An increase in agricultural yields may not necessarily lead to an increase in agricultural profits, because of higher input costs and price decreases. A full price analysis will be included in the final evaluation. However, focus group discussants during the interim evaluation noted low prices for their crops due to the lack of accessible roads to and from the perimeter and associated lack of traders accessing the perimeter. Additional production may have saturated sales opportunities. Higher input prices, water fees, and other expenses related to their new land also reduced profits. MCC is taking this into account for future compacts by considering the entire value chain from inputs to transport to markets, including transport infrastructure investments. MCC will also design agricultural projects to prevent surges in production from MCC programs that could result in a collapse in agricultural prices.
Lesson Learned