activities that
mutually benefit agricultural producers and low-income consumers.
Other objectives of the program are to: develop linkages between two or more sectors of the food
system; support the development of entrepreneurial projects; develop innovative linkages between the
for-profit and nonprofit food sectors; and encourage long-term planning activities and multi system,
inter-agency collaboration.
A match of 50 percent non-federal support of the project (dam for dram) is required during the term
of the grant. The non-federal share may be provided through payment in cash or in-kind contributions
in the form of fairly evaluated facilities, equipment, or services. The non-federal share may be derived
from government or local marzes, or from private sources
- Direct Farm Ownership and Operating Loans - Offering government loans to family farmers for
farm ownership and operating purposes.
The purpose of the direct farm ownership and operating loan programs is to provide financing
and assistance to family farmers to establish farms and ranches, achieve financial success, and
graduate to commercial credit or self-financing.

14. 14
Private Banks, with assistance of the Government of Armenia, need to design and developing various
tools to assist family farmers, including low interest rates and individualized credit counseling and
supervision. Emphasis is placed on assisting beginning, minority, and other limited-resource family
farmers.
- Down payment Farm Ownership Loan Program - offering loans for beginning farmers purchase
options on inventory farmland.
Down payment farm ownership loan program established to help beginning farmers to buy a farm
or land. This program also helps retiring farmers transfer their land to a future generation of farmers.
Bank and Extension joint Committee provides direct and government guaranteed loans to beginning
farmers and ranchers who are unable to obtain financing from commercial credit sources.
Each fiscal year, BEC targets a portion of its direct and guaranteed operating loan (OL) funds to
beginning farmers. BEC advertises acquired farm property within 15 days of acquisition. For the first
75 days after acquisition, eligible beginning farmers are given first priority to buy these properties at
the appraised market value. If more than one eligible beginning farmer or rancher offers to buy the
property, the buyer is chosen randomly.
- Guaranteed Farm Ownership and Operating Loans - Offering federally guaranteed loans for
family farmers for farm ownership, farm operation, and the purchase of stock in cooperatives.
The purpose of the guaranteed farm ownership (FO) and guaranteed operating loan (OL)
programs is to help family farmers obtain commercial credit to establish or maintain a family farm.
Government guarantees the repayment of the commercial loan at 90 percent of the loss of principal
and interest. A 95 percent guarantee is provided in the case of loans to refinance an existing direct FO
or OL or for loans made in conjunction with a beginning farmer down payment loan.
Farmers may also use Government guaranteed loans to buy stock in a member-owned cooperative. The
cooperative can be engaged in production, processing, packaging, and/or marketing of agricultural and
forest products.
In some instances, a special interest rate assistance program may be used in which Government
provides assistance to the lender to lower the interest rate. The interest assistance is designed in part to
assist direct loan borrowers graduate to commercial credit.
- Intermediary Relenting Loan Program - Loans to establish revolving loan funds for rural
businesses and community development.
The Intermediary Relenting Loan Program (IRP) provides direct loans at 1 percent interest to
intermediaries for establishing revolving loan funds for small businesses and community development
projects in rural areas.
Intermediaries are nonprofit organizations or public agencies that relend money through loan pools to
ultimate recipients, including businesses, individuals and others.
Final recipients of loans from IRP revolving loan funds involved in agricultural production are not
eligible. However, businesses processing, packaging, and marketing agricultural products will be
considered.
- Rural SBA MicroCredit Program - Providing short-term loans for financing inventory; buying
equipment, machinery, and fixtures; seeking leasehold improvements; providing working capital; or
receiving technical assistance.
The MicroLoan Program of the Small Business Administration was developed to make more very
small loans available to prospective small business borrowers. Under this program, the SBA makes
funds available to nonprofit intermediaries, who in turn make loans to eligible borrowers.
Loans may be used for furniture, fixtures, supplies, inventory, machinery, equipment and working
capital. Loans may not be used as a down payment or for the purchase of real estate.

15. 15
The MicroLoan Program will be a relatively new program and available in most rural areas of the
country.
- Rural Economic Development Loans - Providing low-interest loans and grants to rural electric and
telephone utilities to promote economic development and job creation.
The Rural Economic Development Loans program makes direct low interest loans and grants to
Rural Utilities Service (RUS) electric and telecommunication utilities that use the funds to provide
financing for business and community development projects.
