Sheikh Mohamed tends a date palm nursery as part of a marshlands restoration program in Iraq. The Center for U.S. Global Engagement raises awareness about the effectiveness of development and diplomacy in U.S. foreign policy.

Despite rapid urbanization, most of the world’s poorest people, particularly those in Africa, live in rural areas and depend on agriculture for their livelihood. Indeed, in Africa, agriculture accounts for a third of the gross domestic product and, in many countries, sixty to ninety percent of employment. So it’s not surprising that one of the best ways to reduce poverty is to accelerate the growth and profitability of agriculture.

Yet until recently, African governments have invested relatively little in agriculture, and what investment there has been often offered short-term benefits. The problem has been compounded by a twenty-year decline in foreign assistance for agriculture, and by agricultural policies in rich nations that hinder the ability of poor rural farmers to sell their crops.  Indeed, some researchers estimate that the agricultural trade policies of developed nations reduce agricultural exports of developing nations by $37 billion a year.

Today, the signs are encouraging but much work remains. African governments and the World Bank both are committed to raising investment in agriculture in rural regions. And private philanthropies such as the Gates and Rockefeller foundations are committing millions to agricultural innovation on the continent.

But increasing productivity is only part of the solution. Without efficient markets to sell their crops, these poor farmers struggle to prosper.

At the Hewlett Foundation, the Global Development Program has made the functioning of markets for these farmers a central part of its work.

Specifically, the Program works to address the lack of market efficiencies for these farmers by:

Improving Market Incentives. Grantees promote global trade negotiations and domestic policy reforms that would reduce the tariffs and price supports that put farmers in the developing world at a disadvantage. In Washington, D.C., the Foundation works to reform such trade policies on the part of the United States, as well as the European Union.  A  Hewlett-funded study from Oxfam estimates that the elimination of U.S. cotton subsidies could increase the annual income of cotton farmers in West Africa from $76 to $114, a huge jump considering many live on less than a dollar a day. Hewlett grantees also work to eliminate trade barriers that inhibit the development of regional markets within the African continent.

Increasing Access to Information about Markets. Information about commodity prices, regulations, and customer preferences enables farmers to compete and get the best price for crops.  Program grantees are working to use the Internet, text messaging, radio and other means to expand public market information systems and the development of commodity exchanges.

Improving Access to the Raw Materials Needed to Farm. Markets that supply seeds and fertilizers to farmers have been slow to develop in Africa. Program grantees are working to reduce barriers to the development of these markets and the use of “smart subsidies” to make them self-sustaining, so these crucial raw materials become available without government and philanthropic support.

Ensuring that Construction Projects Benefit Farmers. Poor rural farmers can lose more than 80 percent of the market value of their crops to transportation and marketing costs. Paved roads, ports, dams and communication systems all need to be developed and improved to eliminate such barriers. The Program’s grantees work with a broad range of entities, from the African Union to the African Development Bank, to assure that the development of infrastructure considers the needs of rural farmers.

The Global Development Program does not accept unsolicited Letters of Inquiry for its Agricultural Markets grantmaking.