The current discussion on ‘Making science and technology work for small-scale farmers’ is closely linked with the earlier debate on the appropriateness of farmers’ voices in the African Green Revolution [AGR] initiative. Essentially, the thinking of agricultural scientists and technologists will be more effectively put to use if they align with those of the smallholder farmer. As I had earlier indicated, there is the need to revisit and strengthen Research-Extension-Farmer linkage if the dream of realising a sustainable AGR is to be achieved. There are a lot of lessons to learn [either way] in the process of a 2-way information sharing within the linkage system.

Technologies that are patterned in line with the taste and capability [in terms of finance and usability] of small farmers will undoubtedly work for the purpose for which they are designed. Sincere and thorough farmer consultations by the researcher/technologist will, therefore, be needed in the design and development of any technologies aimed at bringing about an agrarian change amidst the small-holders. Aside some field experience acquired over the years, Everett M. Rogers diffusion studies have shown that innovations that are: feasible; compatible [with farmer’s socio-cultural milieu]; cost effective; socially and economically advantageous; divisible; simple [to use]; and ‘triable'[in bits] are always popular amongst the end-users, all things being equal. Previous investigations conducted by us have also shown that technologies or innovations that are [environmentally and farmer] user-friendly and result effective are an answer to farmers’ yearnings and aspirations.Considering all the above innovation characteristics in the process of technology development for the small farmer will be worth the effort of the researcher after all.

Perhaps predictably, I find it hard to disagree with Steve’s arguments. There is a pro-smallholder and pro-science – even pro-GM! – position, drawing on a strong empirical record, that Paul completely misses in his attempt to slay the giants of romanticism. I will, therefore, confine myself to two main points:

The first augments Steve’s points about the comparative advantage of smallholder vs large-scale commercial agriculture. In low income economies, replacing labour with capital is often not efficient. This is true for many agricultural production tasks. Moreover, smallholder family labour is often better motivated and hence more efficient than the hired labour that large-scale farms have to rely on. In general, therefore, there are few economies of scale in agricultural production in Africa, although there may be in processing and marketing. That said, there are supply chains – most notably, export horticulture – where significant capital investments at farm level are unavoidable.

There are also economies of scale in traceability and other aspects of quality assurance. In such supply chains, the advantages of large farm organisation may outweigh the labour benefits of smallholder production. In a recent review of commercial agriculture in Africa for the World Bank (http://go.worldbank.org/XSRUM2ZXM0), we found that large-scale production had outperformed smallholder systems in export horticulture, sugar and flue-cured tobacco, but that smallholder production systems had outperformed large-scale in cotton and cashew, with strong performance under both forms in tea. The current debate has been prompted by the high food prices observed in 2008. Notably, food crop production in Africa remains dominated by smallholders.

The high costs of accessing and defending large landholdings in much of Africa may contribute to this. However, in a low income economy there are no obvious scale advantages in maize production and poor consumers are a long way from demanding the traceability and food safety assurance that could tip the balance in favour of large producers. Tellingly, where large farms do exist, they often choose to produce higher value crops than maize and other staples. Paul argues that “allowing commercial organizations to replace peasant agriculture gradually would raise global food supply in the medium term”. However, as Prabhu Pingali and others have shown for East Asia, market forces will tend to produce farm consolidation only when real wages in an economy rise well above levels seen in most of Africa today. When this happens, replacing labour with capital will make increasing sense and increasingly large plots will be necessary to generate an income for the owner comparable to that which could be obtained in an (attainable) off-farm job.

My second point augments one of Paul’s points. We can point to plenty of evidence showing that, where smallholders are supported through public or private delivery of support services (accessible input supply, seasonal finance, technical advice etc), they can compete strongly with large-scale farms in low income economies. However, large-scale farms do possess an important advantage: they can access such support services themselves (e.g. direct contact with commercial banks), whereas smallholders are heavily dependent on services being brought close to their farmgate. As Steve notes (not altogether approvingly), large-scale farms can even lobby for public infrastructure provision, something that smallholders have rarely been able to do.

The case for large-scale farms, therefore, looks stronger where states completely fail to provide or to encourage support services to smallholder producers. Without such service provision, smallholders are indeed more likely to be trapped in chronic poverty than to be drivers of agricultural growth. In recent years there have been encouraging commitments from African governments to increase their investment in the agricultural sectors of their countries. This is critical if smallholder production is to supply the ever-rising demand for food on the continent.

Colin Poulton, School of Oriental and African Studies, University of London

I’d like to challenge one of Prof. Collier’s key points: small farmers are failing to keep up with the pace of change. “Innovation is hard to generate through peasant farming”, he writes. “Their mode of production is ill-suited to modern agricultural production in which scale is helpful”.  On the contrary, small farmers have shown time and again a capacity to rapidly evolve technologies and systems; in this their greater number and their closer interactions with their land, crops, animals and each other, relative to large farmers, are key advantages. This extends to achieving scale economies – where these are attractive – through cooperation. In a context of rapid change, small farmers’ capacity to evolve is critical. However, it is far more often ignored or suppressed than supported and fed.