Low-interest loans are provided to finance a broad array of projects, including for-profit businesses.
Loans are provided to the RUS utility to establish a revolving loan fund to finance such purposes as
community development assistance, education and training for economic development, medical care,
telecommunications for education, job training or medical services, business incubators and technical
assistance. Program funds can be used for value-added projects.
- Small Business Loan Guaranty Program - Providing guaranteed loans to small businesses unable to
secure financing on reasonable terms through normal lending channels; operating through private-
sector lenders that provide loans guaranteed by the Small Business Administration.
SBGLP to guarantee loans to small businesses that cannot obtain financing on reasonable terms
through normal lending channels. The Government SBA basic guaranty program is designed to
promote small business formation and growth by guaranteeing long-term loans to qualified firms.
Loans are available for many business purposes, such as real estate, expansion, equipment, working
capital or inventory.
The Government SBA should be guarantee up to 85 percent of loans of $50,000 and less, and up to 75
percent of loans above $100,000 (generally up to a maximum guaranty amount). The maximum SBA
loan size is $100.000. The interest rate is not to exceed 6.75 percent over the prime lending rate,
except under limited circumstances.
Maturities are up to 10 years for working capital and up to 25 years for fixed assets.
Repayment ability from the cash flow of the business is a primary consideration in the SBA loan decision
process. Good character, management capability, collateral, and owner’s equity contribution are also
important considerations.
All owners of 20 percent or more equity are required to personally guarantee SBA loans.
The SBA’s specialized loan programs could be:
• Basic: Guarantees long-term loans to small businesses that cannot obtain financing on reasonable terms
through normal lending channels for uses such as real estate, expansion, equipment, working capital, or
inventory.
• Fast: Designed to reduce the paperwork involved in loan requests of $50,000 or less. The SBA uses a 1-
page application and relies on the strength of the individual applicant’s character and credit history. The
applicant must first satisfy all of the lender’s requirements; then the lender may request a Fast guaranty.
• Express: encourages participating banks to use their own documentation and procedures to approve,
service, and liquidate loans of up to $100,000. In return, the SBA agrees to guarantee up to 50 percent of
each loan. This is a pilot program with selected banks nationwide.
• CAP: Finances small business short-term, cyclical working-capital needs. There are five distinct short-
term working capital loans: the Seasonal, Contract, Builder’s, Standard Asset-Based, and Small Asset-
Based lines.
• International: Offers long-term financing to small businesses working or preparing to work in
international trade, as well as those businesses adversely affected by import competition.
• Export: Provides short-term working capital to exporters in a combined working effort of the SBA and
the Export-Import Bank.

16. 16
• Prequalification Loans: A pilot loan program enabling the SBA to pre-qualify a guaranty for loans of
$100,000 or less before the business owner goes to a bank. This program is designed for women, veterans,
minorities, rural businesses, selected industries, and geographical areas.
• MicroCredit: Available in selected locations around the country, the MicroLoan program provides
short-term loans of up to $5,000. If you need a loan for small-scale financing purposes such as inventory,
supplies and working capital (but not to pay existing debts), this program may be your answer.
MicroLoans are made through SBA approved nonprofit groups, known as intermediaries, which also
provide counseling and technical assistance.
- Rural Business Opportunity Grant Program - Providing grants to nonprofits and public bodies for
community planning, technical assistance, and training for rural businesses.
The purpose of the Rural Business Opportunity Grants Program is to promote sustainable economic
development in rural communities with exceptional needs. This is accomplished by making grants to pay
costs of providing economic planning for rural communities, technical assistance for rural businesses, or
training for rural entrepreneurs or economic development officials.
For successful implementation of Rural Area Financial Support Program, the following activities
programs and activities for rural development needs to be created:
5. Agriculture Extension Centre of the Ministry of Agriculture with close collaboration of the
Ministry of Territorial administration and financial institutions should improve capacity of
Agriculture Extension Centre and support to Marz Agriculture Department to established:
- Regional Rural Development Centers - Strengthening the capacity of local citizens to be key
players in guiding the future of their rural communities.
- Risk Management Partnership Agreements - Providing partnership agreements to advance
agricultural research and development, education, and community outreach.
The Risk Management Partnership Program needs to be created and should offers
Partnership Agreements to advance its work in three program areas: Research and Development (R&D),
Education, and Community Outreach.
