Smallholder farmers constitute the largest contingent of the poor and yet they produce more than 80 per cent of the world's food, in value terms. Though there are marked differences by country and region in the average size of small farms, it is estimated that more than 90 per cent of the 570 million farms worldwide are managed by an individual or a family, and that mostly they rely on family labour. Estimates further show that about 2.5 billion people depend on agricultural production systems for their livelihoods. The report highlights the range of constraints that smallholder farmers face in developing economies and specifically provides new analyses of the state of their integration into the global economy. It underlines that smallholder farmers are both victims of climate change and key actors in the achievement of a more inclusive and environmentally friendly development path. The report argues for specific measures at the national, regional and global levels, including in international trade and investment agreements, for unleashing the full business potential of smallholders. It showcases good policy practices, including the role of strong political leadership in reversing the policy neglect that small farmers have suffered from.