Smallholder Farmers Gain Least from International Climate Funding

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Climate Change Finance

David Obwona at his seed rice farm in Katukatib village, Amoro district, northern Uganda. The farmer is part of a group that is now engaged in seed rice farming to climate-proof agriculture courtesy of the Regional Universities Forum for Capacity Building Agriculture. Credit: Maina Waruru/IPS

David Obwona at his seed rice farm in Katukatib village, Amoro district, northern Uganda. The farmer is part of a group that is now engaged in seed rice farming to climate-proof agriculture courtesy of the Regional Universities Forum for Capacity Building Agriculture. Credit: Maina Waruru/IPS

NAIROBI, Nov 14 2023 (IPS) – Smallholder farmers from the Global South benefit from a grossly disproportionate 0.3% of international climate finance despite producing a third of the world’s food and despite holding the key to climate-proofing food systems.


The family farmers and rural communities received around USD 2 billion from both public and private international climate funds out of the USD 8.4 billion that went to the agriculture sector in 2021, even as over 2.5 billion people globally depended on the farms for their livelihoods.

The USD 8.4 billion was almost half of the USD 16 billion that was availed for the energy sector and is only a fraction of the estimated USD 300-350 billion needed annually to “create more sustainable and resilient food systems,” a new report has found.

The amount was also quite different from the USD 170 billion that smallholder farmers in Sub-Saharan Africa alone would require per year, the study on global public finance for climate mitigation and adaptation conducted by Dutch climate advisory company Climate Focus has found.

The low level of climate finance for agriculture, forestry, and fishing is of concern, given the impact of climate change on food production and the extent to which food and agriculture are fueling the climate and biodiversity crisis.

Agricultural productivity has declined by 21 percent due to climate change, while the food and agriculture sector as a whole is responsible for 29 percent of greenhouse gas emissions and 80 percent of global deforestation, the study explains.

The farmers have been sidelined by global climate funders and locked out of decision-making processes on food and climate despite being the engines of rural economic growth. This is especially so in Sub-Saharan Africa, where up to 80 percent of agriculture is by smallholder farmers and where 23 percent of regional GDP is attributable to the sector.

It reveals that 80 percent of international public climate finance spent on the agri-food sector is channeled through governments and donor country NGOs, making it hard for smallholder farmers’ organizations to access it. This is because of complex eligibility rules and application processes and a lack of information on how and where to apply.

Many family farmers also lack the infrastructure, technology, and resources to adapt to climate impacts, with serious implications for global food security and rural economies as well, it notes.

The study ‘Untapped Potential: An analysis of international public climate finance flows to sustainable agriculture and family farmers,’ published on 14 November, laments that only a fifth of international public climate finance for food and agriculture supports sustainable practice. The money mainly goes to the Global North, even as agriculture becomes the third biggest source of global emissions. and the main driver of biodiversity loss.

“Climate change is hitting harvests and driving up food prices across the globe. It has helped push 122 million people into hunger since 2019. We need to create more sustainable and resilient food systems that can feed people in a changing climate, but we can’t do this without family farmers,” the report compiled on behalf of ten farmer organizations in Africa, Asia, Latin America, and the Pacific says.

“Family farmers are also key to climate adaptation. They are at the forefront of the shift to more diverse, nature-friendly food systems, which the Intergovernmental Panel on Climate Change (IPCC) says is needed to safeguard food security in a changing climate,” it further notes.

The groups are led by the World Rural Forum and include African groups—the Eastern Africa Farmers Federation, Eastern and Southern Africa small-scale Farmers Forum, the Regional Platform of Farmers’ Organisations in Central Africa, and the Network of West African Farmers’ and Producers’ Organisations. Also part of the group is Northern Africa’s Maghreb and North African Farmers Union.

The Asian Farmers Association for Sustainable Rural Development, the Pacific Island Farmers Organization Network, the Confederation of Family Producers’ Organizations of Greater Mercosur, and the Regional Rural Dialogue Programme are also represented in the study.

