The agriculture and livestock development component is directed at the smallholder farmer in Southern Punjab. It consists of three sub-components; (i) Productivity Enhancement Initiatives (ii) Technology Transfer to farmers using the Farmer Field Schools approach and (iii) Training of service providers in agriculture and livestock.
The productivity enhancement sub-component targets Category: 0-23 powerty index (Small Holder Farmers: 05 acres in irrigated & 15 acres in barani). It has been designed to provide opportunities to the smallholder farmer to increase productivity in the crop and livestock sectors through provision of improved technologies. The target group will be selected from those households who score 23 or less on the poverty score card but have some land and livestock. Community members will identify investment opportunities that can help to enhance their productivity and production in the crop and livestock sectors.

The selected households will be provided technical assistance and financing for investment in precision land levelling, raised bed plantation, zero tillage plantation, kitchen gardens, gypsum treatment, tunnel farming, artificial insemination of livestock, fish ponds etc. It is expected that this sub-component will also encourage innovations along the value chain in helping smallholder farmers to work on a collaborative basis in storing, processing, transporting and selling agriculture produce to markets. In selecting the investment the technical and economic feasibility will be carefully evaluated as well as the cost per beneficiary, cost-benefit ratio, etc.