2014Governing

Council

Investing in smallholder family farmers… for the future we want

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Smallholder family farmers are people working in any area of agriculture who derive a

significant portion of their income from farming, involve members of the family in

managing the farm and rely predominantly on family labour. These farms vary in size,

ranging from 0.25 hectares to 10 hectares depending on region, crop and availability of

land. Family farms are a global phenomenon. In fact, family farming is the dominant model

of agriculture, and its prevalence across areas with diverse levels of development, farm size,

capital/land/labour ratios, crops and products, and ecology suggests that family farming

offers specific comparative advantages.1

Smallholder family farmers produce four fifths of the developing world’s food. These

women and men are key contributors to global food security, custodians of vital natural

resources and biodiversity, and central to climate change mitigation and adaptation. Despite

this reality, they remain a largely untapped resource, and are disproportionately represented

among the world’s poor people. The potential economic and social returns to investing in

them are enormous.

IFAD has always recognized this. Awareness of the wide-ranging potential returns of

investing in smallholder family farmers was one of the main rationales behind the

establishment of IFAD in 1977 as the only United Nations specialized agency and

international financial institution focusing exclusively on agricultural and rural

development. It is why IFAD has, over the course of decades, invested over US$15 billion

in grants and low-interest loans to developing countries through projects empowering more

than 410 million rural people to break out of poverty, thereby helping to create vibrant rural

communities. Continued – and in fact heightened – investment in smallholder family

farming is essential to reaching the future we want.

The global environmentAs the post-2015 global development agenda takes shape, the world faces a historic

opportunity to put in place measures to shape the future we want. As with the Millennium

Declaration and Millennium Development Goals, the central premise is the need to

eradicate poverty in all its forms – but the framing of the debate has shifted. There is now

wide agreement that a shift to development models that are sustainable, inclusive and

equitable is indispensable to complete the task of eradicating poverty.2 This shift in thinking

about development has important implications for the types of investments and policies to

be prioritized. It also offers a potentially ground-breaking opportunity to address the

structural causes of poverty.

1 M. Lipton, The Family Farm in a Globalizing World: The Role of Crop Science in Alleviating Poverty, International FoodPolicy Research Institute (Washington, D.C., 2005).

2 Good governance and peace also feature prominently in current debates. For more details see United Nations, A NewGlobal Partnership: Eradicate Poverty and Transform Economies Through Sustainable Development (New York, 2013).

Investing in smallholder family farmers… for the future we want

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3 These people were chronically malnourished in the period 2011-2013. The state of food insecurity in the world. The multipledimensions of food security, IFAD, WFP and FAO (Rome, 2013).

4 Against 2005/2007 baseline production and consumption data from FAOSTAT. World agriculture towards 2030/2050: the2012 revision, FAO (Rome, 2012).

The debate goes on against a background of social, economic, political and ecological

changes that are reshaping the conditions, challenges and opportunities faced by the

estimated 842 million poor and hungry people in the world today.3 Key factors include

higher and more volatile food prices, a projected 60 per cent increase in demand for

agricultural products by 20504 and the growing tension between a more populated and

urbanized world and a more fragile planet and unpredictable climate.

One thing that has not changed, however, is that the majority of the world’s poor people

still live in rural towns and settlements. For most of them, family farming is a vital part of

their livelihoods. Hence, if poverty is to be reduced on a broad scale and global food

security is to be achieved, investments that help family and smallholder farmers improve

their livelihoods will be critical. Investments will be needed in key areas such as rural

infrastructure, research and extension systems, and risk mitigation mechanisms. Small

farmers also need favourable policies, supportive institutions, social services, and access

to resources, inputs, credit and markets.

IFAD is committed to investing in smallholder family farmers, which has multiple

development benefits, particularly for poverty reduction and the improvement of food

security and nutrition. The emerging global environment is providing even greater

opportunities to invest in smallholder family farmers, but it is important to ensure that

the right kinds of investments are made.

