New directions for smallholder agriculture

Oxford is a registered trade mark of Oxford University Press in the UK and in certain other countries # International Fund for Agricultural Development 2014 All rights reserved.. 3.1 Agr

New Directions For Smallholder Agriculture

Edited by

Peter Hazell and Atiqur Rahman

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The environment in which smallholder agriculture operates across the oping world has seen significant changes in recent years Food markets acrossthe globe have become more complex and better integrated, driven by grow-ing demand and by technological and institutional change Environmentalpressures and climatic shocks have created new challenges for food produc-tion systems in many regions Both globally and at the country level, anumber of factors have combined to produce higher and more volatile foodprices All these developments have focused global and national politicaldebates on how to ensure food security An important issue in these debates

devel-is how to radevel-ise agricultural productivity and improve the efficiency of global,regional, and national food markets In this context, the role of smallholderagriculture in achieving national and global food security has moved towardsthe centre of policy discourse—including, most recently, in debates on a post-

2015 global development agenda

Meanwhile, increasing demand for food and rising food prices have drawnnew domestic and international private investors to agriculture As thepolicies in many developing countries have become more welcoming tocorporate investors, we are witnessing the growth of large-scale investments

in agriculture and the expansion of market and trading opportunities

At the local level, non-farm activities have become an increasingly ant part of rural economies They provide services to the farm economy,

import-an importimport-ant complement to farm-based livelihoods, as well as newopportunities—particularly for rural youth and rural women While largenumbers of rural people remain underserved by formal finance institutions,

in many places these are spreading into rural areas, offering products andservices targeted to the investment needs of small rural entrepreneurs,whether in agriculture or other sectors

These changes present both opportunities and challenges to smallholderagriculture, which today continues to support some 2 billion people glo-bally Whether or not smallholders can meet the challenges and seize theopportunities of a rapidly changing environment depends on whetherappropriate measures and policies are in place to enable them to overcometheir constraints Today, the people who work the world’s estimated 450million small farms lack access to high-quality technology, secure accessand control over productive land, access to water, quality education,markets, and financial resources Often they live in marginal areas, andmany of them endure absolute poverty and food insecurity The policy and

institutional environments at times work against rather than for them Andclimate-induced changes are increasing the risks that they face, negativelyimpacting their investment capacity, their livelihoods, and their food security.Despite these constraints, given appropriate technical, financial, and insti-tutional support, smallholders—women and men alike—can raise their prod-uctivity and output and get their product to market efficiently Furthermore,IFAD’s work, as well as that of others, has demonstrated the contributionsmallholder agriculture can make to environmental sustainability, as well asthe feasibility of climate change adaptation in this sector.

A dynamic smallholder agricultural sector would ensure food security atthe farm level and make a major, and in many contexts the principal,contribution to food security at the national, regional, and global levels Itwould also be an important driver of inclusive and sustainable economicgrowth, and foster job-rich rural development as a complement to thrivingurban economies And as custodians of a large part of the world’s naturalresources, smallholders can and need to play a major role in the environmen-tal sustainability and climate mitigation agendas that are now of increasingglobal concern These perspectives must be part of the policy debate on foodsecurity, both globally and at country level, both today and looking aheadbeyond 2015

IFAD organized the 2011 Conference on ‘New Directions for SmallholderAgriculture’ to provide a forum for renowned specialists and IFAD’s ownexperts to discuss the many challenges and opportunities that smallholderagriculture faces in a rapidly changing world I am delighted that the confer-ence was able to debate many critical issues, both old and new These includedtopics such as: how efficient smallholders are vis-a`-vis their larger counter-parts; how to factor sustainability into smallholder development; how small-holders can thrive in competition with capital-intensive larger farmers; andwhat support smallholders need from development agencies and govern-ments to embark on a path of sustainable development In short, the confer-ence addressed the question: what is the future of smallholders in agriculture?While the conference could not be expected to provide ready-made answers

to all these questions, it was nonetheless successful in expounding key ings and insights that can guide policymaking today and in the future Theconference noted the great diversity in the policy, institutional, economic, andsocial environments of smallholders across Africa, Asia, and Latin America.Yet, it also stressed commonalities in the opportunities and challenges that allsmallholders face I would like to highlight a few of these

find-First, it is evident that the social profile of smallholder households ischanging Increasingly, around the globe, and particularly in Africa, small-holder farmers are women, who take on new responsibilities in farming as aconsequence of male migration—although in many cases without havinggender-equal access to land, inputs, finance, and other resources In addition,

high unemployment and population growth rates in rural areas have left largenumbers of rural youths unemployed, many of whom cannot engage infarming on increasingly fragmented family plots These youth represent aresource of immense value for a modernized, more climate-adapted, sustain-able agriculture, which is also well connected to a thriving non-farm ruralsector.

