Stop The Burning

Global Grant Application

GRANT NUMBER GG1744360 
STATUS Approved
 

Project Overview
Tell us a little about your project. What are the main objectives of the project, and who will
benefit from it?

We are applying for a GG to purchase 21 purpose built shredders capable of continuous farm use to shred rice crop residue. The shredders will be given to 21 carefully selected, fully trained, farming communities. We are partnered with Rajamangala University in Lampang (an agricultural/engineering university) for this purpose.
Our initiative is a practical endeavour to help small-scale farming communities in the Lampang Province of Thailand lift themselves out of the poverty trap by giving them the means to convert their crop residue to compost & fertiliser, instead of burning it as they now do, and thus reap the benefit by improving local community income & prosperity.
 

A small scale farming community typically consists of around 20 families all helping to farm their land. Individual farms vary in size from about 1 acre to 5 acres. The community groups are registered with the Ministry of Agriculture and are recognised entities. The leaders are selected by other group members. Their income, as explained elsewhere in this application, is below the poverty line.
 

Our farmers estimate that one acre of their rice paddy produces 1.266 metric ton of above ground crop residue. There is a variance in the amount produced between Thai provinces, and indeed, between countries. Factors that influence this are many including climate, machinery used and soil properties for example. We see in our online research that a figure of 1.643 metric tons per acre is quoted by the Thai Government
(http://www.ldd.go.th/menu_moc/POSTER/rice/rice.htm) but our calculation does not include the root and is based on what our farmers tell us. Our figure is more conservative and lower but we think it is probably more accurate for our province. This shredding process will enable sale-able compost and fertiliser, and paper for packaging and other uses, to bemade and thus enrich the farming communities and the local communities surrounding them.
 

Areas of Focus
Which area of focus will this project support?
Economic and community development
Building the capacity of entrepreneurs, community leaders, local organizations, and community networks to
support economic development in impoverished communities;Reducing poverty in underserved
communities
Who will collect information for monitoring and evaluation?
Rajamangala University of Technology Lampang (RMUTL)
Briefly explain why this organization is qualified for this task.
The University will direct the project on behalf of the Rotary Club of Lampang. It has agriculture, technology,
engineering & business faculties. It will work closely with club members Mr Boonkoom Boonyasopath & Mr
Tony Harris. The RMUTL is an established agricultural technology university in Lampang, Northern Thailand with agricultural, engineering and agriculture-related business faculties. They are keen to help us with the project & broaden their tutor and student experience as well as help local farming communities. As such, the Rotary Club of Lampang chose them as the cooperating partner. 
 

Describe the role that host rotarians will have in this project.
- Write and oversee tender competition (All tender decisions will be taken by the Rotary Committee)
- Oversee the selection and training of farming groups.
- Help provide leads for sale of organic compost & fertiliser by working with the cooperating organization.
- Consider reports from the cooperating organization at Rotary meetings.
- Seek media publicity for the project to encourage sponsors and support.
- Undertake field visits to the farming communities receiving the shredders to obtain first hand feedback.