IFAD investments: realizing the potential of smallholder family farmers IFAD works with poor rural populations, in particular smallholder family farmers, in

developing countries to eliminate poverty, hunger and malnutrition, raise productivity and

incomes, and improve the quality of rural women’s and men’s lives. IFAD has recognized

that smallholder family farmers can and do contribute to economic growth. They make vital

contributions to social and economic development, provided suitable investments are made

to create the conditions to enable them to do this. Looking at the needs of smallholder

farmers holistically, there is a spectrum of interventions that are needed to tap this potential.

As a result, IFAD investments in smallholder family farmers encompass all the elements that

make up the livelihoods of this diverse group of women and men, including productivity,

infrastructure, women’s empowerment, access to financial services, climate change

adaptation, access to markets, land policy and public-private partnerships.

The following is a selection of country examples from IFAD’s portfolio showing the

multiple benefits of investing in smallholder family farmers:

• Enhancing productivity. In Rwanda, IFAD has facilitated partnerships between tea-

producing cooperatives and private investors, which have enabled smallholders to

increase their productivity and control over the marketing of their produce. Under the

partnerships, tea factories established by private-sector partners buy directly from the

cooperatives comprising more than 4,000 members, with the cooperatives

participating as equity shareholders in the factories. This model is being replicated in

another IFAD-supported project in the country, which is promoting investment in the

rehabilitation of existing tea plantations as well as establishing new ones. Supporting

cooperatives to rehabilitate existing tea plantations and build necessary infrastructure,

and developing other tea-growing areas for smallholder farmers are important

features of these projects, as is building the capacity of the cooperatives to engage

with the processors.

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• Adapting to climate change. In 2012, IFAD launched the Adaptation for Smallholder

Agriculture Programme (ASAP) to channel climate and environmental finance to

smallholder farmers. The objective is to improve the capacity of at least 8 million

smallholder farmers to expand their options in a rapidly changing environment.

The programme will empower community-based organizations to make use of new

climate risk management skills, information and technologies. These can include

improved weather station networks, which can provide farmers with more reliable

seasonal forecasts and cropping calendars; geographic information systems, which can

improve understanding and monitoring of landscape use in a changing environment;

and economic valuation of climate change impacts, which can inform more robust

policy decisions.5

• Building rural infrastructure. In The Gambia, the Participatory Integrated Watershed-

Management Project is building bridges to reclaim land. Simple concrete bridges, built

above the level of seasonal floodwaters, have enabled farmers to access paddy fields

even in the rainy season, when previously fast-flowing muddy water and rickety

wooden bridges had restricted access to only the strongest swimmers. Thus far, the

project has helped reclaim over 34,000 hectares of land for cultivation.

• Women’s empowerment. The Reconstruction and Rural Modernization Programme in

El Salvador contributed to the empowerment of women by providing technical and

legal assistance to women’s groups to enable them to participate in negotiations on

land access agreements. Political pressure to avoid land evictions was also applied in

some cases. The programme also provided women and men with training in the

development of business plans, which allowed them to obtain credit.

• Inclusive finance. In Bangladesh, recognizing the need for innovation in financial

services, IFAD initiated a public-private partnership with the Palli Karma-Sahayek

Foundation, which in turn channelled funds to microfinance partner organizations

for on lending to smallholders. The organizations were trained in agricultural

financing; farmers were instructed in the use of modern agricultural technologies.

Over 200,000 smallholders accessed funds under the project, with a loan recovery

rate of 98 per cent. Annual household income was estimated to have increased by

63 per cent as a result of the project.

• Linking smallholders to markets. In India, through the Convergence of Agricultural

Interventions in Maharashtra’s Distressed Districts Project, IFAD acts as facilitator of

a contract arrangement between an agribusiness company (FieldFresh Foods Private

Limited) and groups of smallholders. The farmers are contracted to cultivate baby

corn, which is sold to the United Kingdom market. Farmers have benefited through

increased volumes sold, higher quality (now meeting international standards) and

better prices. Access to financial services and inputs are also provided.