R&D: The Research Management Partnerships Bank-Government Union will fund qualified public and
private organizations to research and develop new no insurance risk management tools. For example,
these tools may include risk mitigation for livestock, forage and rangeland, and organic producers.
Project objectives to fund research activities may vary each year.
Education: The Commodity Partnerships for Risk Management Education and the Crop
Insurance Education in Targeted Marzes are aimed at educating producers about how to use financial
management, crop insurance, marketing contracts, and other existing and emerging risk management
tools. The Targeted Marz program delivers crop insurance education and information through cooperative
agreements to producers in all11 marzes that have been specifically designated as historically underserved
with respect to crop insurance.
Outreach: The Community Outreach and Assistance Partnership Program aims to ensure that information
on how to use such tools is effectively targeted to women, limited-resource, socially disadvantaged, and
other traditionally underserved producers of priority commodities. The RMA maintains an active presence
in collaborating with the partners it funds to implement the work designated by its agreements.
Risk management tools aren’t limited to insurance products, but include a variety of risk management
options and strategies to assist producers in mitigating risks inherent in agricultural production.
They may include financial management tools to mitigate price and production risks; tools to enhance
measurement and prediction of risks in order to facilitate risk diversification; and tools
to improve production management, harvesting, record keeping, or marketing.

17. 17
- Rural Cooperative Development Program - Providing grants for establishing and operating centers
for cooperative development.
Rural Cooperative Development Grants are made for establishing and operating centers for cooperative
development to improve the economic condition of rural areas by developing new cooperatives and
improving operations of existing cooperatives. The Ministry of Territorial Administration tries to
encourage and stimulate the development of effective cooperative organizations in rural America as a part
of its total package of rural development efforts.
- Emergency Conservation Program - Sharing with agricultural producers the cost of rehabilitating
eligible farmlands damaged by natural disaster and providing emergency water assistance—both for
livestock and for existing irrigation systems for orchards and vineyards.
ECP will be created to help enable farmers to take emergency conservation measures to control wind
erosion on farmlands; to rehabilitate farmlands damaged by wind erosion; floods, hurricanes, or other
natural disasters; and to carry out emergency water conservation or water enhancing measures during
periods of severe drought.
The program offers cost-sharing assistance for carrying out conservation practices. Any person who is
owner, landlord, tenant, or sharecropper on a farm or ranch and bears a part of the cost of an approved
conservation practice in a disaster area is eligible to apply for cost-share conservation assistance.
- Conservation Reserve Program - Offering contracts for highly erotable and other environmentally
sensitive cropland for 10 to 15 years if landowners establish and maintain perennial vegetation and
agree to leave the land idle for the length of the contract
The CRP will offer landowners, operators, and tenants the opportunity to voluntarily convert land
with high erosion rates and other environmentally sensitive land to permanent vegetative cover.
Permanent cover options include grasses and legumes, tree plantings, and wildlife habitat.
The program goals are to reduce soil erosion, enhance fish and wildlife habitat, improve water quality,
protect the soils on the nation’s cropland base, demonstrate good land stewardship, and improve rural
aesthetics.
The program aims to protect the nation’s long-term ability to produce food and fiber by effectively
managing agricultural resources, reducing soil erosion, reducing sedimentation, improving water quality,
creating a better habitat for fish and wildlife, providing some needed income support for farmers, and
curbing production of some surplus commodities.
Financial and technical assistance is available to participants to help establish a permanent vegetative
cover.
- Cooperative Extension System – will providing a partnership effort in information delivery and
educational support programs.
The partnership occurs among national, regional, and community governments that all provide
funding support and management direction to the nation’s cooperative extension system. The CES
network links research and outreach programs of land-grant universities to state and local needs. The
structure and services provided by extension are largely determined at the state and county levels, and they
vary accordingly. Agriculture Extension System provides only general guidelines and coordination of the
extension system, as well as partial funding.
A user can contact CES at the marz level, the county level, or both. State extension specialists, who are
also university faculty, provide in-depth information on a variety of technical subjects, including many
agriculture, natural resource, and household/family topics. The type of information available through
extension offices and programs is very comprehensive and usually tailored in part to local information
needs. In general, information and some technical assistance are available on agriculture, forestry, natural
resources, gardening, household, family, and youth topics. Extension does not normally provide financial

18. 18
assistance, but instead focuses on information delivery through the Internet, printed publications and
newsletters, broadcast media, staff presentations at public meetings, and one-on-one assistance in person
or by phone with information seekers. In some locations, diagnostic services are available for soil testing
and garden or farm pests. Most extension publications and programs are available for free or at nominal
cost through regional extension offices only.
