FY 92-94 PL-480 Title III program

The program combined policy reform with the monetization of wheat to implement local currency funded activities. The program had significant and measurable impacts on availability and access to food within Honduras, especially among the rural poor. Some 205,000 MTs of wheat valued at approximately $38 million was imported. The policy reforms associated with the program resulted in higher real prices paid to farmers; increased the per capita production, value, and value added of agricultural output; raised household incomes among the poorest of the poor; reduced poverty levels, and increased per capita caloric availability. Through sector specific interventions, the program has improved availability of food at the national level by increasing production and foreign exchange earnings. In addition, activities funded with local currency have increased the access to improved quantities and qualities of food. Program support to the natural resources sector has increased production, improved sustainability, and made food utilization more efficient through protection of land, forest, and water resources. The program also leveraged a $110 million agricultural sector adjustment credit from the World Bank and InterAmerican Development Bank. Lessons learned include the following. (1) The balance of payments component of the program is an effective means of securing significant policy changes which enhance food security, particularly when local currency generated from sale of commodities is programmed to activities which support implementation of the reforms. (2) Program success was enhanced by integration with several of the Mission"s DA-funded activities and close coordination with programs of other major donors in the agricultural sector. (3) The impact on improved food security is enhanced when the policy reform agenda is comprehensive. (4) Policy reforms have only a limited effectiveness if the reforms are not maintained, fully implemented, and, in many cases, deepened. (Author abstract, modified)