An illuminating case comes from the highlands of southern Rwanda, one of the most densely populated parts of the most densely populated country in Africa.
Soon after arriving in the late 1980’s, I took up an initiative to advance sustainable intensification of highland valley bottoms thru farmer-led experimentation. Farmer groups in 3 valleys tried out and modified technical options they or we suggested; they bore all risks, we provided initial seed and advice. Within 2 seasons the valleys were transformed (photos). Rice, previously only grown 200 m lower, spread rapidly. Farmers identified varieties that tolerated cold and developed cropping patterns adapted to their economic orientation and the hydrology of their valleys. By the second season, all the groups had constructed sandbag-reinforced diversion dams and peripheral irrigation canals. Farmers who had never before seen a need to farm cooperatively were now electing coordinators to organize tasks that benefited all, like irrigation maintenance, and, when necessary, to enforce penalties. Appropriate scales of cooperation were quickly found for different tasks: larger for maintaining canals, smaller for managing a seedbed, still smaller for scaring off birds. “Traveling seminars” in which the groups showed and explained what they were trying were crucial for the evolution of these lumpy options. How to maintain functional diversity was a constant topic of conversation.  Rice was proving very productive (appreciated at home and with a ready market) but its spread threatened other elements.  Sweet potato especially: growing it in the valley provided cuttings for the hillsides and made year-round cultivation possible – an enormous boost to food security. One solution was to grow rice in paddies then rebuild raised beds for sweet potato, beans and e.g. out-of-season maize for the market: tremendously labour-demanding but evidently feasible for farmers with a few hundred sq m of land. Innovation was driven by necessity, which was hardly in short supply. But the context was less than supportive: markets functioned poorly, extension was demeaning and the state apparatus hostile to any autonomous initiative. Discussion in policy circles favoured scale and specialization – fewer people, growing one or a few crops, either in the valleys or on the hills. This much of the story was recounted in Agricultural Systems (1994, attached). I left a year before the genocide broke out in 1994. I visited in 1996: despite upheaval and more than 4 years without support of any kind, the groups had survived and rice cultivation had spread up the valleys.  It was more difficult to make out what had happened to other innovations. A few months ago, a colleague visited the area. The groups are all still active, 20 years on, and he found rice dominant over many kilometres of valley (photo).  It’s unclear to what extent farmers have been supported in this by public or private sector institutions (I know some are active in the area) and whether farmer innovation is being recognized. I’d love to find out more. A final thought. New cultivation techniques for familiar crops may prove an important production frontier, particularly as climate change accelerates. The System of Rice Intensification and related approaches are notable examples. The wheel is still very much in spin but evidence suggests a potential for significant gains in production and water use efficiency along with an inescapable need for local innovation and adaptation around the basic principles. Supporting the innovative capacity the Rwandan groups demonstrated would seem essential if that potential is to be captured.  

Michael Loevinsohn, Applied Ecology Associates

I am surprised to find this debate starting all over again, and would like to ask readers to look over the following essays I wrote during an earlier iteration of these debates.  In them I challenge the conventional wisdom that small farms are backward and unproductive.

Using evidence from Southern and Northern countries I demonstrate that small farms are “multi-functional” – more productive, more efficient, and contribute more to economic development than large farms. Small farmers can also make better stewards of natural resources, conserving biodiversity and safe-guarding the future sustainability of agricultural production.

http://www.foodfirst.org/node/246

http://www.multinationalmonitor.org/mm2000/00july-aug/interview.html

http://www.foodfirst.org/pubs/policybs/pb4.html

Peter Rosset, Associate, Global Alternatives

Professor Paul Collier’s thesis incriminating poor countries for lack of progress in food production, especially in the wake of the worsening global food crisis (and economic meltdown?) as hinging on the preponderance of small farms raises more questions than proffering feasible and sustainable solutions.   One question is: for whom do large-scale commercial farmers in poorer countries produce?

The argument for big farms as a means of boosting food production does not provide answer for the food shortage experienced in Africa and other poor regions. This is because most (if not all) of the large-scale commercial farmers in these regions produce essentially for Western markets where they are able to recoup their investments faster than they would have if they had targeted their production for domestic markets, where agricultural produce pricing is very erratic and responsive to a variety of environmental, socio-economic and political  uncertainties. These capital rich investors who are often members of the political and economic elite are able to easily deploy resources. However, there are only a handful of such advantaged capital rich investors that are willing to invest in food production for the purpose of alleviating domestic food crisis. Even when large scale farming had been embarked upon in most African countries, monumental failure had repeatedly been bitterly encountered.

The bulk of African farmers are resource-limited residing in remote areas. It was the small farms that dot African communities that feed the various populations in the 1960’s and 1970’s. It is a fact that these countries, like Nigeria , produced in excess of home consumption needs. Indeed, Nigeria (in the years preceding the discovery and exploration of oil) was a net exporter of food and agricultural products, deriving the bulk of her national income from agriculture. Those were the days of groundnut pyramids, cotton, rubber, cocoa, oil palm, grain and vegetable exports. These products came from the numerous small farms even as limited as they were in “modern farming inputs.” What went wrong, one might ask. Several things were amiss including the strong drive to modernize agriculture by employing large-scale production strategies with little or no regard for the prevailing institutional, cultural, environmental, socio-economic and other agricultural production considerations.

The African farmer is vulnerable to the vagaries of weather and is ill-prepared (and, therefore, caught off guard) when disasters come knocking. There are limited facilities and expertise for early warning devices. Conversely, in times of good harvests, producers have great difficulty in marketing excess crop and dairy products. The resulting glut results in depressed farm gate price and often producers are compelled to sell at significant losses. Post-harvest technologies, especially for preserving perishable foods are still being developed, the post-harvest losses are staggering. This could serve as disincentive to produce. Agricultural insurance scheme is almost non-existent for the smallholder. In times of losses, the farmer receives no compensation as every loss is borne by the farmer and his/her household.

