This chapter reviews the prospects and challenges facing the agricultural sector in Latin America and the Caribbean (LAC). The region accounts for about a quarter of global exports in agricultural and fisheries products, underscoring the importance of trade openness at the global level. Strong growth opportunities in high value fruit and vegetable crops provide opportunities for smallholders, but policies will need to be differentiated according to resource endowments and market potential. Food security continues to be a concern, with many households unable to afford the food they need. Given the simultaneous rise in the number of people who are overweight and obese, several initiatives seek to counter these trends. Raising agricultural productivity sustainably in LAC will rely on new strategic investments in agriculture’s enabling environment. However, due to the region’s diverse state of rural infrastructure, R&D initiatives and of environmental problems from agricultural production, mixed potential exists to further expand public spending and improve the environmental performance of the sector.