• Public-private partnerships. In Indonesia, IFAD and Mars Incorporated are working

in partnership with smallholder family farmers in the Sulawesi region to improve their

cocoa yields. Working with the IFAD cofinanced Rural Empowerment and Agricultural

Development Programme in Central Sulawesi, this effort is part of Mars’ Sustainable

Cocoa Initiative, a global programme to make cocoa a sustainable crop capable of

providing viable livelihoods to millions of smallholders.6

5 For more information, see: http://www.ifad.org/climate/asap/.6 For more information, see short video at: http://www.youtube.com/watch?v=0mMPzu891ok&feature=youtu.be.

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Investing in smallholder family farmers spurs wider developmentIn modern history, there are few, if any, examples of economic development and widespread

poverty reduction that did not start by raising the productivity and income of smallholder

family farms. A vast body of research demonstrating the role of agricultural productivity

growth in economic development and structural transformation has shown family farming

to be a key driver. This was observed in a number of European countries in the late

eighteenth century and in Latin America (for example, Brazil, Mexico) and Asia (Japan,

Republic of Korea) over the past 40 years.7

The process begins with pro-poor economic growth

driven by the development of family farming. The

increasing incomes of poor rural people leads to increased

spending, which promotes growth in the rural non-farm

economy and expanding markets for local consumption of

goods, while spawning new businesses that provide inputs

and marketing services to agriculture.

Thus, investment in smallholder family farms sets in

motion a virtuous circle: rising incomes of family farmers

stimulate rapid growth in the non-farm economy,

increasing the market for farm products and raising

demand for higher-value farm outputs. This

transformation has proven the catalyst for poverty-

reducing growth in many of today’s emerging economies.

Investing in smallholder family farmers boosts food and nutrition securitySmallholder family farmers are fundamental to food and nutrition security. They produce

80 per cent of the food in sub-Saharan Africa and parts of Asia and are the largest providers

of work for the local labour force in many countries and regions. In countries lacking

adequate reserves of foreign exchange to import food (a problem exacerbated by the food

price spikes of recent years), the contribution of family farming to domestic food supply is

even more crucial. Indeed, in the many developing countries that are net food importers,

increasing production on smallholder family farms can reduce vulnerability to exchange rate

and other trade-related shocks.

Family farming, supported by suitable investments, public policies and institutions, can

contribute both directly, through food production, and indirectly, through the income it

generates for smallholder farmers that enables them to purchase more – and more varied

and nutritious – food. Successful development in smallholder family farming will play a key

role in reducing inequalities between and within countries, which will be indispensable to

achieving development that is inclusive and sustainable.

Improved nutrition is not only a critical outcome of social and economic development,

but also a critical input for that development. Farm households are both producers and

consumers; nutrition-sensitive programmes can reduce poverty and malnutrition among

smallholder family farmers and allow them to optimize their contribution to agricultural

production and food systems as a whole. Smallholders are also guardians of biodiversity,

producing traditional and often underutilized varieties of crops, fish and livestock.

7 For more information, see Investing in smallholder agriculture for food security, a report by the High Level Panel ofExperts on Food Security and Nutrition of the Committee on World Food Security (Rome, 2013).

Box 1. Viet Nam: Transformation throughagricultural investment

Viet Nam investment in rural infrastructure such asall-weather roads, irrigation systems, electrificationand sanitation, as well as increased publicspending on agriculture and land reforms thathave increased the access of smallholder familyfarmers to land have transformed Viet Nam from a food-deficit country in the 1990s to a majorfood exporter today. Thus, investment insmallholder agriculture has been a key driverbehind Viet Nam’s transformation from one of the poorest countries in the world 25 years ago to lower middle-income status.

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Investing in smallholder family farming is key to environmentaland climatic prioritiesGlobally, 85 per cent of agricultural holdings are less than two hectares in size.8

Smallholders operate in some of the world’s most ecologically and climatically vulnerable

landscapes – hillsides, drylands and flood plains – both as users of scarce natural resources

and custodians of biodiversity and resources that are highly climate dependent. Therefore,

it should be evident that agriculture cannot produce sufficient quantities of food in an

environmentally sustainable way without investments in smallholder family farmers.