Second, smallholders continue to have difficulties securing access to tial resources such as land and water, due to pressures from increasingpopulation, competition with larger investors, and environmental degrad-ation For smallholder farming to be sustainable and to drive inclusiveeconomic growth in the coming years, institutions will need to addressthese problems—focusing on easier but also more secure access to land and

essen-on respect and recognitiessen-on of rights and entitlements It is also very important

to improve access to financial services, technology, and other inputs Thisagenda requires the collaboration of governments, development agencies, andthe private sector to develop and scale-up products and processes that are wellsuited to the needs of smallholders—women and men alike—with particularattention to supporting smallholders in managing the risks they face.Third, it is essential that smallholder farmers be seen for what they are—operators of small businesses, and thus a core part of the rural private sector.Other private-sector actors should be seen as potential partners and enablers

of smallholder farmers, as they can facilitate access to inputs, services, acity development opportunities, and markets Experiences around the world,including IFAD’s own experience, demonstrate that such private–privatepartnerships are possible, although the transaction costs may require third-party support and facilitation, especially to ensure the inclusion of poorfarmers

cap-Fourth, it is quite evident today that many smallholders are not engagedsolely in agricultural activities An increasing number are diversifying intonon-farm activities to supplement their farm incomes Sustainable devel-opment of smallholders in agriculture has to take this into account, andpromote the policy, financial, and infrastructural support needed for thegrowth of a thriving non-farm rural economy as a necessary complement

of smallholder agriculture, and as a critical link between inclusive rural andurban economies

Fifth, smallholders often lack strong institutional and social capital toinfluence policy- and decision-making processes or to negotiate favourableterms of market participation or access to key inputs and services Develop-ment agencies, supported by an enabling policy framework, can help addressthis challenge, along with partners within civil society, starting from farmers’organizations themselves IFAD’s experience amply shows the transformativepotential of such partnerships and the centrality of farmers’ empowerment insmallholder development

The authors who have contributed to this book address these and otherissues in depth, drawing on the papers they presented at the 2011 IFADConference and on additional research Our aim in publishing this book is

to promote further discussion on the future of smallholder agriculture in arapidly changing world I am confident that this volume will greatly enrich theongoing policy debate and dialogue, helping us to chart a path that will lead

to the full integration of smallholder farmers in a global agenda for able and inclusive development

sustain-Kanayo F NwanzePresident, International Fund for Agricultural

Development (IFAD)Rome, Italy

December 2013

This volume owes a lot to the vision of the President of IFAD, Kanayo FelixNwanze, who believes that smallholder agriculture of developing countriescan not only be self-sustaining, but can also contribute towards food self-sufficiency of poor countries and be the driving force for economic growthand overall development if market and entrepreneurial skills of smallholderfarmers can be harnessed With appropriate support, smallholdings can bedeveloped as farm business enterprises.

He encouraged the Strategy and Knowledge Management Department ofIFAD, under the leadership of Henock Kifle, to organize a conference on thefuture of smallholder agriculture in 2011 The conference, conceptualized andguided by Henock Kifle, and enthusiastically supported and contributed to bythe members of the Department, attracted considerable attention amongdevelopment experts, academicians, civil society representatives, and theprivate sector The conference participants and the chairpersons/facilitatorscontributed greatly towards understanding various issues relating to small-holder development The four young rapporteurs to the conference (ArindamBanerjee, Antonio Ferreira, Mateo Mier, and Jennifer Smolak) ably capturedand shared with all the participants the essence of the two-day conference Allthese helped to shape the focus of this edited volume We would like to thankthem all for their contributions

The papers presented at the conference provided much of the material forthe book; however, some key gaps in analysis emerging from the conferencewere filled up by a number of post-conference papers from experts We thankall the authors for their contributions

Carlos Sere who took charge of the Strategy and Knowledge ManagementDepartment from Henock Kifle kept up the momentum for the book, leading,guiding, and providing the right support as needed He went through some ofthe chapters and provided valuable comments Without his enthusiasticsupport, this volume would not have materialized

The chapters were reviewed by a number of referees, whose comments andsuggestions were very helpful in improving the quality of the chapters Wenote the contributions made in this respect by Derek Byerlee, Alain de Janvry,John Farrington, Kjell Havenvik, Saleemul Huq, Nurul Islam, Stephen Klerkx,Jonathan Mitchell, S R Osmani, Frank Place, Collin Poulton, Agnes Qui-sumbing, Caludia Ringler, Ashwani Saith, Geoff Tyler, and Sajjad Zohir Wealso thank the four anonymous referees of the Oxford University Press whose

comments were very helpful in strengthening the focus of the book andtightening its structure.

Pierre-Justine Kouka, and earlier Thomas Elhaut, of SKM provided themuch-needed managerial support towards the final, most critical part of thebook, pushing it forward over some administrative hurdles We acknowledgetheir contributions in this regard

Alfredo Baldoni provided the administrative support, kept track ofexpenses, and made sure that the support services were in place BirgitPlockinger of the Communication Division led the design team in preparingall the graphics in high resolution with her usual quiet efficiency AnthonyLambert carefully went through all the chapters, editing them and ensuringthat they meet the guidelines of the Oxford University Press The legal matters

in publishing the book and other publication-related issues were ably handledand supported by Daniela Ronchetti and Bruce Murphy respectively Wethank them all

Beyond these named persons, many more provided support in the book’spreparation We express our gratitude to them all for their contributions atdifferent stages