- Cooperative Services - Helping form and operate agricultural cooperatives through research,
technical assistance, information, training, educational materials, and limited fund for cooperative
research agreements.
The goal of the Cooperative Services program is to help rural residents form new cooperative businesses
and improve the operations of existing cooperatives. To accomplish this, Cooperative Services provides
technical assistance to cooperatives and those thinking of forming cooperatives. It also conducts
cooperative- related research and produces information products to promote public understanding of
cooperatives.
For people interested in forming new rural cooperatives, CS will provide a wide range of assistance—
from an initial feasibility study to the creation and implementation of a business plan.
CS staff includes cooperative development specialists who do everything from identifying potential
cooperative functions through developing bylaws and business plans. They also provide training for
cooperative directors. CS also provides technical assistance to existing cooperatives facing specific
problems or challenges. Technical assistance could include helping a cooperative develop a strategic
marketing plan to cope with new competitive forces, decide whether to merge or form a joint venture with
other cooperatives, or find a way to turn the raw products of cooperative members into value-added
products. These matters are often life-and-death issues not only for cooperatives, but for the rural
communities in which they operate.
- Regional Integrated Pest Management Alternatives - Providing competitive grants for research
and extension activities related to integrated pest management (IPM) administered through regional
networks.
A competitive grants program for research and extension activities related to Integrated Pest
Management (IPM) administered through four regional networks.
This initiative may span the spectrum from development of new IPM tactics to combined research
extension implementation projects to extension education and training. Because production systems and
specific pest management problems vary significantly across the country, each of the four regions is given
maximum flexibility in setting research and education priorities. Each region runs its own competition,
establishing regional priorities for funding of projects.
Some priorities are crop-specific; others are based on various approaches to problem solving through IPM.
Collaborators are encouraged in both programs.
- Farmers’ Market Promotion Program objective is to increasing consumption of fresh farm produce
through sales at farmers’ markets.
Establishment of the Farmers’ Market Promotion Program will help to increase domestic consumption of
agricultural commodities by developing, improving, and expanding domestic farmers’ markets, roadside
stands, community supported agriculture programs, and other direct producer-to-consumer market
opportunities.
- National Marketing Improvement Program will match grants for marketing agricultural products
through state departments of agriculture.
The National Marketing Improvement Program will provide matching funds, on a competitive basis, to
state departments of agriculture and similar state agencies to study or develop innovative approaches for
marketing agricultural products. NMIP funds can be requested for a wide range of research and service

19. 19
work aimed at improving the marketing system or identifying new market opportunities for agricultural,
horticultural and viticulture products; dairy products; livestock and poultry products; bees; forest products;
fish and shellfish; and value-added processed products.
Although all proposals that meet the matching funds requirement and fall within NMIP guidelines will be
considered, states are especially encouraged to develop projects involving partnerships with producer
groups, academia, community-based organizations, or other states to address practical marketing problems
faced by small- and medium-scale producers.
- Marketing Services Community Program - Conducting and sponsoring research, training, technical
assistance, and demonstration projects on agricultural marketing issues, and providing
recommendations for the development of agricultural marketing facilities.
The purpose of the Marketing Community Program is to help agricultural producers take advantage of
existing and emerging marketing opportunities, promote improvements in farm-based income, and
facilitate the efficient and economical distribution of farm products in domestic and international markets.
The program will disseminate research information and data and provides technical assistance, training,
and facility design recommendations to enable producers, distributors, and marketers of agricultural
products and other parties involved in implementing agricultural marketing ventures to develop
appropriate and effective business strategies.
MSCP uses staff agricultural marketing specialists, economists, engineers, and architects to develop and
carry out research and technical assistance projects that seek to resolve current barriers to producer
participation in the agricultural marketing system. They also identify alternative channels of distribution
that promise to enhance the economic viability of small-to-medium-sized farm and ranch operations.
To facilitate collaborative research and technical assistance on targeted agricultural marketing issues,
MSCP devotes a limited amount of program funds each year to the development of cooperative
agreements with eligible institutions.
These cooperative agreements are typically initiated with state, local and tribal government agencies, land-
grant universities, or other nonprofit organizations.
