Yemen’s economy is heavily dependent on oil exports, representing about 90 percent of export earnings and income from oil production constituting 70 to 75 percent of government revenue. Agriculture is a vital sector in the Yemeni economy and is the main source of employment for about 37 percent of the population. Natural resource management and water consumption concerns are highly relevant for the agriculture sector. Of the 90 percent of available water used for agricultural production, 37 percent goes to the production of qat, an addictive cash crop.3 The dominant issues facing agriculture in Yemen are: low productivity, severe resource constraints (especially water scarcity), inadequate marketing systems, low human resources capacity, lack of infrastructure facilities and production technologies, and insufficient supply of inputs. Furthermore, the increased production of qat is overtaking production of food crops (see box). The role of government in the agricultural sector has been declining in recent years. Furthermore, other factors such as climate change, ethnic conflicts, and lack of security are becoming increasingly problematic. These constraints have prevented the agricultural sector from making a larger contribution to rural incomes, national GDP, and addressing the trade imbalance in food items.