The findings, interpretations, and conclusions expressed here are those ofthe authors and do not necessarily reflect the views of IFAD, as an institution,

or its Governing Bodies

Peter HazellAtiqur Rahman

LIST OF FIGURES xv

Peter Hazell and Atiqur Rahman

PART I THE STATE OF SMALLHOLDER AGRICULTURE

IN THE DEVELOPING WORLD

4 Right place, right time—doing a better job of lowering business risk 52

4 Smallholder farming in Asia and the Pacific: challenges and opportunities 69 Ganesh Thapa and Raghav Gaiha

4 Opportunities for higher productivity, higher incomes, and sustainability 94

5 Enabling policy and programme support to small farms—an example

5 The state of smallholders in agriculture in Latin America 115 Julio A Berdegue´ and Ricardo Fuentealba

6 Targeting investments to link farmers to markets: a framework

Maximo Torero

2 Capturing the heterogeneity of smallholders through a typology

4 Implementing the typology in three developing countries:

Atiqur Rahman and Jennifer Smolak

3 Overcoming development challenges: innovative approaches

9 Improving farmers’ access to agricultural inputs and finance:

Akinwumi A Adesina, Augustine Langyintuo, Nixon Bugo, Kehinde

Makinde, George Bigirwa, and John Wakiumu

3 Demand and supply for fertilizers among farmers 257

Martin Evans

4 Inducing greater, and more beneficial, corporate involvement

11 A twenty-first-century balancing act: smallholder farm technology

John Lynam and Stephen Twomlow

4 Scale economies in increasing productivity in smallholder,

PART III ENHANCED LIVELIHOOD OPPORTUNITIES FOR SMALLHOLDERS

13 The changing rural world and livelihood options for resource-poor

Edward Heinemann

14 Securing land rights for smallholder farmers 401 Klaus Deininger

3 Embedding smallholders’ rights in a system of good land governance 410

15 Empowering women to become farmer entrepreneurs: case study

Mahabub Hossain and W M H Jaim

16 Securing a future for smallholder farmers in an era of climate change 457 Camilla Toulmin

17 Rural non-farm economy: current understandings, policy options,

Steve Wiggins

5 What is the future of the rural non-farm economy in developing

PART IV THE POLICY AGENDA

Peter Hazell and Atiqur Rahman

1.1 A functional classification of small farms based on market orientation 82.1 The diversity of the Javanese home garden 182.2 Labour productivity in African agriculture 18

2.4 Intercropping systems in East Africa 22

3.7a Major exports from sub-Saharan African countries: 2010 423.7b Major imports of sub-Saharan African countries: 2010 433.8 Risks faced by smallholders 483.9 Average transport prices: A global comparison in 2007 55A4.1 Kernel density function for log of cereals 104A4.2 Kernel density function for log of pulses 104A4.3 Kernel density function for log of vegetables 105A4.4 Kernel density function for log of oilseeds 105B4.1 Log of predicted market surplus for cereals by landholdings 106B4.2 Log of predicted market surplus for pulses by landholdings 107B4.3 Log of predicted market surplus for vegetables by landholdings 107B4.4 Log of predicted market surplus for oilseeds by landholdings 1085.1 Types of family farms according to asset endowment and context 1195.2 Domestic market share of agricultural and agro-industrial products

6.3 Empirical estimation steps 166

7.1 A conceptual framework for understanding market access issues 1917.2 Contract farming system in Thailand 192

7.3 Non-farm value chain 2008.2 New model for value-chain finance 2269.1 Agricultural lending as share of agricultural GDP in selected African

10.1 Foundations of sustainable market linkages between small-scale

15.1 Trend of female participation in agriculture compared with male:

3.1 Agricultural land per agricultural population in selected Africancountries and regions

3.2 Increases in cereal production in South Asia and sub-Saharan Africa3.3 Agro-ecological zones in sub-Saharan Africa

3.4a Net value of agricultural production in Africa and other regions3.4b Net value of agricultural production in different African regions3.5 Net value of agricultural production in some African countries3.6 Destinations of exports from Africa: 1990–2008

3.10 Fertilizer price formation in Thailand, Tanzania, and Mali in 20063.11 Checkpoints, bribes, and delays on corridors in West Africa

6.1 Example of a three-dimensional classification

B6.2 Values indicating the difficulty of crossing a ‘cell’

B6.4 Times calculated only with the off-path walking velocity

B6.5 Times calculated with the three variations of walking velocity andfixed-speed road classification

B6.6 Friction surface map

8.1 Informal sources of finance in different African countries

10.2 Strategies for empowering farmers

17.3 Share of household incomes from non-farm sources, by access to land17.4 Shares of farm household incomes from non-farm activities, Asia17.7 Non-farm activity by share of employment for city, intermediate urbanand rural areas in Bangladesh, Chile, and Zambia (share of all jobs, %)17.8 Sources of income in rural India by per capita income quintile,1993–4 (%)