Specifically, the MSCP:
• Conducts applied economic research and analysis of marketing problems and issues associated with the
domestic and international distribution of agricultural commodities.
Particular issues are selected for intensive study based on their potential to provide relevant and applicable
marketing strategies/solutions to a broad farm constituency and for their ability to improve the economic
competitiveness of small farm/ranch operations by enabling them to take advantage of emerging consumer
and demographic trends.
• Analyzes the feasibility of planned renovation/ construction projects at wholesale, collection, and
farmers’ market facilities by developing conceptual designs of facilities, estimating cost of
renovation/construction, and assessing expected levels of market patronage.
• Prepares research manuscripts, handbooks, videos, and reference materials to document study findings
and provide informational resources to research customers.
Resources on agricultural market research and development are disseminated through public presentations
by MSCP staff members at industry, producer, and academic conferences and by maintaining an on-line
information clearinghouse.
- National Organic Certification Cost-Share Program - Providing financial assistance to producers in
10 marzes to transition into organic farming. The Organic Certification Cost-Share Program is part of
the Agricultural Management Assistance (AMA) Program. Under this program, cost-share assistance is
provided to organic crop and livestock producers of all 10 marzes, who have been certified by a
accredited certifying agent.
- Value-Added Development Programs - Helping farm producers move into value-added agricultural

20. 20
The definition of a value-added product includes:
• A change in the physical form of the product, such as milling wheat into flour or strawberries into jam
• Producing a product in a way that enhances its value, such as “organic,” “free-range,” “grass-fed,” etc.
• Physically segregating an agricultural commodity or product in a manner that results in the enhancement
of the value of the agricultural product, such as the identity preserved marketing systems.
The definition of value-added product includes any agricultural product or commodity used to produce
renewable energy on a farm.
4. Ministry of Territorial administration with co-operation of the Ministry of Environment , the
Ministry of Agriculture and close collaboration with financial institution should establish:
- Coastal Program - Conserving coastal ecosystems to benefit fish, wildlife, and people.
The Coastal Program will be focuses on the Fish and Wildlife Service’s efforts to restore and protect
bays, estuaries, and watersheds in high priority coastal ecosystems of Armenia. The program will be
guided by 4 main goals:
• Serve coastal communities by providing assessment and planning tools to identify priority habitats that
should be protected and restored
• Conserve pristine coastal habitats through voluntary conservation easements and locally initiated land
acquisition
• Restore degraded coastal wetland, upland, and stream habitats by working with partners to implement
on-the-ground projects
• Focus resources through conservation alliances that leverage the financial and technical resources of our
partners and multiply the impact of the taxpayer’s money.
- Community Food Security Initiative Program
Helping nonprofit groups, faith-based organizations, state and local government agencies, tribes, and
individual citizens fight hunger, improve nutrition, strengthen local food systems, and empower low-
income families to move toward self-sufficiency. The Community Food Security Initiative seeks to cut
hunger in Armenia in half by the year 2020 by creating and expanding grass-roots partnerships that build
local food systems and reduce hunger. Agriculture Extension Centers of the Ministry of Agriculture of
Armenia are joining with marz, community, non profit groups, and the private sector to strengthen local
food systems by replicating best practices of existing efforts and by catalyzing new community
commitments to fight hunger.
Goals:
• Creating new — and enhancing existing —local infrastructures to reduce hunger and food insecurity
• Increasing economic and job security by helping low-income people obtain living wage jobs and become
self-sufficient
• Strengthening the federal nutrition assistance safety net by supporting the full and efficient use of
programs such as food stamps, school meals, summer feeding
• Bolstering supplemental food provided by nonprofit groups by aiding food recovery, gleaning, and food
donation programs
• Improving community food production and marketing by aiding projects that grow, process, and
distribute food locally
• Boosting education and awareness by increasing efforts to inform the public about nutrition, food safety,
and food security
• Improving research, monitoring, and evaluation efforts to help communities assess and strengthen food
security
Methods:

21. 21
• Catalyzing the development of new partnerships on the local, state, and federal levels to help
communities reduce hunger
• Improving the coordination between existing UN, EU and Government programs — such as nutrition
assistance programs, community food grants, ongoing research, farmers’ markets, and food recovery
projects — and related national, regional, and community initiatives
• Expanding technical assistance to states, communities, and nonprofit groups to build long-term local
structures to increase food security
• Increasing public awareness of the causes of food insecurity and highlighting innovative community
solutions to hunger
- Forest Land Enhancement Program – will be established to providing technical, educational, and
cost-share assistance to promote the sustainability of NIPF (Non-Industrial Private Forest) forests.
