Three quarters of the world’s poor live in rural areas and depend on agriculture, forestry and fisheries for their income and subsistence. Farmers make up one third of the world’s population, 1.5 billion of which are ‘small-holders’ who grow most of their own food. In many developing countries, agriculture generates around one third of the national income and employs two-thirds of the work force, the majority of whom are women.
Because of these factors, when growth in agriculture is achieved it raises living standards and reduces poverty quicker than growth in other sectors, such as manufacturing. It also helps speed up the achievement of other development targets such improving education and maternal health and combating the spread of HIV and malaria.
We also know that when we invest in agriculture, we reach the very poorest. This is especially true of women, who contribute to the bulk of farm labour. Greater direct incomes for women from agriculture also result in better nutrition, education and health for all the family, especially children.
UK aid is supporting farmers with seeds, tools and technical training to improve their production, income and nutrition.
UK aid is also supporting the very poorest through cash transfer programmes that aim to protect household assets (such as oxen for ploughing or seeds for planting) that might otherwise be sold in a crisis, as well as help farmers buy these things in good times.
For example, in Ethiopia, UK aid is supporting the Productive Safety Net Programme (PSNP) which gives cash and food to nearly eight million of the very poorest people. As well as protecting livelihoods, the programme helps to build community infrastructure, like classrooms and water points. It has also shown that families have been able to keep their children in school through crises, and have slowly begun to build up assets like sheep and chickens.
Promoting Public-Private sector partnerships
UK aid is increasing its support to challenge funds where private sector partners agree to match DFID funds to pilot innovative investments in agriculture. This means more money for aid but at less cost to the British tax payer.
In Bangladesh, for example, our partnership, through the Katalyst programme, has generated 183,000 jobs in five years by helping poor farmers sell their produce.
In Nigeria, DFID is working with the private sector to supply 170,000 small-scale farmers with affordable fertiliser and training. And we are also piloting a partnership with a UK tea company and the Rainforest Alliance that is putting Rwandan tea on UK supermarket shelves for the first time, employing 7,400 workers and sourcing tea from nearly 10,000 small-holders.
Investing in research
Investment in agricultural research in developing countries pays off. Not only does it have a high rate of return – over 40% per annum, it also helps farming communities to grow resilient crops and prevent malnutrition.
For example, in Uganda, UK aid has funded research into growing sweet potatoes which are high in vitamin A which has helped to tackle malnutrition and in South Asia we have funded research into the development of Scuba Rice - rice plants which become dormant if fully submerged in water – which has helped farmers in South Asia to become more resilient to the effects of floods.
Supporting global changes
Climate change and population growth threaten the long term stability of the global food system. The longer-term challenge of feeding another two billion of our fellow citizens by 2050 is at the heart of the UK’s efforts to reform the food system so that everyone benefits.
Agriculture and smallholder farmers will be one of the sectors and groups most seriously affected by climate change. The poorest people, especially women, are dependent on agriculture for their livelihoods, and are the most vulnerable to stresses and sudden shocks. For example, more than 100 million extra people are estimated to have been pushed into poverty as a result of the 2007/08 food price rises – partly the result of extreme weather events.
Smallholder farmers and their communities are already at risk from existing climate variability (e.g. recent drought in Horn of Africa and floods in Pakistan) and future climate change will increase this risk. They need to be supported to adapt and build resilience to current and future climate risks.