18.1 Emerging distribution of farm households by farm size group

and degree of off-farm income diversification

2.1 The economic and environmental benefits of growing Bt cotton in

4.2 Changes in percentage distribution of operated area by size of

operational holdings in India, 1960–1 to 2002–3 724.3 Changes in cereal yield and production in Asia, 1970 and 1995 744.4 Average annual percentage growth in per capita consumption of

selected foods in selected Asian countries, 1990–2000 764.5 Average annual percentage growth in production of foodgrains and

high-value commodities in selected Asian countries, 1990–2000 774.6 Distribution (%) of villages by access to infrastructure and markets 834.7 Factors affecting marketed surplus of cereals and pulses: Tobit

estimates per acre of land for different farm size groups 854.8 Factors affecting market surplus of vegetables: Tobit estimates

per acre of land for different farm size groups 86B4.1 Definitions of variables used in regression analysis 108B4.2 Crops included under cereals, pulses, and vegetables 1095.1 Land holdings in Argentina 1225.2 Rural households by economic activity of head of household in

5.3 Classification of family farms in Argentina 125

5.5 Classification of family farms in Brazil 126

5.7 Classification of farms in Chile according to farm size standardized

according to biological yield potential 1285.8 Classification of family farms in Chile, 2007 Census 1285.9 Classification of family farms in Chile, 1997 Census 1295.10 Land holdings in Colombia 1305.11 Land holdings of less than 20 hectares in Colombia by department 1305.12 Classification of family farms in Colombia 131

5.14 Land holdings of less than 20 hectares in Ecuador by province 1325.15 Classification of family farms in Ecuador 1325.16 Regional distribution of different types of family farms (per cent) 1335.17 Land holdings in Guatemala 1345.18 Classification of family farms in Guatemala 1345.19 Land holdings in Nicaragua 135

5.21 Changes in per capita income or consumption and in incidence

5.22 Changes in per capita income or consumption and in incidence

of poverty in regions of Brazil 142C6.1 Data sources for estimation of typologies 177C6.2 Mozambique: profit frontier estimation results 178C6.3 Armenia: profit frontier estimation results 179C6.4 Honduras: profit frontier estimation results 180C6.5 Mozambique inefficiency estimation results 181C6.6 Armenia inefficiency estimation results 182C6.7 Honduras inefficiency estimation results 1837.1 Major commercial activities of the farmer company in 2003–4 2069.1 Adoption rate of improved maize varieties in selected

rural savings and credit associations 273

9.7 Motivations of small vegetable farmers for participating in high-value

11.1 Characteristics and organizational differences between varietal

improvement, and crop and resource management research 33115.1 Employment of adult men and women in agriculture and

15.2 Trend in time allocation of adult men and women in agricultural

and non-agricultural activities 44115.3 Participation of wage labourer by gender in agriculture and wage

15.4 Determinants of women’s participation in agriculture—estimates

15.5 Socio-economic background of the respondent farmers 44615.6 Fields of training demanded by farmers 44815.7 Distribution of land for different crops amongst NCDP farmers 44915.8 Time allocation of female and male farmers in different

15.9 Mobility of NCDP female farmers outside the home 45115.10 Participation of women in household decision-making processes 45216.1 Potential for carbon sequestration in different soil management

17.1 Rural non-farm activity, classified 48917.2 Rural non-farm income as a share of total income: impact

17.3 Rural non-farm development under differing conditions 499

17.5 Expected changes and their implications for the rural

18.1 Priorities for small farms by country economic characteristics 53618.2 Transitions from small farm groups 53918.3 Types of assistance relevant for different small farm groups 541

4.1 Land concessions in rural Cambodia 794.2 Cooperative model for vegetable and fruit marketing, India 984.3 Marketing support to smallholders through information and

communication technology: the case of e-Choupal in India 1014.4 Policy support to small farmers in China 1028.1 Farmer cooperatives in Ethiopia: accessing finance and adding value 2198.2 Savings and smallholder farmers 2228.3 Mobile banking in South-East Asia and West Africa 2238.4 Agricultural value chain finance—financial instruments 2258.5 Leveraging information technology to facilitate VCF: DrumNet

9.1 Use of subsidies for accelerating food production in Africa:

16.1 Pastoralist responses to climate change in Ethiopia and Niger 46717.1 Measuring the rural non-farm economy 484

ADB Asian Development Bank

AFSI L’Aquila Food Security Initiative

AGRA Alliance for a Green Revolution for Africa

AICD The Africa Infrastructure Country Diagnostic

AIS Agricultural Innovation Systems

APEDA Agricultural and Processed Food Products Export Development

AuthorityAPR Annual Performance Review

APSIM Agricultural Production Systems Simulator Model

ARU African Rural University

ASARECA Association for Strengthening Agricultural Research in Eastern and

Central AfricaASIF African Seed Investment Fund

ATMA Agricultural Technology Management Agency

AZMJ A microfinance institution based in the USA

AusAid Australian Government Overseas Aid Program

BAAC Bank of Agriculture and Agricultural Co-operatives

BCs Bank Correspondents

BecA Biosciences eastern and central Africa (BecA) Hub

BIH Basic Irrigated Hectares

BMGF Bill and Melinda Gates Foundation

BRAC Bangladesh Rural Advancement Committee

BRC British Retail Consortium

CAADP The Comprehensive Africa Agricultural Development ProgrammeCBA Community-Based Adaptation