Through FLEP, state forestry protection agencies of the Ministry of Environment should provide a
wide array of educational, technical, and financial services that are intended to help ensure that the
nation’s NIPF and related resources continue to provide sustainable forest products and safeguard the
health of our water, air, and wildlife.
As with all Cooperative Forestry Programs, participation in FLEP is voluntary. State Forest
Agency will administer FLEP under an Interim Rule and developing State Priority Plans for FLEP in
coordination with their State Forest Stewardship Coordinating Committees.
These plans detail how the FLEP funds are used, including minimum hectares; maximum hectares;
aggregate payment; use for technical, educational, and cost-share assistance; and all other factors for the
program. The national plans will be based on the appropriate mix of educational, technical, and financial
assistance desired for each marz.
State forestry agency can use FLEP funds to help NIPF owners achieve a broad array of natural resource
objectives. To be eligible for cost-share, landowners need a Forest Stewardship management plan. The
practices to be cost-shared and the cost share rate are described in the State Priority Plan.
- Forest Legacy Program objective will be serving as a partnership between the Ministry of Agriculture
Forest Service, Ministry of Environment National Park Department and participating marzes, NGO’s
and other partners to identify and protect environmentally important forests from conversion to no
forest uses.
FLP should be created to help landowners, state and local governments, and private land trusts identify
and protect environmentally important forest lands threatened by present and future conversion to no
forest uses.
Conservation easements, or fee simple purchase, are used to protect sensitive and working forest lands.
FLP will support marzes’ forest conservation efforts and helps the states develop and carry out their forest
conservation plans.
Designed to encourage the protection of privately owned forestlands, FLP is an entirely voluntary program
that operates on a willing buyer/willing seller basis only. To maximize the public benefits it achieves, the
program focuses on the acquisition of conservation easements on privately owned forestlands. This allows
forestland to remain in private ownership, on the tax roles, but conserved as working forest in perpetuity.
Most FLP conservation easements restrict development, require sustainable forestry practices, and protect
other values.
- Forest VAD Production and Export Promotion Marketing Program - Helping communities and
businesses find new and expanded business opportunities based on forest resources, wood recycling,
and value-added processing

22. 22
- Forest Service Rural Development Program - Facilitating and fostering sustainable community
development and linking community assistance and natural resource management focusing on healthy
communities, appropriately diverse economies, and sustainable ecosystems.
- Forest Service Urban and Community Forestry Program - In partnership with state foresters
and equivalent state officials, providing financial and technical assistance to local governments
and others to encourage stewardship of urban and community trees and forest resources.
- Forest Stewardship Program - Helping private forest landowners develop plans for the
sustainable management of their forests.
- Wild Fruit and Vegetable Pilot Program - Increasing consumption of fresh and dried fruits and
vegetables by schoolchildren.
- Partners for Fish and Wildlife - Providing technical and/or financial assistance for wildlife
habitat restoration.
The program will emphasize the reestablishment of native vegetation and ecological communities for
the benefit of fish and wildlife in concert with the needs and desires of private landowners.
These partners include other federal agencies, tribes, national and local governments, conservation
organizations, academic institutions, businesses and industries, school groups, and private individuals.
Activities include, but are not limited to:
• Restoring wetland hydrology by plugging drainage ditches, breaking tile drainage systems, installing
water control structures, dike construction, and reestablishing old connections with waterways
• Planting native trees and shrubs in formerly forested wetlands and other habitats
• Planting native grasslands and other vegetation
• Installing fencing and off-stream livestock watering facilities to allow for restoration of stream and
riparian areas
• Removing exotic plants and animals that compete with native fish and wildlife and alter their natural
habitats
• Using prescribed burning as a method of removing exotic species and restoring natural disturbance
regimes necessary for some species survival
• Reconstructing in-stream aquatic habitat through bioengineering techniques
The Fish and Wildlife Service will provide financial and technical assistance to private landowners
through voluntary cooperative agreements. Under cooperative agreements, landowners agree to maintain
restoration projects as specified in the agreement, but they retain full control of the land.
Landowners and national, marz, and local organizations can serve as partners with the Service in carrying
out restoration work on private lands.