CAVAC delivered comprehensively against 2019 targets and remains on track to meet end-of-programme outcomes (EOPOs). CAVAC also invested considerable effort in developing a more ambitious policy reform agenda, expanding the range of EOPOs. This was articulated in the new strategic framework (summarized above). Work on a number of those policy streams commenced in 2019. Establishing profitable irrigated infrastructure • All ten targeted irrigation schemes are now complete. They contributed to additional production of 107,134 MT of paddy worth USD 19.5 million in 2019, on 19,847 Ha of land (double the baseline) marking a 16% increase from 2018. The irrigated area will increase to 30,000 Ha by 2021. The completed schemes now reach 12,000 households (CAVAC has met its EOPO target). Impact evaluations highlighted increases in yields and incomes of approximately 300% and very high rates of return. CAVAC's track record on establishing sustainable systems for operating and maintenance is exemplary (highlighted in the MTR and World Bank / ADB sector reviews). Farmer engagement is indicated by high payment of irrigation service fees - 96% - compared to non-CAVAC schemes where FWUCs tend to be hardly operational (if existent) with collection below 50%. • Responding to the MTR, CAVAC developed an engagement strategy to encourage the sector to adopt successful elements from CAVAC. The majority of irrigation spend is through development partners. CAVAC commenced a partnership with the ADB (a major actor) providing technical services on the USD 24.5 million Prek Po scheme. CAVAC's review of the scheme's design identified fundamental engineering errors. CAVAC undertook a complete redesign, ensuring the scheme will deliver water effectively. The World Bank also subsequently requested a partnership, demonstrating the regard for CAVAC's expertise and viability of this strategy. CAVAC also commenced developing and socialising water management and irrigation standards. Following policy dialogue, key elements of CAVAC's approach have now been adopted in several strategic documents and the Government welcomes further support. Promoting an increasingly competitive and diversified agriculture sector • CAVAC continued to promote improved farming practices and technologies to increase productivity for rice and cassava. In 2019, CAVAC formed 14 partnerships with private businesses (making a total of 67) leading to outreach to 38,814 smallholder households (a 29% achievement against the 135,000 households target to apply improved farming practices and technologies, in line with expectations for this point in the programme). Technologies included more effective (and often reduced) application of inputs such as fertilisers, pesticides and adjuvants, as well as mechanisation (direct seeders, laser land levellers). Farmers have adopted the improved farming practices at their own cost through multiple cropping seasons indicating sustainability. • Progress was also made in improving the value of Cambodian agriculture. To date, CAVAC II has introduced four new or improved rice varieties (of the targeted five). These will increase prices for Cambodian farmers, contributing to EOPOs to increase profitability. The Government with CAVAC's support established the National Variety Release Committee (a Prime Ministerial priority) which has publicly released Sen Kra Ob and Cambodia's climate-resilient premium jasmine variety Phka Mealdei. Working with ACIAR and the private sector, CAVAC introduced three types of seeders, with 80 purchased in 2019 (out of 176 purchased so far) well above the targeted 60. Direct seeder technology massively reduces seed volumes required, enabling investment in (more expensive) quality seed, improving returns to farmers. • In 2019, CAVAC scaled up contract farming arrangements commenced in 2018. Demonstrating contract farming is similarly important to ensuring long-term access to high-value international markets (it qualifies Cambodian rice for platforms such as `sustainable rice'). A total of 57 MT of additional seed valued at USD 29,000 and 3,807 MT of paddy valued at USD 1.1 million were produced through CAVAC partnerships. Contract farming also strengthens resilience as farmers can access finance (important in the COVID-19 context with credit tightening). • Overall, there was strong evidence that CAVAC's work is supporting the transition to niche, high value rice, which will allow farmers to shift from subsistence models to more commercial farming (with associated poverty reduction outcomes). • CAVAC also commenced various policy initiatives to improve the international competitiveness of Cambodia's agriculture sector and access to markets. Following extensive policy dialogue, CAVAC will now partner with relevant Ministries to build further evidence for and/or pilot reforms. This includes a cost/benefit analysis of a `quality infrastructure' system, studies into transaction costs in supply chains, a pilot "agricultural investment" unit, and a study of key crops for agriculture diversification. The MTR credited CAVAC with influencing the Government's shift towards working constructively with the private sector to develop