Agriculture remains fundamental for Nicaragua from both a macroeconomic and social view. It is the largest sector of the Nicaraguan economy, and it remains the single biggest employer with around 30 percent of the labor force and including processed foods, like meat and sugar, agriculture accounts for around 40 percent of total exports value. Nicaragua appears to be gradually losing competitive edge of some of its key agricultural exports within the most important export markets.

The purpose of this paper is to map some elements that can contribute to an IFAD strategy to stimulate and support pro-poor innovations. It is an initial or exploratory document that hopefully will add to an ongoing and necessary debate, and is not intended as a final position paper. The document is organized as follows.