Assessment of the Lower Moulouya irrigation project

The project changed the region from one largely devoted to cereals and pastures into one in which citrus fruits, market vegetables, and sugar beets predominate. A large dairy herd has arisen where none existed before. Net return per ha has increased 9 to 13 times in current or 4 to 6 times in constant dirham. In terms of incremental returns, the benefit-cost ratio is 1.25 and the internal rate of return is 10.5% in real terms. Almost 2/5 of project benefits go to farm managers, over 1/3 to farm laborers, and 1/4 to landowners. The project has had several socioeconomic benefits: the increased supply of food has lowered its cost; the development of agricultural processing firms has been stimulated; peasants -- except on the Bou Areg -- who formerly produced primarily for household consumption have become commodity producers; farm employment has increased; the land reform program has provided land to 10,000 people; and an active merchant class has arisen. The region has returned more to the public coffers than it would have had there been no project. There are four major reasons for the project's success: the region's natural agricultural potential; the existing supply of experienced laborers; sound project management; and the region's reasonably efficient market structures. It is recommended to: determine why some farmers cannot obtain irrigation water and remedy the situation; ensure that credit for irrigation is available to needy farmers; provide incentives to farmers who produce cereal for home consumption to farm their land more productively or sell it to someone who will; focus extension activities on younger farmers and those likely to take over farm management; gradually increase the charge for water; and encourage livestock production by farmers outside the irrigated area. Because of their relative inefficiency, transferring state farm lands to small farmers should be considered. It is hoped that project returns will alleviate economic inequities still existing in the area.