Strengthening National Financial Institutions
Smallholder farmers produce most of the world´s largest agro-commodity crops but they are often trapped in a vicious cycle that holds them back from earning a decent income.
Their farms tend to be very small and their farming practices ineffective. Too often they lack the means to invest in much needed infrastructure - like young trees, equipment to treat water and storage - or in new skills.
As farmers often have no savings and do not qualify for credit, improvements are difficult to implement. This hinders them from shifting to more sustainable food production practices.
By involving commercial banks, financial institutions, SMEs, rural credit and saving cooperatives within National Commodity Platforms, we ensure stakeholders take actions to support producers’ access to finance so that they can invest in their farms. We also collaborate with the Central American Markets for Biodiversity (CAMBio).
These institutions provide funding to micro, small and medium enterprises (SMEs) that integrate the protection of environment and conservation of biodiversity in their business, products and services.
In addition, we facilitate connection with Payment for Ecosystem Services schemes that provide economic incentives to producers for sustainable farming. In this context our collaboration with the UN-REDD Programme is crucial in the preparation work to connect farmers with REDD+ payments.