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Armenia, like many countries in The Middle East, South East Europe and Central Asia, has been struck by a devastating drought this summer which has sharply reduced the crop and livestock production. Rainfall in important agricultural areas was up to 70 percent below normal during crucial summer months. The drought has exacerbated problems resulting from a crumbling irrigation infrastructure. The situation is expected to worsen as the year progresses with a likely increase in food prices. The two projects will provide the necessary post-disaster assistance to resume wheat and barley production through the distribution of spring wheat and barley seeds as well as fertilizer.