Getting Farmers, Small Businesses Back on Track Seventy to eighty percent of agricultural production was destroyed by Hurricane Mitch. To reactivate the agricultural sector, USAID is repairing or reconstructing 1,100 kilometers of farm-to-market roads, more than 2,140 meters of bridges, and 145 fords. USAID is also providing $68 million of credit and technical assistance to re-capitalize micro-finance institutions, permit medium-term lending to small and medium businesses in the agricultural sector, and improve farmer know-how. The $49 million roads and bridges program managed through the Honduran Social Investment Fund (FHIS) and RECAP has reconstructed 103 sections of secondary and tertiary roads with the balance of nine sections under construction. Of 69 bridges slated for construction, 62 have been completed along with 3,200 meters of fords. This program is joining 375 communities, connecting close to 2 million people with secondary cities and commercial centers. In addition, community development NGOs have rehabilitated 143 kilometers of rural roads and built or reconstructed 48 fords or bridges. USAID channeled $28 million through commercial banks, NGOs, credit and savings cooperatives, and agricultural credit cooperatives to help small- and medium-sized businesses and farmers and the United States Department of Agriculture (USDA) provided another $17.3 million in credit to farmers through the Honduran government’s PROREMI program. The assistance helped farmers replace damaged water systems, buildings, fences, and machinery, and buy the equipment, materials, and breeding stock they needed to rebuild their productive capacity. Marketing assistance has enabled recuperation of pre-Mitch markets and links to new markets for plantains, banana puree, frozen melon, papaya, pineapple, dairy products, and 28 other crops from the cottage to industrial levels. Total revenues of firms/farms since program inception are now more than $11 million. Over 24,000 farm families and micro and small entreprenuers around Honduran secondary cities have benefitted from the market-led, technically focused agricultural diversification programs implemented by two USAID contractors, Land O’ Lakes and Fintrac. The producers have increased their productivity, expanded ancillary business linkages, and generated employment. As a result of USAID’s work with cheese processors in secondary cities, FDA inspectors have certified five craft cheese plants, surpassing the project’s initial goal of three plants. FDA certification is a critical element for gaining access to U.S. markets and increasing sales. Because of their dramatic impact on farm/firm level income, USAID will continue the Land O’ Lakes and Fintrac programs and expand their coverage. These two unique activities have proven to be global alliance models of rural development that can mitigate the mid-term repercussions of the current and lasting coffee crisis. $10 million was disbursed through the microenterprise credit program, exceeding the target by more than half. The program experienced excellent repayment records.