International Fund for Agricultural Development

FY2017 Funding Recommendation:  
$31.93 million

 

Funding History

       Enacted   

       President's FY2017 Request   

       InterAction's FY2017 Recommendation


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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 nearly $17 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 453 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 2014 include:

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 enabled IFAD to reach almost 100 million men and women, surpassing its target of 90 million people by 2015. Continued efforts will support IFAD in reaching 130 million men and women living in poverty in rural areas between 2016 and 2018.

The target for the IFAD10 Replenishment is set at US$1.353 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.

The United States pledged $102 million to IFAD10 ($90 million over the three-year period 2016-2018 from the Department of the Treasury, as well as a $12 million unrestricted complimentary contribution from the United States Agency for International Development). For FY2016, InterAction urged the Congress to approve $31.93 million for IFAD, which includes the Obama Administration’s request of $30 million and $1.93 million to begin to address arrears that have accrued over time. For FY2017, InterAction urges Congress to appropriate $31.93 million for IFAD, which includes the second tranche payment towards IFAD10 of $30 million, as well as an additional $1.93 million to continue to address U.S. arrears from previous years. 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. Our total arrears to IFAD are $4,243,720, some of which date back to the period of 2004-06.  

Success Story

Stronger Markets for Local Crops Transform Senegal’s Rural Economy

The International Fund for Agricultural Development (IFAD) is a specialized agency of the United Nations and an international financial institution. The Fund provides low-interest loans and grants to developing countries to finance innovative agricultural and rural development projects. Since its inception, it has supported 948 programs and projects in partnership with 120 recipient governments. One example of how IFAD invests in rural communities around the world is the IFAD-financed Agricultural Chain Support Project in Senegal. IFAD has been active in Senegal since 1979 and has financed 14 rural development projects totaling approximately $150 million to date.

Farmer Coumba Ndoffen Sene, a participant in the Agricultural Support Project, used to struggle to feed his family, but now he can pay his children’s school fees and buy them new clothes. He has also started a business raising chickens.

One of the ideas behind the project is to encourage people to grow, eat, and sell local crops rather than consuming imported grains like rice. By changing the way people think about food and enabling them to access markets, the project has helped transform the communities in which it works. Sene was one of almost 9,000 farmers who received training in improved agricultural practices that produce higher yields and better-quality harvests. “Before we could not get 1 ton of millet,” he says. “Now we produce 2 or 3 tons per year.”                 

With project support, producer organizations brokered contracts with buyers. Transaction costs on sales of millet, sesame, cowpeas, and maize fell substantially, increasing profits. Small producers now earn more and consume and sell more locally grown products, and the region is becoming less dependent on imports.

The hungry season has been shortened from six months to under a month. More than 5,000 previously unemployed people now have jobs, and 250,000 people have

learned to grow, eat, and sell local foods.

Additionally, women are participating in agricultural production, processing and marketing activities and have better access to land. Over 800 women – and chefs in local hotels – have learned to cook with locally grown crops, which are more nutritious than imported products such as rice. Women are starting new businesses, packaging products like baby porridge to be sold locally and nationally. In recognition of these achievements, the project won a 2015 IFAD Gender Award, highlighting its best practices in women’s empowerment.

Many restaurants in the project area now offer only locally grown food. Restaurant Manager Aisatou Cisse sees this trend as the future for the country. “Our economy cannot grow if we keep importing,” she says. “We need to consume what we produce here in Senegal.” Cisse won the 2015 President of Senegal Award for Innovation.

Photo: IFAD

 

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