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Leasehold Forestry in Nepal: Over 
Two Decades of Implementation
Why Leasehold Forestry in Rural Areas? 
• Agriculture, livestock and forestry main stay of 
livelihood 
• Limited opportunities for additional income and 
employment in rural areas 
• Out migration of people in search of income and 
employment 
• Significant areas of degraded forests 
• Soil erosion due to heavy soil working (cultivation of 
annual crops) in hill slopes 
• Increased women drudgery due to loss of forests – 
spending hours for collection of firewood, fodder 
Need to balance between environmental 
improvement and the needs of the people
Leasehold Forest User Group 
• Leasehold Forest User Group (LFUG) is a 
small group of 5 to 15 poor households 
recognized by the District Forest Office for 
the management and utilization of the 
Leasehold Forest.
Characteristics of LFUG 
• Small group of 5 – 15 HHs 
• Involvement of only resource poor HHs 
• Homogenous group having similar well being 
status
Leasehold Forestry 
Leasehold forestry is a 
participatory model of forest 
management where part of 
the national forest (degraded) 
is given to the group of poor 
households aiming to raise 
their income and improve 
living condition 
simultaneously improving the 
ecological condition of the 
hills
Characteristics of Leasehold Forestry 
• Land belongs to the government 
• Management and utilization of LF by the 
LFUG/HH 
• Regulation of LF by LFUG and DFO 
• District Forest Officer approves the 
operational plan of LF and issues a lease 
certificate 
• Possibility of extension of lease period by 
another 40 yrs
Leasehold Forestry Profile 
• Total number of CFUGs = 7,419 
• Total number of households involved = 75,021 HH 
• Total area of LF handed over = 42,835 ha. 
• Average size of LFUG = 10.1 HH 
• Average size of the LF = 5.8 ha 
• Average LF area per household = 0.6 ha. 
• Percent of women in the Key position = 39 
Source: LFLP (as of 1st Nov 2014)
Geographical Coverage of the Programme
Conceptual Model of Leasehold Forestry 
Community participation in 
Restoration of forests for increased 
resources 
Poor and 
Vulnerable 
People 
Degraded 
Forest 
Increase 
capacities and governance 
Restore forests with 
multiple products 
Increase income and 
reduce vulnerability 
Sustainable supply of forest 
products and env. services 
Reduce 
HH poverty 
Better management of forest land 
Increase forest products supply for 
capital formation
Target Beneficiaries 
• People living below the poverty line 
• Women headed households 
• Hardcore Poor of any caste/ethnicity 
– Landless or near landless
LFUG Formation and LF Hand 
CF Implementation Process 
Over Process 
Review and Revision 
 Monitoring & 
Evaluation 
 Feedback 
Implementation 
 OP approval by DFO 
 Joint signature (DFO 
& Chairperson of LFUG) 
Forest & User Identification 
User Group Formation 
Constitution Preparation 
LFUG Registration 
Operational Plan Preparation 
(LIP included) 
Forests Handover 
 HH Visit 
 Group Meeting 
•Group Meeting 
 Well Being Ranking 
• Approval by DFO 
 Household Survey 
 Group Level 
Information Collection 
 Forest demarcation 
 Forest Resource 
Inventory 
 Group Meeting 
 Training/Study tour 
 Technical support 
Financial /Material 
Support 
 Participatory 
Resource Mapping
Strategic Approach 
• Coordination approach 
– Coordination and collaboration with other development 
agencies 
• Participatory Approach 
– Involvement of whole community in site selection 
– Identification of poor households through well being 
ranking 
– Involvement of poor households in the decision making 
process 
• Process Approach 
– Learning by doing 
• Integrated Approach 
– Forests 
– Livestock 
– Rural Finance
Strategic Approach…. 
