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This paper investigates the ways in which national and regional policies relate to farming activities and concerns amongst the rural population in an area of southern Africa. The struggle to make a living through farming was a common theme to emerge from research about changing livelihoods in response to both variability in the environment and changes in policy. This local discourse echoed regional debates about land and agrarian reform in post-apartheid South Africa and the uncertain future of mixed farming in Botswana. It also raised broader questions about the viability of the future of small-medium-scale farming systems in rural areas in Africa, especially those within dynamic dryland environments such as the Kalahari. This paper looks specifically at the links between poverty and asset holding and aims to identify the ways in which people are or are not able to utilise or mobilise these assets in times of need. We argue that this can vary significantly between seemingly similar settlements, and similar households and that understanding this complexity is the key to recognising how future interventions many impact upon people's lives. Too often, in the quest to produce understandings of poverty and livelihoods, the complexity, incongruity and reality of day-to-day practices are overlooked. Thus we seek to draw out the interactions between policy and natural resource use, and the capital asset changes involved in these interactions, which influence the sustainability of livelihoods and the differing levels of poverty and vulnerability.