Over three quarters of the extreme poor in the world live in the countryside. Reducing rural poverty will therefore require significantly higher rural incomes. Since most rural incomes are related to agriculture, raising agricultural productivity can help raise rural incomes all round.
Supply and demand
Experiences since the mid-20th century remind us that increasing food production alone will not be enough to eliminate poverty and hunger in the world.Jomo Kwame Sundaram
Poor countries are doubly handicapped by their limited tax capacities, resulting in low tax rates on low incomes. While there is little excessive taxation of small farmers these days, there are also modest significant urban-to-rural resource transfers through the fiscal system or other transfer arrangements.