Results of the Policy analysis on scaling green agriculture Presented by: Khamphou PHOUYYAVONG Contributions from: NAFRI, DoPLA, SEI, TABI

Contents Background to Study Defining terms Key messages – Policy of the study Principles of Green and Sustainable Agriculture (G&SA) Three investment priorities to implement G&SA Limiting in scaling up G&SA Policy levers Measuring Success Next steps Key questions for discussion

Healthy, resilient landscape Sustainable Agriculture and Commercial Agriculture: two competing visions Industrial food system with commercial agriculture Sustainable-Green Agriculture Leads to high input mono-cropping, excessive pesticide use. Healthy, resilient landscape Unique and high value products Imported, processed, mass produced, low nutritional value food. Community Industries-SMEs Balanced diet, high nutrition based on local biodiversity

Background to Study Many approaches to ‘sustainable agric.’ but how to go to scale. Agreed to: Identify entry points for promotion of agrobiodiversity in context to ‘Clean Agriculture’, ‘Green Extension’, and ‘Green Rice Landscapes’. Policy constraints impeding promotion of agroecology. Impacts of agroecology in relation to incentives and benefits for stakeholders – policymakers, producers, and consumers. NAFRI Socio-Economic and Rural Development Division, Think Tank, DoPLA and SEI to carry out study. At the last SSWG-ABD, many approaches to “sustainable ag”but how to go to scale. Agreed for next meeting to present around: Entry points for promotion of agrobiodiversity in relation to new and emerging policy areas such as “Clean Agriculture”, “Green Extension”, and “Green Rice Landscapes”. Policy constraints that are impeding the promotion of agroecology. Impacts of agroecology in relation to incentives and benefits for stakeholders – policymakers, producers, and consumers. NAFRI Socio-Economic and Rural Development Division, Think Tank, DoPLA and SEI proposed to carry out study

Overall Study Objectives Understand policies, institutions and practices applied to ‘clean agriculture, sustainable intensification, green agriculture’. Map green/clean agricultural policy operationalization and core attributes. Identify bottlenecks to adoption and level of institutional support required for national roll- out. Provide recommendations to Government, donors and private sector on the implementation of G&SA. Understand current set of policies, institutions and practices being applied in relation to ‘clean agriculture, sustainable intensification, green agriculture’ Map out how the green/clean agricultural policy is currently operationalized in Lao PDR and document its core principles, mechanisms and experiences through selected case studies. Document current bottlenecks to adoption and the nature and level of institutional support required for national roll-out? Provide possible recommendations to the Government, donor partners and private sector on the implementation of a clean agriculture.

Dissemination of Results Process/Methodology Initial start up Concept note development Getting different institutions on board Secondary research Desktop study on green/sustainable agriculture Focus group and individual interviews Requested by MAF/DOPF to provide comments on Green Growth strategy Dissemination of Results Analysis of information Drafting of initial findings paper Presentation at SSWG-ABD for feedback and further inputs Policy brief to be made by DoPLA on Green Agriculture.

Defining terms Green and Sustainable Agriculture: elements of fair trade, ecological agriculture, organic or biodynamic agriculture, conservation agriculture. adapted to local farming techniques and practices – yield increases, waste reduction and addresses inefficiencies. Green Growth: economic growth using natural resources sustainably. Green and Sustainable Agriculture: elements of fair trade, ecological agriculture, organic or biodynamic agriculture, conservation agriculture. uses adaptable local farming techniques and practices that increase farming yields, reduces waste and inefficiencies in the food chain. Green Growth: economic growth that uses natural resources in a sustainable manner. It is used globally to provide an alternative concept to typical industrial economic growth.

Key messages - Policy Agricultural and development policy aligned with SDGs. Focus on commercialization - increased production. However resulted unsustainable agriculture practices and indebtedness of small holders. (i.e. maize for feed) Progress made in establishing sustainable production. However rarely move beyond pilot stage, scattered and not strategically aligned. Roll-out of GAP and “green approaches” constrained by a number of factors. Need to reorient institutional norms and behaviors given past focus on commercialization and yield improvement. Incentives required for farmers, government extension and private sector to prioritize green agriculture. Need for testing. Agricultural and development policy aligned with SDGs. Focus on commercialization increased production of major commodities however increased unsustainable agriculture practices and indebtedness of small holders. (any evidence?) National roll-out of GAP along with the range of other “green approaches” is constrained by a number of factors. (in slide 8) Need to reorient institutional norms and behaviors given past focus on commercialization and yield improvement. (why is that?) Few concrete incentives exist for farmers (what are they?), government extension and private sector to prioritize green agriculture. Incentives need to developed and tested. Progress made in establishing sustainable production i.e. organic farming, geographical indicators, agro-ecology etc. However approaches rarely move beyond pilot stage and are often scattered and not strategically aligned.

