Is it possible that successfully organized smallholder associations that become effective 'stakeholders' in agricultural research and development, driving the agendas and reaping resulting benefits, will evolve into politically savvy advocates for increased public agricultural R&D funding? Their large numbers make it quite feasible where democratic reforms and improved governance have taken place. Hence the returns to national agricultural research systems in actively promoting smallholder organizations could be quite large and the 'transactions costs' in generating increased effective demand for agricultural research and development in this manner should be viewed as an 'investment,' with the dividend being increased public R&D resources (supply).
Even if smallholder organizations that become stakeholders and participants in agricultural research and development cannot so influence the government through their votes, they may be prepared to finance more research and development themselves if they become convinced research institutions are indeed more responsive to their priorities and needs, and hence can deliver increased income to them. However, unlike farmers who are involved in cash export crops, smallholders primarily growing food crops for home consumption will be much more difficult to convince about financing all or part of the agricultural research and development, as free riding will be a problem and a large share of the benefits of research and development will accrue to consumers, thus reducing the incentive for smallholders to self-fund.
