Over the past decade international organizations and developing countries have been trying to promote agricultural diversification among smallholders under the assumption that smallholders are too dependent upon a narrow range of crops. The International Coffee Organization and the Government of Indonesia have promoted agricultural diversification among coffee farmers to curb production and, thereby, increase prices. In South Sumatra, Indonesia, coffee smallholders diversify on their own initiative and depend upon numerous resource systems. They diversify out of coffee and even agriculture because other investments yield attractive returns and because further diversification within agriculture is often limited by agronomic and financial constraints.
Small farms are multi-functional, more productive, more efficient, and contribute more to economic development than large farms. Small farmers also make better stewards of natural resources, conserving biodiversity and safe-guarding the future sustainability of agricultural production.