Coming from the background of extreme poverty, the productivity of resource-limited farmers has declined steadily over the years. In many instances, land degradation has resulted in declining erosion and/or siltation, deforestation, overgrazing and desertification. The end result is food insecurity, which manifests in de-humanizing experiences (hunger, poverty, disease, etc). This scenario is aggravated by the increasing rate of land alienation to the economic and political elite who appropriate massive expanse of land for speculative purposes. This has resulted in the loss of land by majority of rural poor who are either forced to migrate out of the rural area and constitute themselves into a social menace in already congested cities, or become tenants to land merchants and land speculators. Many farmers and pastoralists who have lost access to land and/or livestock are increasingly converted to contract farmers for national multinational conglomerates.

Some past efforts geared at improving agricultural and food productivity have focused attention primarily on the injection of scientifically proven technologies that have led to substantial increase in crop and livestock production. Many of such introduced varieties have been found unsuitable because they are often not compatible with the agro-ecological conditions and farming systems of many African farming communities. Many of the introduced crop and livestock species required high-level inputs and management, which the poor farmer cannot provide. Where new varieties have been adopted and found to be well suited to the agro-climatic conditions, the resulting high yields have found limited market outlet. The resulting glut, coupled with the cheap imported foods from the West, African producers are faced with serious glut and depressed price and accompanying loss of income. Above scenario calls for a re-thinking and re-engineering of policies and programmes primarily targeted at the smallholder farmers of Africa .  Even where the scientific investments can lead to improved productivity, unless the poor have secure property rights the benefits are often expropriated by the powerful once the often poor quality of land has been restored meaning that the poor not only loose from the technical improvements but they loose on the value of the labour equity that has gone into improving productivity.

To get the African farmer out of the woods and be launched into prosperity, the aforementioned constraints must be meticulously addressed. For the region, the starting point for improved food production and eradicating extreme poverty and hunger is a complete overhauling of the institutional and policy environment. Reforms must be embarked upon by African leaders and peoples with every sincerity of purpose.

For us, the first step is to undertake a comprehensive land reform such that every rural producer shall be guaranteed secure access to crop and grazing land in pursuant of legitimate livelihoods. This calls for a re-thinking and re-engineering of land use and land tenure regulations and policies which would facilitate access to and use of land. Since most African communities access land through customary arrangements, land policies must of necessity include customary land arrangements which can be easily supervised through existing traditional institutional arrangements. Land policy guidelines must of necessity be couched within the socio-cultural milieu of the African society.  This way, customary land-users will have secure right.

Achieving food security will largely be determined by the willingness of African leaders to make a clean break from past business of government and imbibe the principles of good governance, transparency and accountability, rule of law, equity and fairness. It is this “business unusual” that will propel the engine of social and economic growth through the execution of people-oriented programs and institutional reforms. The thrust here is to provide enabling environment for enhancing the productivity and income of the rural poor. If corruption in the public and private sector can be halved by 2015, Africa would have moved some 60% towards attaining food self-sufficiency.

There is need to double development assistance (especially in the wake of the current global economic meltdown) channeled to fight hunger and poverty through community-based projects that target the real producers who often are the vulnerable groups in African countries. Application of aid should be through CBO’s and traditional institutions that are in tune with the local conditions and realities.

Small commercial farms, and not large-scale commercial farms is the answer to the current food crisis in Africa , at least in the foreseeable future.

Jerome Gefu

‘Small farmers can be a driving force in cutting hunger and poverty worldwide’ was a key message to G8 leaders from development specialists at The Future of Small Farms research workshop held in Wye in June 2005. Participants at the workshop, jointly organised by IFPRI, ODI and Imperial College London, concluded that investment in small farm agriculture could help to raise the rural poor out of poverty and catalyse wider economic growth.

However, the challenges small farmers in developing countries face include globalisation – especially the dramatic rise of supermarkets even in poor countries – low world market prices for major agricultural commodities and the expected negative impact of climate change. In Africa, these challenges are compounded by the spread of HIV/AIDS. In addition poor farmers are widely dispersed and have no effective political voice so are usually economically neglected.

But we should not give up on this task according to Dr Peter Hazell, Director of the Development Strategy and Governance Division of IFPRI and workshop organiser. Possibilities for alternative livelihoods within the non-farm sector do not look optimistic for the next decade or so and there are plenty of good investment opportunities within small farms which are good for both growth and poverty reduction.

The workshop participants agreed that:

• Public investment in rural infrastructure, agricultural research and support services is needed to unleash the inherent power of small farmers.
• In many African countries such investment is contrained by the capacity and quality of state institutions through which it would be channelled. These institutions have to be reformed to increase their accountability to farmers organisations and the private sector.
• Donors must think carefully how aid can be used to encourage such reform programmes. The danger is that large increases in aid could remove incentives for recipient governments to undertake real reform.
• The role of the state in providing key support to small farmers needs to be redefined. Structural adjustment programmes have led to state withdrawal from ensuring that small farmers have fair access to high quality seeds, fertilizers, technical advice and credit and marketing services and have left a vacuum which in most poor African countries has not been filled by the private sector. The state should perform a proactive role in collaboration with farmer organisations and private sector to ‘kick-start’ the markets and increase private sector involvement.

To produce the food necessary to reduce high world food prices and meet the future demands of a growing and more affluent population, large-scale commercial farming needs to be encouraged. Any romantic illusions about small-scale farmers should be set aside. Or so Professor Collier writing recently in Foreign Affairs (November/December 2008) argues.