CCs Collection Centres

CDC Commonwealth Development Corporation

CDF Central Distribution Facility

CEPAL Comisio´n Econo´mica para Ame´rica Latina y el CaribbeanCGIAR Consultative Group on International Agricultural ResearchCIAT the International Centre for Tropical Agriculture

CIMMYT International Maize and Wheat Improvement Center

CNFA Citizens’ Network for Foreign Affairs

COMESA Common Market for Eastern and Southern Africa

CRO Certificate of Right of Occupancy

CSPR Centrale de Securitisation des Paiements et du RecouvrementCSR corporate social responsibility

CSV Created Shared Value

DBI Doing Business Index

DFBA Dairy Farmers Business Associations

DLB District Land Bureaux

DOAE Department of Agricultural Extension

DSS Decision-support systems

EAs Environmental Assessments

EAC East African Community

EADD East Africa Dairy Development

ECLAC Economic Commission for Latin America and the CaribbeanECOWAS Economic Community of West African States

ESC Electronic Silo Certificates system

ECX Ethiopian Commodity Exchange

F&V Fruits and vegetables

FAO the Food and Agricultural Organisation of the United NationsFAPRO Farmers’ Produce Promotion Society

FARA the Forum for Agricultural Research in Africa

FDI Foreign Direct Investment

FIPS Farm Inputs Promotion Service

FLO Fairtrade Labelling Organisation

FOCAC China–Africa Cooperation

FoSHoL the Food Security at Household Level

FTA-K Fair Trade Alliance-Kerala

FWWB Friends of Women’s World Banking

GASFP Global Agriculture and Food Security Program

GCI Global Competitiveness Index

GDI Gender-related Development Index

GDP Gross Domestic Product

GEM Gender Empowerment Measure

GFTA Grand Free Trade Area

GHG Greenhouse gas

GIS Geographic Information Systems

GLASOD Global Assessment of Soil Degradation

GlobalGAP Global Good Agricultural Practices

GM Genetically modified

GOB Government of Bangladesh

GPS Global positioning system

GTZ Deutsche Gesellschaft fu¨r Internationale

Zusammenarbeit (German Agency for International Cooperation)HACCP Critical Control Practices

HAS Hindu Succession Act

HVCs High-Value Crops

HOPSCOM Co-operative Marketing and Processing Society Limited

IAASTD International Assessment of Agricultural Knowledge, Science, and

Technology for DevelopmentIAR4D integrated agricultural research for development

IBGE Brazilian Institute of Geography and Statistics

ICARDA International Center for Agricultural Research in the Dry AreasICIPE International Centre for Insect Physiology and Ecology

ICRISAT International Crops Research Institute for the Semi-Arid TropicsICT Information and Communication Technology

IDE International Development Enterprises

IFAD International Fund for Agricultural Development

IFAD-UPU IFAD-Universal Postal Union

IFC International Finance Corporation

IFPRI International Food Policy Research Institute

IIASA International Institute of Applied Systems Analysis

IIED International Institute of Environment and DevelopmentIIMA Indian Institute of Management, Ahmedabad

ILRI International Livestock Research Institute

ILTAB The International Laboratory for Tropical Agricultural

BiotechnologyIMF International Monetary Fund

IPCC The Intergovernmental Panel on Climate Change

IRRI International Rice Research Institute

ISIC International Standard Industrial Classification

ITC Indian Tobacco Company

IWMI International Water Management Institute

KACE Kenya Agricultural Commodity Exchange

KARI Kenya Agricultural Research Institute

KGPL KNIDS Green Private Ltd

KTDA Kenya Tea Development Agency (formerly Authority)

LAC Latin America and the Caribbean region

LDCs Least Developed Countries

LSC Land Settlement Co-operative

LSMS Living Standard Measurement Survey

M&E Monitoring and Evaluation

MCA Millennium Challenge Account

MCP Millennium Challenge Corporation

MDFVL Mother Dairy Fruit and Vegetables Limited

MENA Middle East and North Africa region

MFIs Microfinance Institutions

MIDA Millennium Development Authority, Ghana

MNO Multinational Organizations

MOCO Mumias Outgrower Company

M-PESA Mobile money transfer system

MSAMB Maharashtra State Agricultural Marketing Board

NAADS National Agricultural Advisory Development Service

NARI National Agricultural Research Institutes

NARS National Agricultural Research System

NBARD National Bank for Agriculture and Rural Development

NBHC National Bulk Handling Corporation

NCDC National Co-operative Development Corporation

NCDP The Northwest Crop Diversification Project

NCEUS National Commission for Enterprises in the Unorganized SectorNDC National Development Council

