This publication is divided into two parts which provide information on the features of the Tree Improvement and Silviculture Component (TISC) in Nepal towards basic and advanced tree domestication, silviculture, and involvement of community/farmer' organizations in the protection and management of important farmland and forest tree species. The first part comprise three chapters: chapter 1 describes the recent history of formal seed distribution and the role of fodder trees for poverty alleviation; chapter 2 summarizes the results of a survey commissioned by TISC on developments in the forage and fodder sector; and chapter 3 shows that TISC has the technical capacity, experience and mandate to provide many of the necessary services. The second part is composed of 4 chapters. Chapter 1 discusses the objectives for an operational programme for increasing the availability of kinds and quality of fodder seedlings to improve the livelihood of smallholders in Nepal. Chapter 2 explains the most important aspects of seed quality in Nepal. Chapter 3, on the other hand, discusses the seed production aspects of a decentralized programme and explains how farmers' priority species can be grouped into three types of species according to their occurrence in Nepal, viz., farmland species, natural forest species and exotic species. Lastly, chapter 4 discusses the seed distribution aspects of a decentralized programme and suggests that effective networking, marketing and awareness raising are the key elements to successful distribution of quality seed by seed cooperatives.