POLICYMAKERS NEED TO CREATE MORE OPPORTUNITIES FOR SMALL FARMERS, UN REPORT

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From: UNNews <UNNews@un.org>
Date: 3 Jul 2013 13:00:00 -0400
Subject: POLICYMAKERS NEED TO CREATE MORE OPPORTUNITIES FOR SMALL
FARMERS, UN REPORT
To: news11@ny-mail-p-lb-028.ptc.un.org

POLICYMAKERS NEED TO CREATE MORE OPPORTUNITIES FOR SMALL FARMERS, UN
REPORTNew York, Jul 3 2013 1:00PMSmall-scale farmers – who produce
the majority of food in the developing world – need to be better
integrated into markets to reduce global hunger and poverty, the
United Nations food and agricultural agency today reported
<"http://www.fao.org/news/story/en/item/179362/icode/">urging more
nuanced policymaking for smallholder farmers.

"Policy interventions that aim at encouraging greater levels of
smallholder production for sale in markets need to take better account
of the heterogeneity of smallholder households," said David Hallam,
Director of the UN Food and Agriculture Organization's (FAO) Trade
and Markets Division.

In the foreword to the report,
<em><"http://www.fao.org/docrep/018/i3292e/i3292e.pdf">Smallholder
Integration in Changing Food Markets</em>, Mr. Hallam added that just
as smallholders are a heterogeneous group, the markets in which they
participate are also diverse in terms of their size, geographic
location, connectivity to other markets, power relations between
market players, and institutional setting.

The report notes that with greater market integration and more
inclusive value chains, small farmers are more likely to adopt new
technologies required to achieve productivity growth.

Stressing that there is no one-size-fits-all solution, the two main
ways to link farmers with markets is to provide them with better
access to credit and insurance, and to strengthen the links between
farmers and buyers.

Farmers will not expend more time, money and energy in producing
more, if any surpluswill likely go to waste because there is no
storage, no transport or, possibly, no market within a reasonable
distance, Mr. Hallam said.

"The risk that any money spent to produce more will be lost is too
great a risk for poor farmers to run," he added.

The report also notes a paradox of high food prices. Seen by some
policymakers as an opportunity for farmers to produce more and earn
more, the response by many farmers has been muted.

"High levels of price, production risks and uncertainty, and limited
access to tools to manage them deter investment in more productive new
technologies that would enable smallholders to produce surpluses for
sale in markets," according to the report.

It also highlights the negative consequence of inadequate
infrastructure, high costs of storage and transportation, and
non-competitive markets.

In addition to more tailored policies, the report also highlights the
role of the public sectors and international development partners to
promote better policies for small farmers.Jul 3 2013 1:00PM
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