Mexico concentrates more on fixed capital formation (44%) and on on-farm services (33%) and South Africa on fixed capital formation with 76%. Activities of smallholders and their degree of specialisation or income diversification depend on their assets and the broader environment in which farmers can make best use of those assets. This environment is related to aspects such as off-farm infrastructure, access to inputs and services, healthcare, schools, climate conditions, and so on. Rural non-farm income is positively correlated with level of development.