This is particularly important in Africa where:

“African peasant agriculture has fallen further and further behind the advancing commercial productivity frontier, and based on present trends, the region’s food imports are projected to double over the next quarter century.”

Large-scale commercial farms (LSCF) have the advantages of being technically more advanced, able to reap economies of scale, mobilise funds and invest, and to react to evolving market demand:

“In modern agriculture, technology is fast-evolving, investment is lumpy, the private provision of transportation infrastructure is necessary to counter the lack of its public provision, consumer food fashions are fast-changing and best met by integrated marketing chains, and regulatory standards are rising toward the holy grail of the traceability of produce back to its source.”

Small farmers, on the other hand, have had their day:

“… their mode of production is ill suited to modern agricultural production, in which scale is helpful. …”

“Innovation, especially, is hard to generate through peasant farming.”

If we need a model of what can be done, then Brazil provides one:

“In Brazil, large, technologically sophisticated agricultural companies have demonstrated how successfully food can be mass-produced. To give one remarkable example, the time between harvesting one crop and planting the next — the downtime for land — has been reduced to an astounding 30 minutes.”

Is Professor Collier right? Yes, he is correct to emphasise the need for commercial farming. But no, he is wrong to imagine that this requires doing so on a large-scale. His solution is unnecessary, flies in the face of history, and carries important dangers.

Large-scale farms are unnecessary in Africa

Does Africa need to imitate Brazil? Let’s look at the record of Brazilian farm output from the early 1990s to the mid-2000s. During that time the index of production in Brazil rose by 77%, at an annual average rate of just over 4% a year: a good performance, one of the best twenty in the world. But no less than eight African countries — Angola, Benin, Burkina Faso, Côte d’Ivoire, Ghana, Liberia, Mozambique and Nigeria — did better, while Ethiopia fell short of Brazil by the smallest of margins — see Figure. The African countries concerned all have farm sectors dominated by smallholdings — as applies in the cases of Vietnam and China that also have better records than Brazil. If Africa needs models, then it might be better to look to at its own success stories, or to some Asian experiences, rather than to Brazil.    The history of African farming reveals numerous episodes where there have been remarkable spurts of growth in agricultural output coming from small farms. Coffee farms in Central Kenya in the 1950s and 1960s, cocoa in Ghana in the late C19th, cotton in Francophone Africa in the 1990s, maize in Zimbabwe in the 1980s are just a few examples.

These cases show that when small farmers are given the incentives to produce more and the means to do so, they invest, innovate and respond to opportunity. It is not a lack of large-scale farms that lies behind the disappointments of African agriculture, but a lack of conditions to allow small farmers to fulfil their potential.

Large-scale farming has often failed in Africa

Professor Collier is not the first person to believe that larger-scale farms in Africa would lead to major increases in production. Others have been beguiled by the prospect of rapid transformations. But the record of schemes to introduce large farms has many failures.

Back in the late 1940s Britain saw opportunity in southern Tanzania to grow a crop that would meet the post-war demand for vegetable oil and jump-start agricultural development in a remote colony. Large mechanised farms would be opened in the bush on which groundnuts would be grown. The result was a shambles.

In the 1970s, a US agribusiness took over land in Senegal with the intention of growing vegetables for export. By the end of the 1970s Bud Senegal planned to export 100,000 tonnes of irrigated fruit and vegetables, but the result was failure and bankruptcy.

Ghana promoted large-scale privately-owned rice farms in the Northern Region in the late 1970s with subsidies: they failed once the subsidies were ended. This was not Ghana’s only bad experience of large scale farming: Nkrumah’s ill-starred attempts at large-scale state farms had been earlier failures. Yes, there are successful large-scale farms in Africa, but generally for those relatively few crops where economies of scale exist in production; for example in flowers, horticulture, and sugar cane. When it comes to the main food crops and other export crops, there are few examples of large-scale farms outside of South Africa.

Why is this? The main obstacle to farming on a large scale is the same one that hit Soviet state farms: the management of labour. Small farms have the advantage that family labour is generally self-supervising, prepared to work long and diligently in ways that hired hands are not. When large farms try to minimise the labour problem by mechanising, not only do their costs of production rise, but keeping machinery operating well in rural areas remote from supplies of spares and skilled mechanics is not easy.

Promoting large-scale farming is risky

The obvious danger is that allocating land for commercial farms in large holdings would take land away from the rural poor, or block them off from land that their children may need in the future. Socially unacceptable, any such moves involve high political exposure: expropriation is easy to justify on the basis of historic wrongs. But other less obvious and more insidious risks lurk.

What happens to agricultural policy when a large-scale farm sector is created? With relatively few farmers that can readily be organised, who are rich and politically well-connected as well, large-scale farmers in Africa have a track record of lobbying for special favours. Government is expected to support the large farms with roads, irrigation, and power supplies. Research stations are encouraged to devote their attention to the issues that concern the large farms. The result is that the large farms get these public goods, while any small farms do not. Worse, the large farmers demand subsidies on inputs, guaranteed prices for their outputs, and exclusive rights to grow crops or to market them.

Look at the record of the commercial farming unions of South Africa and Zimbabwe in the recent past. Look today at the large grain farms of Kenya’s Rift Valley. Owned by the political elite, the price paid for maize by the government marketing board is way over the import parity price, conferring substantial rents on the wealthy producers — all in the name of national self-sufficiency.

