This annual report for 2011-2012 of the World Agroforestry Centre advocates the introduction of 'evergreen agriculture'. On one hand, agroforestry can improve livelihoods, restore degraded soils and raise crop productivity. On the other hand, conservation agriculture, which involves disturbing the soil as little as possible, keeping the soil covered with organic matter and rotating crops, has also helped African farmers to increase their crop yields and incomes. Combining these two approaches leads to what can be called 'evergreen agriculture' - a practice which could transform the fortunes of millions across sub-Saharan Africa. The report also looks at issues relating to water, soil and climate change, including evidence to support the adoption climate smart agriculture.