Describe the community needs that your project will address.
The average small scale farmer income in Lampang Province is 20.000 Baht (US $569) per annum,
compared with the average manual wage in urban areas of 180,000 Baht (US $5,124). The average age
of rice farmers is now 51 but 20 years ago the average age was 31. This startling statistic is very telling.
The younger generation cannot afford to continue farming. Research suggests that many also find the
work back breaking, while others fear social stigma. So the young seek work in the non farming sector.
Because of the sheer volumes produced, burning crop residue has been the only affordable option, but by burning the farmers are burning a valuable source of income, one that could help them improve their
standard of living and that of their families significantly - please see 'Funding' Section below.
There are many economic advantages to local communities in farming on a small-scale. Local farmers
generate a local economy in their rural communities. An University of Minnesota study showed that small
farms with incomes of $100,000 or less spend almost 95 percent of their farm-related expenses within
their local communities. The same study took in comparison the fact that farms with incomes greater than
$900,000 spend less than 20 percent of their farm-related expenses in the local economy. Thus, small scale agriculture supports the local economy.
The ageing farming population has perpetuated educational problems. Small farmers were not well
educated with very few going on to higher education. Their sons and daughters followed in their
educational footsteps and now go to urban areas in search of manual work. This is often low paid. They
leave their children with their farmer parents because they cannot afford to take or keep them in the urban
areas. So the grandchildren are cared for by their grandparents and often kept away from school to work
on the farm as free labour - education has a low value in these households and that view is perpetuated
from generation to generation. This is known as ‘skip generation’.
Borrowing for farmers is particularly problematical. Although small scale loans are available from the Bank
of Agriculture, larger loans for machinery investment are not. This is because it takes 10 years in Thailand
to seek foreclosure on land whereas normal foreclosure on say a car takes less than 6 months. So Banks
are reluctant to lend larger sums to farmers because default doesn't lead to recovery in reasonable time.
As a result, the interest rates on such loans are far higher than for normal goods. This is aggravated by
their elderly age. Thai farmers have become increasingly indebted. In 2015 farmers owed on average
104,000 baht, or $3,350, the equivalent of about five years of their average income. The reasons are
basic survival coupled with the higher interest rates of loan sharks, rising fertilizer prices and the legacy of
crops lost to flooding, drought and other natural disasters.
How did your project team identify these needs?
By talking to local farmers and asking them why they burnt their crop residue when it could be recycled
and sold, by various dialogues with community members, Rajamangala University and online research.
How were members of the benefiting community involved in finding solutions?
We have worked with the farmers to design a robust, fit for purpose and portable shredder. They have
experimented with the creation of fertiliser and compost and helped find marketable mixes. They have
identified that paper can be created from the crop residue relatively easy and that there is a demand for
such paper in the packaging process. They are looking to make more items, for example, place mats,
cutlery covers and so on. This creative process is ongoing and they are looking for additional ways in
which their paper product might replace plastic products.
How were community members involved in planning the project?
We received a district grant to build 2 shredders that were fit for heavy and continual farm usage. No
gardening shredders were able to fulfil this demand. Moreover, the shredders had to be portable so that
they could be shared amongst farmers. Two groups of farmers were identified comprising 45 farms in total covering 160 acres. They were involved in the testing, redesign, residue conversion to compost and sales and marketing processes. As a result, they declared the project a resounding success. Instead of burning the residue, they were able to manage, convert and improve their soil, dispense with the need to buy commercial fertiliser and to sell surplus compost and fertiliser.
 

Project implementation

# Activity Duration
1 Procurement via tender competition - 1 month
2 Assembly and testing the shredders - 2 weeks
3 Handover each shredder to selected recipients and training - 3 weeks
4 Assistance in making organic compost from shredded residue as well as sales and
marketing - 3 months
5 Regular reports from lead recipients to designated Rotary contact points - 11
months
6 Final report to Rotary - 12 months

There are no other local initiatives to help the farmers recycle and sell their crop residue.
Please describe the training, community outreach, or educational programs this project will
include.
The training will be in the operation of the shredder, its maintenance, blade rotation, how to make organic
fertiliser and how best to market and sell it.
The project will also seek to develop the paper making initiative by helping to refine the process, training
other farmers how to make it including the equipment needed (purchased from the profit they make from
selling organic fertiliser made by use of the shredder).
How were these needs identified?
By analyzing the issues involved and a constant dialogue with our farmers.
What incentives (for example, monetary compensation, awards, certification, or publicity), will
you use, if any, to encourage community members to participate in the project?
The incentive for the farming communities are clearly a significant improvement in their standard of living.
The wider community wish to help in this process both to help farmers and to seek to halt the practise of
burning which can be quite nauseating. The local Chamber of Commerce are fully committed to making
our initiative a success.

Budget
Will you purchase budget items from local vendors?
Yes
Explain the process you used to select vendors.
Local providers for the component parts were identified. We asked them to quote for the work and they
did so, as set out in the supporting documents attached in the Budget section above.
Did you use competitive bidding to select vendors?
Yes

Our shredder is not a complex machine. Its operation requires some small mechanical knowledge and
attention to basic health & safety procedures such as wearing dust masks. The shredder will be operated
by the farmers & they will be responsible for purchasing spare parts - these will be mostly worn blades
which are easy to fit. The training in safe operation and maintenance will be undertaken by Rajamangala
University staff.
Describe how community members will maintain the equipment after grant-funded activities
conclude. Will replacement parts be available?
We shall provide the farming communities with the names of companies who can provide spare parts.
Such spare parts are readily available throughout Thailand.
If the grant will be used to purchase any equipment, will the equipment be culturally
appropriate and conform to the community's technology standards?
Yes
Our Shredder has no impact on cultural sensitivities. It will be fit for purpose, can be operated safely &
conforms to acceptable standards.
After the project is completed, who will own the items purchased by grant funds? No items
may be owned by a Rotary district, club, or member.
The shredders will be owned by each farming community.
Have you found a local funding source to sustain project outcomes for the long term?
Yes. Please see below.
Will any part of the project generate income for ongoing project funding? If yes, please
explain.
The project will become self financing after one year of operation. This is because instead of burning crop
residue, the farming communities will convert it to organic fertiliser for sale. The volumes of crop residue
are such that the incomes can cover the cost of replacing the component parts as and when necessary
with a significant (for poor farmers) profit on top.
 