The activities of family farmers have important spillover costs and benefits on global public

goods (such as water supplies, forests and biodiversity). As such, investments and policies

that enable family farmers to maximize benefits and mitigate the spillover costs of their

activities must be a vital aspect of any sustainable development agenda.

In the context of a more urbanized world, rural areas will have to help meet growing

demands for energy, environmental services and green jobs. As a result, IFAD is developing

innovative loan products to finance renewable energy projects. For example, in Cameroon,

more than 50 microfinance loans that allow the clients to invest in solar solutions for

lighting and mobile phone charging have been approved. In The Gambia, similar schemes

are under way in the field of renewable energy. There is scope for investments in renewable

energy to create decent work opportunities that will benefit rural people, especially young

women and men.

Investing in smallholder family farming strengthens families and communitiesA thriving smallholder family agriculture helps build close-knit families and societies.

It provides employment for multiple family members – female and male, young and old.

Where investments in smallholder family farming are sensitive to the needs and

opportunities of different family members, they also have potentially important social

and equity benefits.

Investing in smallholder family farming is key to promoting gender equality and

women’s empowerment. Women make up approximately 43 per cent of the global

agricultural labour force, but inequalities in access to productive resources constrain their

yields by an estimated 20 to 30 per cent. If captured, this production could reduce global

hunger by 12 to 17 per cent. Further, household income controlled by women has a greater

impact on family welfare, improving nutrition and reducing poverty.

IFAD’s experience has repeatedly shown that investment in smallholder family farming is

a key instrument to empower women. For example, the Districts Livelihood Support

Programme in Uganda uses volunteer mentors to transform gender relations within the

household. Participating households have reported not only increased household income

and food security, but also improvements in women’s decision-making influence and more

harmonious household relations.

Smallholder family farming can also empower young people. Given that the majority of

poor young people are still living in rural areas, finding ways to enable young rural women

and men to obtain decent livelihoods must be a priority. Although young rural people will

have to be key players if global agriculture is to meet the myriad challenges it will face in

coming decades, at present the absence of decent work opportunities in rural areas is one of

the reasons young people are migrating at unprecedented levels. This deprives rural

communities of their most energetic and innovative members. But there is potential to

create productive opportunities for young rural people, which can provide a viable

alternative to migration and ease pressure on saturated labour markets.

8 According to data compiled from 81 countries by the High Level Panel of Experts on Food Security and Nutrition ofthe Committee on World Food Security.

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In Egypt, the IFAD-supported West Noubaria Rural

Development Project has provided unemployed young

people with small plots of farmland in newly reclaimed

desert lands outside the Nile delta. These new farmers

have received training and technical support, and

marketing associations have been set up to help them

compete with larger-scale farmers. Nearly 45,000 young

graduates have benefited from this project, which

has created more than 60,000 permanent and

80,000 seasonal jobs.

In Senegal, the IFAD-supported Project for the

Promotion of Rural Entrepreneurs has provided youth-

sensitive capacity-building for producer organizations in

selected poor regions. It has offered training for business

development service providers, with a focus on enabling

young entrepreneurs to access services. Thus far, 1,500 new

enterprises and 4,000 jobs have been created, 63 per cent

of which have been for young people.

Opportunities for investing in smallholder family farmers aregreater than ever beforeSeveral factors make the potential returns of investing in smallholder family farmers

now greater than ever.

Widening commercial opportunitiesHigher food prices increase returns and the potential viability of small-scale family farming.

And as food imports become more expensive, smallholders will be positioned to capture a

larger share of domestic markets. Increased demand for agricultural products has brought

new operators into supply chains, including domestic and multinational supermarket

operators, which constitute an opportunity for smallholder family farmers. On the risk side,

more integrated national and global markets and value chains, with stricter quality

standards, will likely expose smallholders to wider competition. Hence the support of

partnerships and capacity development are key for smallholders. For example, in Egypt the

Agrofood Group collaborates with farmers’ associations to provide smallholder family

farmers with training in the production and processing of potatoes to meet strict European

