Future of small farms : synthesis paper
2006
In regard to equity and poverty reduction, sustaining small farmers is important. Findings show that smallholdings are typically operated by poor people who use much household labour along with that of their (equally or more) poor neighbours. Moreover, when small farm households spend their incomes, they tend to spend this on locally produced goods and services, thereby stimulating the rural non-farm economy and creating additional jobs. The challenge then is to improve the workings of markets for outputs, inputs and financial services, and to overcome market failures. This calls for innovations in institutions, for joint work between farmers, private companies, NGOs, and government ministries.
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