• Social mobilization 
– Group Promoters from LFUGs 
• Livelihood planning 
– Household level 
– LFUG level 
• Joint planning and monitoring 
– Participatory planning and monitoring 
– Joint monitoring 
• Crop/product diversification to minimize the risk 
– Forage cultivation to broom grass cultivation to NTFPs 
cultivation to multipurpose tree species plantation 
– Forage to broom, paper pulp to fruits, bark, leaf to NTFPs to 
fruit
Major Interventions 
• Trust building through social 
mobilization 
• Group formation/networking 
• Institutional strengthening 
(accounting/ bookkeeping, 
leadership, gender and social 
inclusion coaching/training) 
• Support production and 
distribution of planting 
materials 
• Plantation along contour using 
SALT (Forage, fodder, 
multipurpose tree speceis)
Major Interventions… 
• Plantation of other tree species 
(multipurpose) from second year 
onward 
– Cinnamomum tamala 
– Fraxinus floribunda 
– Ficus glaberrima 
– Alnus nepalensis 
– Zanthoxylum armatum 
– Leucaena leucocephala 
– Bauhinia purpuria 
• On site coaching on plantation 
management (plantation, weeding, 
harvesting) to both men and 
women of each household 
• Protection of natural regeneration
Major Interventions… 
• Livestock management 
• Animal health services 
• Rural finance institution 
establishment and 
strengthening 
• Coordination and 
collaboration with other 
agencies
Major Achievements
Degraded Forests 
converted to 
Productive Forests
Degraded Forests before intervention
Degraded Forests after intervention
Degraded Forests after intervention
• Production of forage and 
fodder increased 
tremendously 
– Demand of large animals
• Livestock production increased through improved 
animal health services (from 58 percent of HHs in 
2010 to 71 percent of HHs in 2013 ) 
• Increased annual income from livestock (from 60 
percent HHs in 2010 to 70 percent HHs in 2013) 
• Average number of goats per HH increased from 
3.12 in 2006 to 5 in 2010 to 6.12 in 2013)
• LFUGs and Cooperatives established as rural finance 
institution (56 cooperatives) 
—LFUGs members involved in monthly saving increased from 28 
percent in 2006 to 91 percent in 2013 
— 77 percent of saving amount mobilized in productive activities 
•Social mobilization services build capacity of LFUGs 
(95 percent of LFUGs have record keeping system in place)
Capacity of women, Dalits 
and the poor enhanced 
through social 
mobilization
Fodder collection 
time reduced by 2.5 
hrs. per/day
• Income poverty of LFUG members reduced 
through various income generating activities
• Resources generation through coordination and 
collaboration with other development partners
• Livelihood of the poor improved through enterprise 
development 
Women Entrepreneurs Making Incense Sticks 
Bio-briquette Enterprises
Bagged with several awards 
• Mountain development awards with cash 
prize 
– Kauledanda LFUG intergroup, Jhirubas, Palpa 
(2010) 
– Hupsekot LFUG intergroup, Hupsekot, 
Nawalparasi (2011) 
– Grihakot LFUG intergroup, Chitrebhanjyang 
Syangja (2012) 
• Environment development award 
– Aamdanda LFUG intergroup, Devghat, Tanahun 
(2012) 
• Letter of appreciation from Palpa District 
Development Committee
Policy Implication 
• Leasehold forestry policy in place 
• Leasehold forestry introduced inside community 
forestry 
• Government continued programme without external 
resources 
• Leasehold forestry Priority One programme of the 
government 
• Adoption by other projects and programmes 
• Separate division established under Department of 
Forests
Gender and Social Inclusion 
• Both man and woman from each household 
are member of the group 
• Involvement of women, Dalits and Janajati has 
increased 
– Women in key position (39%) 
– Dalit in key position (13%) 
– Janajati in Key position (56%)
Other Implication 
• Networking of the groups in cluster and 
district federation 
• Poorest upgraded to poorer and poorer to 
poor category 
• Biodiversity increment in the leasehold forests 
• Soil erosion controlled to a large extent due to 
increase in green coverage
Key Learning 
• Degraded forests can be restored in partnership with 
forest dependent poor. 
• Intervention is needed at package level: Resource 
generation to utilization and marketing. 
• Diversification of the products secures investment. 
• Local Resource Persons are important for sustainability. 
• Savings and Credit Scheme, even at low scale, benefits 
poor for income generating activities and for vulnerability 
coping. 
• Strong coordination between development partners is also 
key to the success. 
