AgResults is a $147 million initiative that uses Pay-for-Results prize competitions to incentivize the private sector to invest in high-impact agricultural innovations that help achieve the following goals:
AgResults' theory of change rests on the idea that, if appropriately incentivized, the private sector will respond by creating and/ or scaling new technologies to benefit smallholder farmers:
AgResults designs and implements Pay-for-Results (PfR) prize competitions to attempt to "pull" the private sector to overcome deep-rooted market failures in agricultural systems. Specifically, AgResults uses PfR incentives to engage private sector competitors like agribusinesses and vaccine manufacturers to develop innovative solutions that address an otherwise unprofitable market challenge. In this way, AgResults harnesses the power of the market to promote the adoption of innovative technologies with high-yield development impact.
The objectives of AgResults are to:
1 Overcome agricultural market failures by offering results-based monetary prizes to competing private actors for the development and/or scaling up of new agricultural technologies; and to
2 Test the effectiveness and efficiency of PfR financing in comparison with traditional approaches to the promotion and adoption of innovative agricultural technologies.
If used appropriately, PfR prizes or "pull" mechanisms have several advantages over traditional “push” funding:
AgResults has developed an iterative process to source and design new projects under the oversight of AgResults’ donor Steering Committee. The steps are outlined in the graphic and below description.
Identify potential projects through a literature review and discussions with experts. Review those concepts through a rigorous feasibility framework (see graphic at right) that assesses a number of factors that could be “red flags”. Concepts that pass this review may receive a “White Light” approval, meriting further exploration.
Review literature and conduct field-based study to understand barriers to scaling, potential competitors and their motives; sketch potential pull mechanism solutions; validate concepts through analysis and external specialists and formal reviewers. Prepare preliminary design proposal for “Yellow Light” approval.
Collate feedback from the Steering Committee and experts; draft full project business plan; validate through iterative process with independent experts, Steering Committee, External Evaluator; finalize plan and submit for “Green Light” approval.
Obtain needed in-country approvals, identify and engage local stakeholders, and launch the project.
One of the strategic objectives of AgResults is to understand whether PfR prize incentives can "pull" the private sector to address critical market failures in agricultural development. Learning to fulfill this objective comes from two sources: AgResults design/implementation stakeholders, and an independent evaluator.