Introduction
As is tradition in our Branch, we are constantly searching for solutions to both the net banking problems and in particular those related to the risk of the operations we carry out, as well as those that affect the economic and social development of the territory and country.
In the framework of the Science and Technology Forum, proposals never before imagined may arise, but limited in time to develop them and seeking those of greater urgency, is that the theme of the development of agroforestry projects was selected to respond not only to the problem of necessary growth of food production but also to the important problem that today represent the loans and forest development of the country and the territory in particular.
Take into account that for a country to be considered with optimal levels of reforestation it must have 40% of planted areas, ours has 24.5%, Villa Clara province 20.8% and in particular our Municipality 1.6%. As can be seen, we are very far from approaching the internationally acceptable standards in this matter and therefore from receiving the productive and environmental benefits derived from them.
Summary
Despite the intervention of FONADEF and the Bank in granting financing for reforestation, there are several causes that limit the achievement of such an important objective. Among them the neglect of the planted areas and therefore the loss of both the invested resources, and the possible recovery of financing for non-payment of the State Forest Service (SEF) when the plantation was not established.
This work proposes as a solution variant for this current problem (which may be territorial or national) the granting of financing for the development of agroforestry projects in which the main objective is related to the recovery of the financing granted for reforestation and as objectives secondary food production to be obtained in the reforested area.
As objectives that are conceived in the structure of this work are:
• Explain the problems presented by reforestation financing and the associated risk.
• Propose financing for the development of agroforestry projects.
Explain the bases of it.
• Illustrate the benefits that this project would bring for both reforestation and food production.
Development
In recent years in the country, enormous efforts have been made for the development of reforestation taking into account the benefits of the trees, among which are:
• Beautification of the landscape.
• Education and recreation of the population.
• Satisfaction of material needs of the population: firewood, food, fodder, wood, posts, spices, fibers and medicines.
• Wildlife refuge.
• Modification of the climate.
• Control of atmospheric contamination.
• Noise abatement.
• Protection of hydrographic basins.
• Contribution to the recycling of varieties.
• Forage production.
For this, there is a FONADEF institution with representatives in the most remote parts of the country who conceive the development of forestry projects in the interests of defense, the production of wood for sawmilling, as a hydro-regulatory belt and for other purposes.
The Bank participates in the concession of financing for this noble purpose with certain requirements such as the presentation of the approval of the forestry project approved by the SEF representative in the territory, the cost sheet with the work to be financed, as well as the support for the recovery of these loans. These financings are subject to verification both at the time of delivery and during their physical execution in the selected area, at the same time the calculation of the investment insurance is established for the first three years until the plantation is established.
From the experience in granting these loans, a group of difficulties associated with them that attempt against their recovery can be mentioned, among the main ones are:
• Difficulties with state forest nurseries in which the species to be planted are not always found and this undermines the fulfillment of the project in question in this regard.
• The foreseen planting framework is not complied with.
• Fault replacement is not carried out in a timely manner.
• Not all planned maintenance with the required quality is applied to it.
• Fire cutting trails are not carried out.
• The area to flatten is not complied with from a geographical point of view.
• The survival percentage of the plantation is low or nil.
• Verification by the specialist representing the SEF in the Municipality is limited and they do not feel controlled.
• Entry of animals into the reforested area that devastate plants.
• No linkage of man to the area or other mechanisms that stimulate the care of the forest plantation is applied.
These and other difficulties threaten the recovery of the financing granted and practically make them irrecoverable, so the risk rises of not acting in a timely manner.
The agroforestry systems are a set of techniques for land use in which woody species (trees, shrubs, palms, bamboo) are used in deliberate action with agricultural crops and / or animals in the same management unit, so simultaneous and / or in a temporary or permanent recurrence (Combe and Bodouwski, 1979) and (Lundgren, 1982). It considers ecological and economic interactions, biodiversity and respects the principle of sustained yield.
The following are the objectives of an Agroforestry System:
• Obtain agricultural, livestock and forestry products for self-sufficiency.
• Promote multipurpose tree planting.
• Cover household wood needs.
• Reduce soil erosion and improve its fertility.
• Improve man's quality of life.
• Create a stable job source.
• Rationalize land use.
The application of the Agroforestry Systems allows the development of agricultural work, complying with the objectives of forestry activity, both productive and of protection and conservation, as well as appreciable social, environmental and economic impacts, since jobs are generated, housing problems are solved, and housing projects are undertaken. environmental sanitation, soils, river basins are protected and biodiversity is recovered, which contributes to:
• Raise quality of life levels.
• Carry out the different tasks at the optimal time.
• Improve plantation achievement and survival rates.
• Stimulate the results of the work.
• Increase labor productivity.
• Stabilize the workforce.
• Establish a more efficient control system.
• Effectively protect forest resources, housing and animals.
• Increase agricultural production.
Additionally, these Agroforestry Systems allow us to obtain benefits related to the current problem of forest loans.
• Substantially improves the care and care of the forest plantation.
• Improves the quality of the soil and optimizes the cultivable area.
• Maintenance costs for the forest plantation are reduced due to the tillage of the intercropped crops.
• The entry of animals is prevented when taking care of the area for other interests that exist in it.
• You can pledge the recovery of the forest loan obtaining net profit upon receipt of payment by the SEF once the plantation is established.
• Reduces the risk in granting and for the recovery of forest loans.
