The objective of the fund is to mobilize additional resources to be made available on concessional terms to help developing countries improve their food production and nutrition. The fund is unique in that its projects are focused exclusively on agricultural development, concentrating on the poorest sections of the rural populations in developing countries. It deals with all aspects of agriculture, including crops, irrigation, agricultural credit, storage, livestock, and fisheries.
The UN Social Summit in Copenhagen agreed in 1995 that each member country would devise a program to halve the incidence of 'dollar poverty' between 1995 and 2015. In 1996 OECD agreed to set their country-specific aid into the context of these national programs. Rural areas of developing countries contain over 75% of the world's dollar-poor. Therefore, policies for the reduction of rural poverty must make a large contribution if the poverty reduction target is to be achieved.