NDDB National Dairy Development Board, in north India

NEPAD New Partnership for Africa’s Development

NF Namdhari Fresh

NGOs Non-Government Organisations

NHB National Horticulture Board

NIB Nib International Bank SC

NLC National Land Centre

NOC No-Objection Certificate

NRM Natural Resources Management

NSS National Sample Survey

NTEX Non-Traditional Exports

OBCs Other Backward Castes

ODA Official Development Assistance

ODEPA La Oficina de Estudios y Polı´ticas Agrarias

OECD Organisation for Economic Co-operation and DevelopmentOLL Organic Land Law

OSS Office of Strategic Services

PA Procuraduria Agraria

PABRA Pan African Bean Research Alliance

PASS Programme for Africa’s Seed Systems

PGC Potato Growers’ Cooperative

PHL Post Harvest Loss

PI Participation Index

PIDA Programme for Infrastructure Development in Africa

PKSF Palli Karma Sahayak Foundation (Rural Employment Support

Foundation)PLA Participatory Learning and Action

PMO Primary Marketing Organisation

PO Producer Organisations

PPP Public–Private Partnerships

PRA Participatory Rural Appraisal

R&D Research and Development

RAN Registro Agrario Nacional

REDD Reducing Emissions from Deforestation and Forest DegradationREDS Rural Economic and Demographic Survey

RNFE Rural Non-farm Economy

ROPPA Network of Farmers’ and Agricultural Producers’ Organisations of

West AfricaROSCAs Rotating Savings and Credit Associations

SACCO Savings and Credit Co-operatives

SACRED Sustainable Agricultural Centre for Research Extension and

Development in AfricaSADC Southern African Development Community

SAKSS Strategic Analysis and Knowledge Support Systems

SBI The State Bank of India

SCODP Sustainable community-oriented Development Program

SCs Scheduled Castes

SEA South-East Asia

SEDC Sarawak Economic Development Corporation

SHG Self-Help Group

SME Small and Medium Enterprise

SMS Short Message Service

SOFESCA Soil Fertility Consortium for Southern Africa

SSA Sub-Saharan Africa

T&V Training and Visit

TSBF Tropical Soil Biology and Fertility Programmes

UNCTAD United Nations Conference on Trade and DevelopmentUNDP United Nations Development Programme

UNECA United Nations—Economic Commission for AfricaUNFCCC United Nations Framework Convention on Climate ChangeURDT Uganda Rural Development and Training ProgrammeUSAID US Agency for International Development

VCF Value-chain finance

VCR value to cost ratio

WAAIF West Africa Agricultural Investment Fund

WARDA West Africa Rice Development Association

WEF World Economic Forum

WEI A Women’s Empowerment Index

WDI World Development Indicators

WDR World Development Report

WII Weather Indexed Insurance

WRMS Weather Risk Management Services

WTO World Trade Organization

XAAH The Agricultural Bank of Mongolia

Chapter 1

Peter Hazell(PhD, Cornell University) has held various research positions at the WorldBank and the International Food Policy Research Institute (IFPRI) in Washington DC.After retiring from IFPRI he became a Visiting Professor at Imperial College Londonand a Professorial Research Associate at the School of Oriental and African Studies(SOAS) Peter’s extensive and widely cited publications include works on mathematicalprogramming, risk management; insurance; the impact of technological change ongrowth and poverty; the rural non-farm economy; sustainable development strategiesfor marginal lands; the role of agriculture in economic development; and the future ofsmall farms

E-mail: p.hazell@cgiar.org

Atiqur Rahman (PhD, Cantab) is an ex-staff member of IFAD He held variousmanagerial, strategy and policy formulation, research, and teaching positions withIFAD and earlier with Bangladesh Institute of Development Studies He was a visitingProfessor at the University of California, Riverside and recently an Adjunct Professor

at John Cabot University, Rome He consulted for the Asian Development Bank,International Labour Organization, United Nations Secretariat, World Bank, FAO,IFAD, and others He was the lead co-coordinator and researcher of the IFAD 2001Rural Poverty Report He has many publications to his credit, including an editedvolume with Oxford University Press

E-mail: atiqur1150@gmail.com

Chapter 2

Gordon Conway(PhD, University of California, Davis) is a Professor of InternationalDevelopment at Imperial College, London and Director of Agriculture for Impact.Earlier he was Chief Scientific Adviser to the Department for InternationalDevelopment Previously he was President of The Rockefeller Foundation and Vice-Chancellor of the University of Sussex

E-mail: g.conway@imperial.ac.uk

Chapter 3

Geoffrey Livingstonis currently working as IFAD’s Regional Economist for East andSouthern Africa at IFAD He earlier worked for Chemonics International, aWashington-based development consulting firm where he served as a long-termtechnical advisor and project director on agribusiness development projects inRwanda, Mali, and Senegal Mr Livingston’s areas of research interest includecompetitiveness, value chain development, export marketing, transport policy, andproject management

E-mail: g.livingston@ifad.org

Steven Schonbergeris currently Lead Operations Officer in the Africa Region of theWorld Bank He was a core author of the Comprehensive Framework for Action toguide the response of the UN-Bretton Woods High Level Task Force in Response tothe Food Price Crisis Mr Schonberger has contributed to several books, andmagazine and journal articles focused on issues of agriculture and rural development.E-mail: sschonberger@worldbank.org

Sara Delaneyis a Programme Officer and works on Agriculture and Food Security forEpiscopal Relief & Development in New York She previously worked with IFAD as aKnowledge Management consultant, and in London on the Gates Foundation andDFID-funded research and advocacy projects Sara served as a Peace Corps volunteer