The record of model Brazil is not so encouraging in this regard either. During the 1980s the commercial farm lobby managed to get the government to offer subsidies on interest rates for farm credit that by 1979–80 were equal to 19–20% of the gross agricultural product, or 2% of GDP. Whilst the majority of Brazil’s farms were of 10 ha or less, only 4% of such smallholders had a bank loan in 1980: 85% of the agricultural portfolio went to the more prosperous South, Southeast and Centre-West regions—with only small amounts going to the needy Nordeste.

Commercial farming, yes; agri-business, yes; but it doesn’t need to be large farms

This is not to deny that large-scale private investors seeking to produce more in Africa should be welcomed. Their capital, their expertise can be put to good use, to the advantage of both the companies and many African (small) farmers as well. But let’s get the economies of scale where they are needed: in the supply chains, in processing, transport and marketing —where lumpy investments and sophisticated know-how count. But let’s leave the farming to the local experts, the family farmers, who have all the incentives to work hard and carefully. This is not romanticism; it is simply a reflection of the empirical record. Small farmers in Africa have repeatedly shown that they can increase production. Let’s give them the chance to do so again.
Steve Wiggins

Paul Collier (November/December 2008 issue) sets out three priorities to overcome the world food crisis—moving to large-scale commercial farms to replace peasant or smallholder farming, promoting genetically modified organisms, and reducing distorting subsidies to biofuels in the US.  We think that Professor Collier got two of these right, but missed the boat with his anti-smallholder bias to modernizing agriculture, especially in Africa.

There are three reasons why a focus on smallholder farming is a proven strategy for accelerating growth, reducing poverty, and overcoming hunger.

First, smallholders have proven to be efficient commercial farmers, when given a chance. This is evident from the Asian Green Revolution experience led by smallholders in the 1960s and continuing until today. In India, cereal yields are now 2.6 times what they were in the 1960s, with nearly 90 percent of farmland controlled by farmers with under 10 hectares. And this was not through organic agriculture — Asian smallholder farmers now consume over half of the world’s fertilizer. Failure to realize a Green Revolution in Africa reflects a consistent policy bias against agriculture and smallholders in particular, by both governments and donors. When given the opportunity, smallholders in Africa have proven to be just as responsive in adopting new technologies as their Asian sisters. Witness the adoption of hybrid maize in much of southern Africa, the smallholder dairy revolution of east Africa, and the cocoa, cassava, and cotton successes of West Africa. And witness also the many failed starts with large-scale farming in Africa, dating from colonial times.

Second, accelerating smallholder productivity is win-win in terms of increasing food production and reducing poverty. From 1991 to 2001, China doubled its cereal yields based on smallholders with an average of 0.4 ha of land, while dramatically reducing rural poverty by 63 percentage points and taking a historically unprecedented 400 million rural people out of poverty. Over the same period, the Brazil model of large-scale farming espoused by Professor Collier nearly matched the Chinese record of productivity growth, but the number of rural poor actually increased.

Finally, Professor Collier equates the global food crisis and the hunger of some 900 million people with food supply alone. Yet increasing food supply is only one side of the solution—generating incomes for the poor to access food is equally if not more important. We should not forget that 75% of the world’s poor are rural, and that they mainly depend on agriculture and related activities for their livelihoods. Since the majority of these rural poor are net buyers of food, raising the productivity of the land they control so they can better feed themselves is essential to gain access to food.

While we recognize that large-scale agriculture has a place in a some land abundant areas of Africa if it is driven by markets rather than subsidies, and the rights of current land users are adequately protected, it would be a huge mistake to forsake the proven power of smallholders to jump start growth, reduce poverty, and solve the hunger crisis in Africa and beyond. Promoting smallholder farming is not “romantic populism”, but sound economic and social policy.

Derek Byerlee and Alain de Janvry, Co-Directors of the World Development Report 2008, Agriculture for Development, www.worldbank.org/wdr2008.

It is rather unfortunate that the terms of debate should be framed by a man like Paul Collier.  From his dreaming spire in Oxford, he looks down on the world through the wrong end of a telescope.  Like many unimaginative economists, he starts with the market – and the world market to boot.  Yet he understands neither agriculture nor world markets.  And he does his case no good by patronising his opposition as ‘populist’, ‘ideological’, ‘romantic’ and even ‘romantic populism’.

One such term is the ‘war on science’.  Has he not seen the IAAKSTD report of 2008, in which eminent scientists drew radically different conclusions from his?  At times he shows an awareness of the problems implied by his approach, but then rapidly shifts away from them.  Two examples: ‘Some have criticized the Brazilian model for displacing peoples and destroying rain forest’ and ‘the political coalition against GM foods has only expanded.’  Indeed so, since members of that coalition understand what Collier does not: we have played around with nature for long enough.

He writes that in large-scale commercial agriculture, ‘if output prices rise by more than input prices, production will be expanded.’  But as he also half-concedes, this has not happened.  On the contrary, according to my calculations oil and fertiliser input prices have risen far more than crop prices – so the food crisis is above all a crisis of industrial agriculture.  Between the commodities boom of the late 1970s and the one just ended, prices for maize and rice, deflated by those of developing countries’ manufactured imports, actually declined by 25 and 45 per cent respectively on a three-year moving average.  Meanwhile real oil prices rose by 59 per cent and phosphates by 46 per cent.

Collier asserts that, ‘Where poor farmers are integrated into global markets, they are likely to benefit.’  Wrong again: over the same period, the largest price falls were in crops produced by poor farmers for globally integrated markets.  Real coffee prices fell by 63 per cent, cocoa by 65 per cent and cotton, 57 per cent.