Many of the farmers are already practicing climate-resilient agriculture, including approaches such as agroecology, which implies a wider variety of crops, including traditional ones, mixing crops, livestock, forestry, and fisheries, while reducing agrochemical use, and building strong connections to local markets.

The study by the new alliance of farmer networks representing over 35 million smallholder producers ahead of COP28, which is set to agree on a Global Goal for Adaptation, is concerned that since 2012, overall, only 11% of international public climate finance has been targeted at agriculture, forestry, and fishing, which amounts to an average of USD 7 billion a year.

In 2021, the World Bank, Germany, the Green Climate Fund, and European Union institutions contributed around half—54 percent, amounting to USD 4 billion collectively, while Nigeria, India, and Ethiopia were the top recipients, receiving a combined USD 1.8 billion. Notably, some of the world’s most food insecure countries, including Sudan, Sierra Leone, and Zambia, each received less than USD 20 million, it discloses.

“As the climate crisis pushes the global food system ever closer to collapse, it is vital that governments recognize family farmers as powerful partners in the fight against climate change,” it warns.

Hakim Baliriane, Chair of the Eastern and Southern Africa small-scale Farmers Forum, observed: “Climate change has helped push 122 million people into hunger since 2019. Reversing this trend will not be possible if governments continue to tie the hands of millions of family farmers.”

The study defines small-scale family farms as those of less than two hectares, mainly in developing countries.

On the other hand, international climate finance broadly refers to finance channeled to “activities that have a stated objective to mitigate climate change or support adaptation. These include multilateral flows in and outside the (UNFCCC) and the Paris Agreement, as well as bilateral flows at national and regional levels, including the Global Environment Facility, Adaptation Fund, and Green Climate Fund, and are usually disbursed as grants and concessional loans

The study finds that family farms are also the backbone of rural economies, supporting over 2.5 billion people globally who depend on family farms for their livelihoods. It says that in Sub-Saharan Africa, where up to 80 percent of farming is done by smallholder farmers, agriculture contributes 23 percent to regional Gross Domestic Product.

Family farmers are also key to climate adaptation in that they are at the forefront of the shift to more “diverse, nature-friendly food systems,” which, according to the Intergovernmental Panel on Climate Change (IPCC), are critical in safeguarding food security in a changing climate.

It finds that millions of smallholder farmers are already practicing climate-resilient agriculture, including approaches such as agroecology—growing a wider variety of crops, including traditional crops, mixing crops, livestock, forestry, and fisheries, reducing agrochemicals use while building “strong connections to local markets.”

It concludes that governments must ensure that available climate finance for sustainable climate-resilient practices is increased, including that of agroecological approaches.

It explains: “This means funds to support diverse, nature-friendly approaches and to create community-based solutions that build on traditional expertise and experience.

It recommends that small-scale family farmers ought to have direct access to more climate finance and that financing mechanisms and funds should be developed with the participation of farmers’ organizations to meet their needs.

In addition, efforts should be made to ensure longer-term, flexible funding so that communities can determine their own priorities.

The role of the farmers as powerful catalysts for climate action, food system transformation, and the protection of biodiversity should be acknowledged and given a “real say” in decision-making on food and climate at the local, national, regional, and international levels. This should include decisions on land reform and agricultural subsidies.

The COP28 in Dubai later this month has food systems as a big part of the agenda.

An August report by the UK’s ActionAid has found that climate adaptation and green transition initiatives in the Global South received 20 times less financing when compared to main global emitters, fossil fuels, and intensive agriculture sectors in the last seven years.

It found that leading banking multinationals funded the emitters’ activities in the southern hemisphere to the tune of USD 3.2 trillion since 2015 when the Paris Agreement on Climate was adopted. German agrochemical giant Bayer was the biggest recipient of the financing, receiving an estimated USD 20.6 billion since 2016.

