Introduction

In recent years, policy makers have been paying more attention to the problems of small farmers in developing countries with the idea of increasing their pro-duction and standard of living.

Objectives of Policy

The policy makers's objec-tives are twofold: 1 to help those whose welfare is materially below the rest of society, and 2 to help a country increase its agricultural production.

Mutual Reinforcement

With adequate agricultural policies, these two objectives are mutually reinforcing. For example, increased food production gives farm households additional food for consumption and surpluses for sale. Farmers can then use the money from these sales to buy items they do not produce, and the buyers of farm products benefit from the increased supplies.