Investing in small-scale farmers is at least twice efficient in poverty reduction than investment in any other sector

Investing in small-scale farmers is at least twice efficient in poverty reduction than investment in any other sector

The vast majority of the people in the world — about 70% — get their food from small-scale farmers and other small-scale food producers such as fisher-people, pastoralists, and hunters. This cohort is very critical in managing global hunger and poverty.

A new report – Investments in small-scale sustainable agriculture – has noted that there is an urgent need not only for more investments in small-scale sustainable agriculture, but also to develop new forms of investments with shared risks and benefits for the investors and the small-scale farmers. It also lays out 12 steps to transitioning to sustainable agriculture. 

The More and Better Network has started a small pilot project in Mozambique to use the 12 steps as a guideline and to undertake some new forms of investment with the financial support from the Heidehof Stiftung – a German foundation. The plan is to expand such small pilot projects both in Mozambique and in other countries with both grants and investments in 2018 and then expand further based on their experiences.

The report presents an overview of financial institutions organizations and networks engaged in investing in agriculture. It also presents the possibilities’ for further investment and support for small-scale agriculture in developing countries. It notes thus:

Investments in small-scale sustainable agriculture is the most efficient way to reduce hunger and poverty. It is at least twice as affective as investments in any other s ector. Despite these facts, only a small portion of the expenses of governments in developing countries and of the official development assistance /aid (ODA) goes to agriculture

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One thought on “Investing in small-scale farmers is at least twice efficient in poverty reduction than investment in any other sector

  1. I would like to know if you would recommend Farmcrowdy as an investment option. It has to do with investing in farmers and you get certain interests on your money after certain periods 3-10 months

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