ABSTRACT
This study presents economic and financial analyses, corresponding to macro and micro views of the Farm Improvement with Soil Conservation (FISC) Project in Maphutseng, Lesotho. The economic analysis showed a negative net present value, primarily because of large capital investments and employment of skilled personnel. However, from the farmer’s viewpoint, continued use of the inputs introduced by the project would yield very high rates of return, even if purchased at regular market prices. Making the farmers aware of the profitability is the important first step, but high rates of adoption cannot be expected until the farmers’ problems of risk and lack of credit are overcome.