E-mail: g.thapa@ifad.org

Raghav Gaihais an ex-Professor of Public Policy at Faculty of Management Studies,University of Delhi He was Visiting Fellow at MIT, Harvard and StanfordUniversities He has served as a consultant with the World Bank, ILO, FAO, IFAD,WIDER, and ADB His research interests are in poverty, inequality, nutrition, ruralinstitutions, agricultural research, and emerging Asian economies

E-mail: raghavdasgaiha@gmail.com

Chapter 5

Julio A Berdegue´(PhD, Wageningen University) is the Principal Researcher at Latin American Center for Rural Development, Santiago, Chile He is Chairman of theBoard of Trustees of CIMMYT, the International Maize and Wheat ImprovementCenter, serves on the Board of Trustees of the International Institute for Environmentand Development (IIED, London), and is a member of ICCO’s International AdvisoryCouncil

Rimisp-E-mail: jberdegue@rimisp.org

Ricardo Fuentealbais a sociologist, mastering in human geography at University ofBristol, UK He has research experience in the development of local governments inChile, urban–rural interactions, and Latin American development issues in general.(Contact the lead author, Julio A Berdegue´)

Chapter 6

Maximo Torero is the Division Director of the Markets, Trade, and InstitutionsDivision at the International Food Policy Research Institute, and leader of the

theme on Linking Small Producers to Markets in the CGIAR research programme onPolicies, Institutions, and Markets.

E-mail: m.torero@cgiar.org

Chapter 7

Sukhpal Singh is Associate Professor and Chairperson, Centre for Management inAgriculture (CMA), Indian Institute of Management (IIM), Ahmedabad He was avisiting fellow at IDS, Sussex (UK), Chulalongkorn University, Bangkok, andUniversity of Manchester; has been a member of various committees/workinggroups of the Planning Commission of India and a member of a globally networkedresearch project on global production and trade networks called ‘Capturing theGains’; and is the founding editor of Millennial Asia—an international journal ofAsian studies

E-mail: sukhpal@iimahd.ernet.in

Chapter 8

Atiqur Rahman (PhD, Cantab) is an ex-staff member of IFAD He held variousmanagerial, strategy and policy formulation, research, and teaching positions withIFAD and earlier with Bangladesh Institute of Development Studies He was a visitingProfessor at the University of California, Riverside and recently an Adjunct Professor

at John Cabot University, Rome He consulted for the Asian Development Bank,International Labour Organization, United Nations Secretariat, World Bank, FAO,IFAD, and others He was the lead co-coordinator and researcher of the IFAD 2001Rural Poverty Report He has many publications to his credit, including an editedvolume with Oxford University Press

E-mail: a.rahman@tin.it; at.rahman@ifad.org

Jennifer Smolak is an independent consultant specializing in internationaldevelopment, food security, and monitoring and evaluation Jennifer’s professionalexperience includes international consultancy and staff postings for the InternationalFund for Agricultural Development (IFAD), Oxfam Australia, the Foundation forInternational Community Assistance (FINCA), and Deloitte

E-mail: jennifer.smolak@mail.mcgill.ca

Chapter 9

Akinwumi Adesina(PhD, Purdue University) is the Minister of Agriculture and RuralDevelopment of Nigeria He was previously the Vice President of the Alliance for aGreen Revolution in Africa and Associate Director at the Rockefeller Foundation Hewon the Yara Prize in 2007

E-mail: adesina1234@gmail.com

Augustine Langyintuois a Senior Operations Officer - Agribusiness of the InternationalFinance Corporations (IFC) - the World Bank Group He was previously a Senior PolicyOfficer with AGRA He is an Associate Editor of the African Journal of Agricultural andResource Economics and serves as an Advisory Board Member of the DTMA Project ofCIMMYT, where he previously worked as an Economist Augustine holds a PhD inAgricultural Economics from Purdue University

E-mail: Alangyintuo@ifc.org

George Bigirwa is a Senior Programme Officer, AGRA He is in charge of SeedProduction and Dissemination for Eastern and Southern Africa, and is based inNairobi, Kenya

(Contact Akinwumi Adesina and Augustine Langyintuo)

Nixon Bugoholds an MBA in Finance and is a Certified Public Accountant

(Contact Akinwumi Adesina and Augustine Langyintuo)

Kehinde Makindeis a Programme Officer with AGRA based at Accra, Ghana.(Contact Akinwumi Adesina and Augustine Langyintuo)

John Wakiumu is a Programme Officer whose main role at AGRA is to developinnovative ways of working with financial institutions to leverage and mobilizefinancing for the development of agricultural value chains

(Contact Akinwumi Adesina and Augustine Langyintuo)

Chapter 10

Martin Evans (PhD, Cantab) studied natural sciences, agriculture, and agriculturaleconomics He taught at the University of Papua New Guinea before joining the AsianDevelopment Bank in Manila The greater part of Martin Evans’ professional career,however, was spent with Booker Tate Ltd, an international agribusiness managementcompany Since retiring from Booker Tate as new business director nine years ago,Martin Evans has been working as a private consultant He is a former Chair of FarmAfrica

