This chapter succeeds in setting out a logical and coherent approach to agriculture and rural development planning. In accordance with this planning framework or environment, potential development opportunities or constraints can then be identified which may become the starting point for potential projects. The nature of the project planning cycle is set out together with an explanation of how governments and external financing agencies provide funds in support of agreed projects. Pragmatic approaches are set out concerning the assembly of project revenue and cost data and of project cost tables. Project preparation requires the collection of data starting with information concerning the national economy and the agriculture and rural development sector. The chapter examines the nature of structural and sector adjustment with particular reference to experiences encountered in Zambia. Appraisal and project loan processing procedures are then set out, primarily from the viewpoint of an external financing agency.