AgResults is a $145 million multilateral initiative that uses Pay-for-Results prize competitions to incentivize, or “pull”, the private sector to overcome agricultural market barriers by investing in innovative research and delivery solutions that improve the lives of smallholder farmers. At our core we are an experiential learning initiative, continuously building evidence on what works, and what does not, in using prize competitions to spur sustainable market change.Read more about our approach
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November 22, 2019
On November 21, the AgResults Tanzania Dairy Productivity Challenge Project held its official launch event to kick-off the prize competition that aims to increase dairy productivity among smallholder farmers. The event, which brought together stakeholders from across the public and private sectors, was an opportunity to reflect on the project’s potential to transform Tanzania’s dairy sector.
Held at the Sea Cliff Hotel in Dar es Salaam, the launch event featured speeches from the Permanent Secretary of Livestock, Professor Elisante Ole Gabriel, among other public and private sector dairy representatives. In her comments, Mercy Karanja from the Gates Foundation acknowledged the international development sector's dedication to this key topic. As part of the event, attendees – including potential competitors across the dairy value chain – asked questions to learn more about the parameters of the competition, which will begin in January 2020 and continue through April 2024.
“I feel greatly honored to grace the launch of this Pay-for-Results prize competition, which is the first of its kind in Tanzania,” said Professor Elisante Ole Gabriel, Permanent Secretary for the Ministry of Livestock and Fisheries. “The innovative AgResults Pay-for-Results prize competition addresses Tanzania farmers’ limited access to high-quality inputs, and the Ministry is committed to supporting it to ensure its success.”
Managed by Land O’Lakes Venture37, the project will use a competition structure to encourage companies to provide farmers with input bundles that will boost productivity and strengthen the dairy value chain. Tanzania’s dairy sector has historically struggled: 97% of cattle are low-yield breeds, poor management practices are prevalent, and there are seasonal fluctuations in the availability of forage and feed. As a result, many smallholder farmers struggle to access affordable private extension services and the high-quality inputs they need.
The project is designed to incentivize private sector competitors to package and deliver input bundles comprising a combination of parasite controls, high quality feed and/or fodder, vaccines, and/or artificial insemination inputs to smallholder dairy farmers. By encouraging businesses to provide both input bundles and advisory services, the project will address a variety of gaps in Tanzania’s dairy value chain.
As farmers gain access to quality inputs and receive regular training, their knowledge of livestock management will improve as will their use of vaccines and health inputs, in turn boosting the nutrition of cows. Healthier and more productive cows will improve the quality of the milk, positioning smallholder farmers to participate more fully in formal markets. Accessing these markets will drive up smallholder farmers’ incomes and cement their relationships with key value chain actors.
Over four years, the project aims to achieve approximately 23 million liters of additional milk production, translating in part to $9.4 million in additional farmer revenue and $4.14 million in competitor revenue. These may be ambitious goals, but the dynamic conversations from the launch event reflect the collective dedication and enthusiasm that position the competition well for success.
“We are very excited to be here today and be a part of this innovative approach to strengthen dairy productivity in Tanzania,” said Rodrigo Ortiz, lead consultant for AgResults. “This prize competition has the potential to transform the country’s dairy sector, specifically for its smallholder farmers.”
For more information, including details about the prize structure, visit the AgResults Tanzania Dairy Productivity Challenge project page. Please note that this page will continue to be updated through January 2020.
The project is part of AgResults, a $145 million collaborative initiative between the governments of Australia, Canada, the United Kingdom, the United States, the Bill and Melinda Gates Foundation, and the World Bank Group that uses prize competition to incentivize the private sector to overcome market barriers and create lasting change. Under AgResults’ Pay-for-Results model, these competitions encourage actors to achieve predetermined results thresholds and quality for monetary prizes....
October 30, 2019
By Tulika Narayan and Judy Geyer, Abt Associates
As the External Evaluator for AgResults, Abt Associates uses a mix of quantitative and qualitative methods to determine if the AgResults Pay-for-Results prize competitions achieve their objectives. Tulika Narayan serves as the Research Director.