• Livelihood improvement planning best tool for resource 
pooling
Opportunities and Challenges 
• Ever increasing demands for the extension of the 
programme in neighboring VDCs and districts 
• Extension of the programme in other districts and 
other areas in the same district as potential land 
(shifting cultivation and degraded forests) available 
there 
• Possibilities of resources generation through resource 
pooling 
• Possibilities of enterprise development with increased 
production of forage, fodder and NTFPs 
• Many species having multiple benefits available to 
grow that fetch high price 
• Potential model to contribute in mitigation and 
adaptation of climate change effects
Thank You

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Leasehold Forestry Improves Livelihoods in Nepal

  • 1. Leasehold Forestry in Nepal: Over Two Decades of Implementation
  • 2. Why Leasehold Forestry in Rural Areas? • Agriculture, livestock and forestry main stay of livelihood • Limited opportunities for additional income and employment in rural areas • Out migration of people in search of income and employment • Significant areas of degraded forests • Soil erosion due to heavy soil working (cultivation of annual crops) in hill slopes • Increased women drudgery due to loss of forests – spending hours for collection of firewood, fodder Need to balance between environmental improvement and the needs of the people
  • 3. Leasehold Forest User Group • Leasehold Forest User Group (LFUG) is a small group of 5 to 15 poor households recognized by the District Forest Office for the management and utilization of the Leasehold Forest.
  • 4. Characteristics of LFUG • Small group of 5 – 15 HHs • Involvement of only resource poor HHs • Homogenous group having similar well being status
  • 5. Leasehold Forestry Leasehold forestry is a participatory model of forest management where part of the national forest (degraded) is given to the group of poor households aiming to raise their income and improve living condition simultaneously improving the ecological condition of the hills
  • 6. Characteristics of Leasehold Forestry • Land belongs to the government • Management and utilization of LF by the LFUG/HH • Regulation of LF by LFUG and DFO • District Forest Officer approves the operational plan of LF and issues a lease certificate • Possibility of extension of lease period by another 40 yrs
  • 7. Leasehold Forestry Profile • Total number of CFUGs = 7,419 • Total number of households involved = 75,021 HH • Total area of LF handed over = 42,835 ha. • Average size of LFUG = 10.1 HH • Average size of the LF = 5.8 ha • Average LF area per household = 0.6 ha. • Percent of women in the Key position = 39 Source: LFLP (as of 1st Nov 2014)
  • 8. Geographical Coverage of the Programme
  • 9. Conceptual Model of Leasehold Forestry Community participation in Restoration of forests for increased resources Poor and Vulnerable People Degraded Forest Increase capacities and governance Restore forests with multiple products Increase income and reduce vulnerability Sustainable supply of forest products and env. services Reduce HH poverty Better management of forest land Increase forest products supply for capital formation
  • 10. Target Beneficiaries • People living below the poverty line • Women headed households • Hardcore Poor of any caste/ethnicity – Landless or near landless
  • 11. LFUG Formation and LF Hand CF Implementation Process Over Process Review and Revision  Monitoring & Evaluation  Feedback Implementation  OP approval by DFO  Joint signature (DFO & Chairperson of LFUG) Forest & User Identification User Group Formation Constitution Preparation LFUG Registration Operational Plan Preparation (LIP included) Forests Handover  HH Visit  Group Meeting •Group Meeting  Well Being Ranking • Approval by DFO  Household Survey  Group Level Information Collection  Forest demarcation  Forest Resource Inventory  Group Meeting  Training/Study tour  Technical support Financial /Material Support  Participatory Resource Mapping
  • 12. Strategic Approach • Coordination approach – Coordination and collaboration with other development agencies • Participatory Approach – Involvement of whole community in site selection – Identification of poor households through well being ranking – Involvement of poor households in the decision making process • Process Approach – Learning by doing • Integrated Approach – Forests – Livestock – Rural Finance
  • 13. Strategic Approach…. • Social mobilization – Group Promoters from LFUGs • Livelihood planning – Household level – LFUG level • Joint planning and monitoring – Participatory planning and monitoring – Joint monitoring • Crop/product diversification to minimize the risk – Forage cultivation to broom grass cultivation to NTFPs cultivation to multipurpose tree species plantation – Forage to broom, paper pulp to fruits, bark, leaf to NTFPs to fruit