Collier shows no understanding of how commodity markets work.  He writes, ‘global food prices must be brought down’; well, now they have been, as usually happens rapidly after price spikes, especially one so dramatic as this.  But from China to Nigeria to France, the sons and daughters of farmers are leaving the land in droves since it no longer provides a decent livelihood.  With prices low, for how long will big investors want to replace them?

We should start our analysis not with the market but the problems that need to be addressed: poverty and hunger.  First determine who and where poor and hungry people are, then why they are so and how their lives can be improved.  That is what I did in my book, Making Poverty: A History.  This is not romantic or populist but practical good sense.  And it did not lead me to airily dismiss, like Collier, the notion that ‘Peasants, like pandas, are to be preserved.’  The greatest numbers of poor and hungry people are peasants: smallholders and rural landless.  What would the good professor do?  Shoot them?  Expropriate them and hand their land and livestock to big units, like Stalin in 1930?  Stalin’s collectivisation programme was based on much the same faulty reasoning as Collier’s.

He ignores the fact that today’s poorest countries are generally small as well as remote, agrarian and commodity-dependent.  That is why they fare badly under globalisation. The immediate need is not closer integration in world markets but shelter from those markets’  damaging influence.  This applies above all in Africa: build links between African countries rather than between them and the outside world, to enable food surpluses in one area to meet shortages in others.  Surplus farmers will then benefit from a good harvest and not see it frittered away in collapsing prices.  In the long run that will provide the basis of all development, which is domestic accumulation, not external investment.

Collier offers modern Brazil and industrialising England as models.  More relevant perhaps is Denmark, another small country which prospered on the back of small-scale agriculture, exporting food to its neighbours.  That helped it to create an unusually harmonious society – unlike today’s Brazil or 19th-century England.

Thomas Lines
Freelance Consultant and Author of Making Poverty: A History (Zed Books, 2008)

One thing that is missing in the contributions I saw thus far, are definitions of large farms or small farms. 25 years ago I was in Australia and found interesting statistics for Australian conditions of course. To gain an income from farming equal to average national income a beef farmer in the North needed 100 km² of land or 1000 head of beef cattle. A sugar cane farmer needed 50 ha and a farmer growing green pepper 1 ha . Things have surely changed in the mean time and Africa is not Australia, yet looking at income potential instead of at size might be a useful way of looking at farming.

Small farms (and smallholding) do have a very important role as safety net in times of crisis – and the size can range from little more than an allotment garden to a few hectares. This safety function in times of crisis was in the past very important in Europe e.g. during and after WW II, and was also important in Eastern Europe after the collapse of the communism (and the economy). And smallholder farming received very little research and development support, because the farm models that research worked for was not a small farm. For outsiders it is tedious to try to understand small holder farming, and it is also tedious to re-orient research (which holds far fewer benefits for agro-industrial  companies than do large farms) to small holder farming. Definitely smallholder farms are not simply large farms at a scale of 1:100 or so,  and therefore large farms ma not be able to provide many services for small holders. We also should look a small holder farms from another angle: in many African countries 60 or more %of the population still rely to a larger or smaller degree on agriculture for their livelihood. Definitely there is nothing romantic about it – smallholder farming can be very hard work, indeed. However, at present it is needed also for social security. What is needed as agricultural revolution in Africa is research and development that is pro smallholders that also takes into account the dynamics of smallholder farming, and this also has to take in institutional and regulatory systems, and at times even concepts such as varieties in plants and breeds in animals, because they may mean something different in smallholder agriculture than for large, so-called commercial farms.

Wolfgang Bayer, Technical Centre for Agricultural and Rural Cooperation

A very important topic and distinction.  It is precisely the scale of production and the respective models that accompany either small or large farms, that determines the social and economic character of agriculture, its ecological sustainability (ie how it maintains soil fertility), and its usefulness as a shield against hunger for the many.

To me it will be a waste of time to debate on an obvious issue.  Small scale farming in Africa is life, is culture, is political, is survival and is livelihood. Small scale farming in Africa has performed well and what we need to do more, is to make these small holder farms more productive and profitable. To do that we need to support our farmers to embrace the concept of farming is business, which means assuming higher affordable risks and the higher the risk assumed the higher the returns.

In order to embark on commercial agriculture they need volumes and good quality. These farmers can achieve both if they are organized into farmer groups, embrace uniform best agricultural practices (into large farms) and they add as much value to their produce before they sell and move from marketing commodities into marketing complex products. Marketing complex products will avoid price fluctuations associated with selling commodities due to vagaries of demand and supply. This will be achieved through value addition up the chain while retaining ownership by the small scale farmer and it will be possible if these farmers are facilitated to access business facilitation tools such as skills, know how, appropriate technologies, inputs, social and working capital (credit), financial services, market and price information and enabling environment built on values of honesty, integrity, trust, integrated, holistics and comprehensive approaches.  These farmers should be facilitated to access competitive markets for their products where the farmers are able to negotiate for prices (which cover all cost of production, processing, marketing including reasonable profits) instead of being price takers and the farmers should be paid/ or pay (for services received) on performance. To avoid the problems which lead to to the failure of cooperatives, sales proceeds should be channelled directly to farmers individual accounts as we have in a place a technology suitable to manage these kind of transactions. Farmer groups will also be facilitated to establish their own thrift and credit schemes (not SACCOS) which will be used mainly to finance their basic needs such as need for salt, sugar, paraffin, soap, etc. and later evolve into village banks. Managers, and service providers will be required to invest in the process of service provision and be paid after the transaction is completed and based on the value of service provided as it contribute to the generation of incomes.

