International Fund for Agricultural Development

FY2016 Funding Recommendation:  
$31.93 million

 

Funding History

       Enacted   

       President's FY2016 Request   

       InterAction's FY2016 Recommendation


Justification

 Key Facts

  • IFAD is the leading multilateral investor in the livelihoods of rural agricultural producers living in poverty, and plays a critical leadership role in positioning smallholder farmers at the center of global efforts to strengthen food security.

  • IFAD supports the world’s more than 2.5 billion smallholder farmers, who collectively represent approximately one-third of humanity.

The International Fund for Agricultural Development (IFAD) is the leading multilateral investor in the livelihoods of rural agricultural producers living in poverty, and plays a critical leadership role in positioning smallholder farmers at the center of global efforts to strengthen food security. Since its inception in 1974, IFAD has provided $15.8 billion in loans and grants, and has leveraged over $22 billion in additional funding from developing country sources for agricultural and rural development. In total, IFAD has supported 948 programs and projects in 120 countries. These activities have empowered some 430 million people to grow more food, learn new skills, better manage their land and other natural resources, start small businesses, build strong organizations and gain a voice in the decisions that affect their lives.

IFAD-supported projects aid farmers in increasing agricultural production and productivity, and help link them to markets so they can profit from what they grow. Results reported in 2013 include:

  • 4.5 million people trained to use improved agricultural practices and technologies;
  • 3.2 million hectares of common-property resource land under improved management;
  • 15,000 kilometers of roads constructed or repaired;
  • 20,000 marketing groups formed or strengthened; and
  • 1.5 million people trained in business and entrepreneurship.

IFAD’s robust and far-reaching institutional reforms have significantly improved its overall effectiveness and impact, as confirmed by several recent independent assessments. This improved effectiveness and efficiency will support IFAD’s goals of reaching 90 million men and women living in poverty in rural areas, and helping 80 million pull themselves out of poverty between 2013 and 2015.

The target for the IFAD10 period (2016-18) consists of a $3 billion program of loans and grants, which is identical to the level for the current IFAD9 period (2013-15). Maintaining a $3 billion target will require a replenishment of $1.44 billion, including both regular replenishment and complementary contributions, as well as internal IFAD resources of $1.56 billion, consisting of loan reflows and other sources of internally generated funds and future net flows. Achieving an IFAD10 replenishment of $1.44 billion will require a 34% increase in contributions from Member States.

The United States pledged $90 million to IFAD9 ($30 million per year over the three-year period of 2013-15). For FY15, InterAction and the broader U.S. NGO community urged Congress to approve an additional $2.243 million to address U.S. arrears from previous years. For FY16, InterAction urges Congress to appropriate $31.93 million for IFAD, which includes the previous annual appropriation of $30 million and $1.93 million in arrears. This level of funding would help enable IFAD to maintain its current $3 billion program of loans and grants, and support its efforts to scale up its impact and reach more rural poor people. The additional $1.93 million would also begin to pay down our arrears to IFAD, consistent with the President’s FY2016 budget request. Our total arrears to IFAD are $4,243,720, some of which date back to the period of 2004-06. 

Success Story:

Building local capacity for greater impact

At the heart of every human experience is the desire to survive and prosper. To imagine how your life could be better and then have the means to change it yourself.

Yet, every day, nearly 870 million people – or one in eight of the world’s inhabitants – suffer from chronic undernourishment and cannot fulfill their most basic needs, let alone attain their dreams or desires. They represent the largest segment of the world’s poor – the almost 900 million poor women, children and men who live in rural areas. They are the smallholder farmers, poor rural producers, herders, fisherfolk, migrant workers, artisans and indigenous peoples whose daily struggles seldom capture world attention. They are at the center of everything that the International Fund for Agricultural Development (IFAD) does. 

In addition to providing loans and grants to developing country governments for projects aimed at eliminating poverty, hunger and malnutrition, IFAD also provides grants to key partner institutions.

One such example is a recently completed grant IFAD made to the Alliance to End Hunger for its National Alliance Partnership Program, which has enabled it to work with similar National Alliances in Ghana, Kenya and Uganda to help them strengthen the capacity of civil society to participate, in a sustainable way, in the development, implementation, and monitoring and evaluation of country-led agricultural development, food security and nutrition policies and activities. It has also helped them to build their organizational and financial capacity; diversify their coalitions, with particular emphasis on engaging farmers’ and producers’ organizations; and increase their capacity to engage in policy and advocacy at the national level.

The program has achieved impressive results and was an award-winning project of InterAction’s Best Practices and Innovations (BPI) Initiative. The Alliance to End Hunger recently received funding from USAID to significantly scale up and expand this IFAD-financed project in other countries. This is an example of IFAD’s critical role in helping to catalyze and scale up successful approaches, and to help leverage additional resources to do so. 

Photo Credit: International Fund for Agricultural Development

 

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