Cambodian agriculture (from a previous hostility). • CAVAC delivered comprehensively against 2019 targets and remains on track to meet end-of-programme outcomes (EOPOs). CAVAC also invested considerable effort in developing a more ambitious policy reform agenda, expanding the range of EOPOs. This was articulated in the new strategic framework (summarized above). Work on a number of those policy streams commenced in 2019. Establishing profitable irrigated infrastructure • All ten targeted irrigation schemes are now complete. They contributed to additional production of 107,134 MT of paddy worth USD 19.5 million in 2019, on 19,847 Ha of land (double the baseline) marking a 16% increase from 2018. The irrigated area will increase to 30,000 Ha by 2021. The completed schemes now reach 12,000 households (CAVAC has met its EOPO target). Impact evaluations highlighted increases in yields and incomes of approximately 300% and very high rates of return. CAVAC's track record on establishing sustainable systems for operating and maintenance is exemplary (highlighted in the MTR and World Bank / ADB sector reviews). Farmer engagement is indicated by high payment of irrigation service fees - 96% - compared to non-CAVAC schemes where FWUCs tend to be hardly operational (if existent) with collection below 50%. • Responding to the MTR, CAVAC developed an engagement strategy to encourage the sector to adopt successful elements from CAVAC. The majority of irrigation spend is through development partners. CAVAC commenced a partnership with the ADB (a major actor) providing technical services on the USD 24.5 million Prek Po scheme, supporting on the design to ensure effective scheme performance. The World Bank also subsequently requested a partnership, demonstrating the regard for CAVAC's expertise and viability of this strategy. CAVAC also commenced developing and socialising water management and irrigation standards. Following policy dialogue, key elements of CAVAC's approach have now been adopted in several strategic documents and the Government welcomes further support. Promoting an increasingly competitive and diversified agriculture sector • CAVAC continued to promote improved farming practices and technologies to increase productivity for rice and cassava. In 2019, CAVAC formed 14 partnerships with private businesses (making a total of 67) leading to outreach to 38,814 smallholder households (a 29% achievement against the 135,000 households target to apply improved farming practices and technologies, in line with expectations for this point in the programme). Technologies included more effective (and often reduced) application of inputs such as fertilisers, pesticides and adjuvants, as well as mechanisation (direct seeders, laser land levellers). Farmers have adopted the improved farming practices at their own cost through multiple cropping seasons indicating sustainability. • Progress was also made in improving the value of Cambodian agriculture. To date, CAVAC II has introduced four new or improved rice varieties (of the targeted five). These will increase prices for Cambodian farmers, contributing to EOPOs to increase profitability. The Government with CAVAC's support established the National Variety Release Committee (a Prime Ministerial priority) which has publicly released Sen Kra Ob and Cambodia's climate-resilient premium jasmine variety Phka Mealdei. Working with ACIAR and the private sector, CAVAC introduced three types of seeders, with 80 purchased in 2019 (out of 176 purchased so far) well above the targeted 60. Direct seeder technology massively reduces seed volumes required, enabling investment in (more expensive) quality seed, improving returns to farmers. • In 2019, CAVAC scaled up contract farming arrangements commenced in 2018. Demonstrating contract farming is similarly important to ensuring long-term access to high-value international markets (it qualifies Cambodian rice for platforms such as `sustainable rice'). A total of 57 MT of additional seed valued at USD 29,000 and 3,807 MT of paddy valued at USD 1.1 million were produced through CAVAC partnerships. Contract farming also strengthens resilience as farmers can access finance (important in the COVID-19 context with credit tightening). • Overall, there was strong evidence that CAVAC's work is supporting the transition to niche, high value rice, which will allow farmers to shift from subsistence models to more commercial farming (with associated poverty reduction outcomes). CAVAC also commenced various policy initiatives to improve the international competitiveness of Cambodia's agriculture sector and access to markets. Following extensive policy dialogue, CAVAC will now partner with relevant Ministries to build further evidence for and/or pilot reforms. This includes a cost/benefit analysis of a `quality infrastructure' system, studies into transaction costs in supply chains, a pilot "agricultural investment" unit, and a study of key crops for agriculture diversification. The MTR credited CAVAC with influencing the Government's shift towards working constructively with the private sector to develop Cambodian agriculture (from a previous hostility).