IPS UN Bureau Report

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Skyrocketing Inflation Puts Food Security in Pakistan at Risk

Asia-Pacific, Civil Society, Food Security and Nutrition, Headlines, Humanitarian Emergencies, Poverty & SDGs, TerraViva United Nations, Trade & Investment

Economy & Trade

Jamaat-i-Islami party stage protest in Peshawar against price-hikes. Credit: Ashfaq Yusufzai/IPS

Jamaat-i-Islami party stage protest in Peshawar against price-hikes. Credit: Ashfaq Yusufzai/IPS

PESHAWAR, PAKISTAN, Sep 26 2023 (IPS) – “We are under extreme stress about skyrocketing prices of essential edible commodities and the cost of gas and electricity. The situation is becoming worse because every day. We must pay more for wheat flour, sugar, tea, milk, oil, etc.,” Azizullah Khan, a civil servant, says.


Khan draws a monthly salary of 30,000 rupees (USD100), but the cost of living is increasing daily, making it hard for his family of eight to survive.

The electricity bill for August was 20,000 rupees (USD67), and two-thirds of his salary went into paying that, while the remaining 10,000 rupees (USD33) is meant to pay for gas and other family expenses, which, he says, is next to impossible.

“Now, we are seriously thinking of selling the small house we inherited from our parents because we have to repay loans to the shopkeepers and pay the school fees of three children,” says Khan, 30. He lives on the outskirts of Peshawar, the provincial capital of Khyber Pakhtunkhwa, one of Pakistan’s four provinces.

Pakistan’s leading economy and business analyst, Khurram Hussain, told IPS that the country has been seeing relentless and unending pressure on the exchange rate and price levels for more than two and a half years.

“The present bout of exchange rate volatility began in May 2021 and has continued unabated since then,” Hussain says. The dollar had from around 150 rupees to the dollar to about 300 to the dollar, he says.

Quoted in Dawn, a newspaper in Pakistan, he noted: “It took ten years for the dollar to double in value from 75 to 150 rupees, from 2008 till 2019. It took less than two and a half years to double again from May 2021 till today.

At the same time, inflation, as measured by the Consumer Price Index, started to skyrocket a few months after May 2021 and has risen relentlessly until now, with a few interruptions.

Muhammad Raees, 28, a daily wager, is severely hit by the cost of living.

“One year back, the price of 20 kg wheat four was Rs1300, which has now increased to Rs3000. I don’t find work every day because the construction activities have nosedived due to cement, iron, marble, and tile prices, and most of the contractors have stopped work,” Raees, a father of two, says.

“Many times, I have thought of committing suicide, but then I think of my children and wife,” he says.

At least ten people have committed suicide in the past two months.

“They were unable to pay electricity bills. Now, the government is mulling about jacking up the gas price by 50 percent. The poor population is the worst hit,” he says.

Javid Shah, a vegetable seller in Nowshera city adjacent to Peshawar, is fed up with life. “Cost of transportation has increased, and so the prices of vegetables and, as a result, sales have declined. Many who bought 1 kg of tomatoes, lady fingers, and potatoes daily are now taking half a kg,” he says. “I have to discard rotten vegetables daily for lack of sales.”

Akram Ali, a fruit seller in a tiny shop, also constantly complains of high inflation and devaluation of rupees. Ali says his business has reached a standstill as people no longer buy fruits due to high prices.

“As a result, I am going to close shop and start the business in a hand pushcart to save on rent.”

“My two sons are going to school, but the last one and half years have been tough, and I cannot pay their fees. Both have quit schools and sit at home,” he complained.

Saleem Ahmed, a local economist, tells IPS that pulses, considered poor men’s diet, are so expensive they are out of reach of many.

“All pulses are imported in dollars, so their prices have increased. The people are struck by inflation, and they cannot buy items, like pulses, which used to be cheap,” he said.

Prices were stable until former Prime Minister Imran Khan was removed in April 2022 in a no-confidence vote at the National Assembly.

“People have been running from pillar to post for two square meals. As if inflation wasn’t enough, huge smuggling of sugar, wheat flour, pulses, oil, etc. to neighboring Afghanistan have hammered the last nail in the coffin of the poverty-stricken masses,” he said.

Ahmed says the government is taking loans from the IMF, the World Bank, and other lenders with high interest rates, impacting the cost of living.

In such a scenario, Afghan refugees living in Pakistan are jubilant over the rising Afghan economy under the Taliban, and many are weighing options to return to their country.