  • 14. Major Interventions • Trust building through social mobilization • Group formation/networking • Institutional strengthening (accounting/ bookkeeping, leadership, gender and social inclusion coaching/training) • Support production and distribution of planting materials • Plantation along contour using SALT (Forage, fodder, multipurpose tree speceis)
  • 15. Major Interventions… • Plantation of other tree species (multipurpose) from second year onward – Cinnamomum tamala – Fraxinus floribunda – Ficus glaberrima – Alnus nepalensis – Zanthoxylum armatum – Leucaena leucocephala – Bauhinia purpuria • On site coaching on plantation management (plantation, weeding, harvesting) to both men and women of each household • Protection of natural regeneration
  • 16. Major Interventions… • Livestock management • Animal health services • Rural finance institution establishment and strengthening • Coordination and collaboration with other agencies
  • 18. Degraded Forests converted to Productive Forests
  • 19. Degraded Forests before intervention
  • 20. Degraded Forests after intervention
  • 21. Degraded Forests after intervention
  • 22. • Production of forage and fodder increased tremendously – Demand of large animals
  • 23. • Livestock production increased through improved animal health services (from 58 percent of HHs in 2010 to 71 percent of HHs in 2013 ) • Increased annual income from livestock (from 60 percent HHs in 2010 to 70 percent HHs in 2013) • Average number of goats per HH increased from 3.12 in 2006 to 5 in 2010 to 6.12 in 2013)
  • 24. • LFUGs and Cooperatives established as rural finance institution (56 cooperatives) —LFUGs members involved in monthly saving increased from 28 percent in 2006 to 91 percent in 2013 — 77 percent of saving amount mobilized in productive activities •Social mobilization services build capacity of LFUGs (95 percent of LFUGs have record keeping system in place)
  • 25. Capacity of women, Dalits and the poor enhanced through social mobilization
  • 26.
  • 27. Fodder collection time reduced by 2.5 hrs. per/day
  • 28. • Income poverty of LFUG members reduced through various income generating activities
  • 29. • Resources generation through coordination and collaboration with other development partners
  • 30. • Livelihood of the poor improved through enterprise development Women Entrepreneurs Making Incense Sticks Bio-briquette Enterprises
  • 31.
  • 32. Bagged with several awards • Mountain development awards with cash prize – Kauledanda LFUG intergroup, Jhirubas, Palpa (2010) – Hupsekot LFUG intergroup, Hupsekot, Nawalparasi (2011) – Grihakot LFUG intergroup, Chitrebhanjyang Syangja (2012) • Environment development award – Aamdanda LFUG intergroup, Devghat, Tanahun (2012) • Letter of appreciation from Palpa District Development Committee
  • 33. Policy Implication • Leasehold forestry policy in place • Leasehold forestry introduced inside community forestry • Government continued programme without external resources • Leasehold forestry Priority One programme of the government • Adoption by other projects and programmes • Separate division established under Department of Forests
  • 34. Gender and Social Inclusion • Both man and woman from each household are member of the group • Involvement of women, Dalits and Janajati has increased – Women in key position (39%) – Dalit in key position (13%) – Janajati in Key position (56%)
  • 35. Other Implication • Networking of the groups in cluster and district federation • Poorest upgraded to poorer and poorer to poor category • Biodiversity increment in the leasehold forests • Soil erosion controlled to a large extent due to increase in green coverage
  • 36. Key Learning • Degraded forests can be restored in partnership with forest dependent poor. • Intervention is needed at package level: Resource generation to utilization and marketing. • Diversification of the products secures investment. • Local Resource Persons are important for sustainability. • Savings and Credit Scheme, even at low scale, benefits poor for income generating activities and for vulnerability coping. • Strong coordination between development partners is also key to the success. • Livelihood improvement planning best tool for resource pooling
  • 37. Opportunities and Challenges • Ever increasing demands for the extension of the programme in neighboring VDCs and districts • Extension of the programme in other districts and other areas in the same district as potential land (shifting cultivation and degraded forests) available there • Possibilities of resources generation through resource pooling • Possibilities of enterprise development with increased production of forage, fodder and NTFPs • Many species having multiple benefits available to grow that fetch high price • Potential model to contribute in mitigation and adaptation of climate change effects