The problem. Agriculture accounts for 23 percent of total greenhouse gas emissions (GHG) in Vietnam, of which rice cultivation contributes 54 percent. The warm, waterlogged soil of rice paddies provides ideal conditions for methanogenesis — or release of methane into the atmosphere. Recognizing this, the government of Vietnam has been working towards the goal of reducing GHG emissions from rice cultivation. However, progress has been slow because rice production practices that reduce emissions are often too complex or not profitable enough for farmers to adopt.
The AgResults solution. The AgResults Vietnam Greenhouse Gas Emissions Reduction Challenge Project in Thai Binh Province aims to (1) improve technologies that reduce GHG emissions from rice (while maintaining or improving yield) and (2) promote farmers’ adoption of those technologies. AgResults’ five donors – USAID, DFID, Global Affairs Canada, DFAT, and the Bill and Melinda Gates Foundation – are using this and other Challenge Projects to test whether Pay-for-Results (PfR) incentives can help solve various challenging agricultural problems affecting smallholder farmers around the world. As the External Evaluator, Abt Associates conducts independent evaluations to gauge the short- and long-term results of AgResults’ prize competitions.
The Vietnam project offers prizes to “competitors” (private companies such as seed companies, fertilizer suppliers, and rice traders). To win a prize, a competitor must both develop an improved technology package that reduces GHG while improving yields and succeed in getting farmers to adopt that package to scale. Prior to its Vietnam low emissions rice project, Abt evaluation of completed AgResults projects have demonstrated that PfR can be successful, particularly when farmers directly benefit from a new product or technology, independent of prize incentives.
Results from Phase 1. In the project’s first phase, which ended in 2018, 11 private sector entities competed to develop packages of low emissions rice production technologies. Of those, six competitors won prizes for developing technologies that demonstrably reduced emissions and increased yields. Four competitors who won prizes in Phase 1 decided to compete in Phase 2, which is currently underway. Phase 2 prizes will be awarded to competitors based on the number of smallholder rice farmers who adopt the technology packages, the total reduction in GHG emissions, and the increase in rice yields.
Abt’s evaluation of Phase 1 noted that the technologies used in Phase 1 — short duration variety rice, alternate wetting and drying (AWD), slow release fertilizer, reduced use of fertilizer, increased spacing of plants, and crop residue management — are not completely new. Instead, they combine existing approaches to reduce GHG emissions in new packages. All four technology packages that advanced to Phase 2 share common features with some variations. These technology packages are also largely similar in their GHG reduction and yield increasing potential. This suggests that technologies are themselves not distinct enough to explain differences in farmer adoption rates. Rather, any adoption differences stem from the strategies that competitors use to incentivize farmers, the long-term value they demonstrate to farmers in adopting the package, and the cost of resources they invest in the effort.
Will the results sustain? Abt’s interim findings suggest that competitors are giving substantial subsidies for seeds and fertilizers to motivate farmers to adopt the technology packages. This investment makes sense because the competitors have a chance to win large prizes – $500,000 at the end of each of the four crop cycles for a potential total of $2,000,000 to be shared among four competitors, provided they reach GHG emission reduction targets. In addition, the four companies have a fair chance of winning one of the end-of-project grand prizes of $750,000, $400,000 and $200,000 for the top three competitors. In addition to these subsidies for farmers who implement the technologies, some competitors have also promised to pay back a share of these prizes to the cooperative leaders and farmers. Almost all have hired cooperative leaders and village leaders to ensure that the farmers adopt the technologies.
Although competitors’ use of subsidies, conditional payments, and contract work for farming leaders bodes well for achieving strong results by the end of the project, use of the technology packages cannot be sustained after the incentives end unless the competitors and/or farmers realize clear benefits of adoption. Before Phase 2 began, Abt conjectured that farmers and competitors could benefit from adopting these technologies if they obtained premium prices by tapping into existing high-value or specialty markets, which require production systems consistent with the technologies promoted by AgResults. Interviews with competitors suggest that they are targeting safe rice markets and export markets to access premiums.