“In Pakistan, the US dollar is equal to 300 rupees while it is traded for 75 Afghani back home,” Muhammad Mustafa, an Afghan with a sanitary business in Peshawar, says.

Mustafa says he had sent his elder son to Kabul to search for the rented shop so he could shift his business there.

“All my family live in Kabul, and we want to be there. The time is ripe for us to shift (back) there,” he says.

Petrol is being sold at 312 rupees (USD1.5) per liter in Pakistan, while its rate was 80 Afghani (USD1.02) in Kabul.

IPS – UN Bureau, IPS UN Bureau Report,

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Empowering Women in Assam: Livestock Farming Brings Economic Relief Post-COVID

Aid, Asia-Pacific, Civil Society, Development & Aid, Editors’ Choice, Featured, Food and Agriculture, Food Security and Nutrition, Food Sustainability, Headlines, Humanitarian Emergencies, Poverty & SDGs, Sustainable Development Goals, TerraViva United Nations

Food and Agriculture

Goat rearing is contributing to economic independence and improved livelihoods of women thanks to a post-COVID-19 empowerment project. CREDIT: Umar Manzoor Shah/IPS

Goat rearing is contributing to economic independence and improved livelihoods of women thanks to a post-COVID-19 empowerment project. CREDIT: Umar Manzoor Shah/IPS

MILONPUR, INDIA, Aug 8 2023 (IPS) – Seema Devi is a 39-year-old woman hailing from India’s northeastern state of Assam. She lives in a village called Milonpur, a small hamlet with no more than 1 000 inhabitants. While most men from the village, including Devi’s husband, move to cities and towns in search of work, women are left behind to take care of the house and kids.


Devi says that after the COVID-19 lockdown in India in the year 2020, the family income drastically plummeted. As most of the factories were shut for months, the workers, including Devi’s husband, were jobless. Even after the lockdown ended and workers were called back to the factories, the wages dipped.

“Earlier my husband would earn no less than Rs 10 000 a month (125 USD), and after the lockdown, it wasn’t more than a mere 6 000 rupees (70 USD). My children and I would suffer for the want of basic needs like medicine and clothing, but at the same time, I was considerate of the situation and helplessness of my husband,” Devi told IPS.

However, there were few alternatives available at home that could have mitigated Devi’s predicament. With the small area of ancestral land used for cultivation, the change in weather patterns caused her family and several households in the village to reap losses.

However, in 2021, a non-government organization visited the hamlet to assess the situation in the post-COVID scenario. The villagers told the team about how most of the men in the village go out to cities and towns in search of livelihood and work as labourers in factories and that their wages have come down due to economic distress in the country.

After hectic deliberations, about ten self-help groups of women were created. They trained in livestock farming and how this venture could be turned into a profitable business.

The women were initially reluctant because they were unaware of how to make livestock farming profitable. They would ask the members of the charitable organisation questions like, “What if it fails to yield desired results? What if some terrible disease affects the animals, and what if the livestock wouldn’t generate any income for them?”

Wilson Kandulna, who was the senior member of the team, told IPS that experts were called in to train the women about cattle rearing and how timely vaccinations, proper feed, and care could make livestock farming profitable and mitigate their basic living costs. “At first, we provided ten goat kids to each women’s group and made them aware of the dos and don’ts of this kind of farming. They were quick to learn and grasped easily whatever was taught to them,” Wilson said.

He added that these women were living in economic distress due to the limited income of their husbands and were desperately anxious about the scarcity of proper education for children and other daily needs.

Devi says that as soon as she got the goat kids, she acquired basic training in feeding them properly and taking them for vaccinations to the nearby government veterinary hospital.

“Two years have passed, and now we have hundreds of goats as they reproduce quickly, and we are now able to earn a good income. During the first few months, there were issues like feeding problems, proper shelter during monsoons and summers, and how and when we should take them out for grazing. As time passed and we learned the skills, we have become very trained goat rearers,” Devi said.

