Agricultural development has moved up the agenda. Today it has not only to reduce poverty and hunger, but also become environmentally sustainable and climate smart. Disputes over agricultural policies are highly visible, but consensus exists on fundamentals for growth. It is not just what to do that matters, but also how to do it. Increasingly, the search is not for optimal policy, but for ‘good fit’, or even ‘good-enough’ policy.

Increasing prices for agricultural commodities offer a historic opportunity to intensify production systems for small-scale farmers in many developing countries. But without agricultural policies supporting them in making use of this opportunity, many of them would lose their access to land and income, resulting in aggravated food insecurity.

The basic role for agricultural policies consists of providing the core investments and services that farmers need to develop their operations into viable farm businesses. Focusing on the sector’s enabling environment benefits both agriculture and the wider rural economy, facilitating the construction of diversified rural economies. Such policies are likely to be more effective in the long term than subsidies or market interventions, which have the opposite tendency.