The Future of Small Farms -- Proceedings of a Research Workshop

The Future of Small Farms -- Proceedings of a Research Workshop Wye, UK, June 26-29, 2005

Organized by the International Food Policy Research Institute (IFPRI/2020 Vision Initiative), the Overseas Development Institute (ODI), and Imperial College London

Overview

Agricultural and food markets have, in the past 20 years, dramatically changed to become more integrated, globalized, and consumer driven. Small farms provide the largest source of employment and small businesses among the world's poor, but their roles vary greatly in different regional contexts and stages of development. Small farmers face the challenge of integration and competitiveness in this new environment, while at the same time they are constrained by a drastic reduction in the public provision of basic services as a result of recent policy reforms, market liberalization programs, and fiscal and governance problems.

In Asia and Latin America, these changes are leading to rapid commercialization of farming, but in much of Africa they result in uncertainty and agricultural stagnation. In this context, it is easy to conclude that commercial farming and high-value crops should be the focus of investment for agricultural growth. Yet, this argument misses the numerous examples of successful small farm development around the world and the potential that pro-poor agricultural growth strategies have to slash poverty and hunger.

The question of the future viability of small farms is the subject of an academic and political debate that has gained particular attention lately because many donors and countries have expressed a renewed commitment to the role of agricultural development for growth and poverty reduction. The debate also brings forward the fundamental question of the role of agriculture and its contribution to economic development. Is agriculture the engine of growth? If so, should a pro-poor agricultural growth strategy rely on small farms? How can small farm development contribute to growth and poverty reduction in many of the poorest developing countries?

There is, therefore, a need to better understand the changing context of small farms in view of the recent and often contending research findings on this topic and to highlight, in particular, the differences across countries, regions, and stages of economic development.

The objective of the workshop is to bring together leading experts to review the available evidence on the current and future status of smallholders in the world. The workshop will be structured so as to highlight the ongoing debate on the topic, synthesize areas of agreement and disagreement, and make research recommendations readily available to a broad range of stakeholders. The discussion will be centered around seven key issues, all focusing on the following core question:

What are the critical economic, institutional, technical, and policy constraints and opportunities facing smallholder farming in the context of global, regional, national, and local economic, political, and agro-ecological conditions in the early 21st century?

Selection of papers available for download

• The Role of Agriculture in Pro-Poor Growth Reflections on the Role of Agriculture in Pro-Poor Growth (Alberto Valdés and William Foster )
• The Role of Agriculture and Small Farms in Economic Development (Peter Hazell and Xinshen Diao)
• Links among Supermarkets, Wholesalers, and Small Farmers in Developing Countries: Conceptualization and Emerging Evidence (Thomas Reardon et al)
• Commercializing Small Farms: Reducing Transaction Costs (Prabhu Pingali, Yasmeen Khwaja, and Madelon Meijer)
• Smallholder Farming in Less-Favored Areas: Options for Pro-Poor and Sustainable Livelihoods (Ruerd Ruben)
• Smallholder Farming in Difficult Circumstances: Policy Issues for Africa (T. S. Jayne, D. Mather, and E. Mghenyi)
• Small Farms, Livelihood Diversification, and Rural-Urban Transitions: Strategic Issues in Sub-Saharan Africa (Frank Ellis)
• The Rural Nonfarm Economy: Pathway Out of Poverty or Pathway In? (Steven Haggblade, Peter Hazell, Thomas Reardon)