Union standard requirements. It also provides smallholders with certified high-quality

potato seeds to meet the standards of European supermarket chains, resulting in win-win

solutions for both the Agrofood Group’s business operations and smallholders.9

New rural-urban dynamicsThe increasing integration of rural and urban areas and the growing diversity of rural

economies are also creating new business opportunities for rural people. Rural areas will

play an increasingly significant role in delivering a range of public and private goods and

services – for example, those relating to energy and environmental services – to a more

urbanized world. The development of larger towns and hubs and the continued migration

of rural people from smaller and more remote settlements to these areas are widening the

information flows between smallholder family farmers and other private actors, aided by

information and communication technologies. Many IFAD projects are contributing to

these increased information flows and helping to create new commercial opportunities.

9 For more information, see http://www.agrofood.com.eg/.

Box 2. Nigeria: Addressing the needs of youth

In Nigeria, the Community-Based NaturalResource Management Programme has a specificfocus on young people living in the Niger Delta,addressing issues of community cohesion andnatural resource management by targetingdisadvantaged youth. The programme providesfinancial and technical resources for community-based natural resource management aiming toenable young people, in particular, to turn fishfarming into a vibrant, profitable business. Over20,000 jobs have been created, with greateryouth inclusion in communities and subsequentlyreduced involvement in violent activities beingamong the programme’s impacts.

In Zambia, the IFAD-supported Smallholder Enterprise and Marketing Programme used

mobile phone technology to create a market information service for smallholder family

farmers. The service provides accurate and up-to-date agriculture and market information

covering the entire value chain, allowing smallholders to make informed decisions about

what to grow, volumes required, storage and processing options, and marketing and

investment opportunities. More than 28,000 smallholder family farming households have

directly benefited from this programme. These types of investments reduce the transaction

costs and risks associated with investing in family farmers.

Changing institutional environmentNew institutional arrangements also enable smallholder family farmers to capitalize on new

opportunities. Organizations of small producers, participatory approaches to research and

development, and more integrated value chains provide family farmers with access to

training, information, markets, tailored financial products, technology and policy processes.

Many private companies, recognizing an opportunity to secure their supply base, are

entering into partnerships with groups of smallholder farmers. The potential benefits of

these partnerships are significant for both parties, but the playing field is not level, and risks

to smallholder farmers will need to be assessed and mitigated. Farmers’ organizations are

also finding new opportunities to shape policy. For example, within the institutional

framework of the agreement with the Commission on Family Farming of the Southern Cone

Common Market (MERCOSUR), IFAD is promoting a platform for dialogue between

governments and smallholder farmers’ associations, which is facilitating increased public

investment in family farming.

Trends in public and private investmentIncreasingly, investment in smallholder family farmers is coming from the private

commercial sector. Many IFAD-supported projects already involve partnerships with private

actors. In addition, there has been widespread commitment from governments to broaden

public investments in agriculture, which also support efforts to reduce poverty. Generally,

however, in recent years governments have reduced direct investment, shifting their focus to

facilitating private investment in the sector, including by smallholder family farmers

themselves. Remittances also play an important role in fostering investment in smallholder

family farms. IFAD’s multi-donor Financing Facility for Remittances demonstrates notable

examples deriving from 50 remittance-related projects in some 40 countries, which have

tested innovative mechanisms and products. For example, the Philippine’s Atikha Overseas

Workers and Communities Initiatives Inc., through an IFAD cofinanced grant, has helped

change the lives of thousands of Filipino migrant investors by means of its financial literacy

training programme.

Four key areas for investmentSuitable policies and functioning state institutions are indispensable for creating an

enabling investment environment for smallholder family farming. This includes:

• A predictable and stable macroeconomic environment

• Fiscal policies such as customs and taxes that do not reduce the potential returns of

investing in smallholder family farmers

• Policies on banking and foreign and domestic investment that are conducive to

investing in smallholder family farmers

• State policy on land tenure that complements local property right regimes in

facilitating secure access to land for smallholder family farmers, with a particular

focus on the needs of women

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• Policy and regulatory frameworks that safeguard the interests of smallholder

family farmers.

