Impact Assessment

Impact evaluation of the farmer training and development activity in Honduras, NORC, 2012

    This document is the final report for the impact evaluation of the Farmer Training and Development Assistance (FTDA) project funded by the Millennium Challenge Corporation (MCC) in Honduras over the period 2007-2010. The project was implemented by the Millennium Challenge Account Honduras (MCA-H) under a Compact between the governments of Honduras and the United States of America. The Goal of the Compact in Honduras, which ended on September 30, 2010, was to stimulate economic growth and poverty reduction. To accomplish this goal, the MCA-Honduras Program aimed to achieve the following objectives:
    - Increase the productivity and business skills of farmers who operate small and medium sized farms and their employees (the “Agricultural Objective”); and
    - Reduce transportation costs between targeted production centers and national, regional, and global markets (the “Transportation Objective”).

    Over the course of the Compact, two projects were implemented by MCA-Honduras to achieve these objectives:
    -The Rural Development Project, which comprised of four activities: (i) farmer training and development, (ii) facilitation of access to credit by farmers, (iii) upgrading of farm to market roads and (iv) provision of an agriculture public grants facility.
    -The Transportation Project, which upgraded two major sections of the CA-5 Logistical Corridor, and pave approximately 65 km of secondary roads.

    Between May 2007 and September 2012, NORC undertook rigorous impact evaluations of two MCA Honduras Program activities: the Farmer Training and Development Activity (FTDA), and the Transportation project. This report discusses and presents the findings of the FTDA impact evaluation.

    Summary of results
    Net income change from horticultural crops is on average 11,360 lempiras (USD 600) higher for program participants than for nonparticipants. As well, input expenditures on these crops increased far more than they did for basic crops, implying a higher level of activity in cultivation of high value crops among program
    farmers. The results show a corresponding decline among program farmers in income from basic crops, as might be expected with changing crop mix; however, this decline is not statistically significant. These results are consistent with the program logic and hypotheses for the FTDA. Some of the results do not conform to expectations. For example, we do not see a corresponding increase in net household income nor household expenditures/consumption, as we might have expected given the increase in income from horticultural crops.