This means embracing Product and Service Supply Value chains approaches being driven by sense of Farmer ownership as the driver of the chains. The cooperation, alliances, linkages, partnership of stakeholders within the chains will influence the market, price and demand which may cause a paradigm shift.  The consumer demand for quality, food safety that could be traced to the source of origin and willingness to pay a premium price for the product is one of the forces which makes this initiative possible.  Furthermore the technological explosion “the fall of the walls and the rise of windows” has provided affordable technologies and information which can make this initiative possible.

The corporate world has had its gains for too long, have exploited the small holders farmers for too long and its time for “CHANGE”.  Change that we believe in it and sure we can.

We need to capitalize the small scale farmers household with only $ 50 per month as a social capital in terms of a revolving loan and they will be able to access their basic needs which make them vulnerable to middlemen and traders who took away the little they sell at a price set by the middlemen. These farmers are forced to sell without adding value which does not justify them to bargain for a better price. Middle men who play significant roles in all businesses are important and they will be empowered to play different roles and functions such as providing goods and services now being demanded by farmers as their purchasing power is enhanced due to earnings from selling value added products in  competitive markets.

We have simple solutions for these problems, the challenge is hidden agenda because of greedy, selfishness, lack of commitment, determination, lack of desire to develop as “we” instead  we are only thinking for ourselves while we know very well that time has come that no single individual, family, household, village or nation can survive on their own.  We need each other to face the challenges of the world so that we can prosper together equitably according to individual contribution to the process. .

More information on success stories is available on request.

Herment A. Mrema, Executive Director, Africa Rural Development Support Initiative (ARUDESI)

During the year 2008, GRET worked with several NGOs (on the behalf of Coordination SUD) on a position paper on these issues.

This paper underlines the benefits of family farms for employment, poverty reduction, hunger reduction, environment protection and rural development. It often refers to the efficiency of small farms and family labour while large agribusiness tend to develop at the expense of the population.

The same working group is now concluding a new position paper analyzing policies that promote family farms.

[read: In Defence of Family Famrms.pdf].

[lire: Défendre les agricultures familiales: lesquelles, pourquoi?.pdf]

Louis Pautrizel, GRET.org

Small and large farms: definitions, trends and patterns – I’d like to make a contribution under this section of the debate and add another dimension to the debate.

Let me confess that I am on the side of Steve Wiggins in this debate – due to a number of well known reasons that I wont repeat, and am glad that last time round when this debate was being played out during consultations for DFID’s agriculture policy 2005, Michael Lipton won the argument – that support to smallholder farmers is vital for poverty and hunger eradication. 

I want to draw attention to a group of farmers who fall within the category of smallholder farmers but would most likely be missed out in this debate.  I am referring to half of the world’s hungry – marginal farming families – who Concern defines as ‘Farming yet hungry’.  These groups of farmers are often excluded because they fall between the categories of productive farmers and those living in rural areas facing absolute poverty.

The current food crisis has once again focused attention on food production, revived debates around re-investing in agricultural development and research.  One of the key questions is what and who should be focus of this renewed interest in agriculture be.
Concern strongly believes that if we are to address poverty, hunger and malnutrition we must focus on the largest group of hungry people in the world – marginal farming families.  Agricultural production will remain a key livelihoods activity for this group; they will also need to be supported through social protection, in addition to investments in provision of basic services and rural infrastructure.  By strengthening the livelihoods options and capacity of this ‘farming yet hungry’ group, we will be giving them the options to decide about their future.  There is a strong risk however, that in this debate between small Vs big, we forget to focus on this potentially viable group of farmers who need to be specifically targeted. 

For further information see literature research commissioned by Concern, http://www.concern.net/site-links/resources/index.php

Ruchi Tripathi, Head of UK Policy and Campaigns,
Concern Worldwide (UK)

A colleague at Reading forwarded to me the contribution on big-small farms from Roy Keijzer, saying that I might find the reference to Mali interesting. I cannot contribute much to the main debate, as it is not my field. However, with reference to the Mail Niger inland Delta scheme to which Roy Keijzer refers, I can make the following comment: While his remarks about its present state of development etc may well be valid, its colonial history are interesting, in that it was developed originally by the French to counter the British cotton-growing Gezira scheme.

The Office du Niger scheme was probably one of the very worst forms of colonial development, at least as far as the local people were concerned. They were treated horrendously and suffered appallingly. The scheme was a large blot of shame on colonial development at that time. In fact, the Office du Niger project was one of the first classic social anthropological studies of the late Claude Meillassoux. Not surprisingly, the French did much to cover up his research and findings.

When dealing with such schemes/regions in their present day context, their previous exploitation (it was not development) should not be forgotten.
Jeremy Keenan, School of Oriental and African Studies

Small farmers can be a driving force in cutting hunger and poverty worldwide’ was a key message to G8 leaders from development specialists at The Future of Small Farms research workshop held in Wye in June 2005.

Participants at the workshop, jointly organised by IFPRI, ODI and Imperial College London, concluded that investment in small farm agriculture could help to raise the rural poor out of poverty and catalyse wider economic growth.

However, the challenges small farmers in developing countries face include globalisation – especially the dramatic rise of supermarkets even in poor countries – low world market prices for major agricultural commodities and the expected negative impact of climate change. In Africa, these challenges are compounded by the spread of HIV/AIDS. In addition poor farmers are widely dispersed and have no effective political voice so are usually economically neglected.