E-mail: martin.evans@agriprojects.com

Chapter 11

John K Lynam(PhD, Stanford University) has been an independent consultant since

2007 He has consulted for World Bank, FAO, ILRI, the World Fish Centre, the WorldVegetable Centre, and the CGIAR Mr Lynam currently is Chair of the Board ofTrustees of the World Agroforestry Centre, and on advisory panels for theCollaborative Crop Research Program of the McKnight Foundation, and theMonitoring and Evaluation Division of the Alliance for a Green Revolution in Africa.E-mail: johnklynam@gmail.com

Stephen Twomlow (PhD, Birkbeck College, University of London) is a SystemsAgronomist with more than twenty-five years of agro-ecosystems research,development, and training for disadvantaged farming communities in thedeveloping world, particularly in sub-Saharan Africa, Mexico, and Asia He’scurrently the Regional Climate and Environmental Specialist, providing technicalsupport to IFAD’s East and Southern African portfolio

E-mail: s.twomlow@ifad.org

Chapter 12

Calestous Juma(DPhil in Science and Technology Studies from the University of Sussex)

is Professor of the Practice of International Development at Harvard Kennedy School

and director of the Agricultural Innovation in Africa Project at the Kennedy School’sBelfer Centre for Science and International affairs He is founding executive director ofthe African Centre for Technology Studies in Nairobi and former executive secretary

of the UN Convention on Biological Diversity He is author of The New Harvest:Agricultural Innovation in Africa (Oxford University Press, 2011)

E-mail: calestous_juma@harvard.edu

David J Spielman (PhD in Economics, American University) is currently a SeniorResearch fellow in IFPRI, Washington DC His research agenda covers a range oftopics, including agricultural science, technology, and innovation policy; seed systemsand input markets; and community-driven rural development

E-mail: d.spielman@cgiar.org

Chapter 13

Edward Heinemanncurrently works as a Senior Policy Advisor in IFAD’s Policy andTechnical Advisory Division He was formerly in IFAD’s Strategy and KnowledgeManagement Department, where he was the lead author of IFAD’s 2011 Rural PovertyReport

E-mail: e.heinemann@ifad.org

Chapter 14

Klaus Deiningeris a Lead Economist at the World Bank His research focuses onincome and asset inequality and its relationship to poverty reduction and growth;access to land, land markets, and land reform, and their impact on household welfareand agricultural productivity; and land tenure and its impact on investment,including environmental sustainability for policy analysis and evaluation, mainly inthe Africa, Central America, and East Asia regions

E-mail: kdeininger@worldbank.org

Chapter 15

Mahabub Hossain(PhD, Cantab) is currently the Executive Director of BRAC Beforejoining BRAC in 2007, he was Head of the Social Sciences Division at the InternationalRice Research Institute (IRRI), and Director General at the Bangladesh Institute ofDevelopment Studies He has authored and co-authored eleven books, and over onehundred and forty papers in various journals and edited books

E-mail: wmh-jaim@brac.net

Chapter 16

Camilla Toulmin (DPhil, Oxon) is Director of the International Institute forEnvironment and Development (IIED) based in London An economist by training,she has worked mainly in Africa on agriculture, land, climate, and livelihoods

E-mail: camilla.toulmin@iied.org

Chapter 17

Steve Wiggins (PhD, Reading) is a Research Fellow at the Overseas DevelopmentInstitute (ODI) London As an agricultural economist he has worked on rurallivelihoods, poverty, food security, and nutrition in the developing world, above all

in Africa and Latin America He has more than thirty-five years’ experience ofworking in the developing world, as well as teaching and researching agriculturaland rural development at the University of Reading and the Overseas DevelopmentInstitute He has published on food prices, climate change, and commercialization ofsmallholders in Africa, among others

E-mail: steve-wiggins@ntlworld.com; s.wiggins@odi.org.uk

Chapter 18

(See Chapter 1.)

Mozambique Nigeria

Uganda Zambia

Middle Africa Northern Africa

Southern Africa Western Africa

Figure 3.1 Agricultural land per agricultural population in selected African countries and regions

Note: Authors’ calculations based on FAO (2012).

278 2001

249 2001

309 2007

337 2007

1961

Production

(Area + Yield)

100 1961

South Asia Area

Yield Sub-Saharan Africa

Figure 3.2 Increases in cereal production in South Asia and sub-Saharan Africa Source: Henao and Baanante (2006).

(agro-ecological zone,

length of growing period)

Sub-humid (180-269) Desert (0)

Humid (>270) Arid (<90)

Semi-arid (90-179) Highlands

Figure 3.3 Agro-ecological zones in sub-Saharan Africa

Source: Fischer, G et al (2002).

South America Asia

Figure 3.4a Net value of agricultural production in Africa and other regions

Authors’ calculations based on FAO (2012)

Middle Africa Northern Africa

Southern Africa Western Africa

Figure 3.4b Net value of agricultural production in different African regions

Source: FAO (2012).

Senegal Malawi

Figure 3.5 Net value of agricultural production in some African countries

5% 10% 40%

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Proportion of exports going to emerging and developing countries (right scale)

To advanced economies (left scale)

To emerging and developing countries (left scale)

Figure 3.6 Destinations of exports from Africa: 1990–2008

Source: IMF (2010).