Rural economies in emerging markets are often fragile, and this International Growth Centre brief explores the challenges and opportunities that they face. The vast majority of emerging market commodity production is carried out by smallholder farmers who have limited plots of land and are therefore often highly vulnerable to increases in input costs, uncertainty and shocks to global commodity markets. There is a growing demand for more disclosure and sustainability in global commodity supply chains, which is also having an impact on rural areas. Improving rural futures will require action on smallholder agriculture, supply chains and finance. This brief argues that there is a role for an integrated approach to improving rural economies through the overlap of smallholder agriculture, supply chains and finance. Such an approach could deliver more sustainable, inclusive and long-term gains for rural development than current approaches.

Food and nutrition security is a global challenge that can only be met through the development of smallholder agriculture. Smallholder farmers working in food systems dominated by old fields, low yields and inadequate agricultural services face major challenges. Climate change is also introducing new factors that affect their production and exacerbating others that are already well known, such as interannual rainfall variability, increased incidence of pests and diseases, and land degradation. In addition, smallholder farmers are excluded from formal markets and financial services, primarily because of the lack of formal proof of land ownership. Limited extension services are a major factor in not having the appropriate agricultural skills to practice the recommended agricultural practices to obtain higher yields and therefore increase productivity and income. This is one of the main factors of rural youth exodus to urban areas in search of employment opportunities. Our mission is to transform the smallholder agriculture from a model of development characterised by insufficient livelihoods for the rural population, to an innovative and climate change resilient........

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