But we should not give up on this task according to Dr Peter Hazell, Director of the Development Strategy and Governance Division of IFPRI and workshop organiser. Possibilities for alternative livelihoods within the non-farm sector do not look optimistic for the next decade or so and there are plenty of good investment opportunities within small farms which are good for both growth and poverty reduction.

The workshop participants agreed that:

• Public investment in rural infrastructure, agricultural research and support services is needed to unleash the inherent power of small farmers.
• In many African countries such investment is contrained by the capacity and quality of state institutions through which it would be channelled. These institutions have to be reformed to increase their accountability to farmers organisations and the private sector.
• Donors must think carefully how aid can be used to encourage such reform programmes. The danger is that large increases in aid could remove incentives for recipient governments to undertake real reform.
• The role of the state in providing key support to small farmers needs to be redefined. Structural adjustment programmes have led to state withdrawal from ensuring that small farmers have fair access to high quality seeds, fertilizers, technical advice and credit and marketing services and have left a vacuum which in most poor African countries has not been filled by the private sector. The state should perform a proactive role in collaboration with farmer organisations and private sector to ‘kick-start’ the markets and increase private sector involvement.

I have read with interest the ongoing exchange of emails concerning above, and cannot resist the opportunity to make a few comments.

Please permit me to present an Asian perspective.

1). Some of the comments made mainly from the ” North ” give the impression of poor understanding of what constitutes small farms. These probably stem from inadequate R and D efforts to appreciate the systems, infinite complexities needs and opportunities.

2). Even the very definition of what are small farms appears to be unclear if not poorly defined  – going from the references to small farms or smallholders in the developing countries to ” family farms ” in the ” North”. probably because of this and the overwhelming reference to globalisation, many in the industrialised countries have mentioned that these small farms are likely to disappear in the future. An important recently published  talked of  “current trends in structural change imply the likely and probably accelerating exit of smallholder livestock producers in developing and developed countries”. In Asia at any rate, this conclusion is  unacceptable.

3). A definition that has been used  in Asia is as follows: “Small farms have been defined as complex interrelationships between animals , crops and farming families , involving small land holdings and minimum resources of labour and capital , from which small farmers may or may not be able to derive a regular and adequate supply of food or an acceptable income and standard of living “.

4). In global terms, small farms in Asia account for an estimated 87 % of all farms below two hectares . Many of these are models of diversification and efficiency in NRM. While globalisation has undoubtedly have had effects- and there have been other crisis as well,  many if not most have survived and are self reliant because of the low input systems, minimum external inputs , and resilience. In animal production, these farms currently contribute significant amounts of milk, ruminant meats, draught power, duck meat and eggs.

5). Two related  issues that have not been addressed concern the links to poverty and type of small farms. Agric. growth in the past has significantly contributed to reducing poverty, but as ESCAP( 2008) has recently reported , waning agriculture has slowed the decline in poverty. Stimulating small farm productivity is thus important. Concerning type of farms in Asia, those in the irrigated areas are the richer due to benefits of the Green Revolution, while those
in the rainfed areas are poorer and were largely by-passed . For various reasons including poverty ,  future development needs to focus on the latter. Results from several countries in the region highlight increased production due to improved technology application.

6). Increasing the contribution from small farms in the future can benefit from increased investments in R and D on small farms ,  accelerated technology application and delivery systems, intensification and commercialisation, improved market access, rural infrastructure and cooperatives, backed by appropriate policy. Focusing on these and other issues  is urgent in the light of the food crisis. Many of these issues will also apply to other parts of the developing world.  Dr. Wiggins is correct in his assessment that given the right conditions, small farms can serve food production in the future.  

C. Devendra, International Livestock Research Institute

“…reluctant peasants are right: their mode of production is ill suited to modern agricultural production, in which scale is helpful. In modern agriculture, technology is fast-evolving, investment is lumpy, the private provision of transportation infrastructure is necessary to counter the lack of its public provision, consumer food fashions are fast-changing and best met by integrated marketing chains, and regulatory standards are rising toward the holy grail of the traceability of produce back to its source….

Large organizations are better suited to cope with investment, marketing chains, and regulation. Yet for years, global development agencies have been leery of commercial agriculture, basing their agricultural strategies instead on raising peasant production. ….to ignore commercial agriculture as a force for rural development and enhanced food supply is surely ideological

…Over time, African peasant agriculture has fallen further and further behind the advancing commercial productivity frontier, and based on present trends, the region’s food imports are projected to double over the next quarter century. ….There are partial solutions to such problems through subsidies and credit schemes, but it should be noted that large-scale commercial agriculture simply does not face this particular problem: if output prices rise by more than input prices, production will be expanded.

A model of successful commercial agriculture is, indeed, staring the world in the face. In Brazil, large, technologically sophisticated agricultural companies have demonstrated how successfully food can be mass-produced. …..

…There are many areas of the world that have good land that could be used far more productively if properly managed by large companies. Indeed, large companies, some of them Brazilian, are queuing up to manage those lands. Yet over the past 40 years, African governments have worked to scale back large commercial agriculture…….

…Commercial agriculture is not perfect. Global agribusiness is probably overly concentrated, and a sudden switch to an unregulated land market would probably have ugly consequences. But allowing commercial organizations to replace peasant agriculture gradually would raise global food supply in the medium term.” (Full text: The Politics of Hunger: How Illusion and Greed Fan the Food Crisis)

Collier, Paul. “The Politics of Hunger: How Illusion and Greed Fan the Food Crisis.” Foreign AffairsNovember/December 2008