Organic fertiliser
Each farming community will cover approximately 200 rai of land (79 acres) which can produce 100,000
kg (or 100 metric tons) of shredded crop residue.
However, in a kg of organic fertiliser (OF) only 0.8 kg of shredded crop residue is used. The additional
ingredients are -
+ Manure - 0.1 kg
+ Biochar - 0.1 kg
+ Microbes - Negligible weight
So 79 acres of land can produce -
125,000 kg (or 120.5 metric tons) of OF
I kg of OF can be sold at a minimum of 15 Baht ($0.43)
1 metric ton of OF can be sold at 15,000 Baht ($428.57)
Therefore, 79 acres can generate 1.875 Million Baht ($53,571.43) of revenue (125,000 kg multiplied by 15
Baht) for a farming community.
But from the figure of 15 Baht ($0.43)per kg of OF, the following costs must be deducted -
Biochar @ 1.6 Baht ($0.046) per kg of OF
Manure @ 1 baht ($0.029) per kg of OF
Microbes are provided free by the Thai Government to registered farmers.
The cost of shredding we calculate as 1.6 Baht ($0.046) per kg of OF or, in a metric ton, 1,600 Baht
(45.71) as follows (remembering that 1 kg of OF contains 0.8 kg of shredded residue) -
120 Baht ($3.43) for gas,
800 Baht ($22.86) for labour
64 Baht ($1.83) for blade wear,
8 Baht ($0.23) for oil change,
8 Baht ($0.23) other part wear
Sub Total A = 1000 baht ($28.57)
20% for overheads 200 Baht ($5.72)
Sub Total B = 1200 Baht ($34.29)
To this cost we add -
Transport of OF to market - 300 Baht ($8.57) per ton
Cost of moving the shredder between farms - 200 Baht ($5.72) per ton
For shredding & transport, the cost is 1,700 Baht ($48.57) per ton.
From the sale price of 15 Baht ($0.43) per kg, we deduct 1.6 Baht ($0.046) for biochar, 1 Baht ($0.029)
for manure, 1.2 Baht ($0.035)for shredding, 0.5 Baht ($0.015) for transport of OF to market & moving the
shredder between farms.
Total Cost = 4.3 Baht ($0.123)
Leaving a profit of 10.7 Baht ($0.306) a kg
Or 10,700 Baht ($305.715) per ton
Or 1,337,500 Baht ($38214.286) a farming community (each farming community can produce 125,000 kg
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(or 120.5 metric tons of OF).
In 3 years, the profit would be 4,012,500 Baht ($114,642.858). The physical cost of making the shredder
is around 80,000 Baht ($2285.715). We expect the shredder frame & engine to last for a minimum of 5
years.
We suggest that the project is sustainable in conformity with Rotary International best practice.
Notes :
1 ton of residue can be shredded in a day.
Workforce cost per day is 1000 Baht or $28.572 (2 people at 500 Baht ($14.286) each).
Gasoline costs 150 Baht ($4.286) per day, per kg 0.15 Baht ($0.005)
Blade wear. Each blade costs 400 Baht ($11.429). In 3 years a community will spend 24,000 Baht
($685.715) to change all the blades I.e 60 alloy steel blades.
So 8000 Baht ($228.572) a year. 8000 Baht ($228.572) per 100,000 kg of shredded residue, 0.08 Baht
($0.001) per kg for blade wear
Transport to market - 300 Baht ($8.572) fuel cost per ton of OF
Cost of moving the shredder between farms - 200 Baht ($5.715) per ton
Paper Making
Some of our farmers are using the profit from sales of the organic fertiliser to make paper from the
shredded crop residue. This paper can be used for packaging and other purposes. The demand in the
market for packaging material is virtually unlimited. In some respects it can rival plastic & be marketed as
an eco friendly socially responsible alternative to plastic.
Paper making is entirely the farmers own initiative and is a recent development, and potentially a lucrative
one. The shredded residue is mixed with baking soda & the resultant mixture spread on grids and allowed
to dry.
Initial calculations suggest -
The Rice Paper can retail at 60 Baht ($1.715) per Kg or 6 Baht ($0.172) a sheet.
The cost is said to be 50% of sale price.
The one off costs are the tubs for cleaning, mixing and soaking, as well as the grids. These the farmers
pay for from the profit from OF sales.
A farming community of 79 acres can produce 100,000 kg of shredded residue per annum. Therefore, per
annum a profit of 3,000,000 Baht ($85,714,286) is possible.