Smallholder households are heterogeneous, and the suitability of an investment strategy is

also influenced by a range of factors that vary between and within regions: the type of staple

crops and cropping patterns; availability of land, labour and capital; access to services; access

to markets; availability, quality and management patterns

of natural resources; vulnerability to climate change and

associated risks; demographics; and education levels.

With the right policies and institutions in place, future

investment in smallholder family farmers should be

concentrated in four broad areas: infrastructure, research

and extension, risk mitigation and partnership facilitation.

Improving rural infrastructureReliable infrastructure is essential for all elements of rural

development. It has an enormous impact on the cost of

supplying both farm and non-farm goods and services. It

is a key determinant of the business services available to

smallholder family farmers (for example, processing,

marketing, storage) and to their profitability.

The public sector usually plays a leading role in

infrastructure investment, but in recent years there has

been rising involvement of the private sector. One benefit

is that such projects are more likely to be run like

businesses rather than bureaucracies. Approaches to

investing in rural infrastructure that have shown

livelihood-enhancing and sustainable results include:

• Giving family farmers a voice in infrastructure

projects and involving them in planning, regulation

and, where possible, operations and financing

• Ensuring that investments respond to demand and

that adequate resources are available for

maintenance

Establishing appropriate research and extension systems Innovation in agriculture is crucial to meeting current and future challenges. Private-sector

investments in research and extension have expanded in recent decades, although the public

sector retains an important role, particularly in safeguarding the interests of smallholder

family farmers operating in the least favourable conditions. Investing in smallholder-

sensitive research and extension should focus on:

• Investing in building the capacities of institutions responsible for research and

extension

• Integrating research and extension agendas more closely and increasing information

flows from smallholder family farmers to local service providers (for instance,

providers of marketing, financial and technical services)

• Involving farmer organizations in designing and implementing extension services,

and participatory approaches such as farmer field schools

Box 3. Uganda: Participatory approaches to infrastructural development

The Community Agricultural InfrastructureImprovement Programme in Uganda, supportedby IFAD in partnership with the AfricanDevelopment Bank, promoted economicempowerment of smallholder family farmers usinga participatory approach. It did so by investingUS$81.9 million in supporting infrastructuredevelopment for district and community accessroads and markets and provision ofagroprocessing equipment. The programme,completed in 2013, also financed communitymobilization activities to promote communityparticipation in the selection and implementationof local infrastructure development projects,particularly of rural access roads and marketcentres. Organizational committees, such as roadmanagement committees, played a critical role inoverseeing construction, resolving land conflictsand certifying completed works. Marketmanagement committees ensured maintenanceand operation of markets by providing efficienthandling of simple repairs, maintaining hygieneand liaising between vendors and localgovernments. An estimated 200,000 householdsdirectly benefited from the programme.10

10 In July 2013, IFAD and the African Development Bank received the Development Impact Honors award from the UnitedStates Department of the Treasury for their contribution to the programme.

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• Striking a balance between public and private sector roles and developing

partnerships that maximize the contribution of farmers’ knowledge to science,

technology and innovation.

Enabling smallholder family farmers to manage riskInvestment is needed to mitigate the most pressing risks

facing smallholder family farmers, which include the

effects of climate change, increasingly frequent weather-

based shocks and (in many areas) degradation and loss of

natural resources, all of which make production even more

difficult to control. Further, price volatility is expected to

continue into the future, making it difficult for farmers to

know which crops they will be able to sell profitably or

how much income they can reasonably expect to earn.

Smallholders urgently need a wide range of tools to

help them deal with the various risks and uncertainties, if

they are to make investments that can enhance their

livelihoods, such as adopting new technologies and

switching to high-value-added activities. Risk mitigation

measures include:

• Extending tailored social protection measures to

rural areas, targeting women for transfer payments

• Designing climate change adaptation mechanisms

• Developing a range of inclusive financial products,

including insurance schemes and remittance

products, tailored to address the risks that

smallholders face.

