Investments by local governments in commercial agriculture and livestock farming are beginning to transform rural livelihoods in parts of Dang, Rolpa and Pyuthan districts.

Representatives from 10 local governments gathered in Ghorahi, Dang, to exchange experiences and review progress made through an agriculture and livestock development programme implemented in partnership with Heifer International Nepal.

Data presented by the local governments showed that budget allocations for agriculture and livestock development have increased by 59.7 percent since the programme was launched in the fiscal year 2021-22.

Amid criticism that local governments focus mainly on physical infrastructure, municipalities and rural municipalities involved in the programme have increasingly shifted spending priorities towards agriculture and livestock development to promote commercial farming and rural enterprises.

The programme is being implemented in Gadawa, Rajapur, Dangisharan and Shantinagar in Dang district; Sunchhahari, Madi and Lungri rural municipalities in Rolpa; and Airawati, Sarumarani and Swargadwari municipalities in Pyuthan.

According to programme data, incomes of 21,971 participating households have increased significantly. Compared to the period before implementation, income from goat farming has risen by 80.4 percent, vegetable farming by 198.8 percent, dairy production by 51 percent and citrus farming by 87.8 percent.

“The programme has not only increased income but also built strong social capital in rural communities,” said Yam Narayan Sharma Pokharel, chairperson of Gadawa Rural Municipality. “Farmers have turned agriculture and livestock farming into income-generating occupations. They are now capable of learning and teaching others.”

A total of 925 women’s groups have been formed across the 10 local units, while 12 cooperatives have been registered to support agriculture, livestock development and women’s entrepreneurship.

To improve market access, 21 collection centres and 44 rural collection points have been established.

In the last fiscal year alone, collective marketing of goats, vegetables and milk through groups and cooperatives generated transactions worth Rs242.8 million.

Women involved in the groups encourage one another to engage in livestock farming by gifting goats and pigs. The groups currently manage around 2,900 breeding goats and pigs under a revolving “gift fund” system, with an estimated market value of Rs28 million.

Programme data show that an investment of Rs17,546 per household has generated an additional annual income of Rs27,128.

Tirtha Raj Regmi, director of Heifer International Nepal, said the figures demonstrated how agriculture-based partnership programmes could become a strong foundation for rural poverty reduction and economic growth.

“Agriculture and livestock farming remain the backbone of Nepal’s rural economy, but traditional farming methods and lack of market assurance had made commercialisation difficult,” Regmi said. “This partnership programme has helped improve the living standards of rural farmers.”

According to local government data, Dangisharan Rural Municipality has allocated 7.2 percent of its total budget to agriculture and livestock, Rajapur 6.1 percent and Shantinagar 4.6 percent. The local units are mobilising annual budgets ranging from around Rs490 million to Rs560 million, with agriculture receiving increasing priority.

“This change shows local governments are serious about improving farmers’ incomes not just in theory but in practice,” said Bharat Kumar Thapa, chairperson of Lungri Rural Municipality.

Of the 19,835 households directly involved in the programme, 69.6 percent are engaged in goat farming, 15.2 percent in vegetable farming, 12.7 percent in dairy production and 2.6 percent in citrus cultivation.

According to Basanta Khadka, vice-chairperson of Sarumarani Rural Municipality, the programme has helped establish agriculture as a primary occupation in rural communities.

“The strongest aspect of the partnership programme is the income reaching farmers’ pockets,” she said. “Farmers are now earning cash from agriculture and livestock farming and saving through cooperatives.”

Income from goat farming has increased from Rs251.2 million three years ago to Rs453.3 million. Income from vegetable farming has risen by 198.8 percent to Rs75.8 million, while income from milk sales has increased by 51 percent from Rs32.4 million to Rs49 million.

Farmers say they no longer depend on middlemen to sell their products.

“The cooperative formed by us purchases agricultural and livestock products directly,” said farmer Tika Bishwokarma of Belghari Women’s Group in Rajapur, Dang. “We get fair prices and immediate cash payments.”

Another farmer, Anju Sunar, said the programme had strengthened the concept of “small farmers, big market”.

“Small farmers are now creating vibrant markets through village fairs and vegetable collection centres,” she said. “Local products are being sold within the community itself.”

Shambhu Giri, chairperson of Dangisharan Rural Municipality, said the municipality was working to increase the investment-return ratio in agriculture and livestock from 1.5 to 2.7.