Towards an integrated approach for project analysis for small farmers: the Living Income / Fair Price method

The paper provides a basis for an integrated approach of agricultural project analysis with special attention to small farmers by expanding FAO’s Commodity Chain Analysis to an approach that includes power relations, both national and international, and income distribution. In order to be able to invest in production increasing techniques, the farmer must get enough revenue for his products to maintain his family in an appropriate way, as well as to be able to invest in tools and equipment. The economic, financial and social consequences of the prevailing system of market prices on small farmers are analysed and ‘fair’ prices for the products are calculated. These fair prices are based on a Living Income concept that allows farmers a decent standard of living and some funds to invest.

The policy paper can be found here