The main purpose of Agricultural Typology is to contribute to sustainable agricultural growth and food security in vulnerable regions by supporting the scaling of proven innovations in the agri-food sector. Since the objective of the typology is to systematize the way in which analytical information is presented, it is necessary to specify the criteria used to group the estimates for agricultural potential, agricultural efficiency, and poverty into classes or types. While there are several ways of choosing such criteria depending on specific user needs, the common idea behind this typology approach is based on the Priority, Agricultural potential, Unrealized agricultural potential, and Agricultural efficiency components.
The Agricultural Efficiency component defines how much of the potential is attained by farmers in a region under current conditions. To increase their efficiency, farmers need to reduce transaction costs in agricultural production and marketing through improved infrastructure (such as roads) and services (such as market information), overcome market failures (access to credit, insurance, land markets, etc.), and receive better access to basic services (such as education and extension services)
