Energy has a key role in economic and social development but there is a general lack of rural energy development policies that focus on agriculture. Agriculture has a dual role as an energy user and as an energy supplier in the form of bioenergy. This energy function of agriculture offers important rural development opportunities as well as one means of climate change mitigation by substituting bioenergy for fossil fuels. This report focuses on the challenges and opportunities of advancing modern bioenergy technology, in general, and on the technical, environmental and economic benefits of the energy function of agriculture, in particular.