Recent experience has shown that social protection and risk mitigation are vital tools both

in promoting economic growth and in ensuring that this growth contributes to reducing

poverty and hunger. A variety of policies and instruments fall under the category of social

protection: workers’ insurance schemes and labour market policies, such as contributory

pensions and health insurance; coverage against crop loss, the death of a close family

member and loss of property, as well as index-based weather insurance; safety nets,

including social transfers (both conditional and non-conditional), subsidies and public

works; and sectoral policies related to health and education that provide free or affordable

access to quality services for smallholder family farmers, many of whom live in remote

and poor areas.

Creating an enabling environment for private-sector investment and partnershipsSmallholder family farmers themselves are part of the private sector, and are the largest

investors in their own enterprises despite the multiple constraints they face. To harness their

ability to make productivity-enhancing investments in their farm enterprises, a variety of

measures are needed that promote their access to markets, financial services, land tenure

security, and information and communication technologies.

11 K. Davis et al., In-depth assessment of the public agricultural extension system of Ethiopia and recommendations forimprovement, IFPRI Discussion Paper 01041, International Food Policy Research Institute, 2010.

12 http://devdata.worldbank.org/AAG/eth_aag.pdf.

Box 4. Ethiopia: Investing in extension services

Providing extension services to improveagricultural production techniques is a key part ofthe strategies of both IFAD and the Governmentof Ethiopia. IFAD’s strategy is aligned with thegovernment’s Growth and Transformation Plan. At a time when many governments in Africa werecurtailing support for the sector, Ethiopia instituteda policy of industrialization led by agriculturaldevelopment. Over 60,000 development agentshave graduated from Agricultural Technical andVocational Education and Training Colleges in thepast six years with three-year diplomas. Prior to2000, the country’s 15,000 development agentshad received about nine months of training.11

In recent years, high rates of economic growth(averaging 9.3 per cent between 2001 and2011)12 have been linked to increases inagricultural productivity.

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In recent years many partnerships between smallholders and other private actors have

shown significant benefits in creating an enabling environment for investment in family

farming enterprises. The result has been increased income and reduced risk for farmers

and a sustainable and efficient supply for commercial

partners. The requirements for mutually beneficial and

effective partnerships include:

• Policy engagement of family farmers at all levels, in

particular by supporting them to engage with

cooperatives and farmer’s organizations

• Effective facilitation to mitigate risks involved with

partners’ unequal power

• Appropriate regulations and safeguards to ensure

partnerships are equitable

• Awareness among consumers (in both developing

and developed countries) of the long-term

sustainability benefits of consuming goods produced

by smallholder family farmers

• Promotion of agricultural investment opportunities

among diaspora communities.

Next stepsThere can be no food and nutrition security without smallholder family farming. A future

where smallholder family farming is at the centre of agricultural, economic, environmental

and social agendas will be key for promoting equitable and sustainable development.

Emerging global and national realities present even wider opportunities and potential

returns from investing in smallholder family farming than ever before. These realities

demand new investment modalities, new kinds of partnerships and enabling policies –

as well as a changing and expanding role for IFAD and other institutions. IFAD, in

collaboration with its Member States and partners, will need to develop new approaches

to respond to the challenges and opportunities for smallholder family farmers in order to

enable them to participate in and benefit from inclusive growth, to realize the future we

want. Governors are invited to share their visions on the future role of smallholder family

farmers in their countries and how IFAD can continue to support them to achieve this

vision, building on successful cases and lessons learned.

Box 5. Indonesia: Partnerships for food security

The Partnership for Indonesia SustainableAgriculture (PISAgro), supported by the WorldEconomic Forum’s New Vision for Agricultureinitiative, has engaged over 20 organizationsworking to create sustainable growth andopportunities for farmers in Indonesia. PISAgro isworking to improve sustainable production oftarget commodities, strengthen smallholderlivelihoods and increase food security. TheGovernment, working in partnership with both theprivate sector and civil society, has establishedprogrammes to achieve food independence in keycrops while increasing productivity, environmentalsustainability and social welfare.

Contact information:Rosemary Vargas-LundiusSenior Research CoordinatorStrategy and Knowledge Management DepartmentTel: +39 06 5459 2350Fax: +39 06 5459 3350E-mail: r.vargaslundius@ifad.org

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