Principles of Green and Sustainable Agriculture Integration of livestock- crops systems. Ensure crop rotations are diversified. Use environmentally sustainable weed and pest control practices. Natural and sustainably made nutrient inputs. Post-harvest storage and processing facilities to reduce waste. Integration of livestock-crops systems – diversity has benefits that include food security, economic resilience, and promoting resource conservation. Ensure crop rotations are diversified – core elements within agroecological farming and conservation agriculture that promotes agrobiodiversity – along with the incorporation of the agroforestry. Use environmentally sustainable weed and pest control practices – moving away from the dependence on herbicides and pesticides – promoting integrated pest management (IPM). Natural and sustainably made nutrient inputs – minimizing dependence on external sources of crop nutrients and promoting the production of biofertilizers through the recycling of crop and livestock waste. Post-harvest storage and processing facilities to reduce waste – addressing the current impasse of farmers being ‘price takers’ - rather than ‘price makers’ - through adequate storage and adding value to primary products.

Investment priorities to implement G&SA Promote Green Agricultural Innovation and Technologies Green Extension Green Enabling Policy. Promote Green Agricultural Innovation and Technologies – many examples piloted through projects and indigenous knowledge i.e. rice-fish systems Outhoumphone district, Savannakhet Province Green Extension: Need to upskill at all levels from individuals to institutions. This has been clearly articulated in papers. Green Enabling Policy: Policies that incentivizes the agricultural sector to make the shift. Smart investments will nudge farmers away from wasteful production and towards achieving desired sustainable outcome. This includes market based incentives.

Limiting scaling up G&SA Lack of consolidation of interventions that have been evaluated and their scaling up Lack of supporting policies – need smart incentives (tax incentives, price incentives etc.) Institutional limitations as incentives and strategies primarily focused on commercial agriculture Heavily focus on commercialization of agriculture that may not bring the desired outcomes. Lack of consolidation of the interventions that have been evaluated and their scaling up. Lack of supporting policies – need smart incentives (what are smart incentives?) Institutional limitations as incentives and strategies primarily focused on commercial agriculture Heavily focus on commercialization of agriculture that may not bring the desired outcomes (following map).

ກະສິກໍາເພື່ອຜະລິດເປັນສິນຄ້າ ແລະ ຄວາມທຸກຍາກ Commercial Subsistence ກະສິກໍາເພື່ອຜະລິດເປັນສິນຄ້າ ແລະ ຄວາມທຸກຍາກ Commercialization of agriculture and poverty Change 2005-2015 Status 2015 Source: Monitoring and Reporting for the SDGs: 16 by Ingalls and Nanthavong

Policy levers Need to be developed and shaped to fit the context and environment Certification of farmers in G&SA - results in higher market prices. Policy to create these markets. Reduce cost of production: i.e. lower or elimination of land taxes for farmers that adopt G&SA. Accessing green markets i.e. carbon storage mechanisms. Developing systems for farmers to collectively access. Need to be developed and shaped to fit the context and environment Certification of farmers in G&SA - results in higher market prices. Policy to create these markets. Reduce cost of production: i.e. lower or elimination of land taxes for farmers that adopt G&SA. Accessing green markets i.e. carbon storage mechanisms. Developing systems for farmers to collectively access.

Measuring Success Changes in annual fallow area. # registered and certified organic farmers. Sales/importation of pesticides, herbicides and fertilizer. Changes in annual fallow area. Implementation of quality assurance (QA) to assess pesticide residues. Number of SMEs and number of One District One Product (ODOP) established in the agri-food systems value chain. Growth of agroforestry systems and landscape diversity. Number of registered and certified organic farmers and those implementing. Sales/importation of pesticides, herbicides and fertilizer. Changes in fallow area indicating a shift towards crop rotations. Implementation of quality (QA) assurance protocols to assess pesticide residues on food as part of ensuring food safety. Number of SMEs and number of One District One Product (ODOP) established in the agri-food systems value chain indicating the growth of domestic markets. Growth of agroforestry systems and landscape diversity, this could include high value crops, such as rubber, eucalypt, tea, coffee etc.

Next steps Identify incentives/nudging levers that could be consider under the Lao context. Undertake piloting of best bet options that could be considered. Explore possible options to reorient institutional norms and behaviors and link the agricultural policy to provincial and district levels in its implementation.

Key questions for discussion Policy constraints (anything to add?) What are the most appropriate policy levers to scale out green and sustainable agriculture in Lao PDR. How do we know if policy is successful? What are the measurable indicators? Any further comment?