Agriculture and Natural Resources Team and Thomson (2004) indicated four
transmission mechanisms when there is an increase in agricultural productivity to progress
the poverty reduction. These four transmission mechanisms are the direct impact of improved
agricultural performance on rural incomes; an impact of cheaper food for both urban and
rural poor; an agriculture’s contribution to growth and the economic opportunity in the nonfarm
sector; and agriculture’s fundamental role in stimulating and sustaining economic
transition as shift from being primarily agricultural towards a broader base of manufacturing
sector and services.