Investing in Smallholder Family Farmers

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1 Investing in smallholder family farmers for the future we want 2014 Governing Council

2 Investing in smallholder family farmers for the future we want 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 environment As 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. 2 1 M. Lipton, The Family Farm in a Globalizing World: The Role of Crop Science in Alleviating Poverty, International Food Policy Research Institute (Washington, D.C., 2005). 2 Good governance and peace also feature prominently in current debates. For more details see United Nations, A New Global Partnership: Eradicate Poverty and Transform Economies Through Sustainable Development (New York, 2013).

3 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 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 teaproducing 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. 3 These people were chronically malnourished in the period The state of food insecurity in the world. The multiple dimensions 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: the 2012 revision, FAO (Rome, 2012). 3

4 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 For more information, see: 6 For more information, see short video at:

5 Investing in smallholder family farmers spurs wider development In 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 povertyreducing growth in many of today s emerging economies. Box 1. Viet Nam: Transformation through agricultural investment Viet Nam investment in rural infrastructure such as all-weather roads, irrigation systems, electrification and sanitation, as well as increased public spending on agriculture and land reforms that have increased the access of smallholder family farmers to land have transformed Viet Nam from a food-deficit country in the 1990s to a major food exporter today. Thus, investment in smallholder agriculture has been a key driver behind Viet Nam s transformation from one of the poorest countries in the world 25 years ago to lower middle-income status. Investing in smallholder family farmers boosts food and nutrition security Smallholder 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 of Experts on Food Security and Nutrition of the Committee on World Food Security (Rome, 2013). 5

6 Investing in smallholder family farming is key to environmental and climatic priorities Globally, 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 communities A 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. 6 8 According to data compiled from 81 countries by the High Level Panel of Experts on Food Security and Nutrition of the Committee on World Food Security.

7 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 youthsensitive 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. Box 2. Nigeria: Addressing the needs of youth In Nigeria, the Community-Based Natural Resource Management Programme has a specific focus on young people living in the Niger Delta, addressing issues of community cohesion and natural resource management by targeting disadvantaged youth. The programme provides financial and technical resources for communitybased natural resource management aiming to enable young people, in particular, to turn fish farming into a vibrant, profitable business. Over 20,000 jobs have been created, with greater youth inclusion in communities and subsequently reduced involvement in violent activities being among the programme s impacts. Opportunities for investing in smallholder family farmers are greater than ever before Several factors make the potential returns of investing in smallholder family farmers now greater than ever. Widening commercial opportunities Higher 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 dynamics The 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 7

8 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 environment New 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 investment Increasingly, 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 investment Suitable 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 8

9 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 infrastructure Reliable 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 Box 3. Uganda: Participatory approaches to infrastructural development The Community Agricultural Infrastructure Improvement Programme in Uganda, supported by IFAD in partnership with the African Development Bank, promoted economic empowerment of smallholder family farmers using a participatory approach. It did so by investing US$81.9 million in supporting infrastructure development for district and community access roads and markets and provision of agroprocessing equipment. The programme, completed in 2013, also financed community mobilization activities to promote community participation in the selection and implementation of local infrastructure development projects, particularly of rural access roads and market centres. Organizational committees, such as road management committees, played a critical role in overseeing construction, resolving land conflicts and certifying completed works. Market management committees ensured maintenance and operation of markets by providing efficient handling of simple repairs, maintaining hygiene and liaising between vendors and local governments. An estimated 200,000 households directly benefited from the programme. 10 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 smallholdersensitive 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 10 In July 2013, IFAD and the African Development Bank received the Development Impact Honors award from the United States Department of the Treasury for their contribution to the programme. 9

10 Striking a balance between public and private sector roles and developing partnerships that maximize the contribution of farmers knowledge to science, technology and innovation. Box 4. Ethiopia: Investing in extension services Providing extension services to improve agricultural production techniques is a key part of the strategies of both IFAD and the Government of Ethiopia. IFAD s strategy is aligned with the government s Growth and Transformation Plan. At a time when many governments in Africa were curtailing support for the sector, Ethiopia instituted a policy of industrialization led by agricultural development. Over 60,000 development agents have graduated from Agricultural Technical and Vocational Education and Training Colleges in the past six years with three-year diplomas. Prior to 2000, the country s 15,000 development agents had received about nine months of training. 11 In recent years, high rates of economic growth (averaging 9.3 per cent between 2001 and 2011) 12 have been linked to increases in agricultural productivity. Enabling smallholder family farmers to manage risk Investment is needed to mitigate the most pressing risks facing smallholder family farmers, which include the effects of climate change, increasingly frequent weatherbased 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 partnerships Smallholder 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 for improvement, IFPRI Discussion Paper 01041, International Food Policy Research Institute,

11 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 steps Box 5. Indonesia: Partnerships for food security The Partnership for Indonesia Sustainable Agriculture (PISAgro), supported by the World Economic Forum s New Vision for Agriculture initiative, has engaged over 20 organizations working to create sustainable growth and opportunities for farmers in Indonesia. PISAgro is working to improve sustainable production of target commodities, strengthen smallholder livelihoods and increase food security. The Government, working in partnership with both the private sector and civil society, has established programmes to achieve food independence in key crops while increasing productivity, environmental sustainability and social welfare. There 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. 11

12 IFAD/GMB Akash International Fund for Agricultural Development Via Paolo di Dono, Rome, Italy Tel: Fax: ifad@ifad.org ifad-un.blogspot.com Contact information: Rosemary Vargas-Lundius Senior Research Coordinator Strategy and Knowledge Management Department Tel: Fax: r.vargaslundius@ifad.org