Renuka, another woman in the self-help group, told IPS that for the past year, they have been continuously getting demands for goat milk from the main towns. “People know about the health benefits of goat milk. They know it is organic without any preservatives, and that is the reason we have a very high demand for it. We sell it at a good price, and at times, demand surpasses the supply,” Renuka said.

For Devi, livestock farming has been no less than a blessing. She says she earns more than five thousand rupees a month (about 60 USD) and has been able to cover daily household expenses all by herself. “I no longer rely on my husband for household expenses. I take care of it all by myself. My husband, too, is relieved, and things are getting back on track,” Devi said, smiling.

Kalpana, a 32-year-old member of the group, says the goats have increased in number, and last year, several of them were sold in the market at a good price.

“The profits were shared by the group members. Earlier, women in this village were entirely dependent on their husbands for covering their basic expenses. Now, they are economically self-reliant. They take good care of the house and of themselves,” Kalpana told IPS News.

Note: Names of some of the women have been changed on their request.

IPS UN Bureau Report

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Land Beneficiaries Lament Worsening Poverty in Resettled Areas

People relocated to the Nakadanga Trust in Machinga District, Malawi, bemoan the lack of opportunities and schooling in the area they were relocated to live in. Credit: Charles Mpaka/IPS By Charles MpakaBLANTYRE, Jun 30 2023 (IPS) Located between two heavily-deforested mountains, Nakadanga Trust in Machinga District in southern Malawi looks lifeless. It is isolated away…

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Malawi: Cyclone Freddy Devastates Communities, Farmers, Heightens Food Insecurity

Malawi’s Department of Disaster Management Affairs shows that 2.2 million people have been affected, with 676 killed and 538 missing after Cyclone Freddy hit Malawi earlier this month. Credit: Red CrossBy Charles MpakaSONJEKE, MALAWI, Mar 30 2023 (IPS) In Sonjeka village in Mulanje district, which lies on the border with Mozambique in southern Malawi, destroyed…

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Indian Agriculture Towards 2030

Asia-Pacific, Biodiversity, Civil Society, Climate Change, Combating Desertification and Drought, Environment, Food and Agriculture, Food Security and Nutrition, Food Sustainability, Headlines, Natural Resources, TerraViva United Nations, Trade & Investment, Water & Sanitation

Opinion

KATHMANDU, Nepal, Apr 4 2022 (IPS) – India began its journey as an independent nation in 1947 with fresh memory of the Bengal Famine of 1943 which claimed 1.5 to 3 million lives. Against this backdrop, the First Five Year Plan (1951-56) prioritized agriculture which, however, shifted to heavily industrialization in the second Plan.


Shyam Khadka

The mid-1960s was a difficult time when consecutive droughts hit food production and India had to import about 11 million metric ton (MMT) of wheat per year – about 15% of its domestic food grain production – under US Public Law 480. With the availability of high yielding miracle seeds of wheat and rice accompanied by increasing use of chemical fertilisers, provision of minimum support price (MSP) for rice and wheat, expansion in irrigated area, and gradual mechanization of farms, Indian agri-food system fortunately took a definitive positive turn beginning late 1960s. As a result, India has become the largest producer of milk (187.7 MMT in 2019-20) and cotton (37.5 million bales in 2019-20) and the second largest producer of rice (117.5 MMT in 2019-20) and wheat (106.2 MMT in 2019-20), fruits (97.97 MMT in 2018-19) and vegetables (183.17 MMT in 2018-19). India today is not only food self-sufficient but also a net exporter of agricultural produce. In short, the success of Indian agriculture in last six decades has been nothing less than spectacular.

The success, however, has come with significant costs. The resource intensification that the Green Revolution requires has adversely affected natural resources and environment. India pumped 245 million cubic meters – about 25 percent of total groundwater withdrawn globally – for irrigation in 2011. As a result, ground water in 1,034 blocks (16% of total blocks) are over-exploited. Worse, ground water table has become critical in 4% and semi-critical in 10% of the blocks. Similarly, some 37% of land area in the country (120.4 mn ha) is affected by various types of land degradation. Subsidy policy-induced non-judicious use of fertilizers has led to the chemicalization of soil and pollution of water through leaching and run-off. Despite abundant supply of food grains, in 2020 41.7% of under-5 children suffered from stunting. India is home to 208.6 million – or over a quarter – of world’s undernourished people. Other challenges that Indian agriculture faces today include uneven regional growth, rising fiscal constraints, mounting and unsustainable level of subsidies, small holding size and further fragmentation of holdings and accompanying land tenurial issues, and low resource use efficiency, particularly of water. These factors act as serious impediments for sustained agricultural growth and farmers’ livelihoods.