However, the one component of the technology package that has the largest influence on reducing GHG emissions – AWD – is not linked to a premium market. Therefore, even if farmers continue to adopt some components of the technology packages, it is unclear if GHG-reducing components of the technology packages will continue to be adopted after the competition ends. This was always a difficult challenge for AgResults to tackle since GHG reducing component of the technology package is a pure public good. Unless it is monetized, there would not be an incentive for farmers to adopt it.
Recognizing this, the AgResults project incentivized yield-reduction potential of the technology packages – competitors earn more prizes if their technologies increase yield. Cooperative leaders and key stakeholders suggest that for farmers to deviate from long-practiced traditions, they would need to experience yield increases of 30 percent. However, so far, the expected yield increase from the AgResults technology packages appears to be less than this threshold. It is not clear whether a modest yield increase would justify the additional input, labor, and water management costs required to implement technology packages after the subsidies end.
Abt’s external evaluation will rigorously establish the extent to which rice farmers targeted by AgResults increased their rice yields and reduced GHG emissions. Since higher yield do not mean higher income, it will also evaluate the extent to which farmers increased net returns from growing rice after accounting for all the input and labor costs. However, this analysis will be based on farmer costs after accounting for the subsidies and incentives they receive from the competitors. To assess whether the technologies are profitable after the incentives end, and whether they continue to adopt the technologies, a sustainability analysis one year after the project ends is needed.
Sustainability analysis is important. With 7,970 farmers applying technology packages on 869 hectares in Thai Binh, Phase 2 of the Vietnam project has thus far achieved stronger results compared to other development programs. But there is a lot of room for further growth: The project has two more growing seasons to expand within Thai Binh, which has a total of 80,000 hectares under rice cultivation Abt’s interim findings suggest that for these practices to continue beyond the life of the project when the incentives end, significant changes to the underlying market for low-GHG rice would have to occur over the next two growing seasons. It is also conceivable that the government of Vietnam promotes these technologies as part of their extension services, although their promotion of AWD thus far has not led to large-scale adoption. Investment in verification protocols needed to access carbon markets for payments to reduce GHG emissions would be a far more effective strategy. It remains to be seen if AgResults is successful in creating a lasting impact in tackling a difficult development challenge – only a sustainability analysis can answer this question....
October 17, 2019
At last week’s 5th Global Science Conference on Climate-Smart Agriculture, representatives from AgResults illustrated the value of leveraging private sector financing and innovation to transform food systems. A workshop side-event on prize competition design and a presentation on work in Vietnam to reduce greenhouse gas emissions urged conference attendees to reflect on how both public and private sector actors are crucial to addressing the agricultural challenges that accompany climate change.
On October 9, a team of AgResults experts led a session titled “Using Prize Competitions to Scale Climate-Smart Food System Innovations: A Design Workshop”, which brought together private sector and government representatives to discuss the value and role of prize competitions, particularly to address challenges related to climate change. The workshop was led by Dr. Tristan Armstrong, Agriculture Sector Specialist, Australia Department of Foreign Affairs and Trade (DFAT) and AgResults Steering Committee member; Nikita Eriksen-Hamel, Deputy Director, Global Affairs Canada (GAC); Dr. Tran Thu Ha, Team Leader of Vietnam Greenhouse Gas Emissions Reduction Challenge Project, SNV Vietnam; and Justin Kosoris, AgResults.
During the session, attendees learned about the AgResults model and began discussing how, when, and where prizes can leverage private sector innovation in agriculture. Although there was not enough time to complete the planned hands-on design portion of the workshop, the lively conversations reflected growing interest in and momentum around Pay-for-Results approaches in development.
“Pay-for-Results offers an exciting alternative to traditional approaches, leveraging the imagination and resources of an emergent private sector,” said Dr. Tristan Armstrong. “The side event highlighted the potential for Pay-for-Results in the field of climate-smart agriculture, and showcased AgResults’ innovative approach to agricultural development.”
