"G20 support is crucial for targeted investments and effective public policies that foster prosperous rural economies and strengthen family farming and food systems," said Alvaro Lario, President of the UN's International Fund for Agricultural Development (IFAD), at the G20 Agriculture Ministerial Meeting in Chapada dos Guimarães, Mato Grosso, Brazil.
The G20 Brazilian Presidency and IFAD, the only specialized UN agency and international financial institution that focuses exclusively on rural issues, share a common vision on the importance of investing in sustainable agriculture and rural development to address pressing global challenges.
"Global initiatives such as the UN Decade of Family Farming and the Global Alliance against Hunger and Poverty need robust support and political commitment to influence policies, and this is where G20 leaders can make a measurable difference", added Lario.
IFAD is the only international financial institution collaborating with the G20 Agriculture Working Group, which aims to promote international cooperation on critical agricultural issues including food security, sustainability, and climate adaptation.
In partnership with other international financial institutions and development agencies, the IFAD aims to invest US$10 billion in rural people over the next three years, targeting family farmers, smallholders, indigenous peoples, and local communities. This funding will boost agricultural productivity, enhance resilience to climate and economic shocks, and improve market access and incomes.
Family farming plays a vital role in creating a sustainable future, contributing 80% of the world's food by value and ensuring the livelihood and food security of over 2 billion people. Despite the major challenges they face, including the climate crisis and other structural problems such as rapid urbanization and the gender gap, family farming is key to guaranteeing rural populations' access to adequate food in many parts of the global south.
"The first and foremost challenge is to ensure fair compensation for their work, considering that small-scale producers earn only 6.5 cents for every dollar's worth of food produced. IFAD-supported projects connect producers to local and regional markets and value chains to increase the value of farmers' products and to ensure that more money goes to producers and local economies," said Lario.
Supporting small-scale food producers in adapting to climate change is not only essential to feeding the world but also preserving global stability. Climate change poses severe risks, particularly to farmers in developing countries, who face extreme weather events threatening their livelihoods and food security. Despite their vulnerability, small-scale farmers receive only 0.8% of all climate finance.
In this context, IFAD has been combining grants with loans to support rural communities in climate adaptation through nature-based solutions and regenerative agriculture. These efforts have helped nearly 7 million smallholder farmers in 41 countries increase their resilience to changing climate conditions.
Lario also stressed the importance of investments and policies that strengthen the rights and capacities of small-scale fishery and coastal communities to boost food security and support local development. Additionally, ensuring access to local, regional, and global markets is essential for building resilience, improving trade inclusivity, and achieving food security.