As you can see, this agroforestry project becomes a “finger ring” for its contribution to solving the difficulties that forest loans, reforestation and at the same time food production represent.
This is not a new discovery, but it is something towards which our institution should project itself in the not too distant future in our modest opinion.
Below is an outline of what the financing for the Agroforestry Project may contain, that is, what it consists of, what documents are required from the client, how to calculate their support, among other issues that may not be completely finished. For this, the engineering experience of the managers who work in our institutions was taken into account, as well as the urgent need to propose an immediate solution that can be sustainable over time, as our Minister President of the BCC has called us.
Financing for Agroforestry Projects:
In this section, it corresponds to us to expose what are the requirements for the concession, control and recovery of this financing, they will be exposed according to the sequence of steps to follow in any other type of financing with the particularities of course that it contains.
Documents to demand from the client:
• The client will present his request in the established model, specifying the destination, purpose of the loan, as well as the amount requested.
• Present the approval of the forestry project with the current requirements, including the sketch of the organization and distribution of agricultural and forestry crops according to the agroforestry technique to be used.
• Current use of land and certification of land tenure.
• Present a purchase contract for the positions to be planted detailing the species, delivery times and payment agreement.
• Present a planting and collection plan for various crops in the different months of the year with their convenient rotation. (Crops in perspective).
• It will present cost cards for each of these crops with the corresponding adjustments, corresponding to their rotation cycle.
• Present estimates of yield and price of each of the productions to be obtained, appropriate to the conditions of the Agroforestry System.
Calculation of the material support of the loan:
• It will be calculated according to what is established in MIP 230-95 for forest plantation.
• For the rest of the agricultural productions, the support will be the production to obtain.
Interest rates: They can be valued by the corresponding levels the application of preferential rates to stimulate the application of Agroforestry Systems.
Conditioning factors:
• Insure all the productions included in the Agroforestry System as long as there are insurance lines for them.
• That the loans approved in the future for this purpose include one of the known Agroforestry techniques: Agrosilvícolas Silvopastoral and Agrosilvopastoral.
Monitoring and control of the loan.
• Once the plantation is done, the entity will present the certification of the area to the Bank's branch.
• Certification of the optimal ranges for intercropping crops and / or grazing.
• Conduct systematic joint visits with the SEF specialist to borrowers.
• Regarding loan deliveries, demand compliance with the MIP established in this regard.
Maturities:
According to the cost sheets presented for the approval of the loans.
Innovative aspects included in the previous proposal:
A combined proposal for existing financing modalities appears.
The documentary requirements for the processing, approval and use of these loans are increased.
A new conditioner is established to increase control of the loans granted.
Prevents the increase in the delinquency rate of the loan portfolio.
A variant of intensive land use is proposed.
The risk of recovery in forest loans is minimized.
The agricultural credit is adjusted to the current requirements in terms of food production and the reduction of idle land.
The emergence of new forms of production in the country is facilitated.
It contributes to the implementation of MINAG policies regarding the subject.
The previous proposal has as its maximum aspiration the creation of the Integrated Forest Farms (FFI), which constitute the smallest forest management unit in which the Forest Companies are structured and, in our opinion, the most viable solution to the current problem of reforestation in our country. Municipality and in the country. These are based on the delivery of a land area of forest heritage (greater than 20 hectares), with or without forests, under contract to a farmer and his family with the aim of developing it through a forest management plan, drawn up and controlled by the technical direction of the Company.
Conclusions
1. The Agroforestry Systems within our Food Program are developed under ecological, economic and social dimensions that allow a varied application of alternatives for agricultural production under agroecological practices that do not pollute the environment and allow the rational use of the resources available in each territory.
2. The application of Agroforestry techniques, represents in itself a highly heterogeneous participatory system, which makes possible the exchange and interaction between the actors involved inside and outside the management model and their work style leads to the development of sustainable agriculture that can contribute to food security and improve the quality of life of men in their environment.
3. Despite the above, our institution does not conceive the delivery of financing in an integrated manner for the development of Agroforestry Systems.
4. For their part, forest loans suffer from a set of difficulties that make them highly risky and unrecoverable.
5. Both to solve the above difficulties and to promote the growth of agricultural productions, and a greater use of arable land, the Agroforestry System constitutes a viable, feasible implementation alternative with multiple benefits.
6. From the point of view of what is regulated in the MIP, some modifications are necessary that can be evaluated and put into practice shortly.
7. This work constitutes the preamble for future financing proposals, such as the establishment of the Fincas Forestales Integrales (FFI) as a superior form of production.
8. There are favorable experiences in the application of Agroforestry Systems, it is about extending, stimulating and promoting them from a financial point of view.
recommendations
1. Implement the modifications proposed in MIP 230 regarding the granting of loans to promote the development of Agroforestry Systems.
2. Experimentally apply these proposals to selected clients to demonstrate in practice their feasibility, benefits and impact.
3. Study in more depth the existing experiences in the development of Agroforestry Systems and the creation of the Comprehensive Forest Farms to insert ourselves with greater intentionality in their extensive application.
4. Execute coordinated actions with the National Fund for Forest Development and its representatives in each territory to carry out these proposals, including, of course, those related to training in this area.
5. Create the necessary conditions to achieve the insertion of the Cooperative-Peasant sector (CCSF and individual farmers) in these financing proposals.