In addition, Dr. Tran Thu Ha of Netherlands Development Organisation (SNV) Vietnam presented on approaches and results from the AgResults Vietnam Greenhouse Gas Emissions Reduction Challenge Project on October 8. The presentation shared how private sector-led climate-smart innovations are transforming rice production in Thai Binh Province.
“The Vietnam Emissions Reduction Project has demonstrated innovative finance that mobilized both investment and innovation from private sector for scaling and addressing market failures,” said Ms. Tran Thu Ha. “Our presentation captured keen interest from a diverse range of participants, including local government, research institutions, financial institutions, and donor agencies.”
The Global CSA Conference ran from October 8-10 and brought together entrepreneurs, scientists, and policymakers to discuss how best to catalyze the public-private partnerships needed for food systems transformation. Introducing AgResults and its prize competition model to attendees was a great way to build on the growing momentum around private sector engagement and provide an example of the value and impact of these competitions to achieve lasting change.
Funded by USAID (US), DFID (UK), DFAT (Australia), Global Affairs Canada, and the Bill and Melinda Gates Foundation, AgResults has designed and implemented prize competitions since 2013 focused on spurring fundamental change in market relationships between the private sector and smallholder farmers....
October 14, 2019
On October 1, 2019, the AgResults Steering Committee visited four competition sites of the Vietnam Emissions Reduction Challenge Project (AVERP) in Thai Binh province. The AgResults Delegation (the Delegation) comprised representatives from the initiative’s donor organizations, including USAID, DFID, Global Affairs Canada, DFAT, and the Bill & Melinda Gates Foundation as well as the World Bank Trustee. The Project Manager, SNV Vietnam coordinated the trip and facilitated conversations between the delegation and the competing companies (Competitors), district and commune leaders, and rice farmers.
The Delegation met with four private sector Competitors — An Dinh, Thai Binh Seed, Fari-Seed, and Binh Dien Fertilizer — who are participating in the Pay-for-Results prize competition to develop, test, and scale up technologies and tools to reduce GHG emissions in rice production. During the site visits, the Delegation had a chance to speak with communes who have been receiving extension services from the competitors to adopt new practices and technologies. The discussions highlighted the continued dedication among both Competitors and farmers.
“We are honored to participate in AVERP given the Project’s overarching goals are in line with our Corporate Strategies,” said Mr. Tran Manh Bao, CEO of Thai Binh Seed Corporation. “We are definitely scaling our tested technology package in much wider areas in Thai Binh, and hopefully to other parts of Viet Nam for the sustainable development of the rice sector."
The General Secretary of Dong Long Commune in Tien Hai District reflected on the Project’s impacts: “From the commune governance perspective, we see the positive impact of the project. It helps not only our farmers but also from the management board of the commune, we are changing our ideology to bring this technology into rice cultivation.”
Many rice farmers reflected honestly on the challenges they had experienced as early adopters of the farming technologies but also shared how they soon realized the well-defined agronomic practices could reduce costs.
“We had to be strict when following this technology,” one farmer shared. “That’s what we learned. We had some hesitation to apply these new practices. But we also see now that if we follow this technology, our rice plants are more productive, and we can also help reduce emissions that lead to climate changes that are hard on us.”
“We’re very proud of the work that we’re doing here in Thai Binh,” said Tristan Armstrong, the DFAT representative on the AgResults Steering Committee. “The program demonstrates an innovative way of working with the public and private sectors, and an opportunity to scale out new technologies for both the benefit of farmers and the environment.”
After visiting the rice fields, the AgResults delegation was welcomed by the provincial government, led by the Vice Chairman of the Provincial People’s Committee and representatives from Department of Foreign Affairs and Department of Agriculture and Rural Development. Key messages from the Vice Chairman underlined continued support and enthusiasm among local government counterparts for the potential of the prize competition to significantly shape the future of rice farming in the Red River Delta.
“I would like to thank the donors for coming to Thai Binh and choosing this province for the competition,” said Mr. Nguyen Hoang Giang, Vice Chairman of Thai Binh People’s Committee. “With close cooperation with SNV and all the government departments in Thai Binh province, the project has completed Phase 1 successfully. The competing companies have demonstrated their technologies to help change the province’s approach to rice production to increase productivity, provide good solutions for the environment, and increase incomes for farmers.”
