There are an estimated 600 million small-scale farmers worldwide that play a vital role in the global food system. Despite many operating on less than two hectares of land, these farmers are responsible for producing approximately one-third of the world’s food on just one quarter of the world’s total agricultural land area.
Climate Focus’ recent analysis of international climate finance flows in 2021/22 reveals that activities relevant to small-scale farmers receive only an estimated US$1.3 billion – a fraction of the US$368 billion that these farmers invest from their own dwindling resources each year.
There is an urgent need to identify and tackle the barriers hindering food and agriculture-related finance from reaching small-scale farmers. Public finance institutions – and philanthropic donors – have a key role to play in delivering timely, sufficient, and appropriately tailored finance, which can enable family farmers to continue driving and expanding the sustainable agriculture transition.
This new research in partnership with the Foundation for Farmers Organisations and Restorative Action (FFORA), the International Institute for Environment and Development (IIED), and Family Farmers for Climate Action identifies barriers hindering access to climate finance by small-scale farmers, highlighting how the lack of access to climate finance for small-scale farmers can act as a handbrake on climate change adaptation and mitigation in food systems.
Read the full report here.
