Small family farms account for the bulk of the agriculture sector, since they make up the majority of farms worldwide; an estimated 85 per cent of farms worldwide are less than 2 hectares. In Asia, almost all the farms are small family farms, and in Africa, they are a large majority; in Latin America, the situation varies from country to country. Smallholder farms are also significantly present in many industrialized economies. Almost three quarters of the extreme poor live in rural areas of developing countries, and most poor rural people base their livelihoods on agriculture. However, smallholder agriculture is not equivalent to poverty. Depending on their asset base, access to markets and services, and other factors, small farms can be very efficient in generating adequate levels of output and income. A small plot of land or a small number of animals can thus support a viable enterprise, or serve as a safety net or a source of food for household consumption.