Investing in agriculture is one of the most effective strategies for reducing poverty and hunger and promoting sustainability. This is the conclusion of the latest FAO publication titled State of Food and Agriculture. It further states that farmers are by far the largest source of investment in agriculture. According to FAO farmers must be central to any strategy for increasing investment in the sector, but they will not invest adequately unless the public sector fosters an appropriate climate for agricultural investment. A favourable investment climate is indispensable for investment in agriculture, but it is not sufficient to allow many smallholders to invest and to ensure that large-scale investment meets socially desirable goals. Governments and donors have a special responsibility to help smallholders overcome barriers to savings and investment. Governments, international organizations, civil society and corporate investors must ensure that large-scale investments in agriculture are socially beneficial and environmentally sustainable.