Only by maintaining these dialogues will improved rice production practices continue after the competition ends in 2020. But if this week’s visits were any indication, both the international donor community and Thai Binh’s private and public sectors are committed to positioning the province — and country — for long-term success.
The AgResults Vietnam GHG Emissions Reduction Challenge Project (2017 – 2020) is a US$8 million prize competition that aims to develop, test, and scale up innovative technologies, tools, and approaches to increase yields and reduce GHG emissions in rice production. The project uses results-based prize incentives to encourage private competitors to deliver packages and training to smallholder farmers. These new approaches will help lower GHG emissions, protect the environment, and ultimately reduce poverty among smallholder farmers in the Thai Binh province in the Red River Delta. Funded by USAID (US), DFID (UK), DFAT (Australia), GAC (Canada), and the Bill and Melinda Gates Foundation, AgResults has designed and implemented prize competitions since 2013 focused on spurring fundamental change in market relationships between the private sector and smallholder farmers....
October 11, 2019
The Secretariat of AgResults invites your organization to submit a proposal to provide project sales verification services in accordance with this Request for Proposals (RFP) for the AgResults Tanzania Dairy Productivity Project.
The Project is a new prize competition project under the AgResults Initiative, which is financed by the governments of Australia, Canada, the United Kingdom and the United States, and the Bill & Melinda Gates Foundation. For more information about AgResults, please visit www.AgResults.org.
The Project consists of a Pay-for-Results prize competition designed to spur improvements in smallholder dairy productivity in Tanzania. The prize incentive offered by AgResults will target the private sector to drive improved dairy input availability and use, resulting in increased smallholder dairy productivity and incomes.
Please note the deadline for receipt of proposal, with all required signatures, including a completed and signed Anticorruption Compliance Certification, is due no later than 1700 Hrs. US Eastern Daylight Time (US EDT) on November 11, 2019. Proposal documents should be submitted in one email to email@example.com. Please indicate “Dairy Project Verifier RFP” in the subject line of the email. The full timeline for this RFP is included in Appendix 1.
The RFP and Appendices are linked below:
September 29, 2019
How can prize competitions transform food systems in a changing climate? Two AgResults-led events at the 5th Global Science Conference on Climate-Smart Agriculture in Bali, Indonesia, aim to answer this question.
First, on October 8 at 2 p.m. local time, Dr. Tran Thu Ha of Netherlands Development Organisation (SNV) Vietnam presents on approaches and results from the AgResults Vietnam Greenhouse Gas Emissions Reduction Challenge Project. The presentation, titled “Designing Prize Competitions to Spur Private Sector Action in Climate-Smart Agriculture: The Case from Vietnam” will share how private sector-led climate-smart innovations are transforming rice production in the Thai Binh province.
Then, on October 9, a team of AgResults experts will lead a workshop titled “Using Prize Competitions to Scale Climate-Smart Food System Innovations: A Design Workshop.” The session will guide participants in an overview of how and when to use prize competitions to spur private sector actors to participate in donor-funded initiatives focused on climate-smart agriculture. A brief case study on the AgResults Vietnam Project will precede the group discussion and activity.
The speakers at the workshop include:
The Global CSA Conference runs from October 8-10 and explores the theme of “Transforming Food Systems under a Changing Climate.” Bringing entrepreneurs, scientists, and policymakers together, the conference aims to catalyze the partnerships needed for food systems transformation. The world is increasingly experiencing the effects of climate change, and the public and private sectors must work together to address these challenges. Leveraging finance from a variety of sources, including through prize competitions like that of AgResults, could make a difference in galvanizing new actors to step up and innovate to achieve lasting change.
Funded by USAID (US), DFID (UK), DFAT (Australia), GAC (Canada), and the Bill and Melinda Gates Foundation, AgResults has designed and implemented prize competitions since 2013 focused on spurring fundamental change in market relationships between the private sector and smallholder farmers....