Amidst the success and emerging challenges NITI Aayog, the apex public policy think tank of the Government of India and the Food and Agricultural Organization of the United Nations (FAO) decided to facilitate a national dialogue among key stakeholders including government agencies, academia, civil society organisations, farmers, private sector, international organizations, media and others to articulate a vision for 2030 and pathways for the remandating of agriculture in India. To this end, 10 thematic papers were commissioned from distinguished professionals. A 3-day national dialogue entitled, ‘Indian Agriculture Towards 2030: Pathways for enhancing Farmers’ Income, Nutritional Security and Sustainable Food and Farm Systems” was held in January 2021. NITI Aayog and FAO have now come up with a publication with the same title (Chand, R., Joshi, P, and Khadka, S., Editors (2022), Springer).

In addition to the challenges enumerated above the books also deals with issues of climate change and its impact on agricultural production and farmers’ incomes and the strategies to mitigate such change; growing incidence of pests, pandemics, and transboundary diseases and threat to biosecurity affecting agricultural production; and alternative farming systems for transformative and sustainable agroecology and biodiverse future. The role of science, technology and innovation is identified as key to sustainable and resilient agriculture. Similarly, role of structural reforms and governance are discussed in detail and the role of price policies, market reforms and institutions are being highlighted for an efficient, inclusive and sustainable agriculture.

The National Dialogue identified pathways for transformation with emphasis on remandating Indian agriculture in a way that makes it more productive, efficient, resilient, resource conserving, nutrition centered and globally focused. These transformational outcomes are to be achieved by focusing on following pathways:

    • Increasing investment in agriculture, first to reverse the declining trend and then achieving ‘efficient’ growth rather than growth alone, increased adoption of improved technology, reorienting agricultural science, technology and innovations, applying digital solutions and artificial intelligence, better use of information and communication technology, application of One Health concept;
    • Making Indian agriculture globally-focused, shifting attention from self-sufficiency to adding value through increased processing and achieving a high rate of export growth
    • Enhancing the efficiency of the water and other resources, mainly by correcting distorted water pricing, adopting water conserving technologies and agro-ecological approach, changes in the cropping pattern, and reversing neglect of rainfed areas;
    • Making agriculture climate resilient, by adopting several no-regret technological and institutional options as well as by undertaking more targeted research, use of big data analytics, and adoption of a science-based and green growth approach;
    • Tackling nutrition and food safety, by diversifying diet, reducing post-harvest losses, encouraging bio-fortifications, empowering women, enforcing food safety standards, improving water sanitation and hygiene, and promoting food safety awareness and nutrition education;
    • Focusing sharply on innovations, incentives and institutions that contribute to enhance productivity, enhance resilience to climate change, incentivize water and energy conservation, and by adopting more conducive regulatory environment such as for exploiting ground water; and
    • Adopting appropriate policies and improving governance such as by reducing distortion caused by the MSP, accelerating rural infrastructure creation, ensuring greater engagement of the state governments, enhancing access to credit and extension services, and expansion of contract farming.

As emphasised by Honourable M. Venkaiah Naidu, Vice-President of India in his foreword, the book ‘provides a sound basis for reflection because they distil important lessons and present an array of policy options for the government to choose from’.

Shyam Khadka is a former senior official of the Food and Agriculture Organization of the United Nations who served as representative in India (2015-18) and was Senior Portfolio Manager in United Nations International Fund for Agricultural Development (1997-2014). An international development professional, Khadka works on policies, programs and projects that aim at developing agriculture, ensuring food security, and reducing poverty globally.

IPS UN Bureau

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