Smallholder Agriculture and Market Participation discusses the evolution of policies for smallholder development, including the role of value chains, and the linkages that exist with the Sustainable Development Goals. New, innovative financial mechanisms and linked initiatives are outlined, and their potential to improve the availability of financial services and reduce market transaction costs. Risk management for agricultural smallholders is covered, together with the increasing role of insura nce as a mechanism for risk management among smallholders. Empirical data are used to illustrate the more conceptual work. The last part of the book provides case studies of selected commodity value chain investments involving smallholders in Africa (Ethiopia, Tanzania and Zimbabwe) and South America (Peru), implemented by FAO. The lessons concern project design and targeting, product and market analysis, regulatory issues, sustainability and improved natural resources management.

This open access book discusses the current role of smallholders in connection with food security and poverty reduction in developing countries. It addresses the opportunities they enjoy, and the constraints they face, by analysing the availability, access to and utilization of production factors. Due to the relevance of smallholder farms, enhancing their production capacities and economic and social resilience could produce positive impacts on food security and nutrition at a number of levels. In addition to the role of small farmers as food suppliers, the book considers their role as consumers and their level of nutrition security. It investigates the link between agriculture and nutrition in order to better understand how agriculture affects human health and dietary patterns. Given the importance of smallholdings, strategies to increase their productivity are essential to improving food and nutrition security, as well as food diversity.

This book includes examples of achieving wider change in smallholder agriculture, through influencing policy decisions, linking smallholders to value chains, innovating service provision for small farmers, with an emphasis on promoting equitable livelihoods and developing rural women's economic leadership.

A joint FAO and World Bank study which shows how the farming systems approach can be used to identify priorities for the reduction of hunger and poverty in the main farming systems of the six major developing regions of the world.

This book provides fresh insights into concepts, methods and new research findings on the causes of excessive food price volatility. It also discusses the implications for food security and policy responses to mitigate excessive volatility. The approaches applied by the contributors range from on-the-ground surveys, to panel econometrics and innovative high-frequency time series analysis as well as computational economics methods. It offers policy analysts and decision-makers guidance on dealing with extreme volatility.

This publication is a product of the experiences and lessons learned while implementing agroenterprise projects in eastern and southern Africa. A Market Facilitator's Guide is based on a resource-to-consumption framework, which is the central theme of the "enabling rural innovation" approach for rural development. This approach seeks to empower farmer groups with the necessary skills to make informed decisions for their economic development, based on an analysis of their surroundings, assets and skills. The methodology also aims for outcomes that are equitable, gender focused and participatory.

The literature on commercial transformation of smallholders makes little distinction between market orientation (production decision based on market signals) and market participation (sale of output). This paper analyzes the determinants of market orientation and market participation in Ethiopia separately and examines if market orientation translates into market participation. Empirical results show that market orientation translates strongly into market participation. The key implication of this study is that policy, technological, organizational and institutional interventions aimed at promoting commercial transformation of subsistence agriculture should follow two-pronged approach: improving market orientation of smallholders at production level, and facilitating market entry and participation of households in output and input markets. Focusing on either may not be as effective in achieving the transformation.

The emergence of rural land rental markets in Sub-Saharan Africa is recognized as a key component of the region’s ongoing economic transformation. However, the evidence base on land market participation relies on survey-derived measures, which do not always cohere when compared and triangulated, suggesting the possibility of non-trivial measurement error. We report the results of a priming and list experiments designed to shed light on a persistent mystery in rural household survey data from Africa: why there are so many fewer self-reported landlords (renters-out) than tenants (renters-in)? Our design addresses two hypotheses using experimental data from Ethiopia. First, rented-out and rented-in land may be systematically underreported because enumerators and respondents are typically primed to emphasize parcels that are actively managed/cultivated by the household. Second, rented or sharecropped-out land may be systematically underreported because of respondents’ reluctance to acknowledge an activity for which public disclosure may have negative repercussions. We address the first hypothesis with a priming experiment by exposing a random subset of respondents to a nudge that explicitly reminded them to fully account for all land, including rented/sharecropped-in and rented/sharecropped-out. We address the second hypothesis with a double-list experiment, designed to elicit true rates of land renting and sharecropping-out. We find that nudging induces about 4 percentage points increase (or 13% in relative terms) in the share of households participating in renting in or sharecropping-in practices but has negligible effects on reported rates of renting and sharecropping-out. Interestingly, our list experiment indicates much higher revealed rates of renting-out (14-15%) than is reflected in the nominal parcel-roster responses (3%). The magnitude of the latter finding fully explains the apparent difference in renting in versus renting-out rates derived from the regular parcel roster responses. These results indicate that efforts to document land market participation rate and associated impacts must overcome large systematic reporting biases.

This study compares contract and non-contract growers of apples and green onions in Shandong Province, China in order to explore the constraints on participation and the impact of contract farming on income. We find little evidence that firms prefer to work with larger farms, though all farms in the area are quite small. Using a Heckman selection-correction model, we find that contract farming raises income even after controlling for observable and unobservable household characteristics. These results suggest that contract farming can help raise small-farm income, though questions remain regarding the number of farmers that can be brought into such schemes.