This study analyzes the significance of new economic context in Latin America and the Caribbean for the design of policies for the agricultural sector. In addition, it analyzes and assesses recent trends in agricultural development policy in Latin America, to identify and synthesize new policy directions, and to highlight emerging challenges and avenues for policy innovation. The main conclusion of the study is that Latin American agricultural and rural development policy is at a turning point that will require bold new initiatives to improve the production performance of agriculture, reduce rural poverty, protect the natural resource base of the sector and ensure the political sustainability of economic growth. This will require a pro-active set of interventions designed at restoring the specificity of sectoral agricultural policy while maintaining consistency with the macro reforms.--Publisher's description.