International Fund for Agricultural Development

FY2018 Funding Recommendation:  
$31.93 million

 

Funding History

       Enacted   

       House/Senate FY2017 Request  

       InterAction's FY2018 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 it 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 more than $18.5 billion in loans and grants, and has leveraged over $26.1 billion in additional funding from developing country sources for agricultural and rural development. In total, IFAD has supported 1037 programs and projects in 123 countries. These activities have empowered some 459 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 2015 include:

  • 114 million people reached by IFAD-supported projects, of whom 49% were women;
  • 2.5 million people trained in crop production practices and technologies, of whom 51% were women;
  • 2.3 million hectares of common-property-resource land under improved management;
  • 17,000 kilometres of roads constructed or repaired;
  • 23,000 marketing groups formed or strengthened; and
  • 1 million people trained in business and entrepreneurship.

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 $1.353 billion, including 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 U.S. 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 USAID). For FY2017, InterAction urged the Congress to approve $31.93 million for IFAD, which included the Administration’s request of $30 million and $1.93 million to begin to address arrears that have accrued over time. For FY2018, InterAction urges Congress to appropriate $31.93 million for IFAD, which includes the third 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. The total U.S. arrears to IFAD are $4,243,720, some of which date back to the period of 2004–06.

The Consultation on the 11th Replenishment of IFAD’s Resources (IFAD11) began in February 2017 and will conclude in December 2017. Funding for this period will cover the three-year period of 2019–2021. InterAction urges the United States to maintain its strong support for the Fund in IFAD11.  

Success Story

Supporting Inclusive Rural Finance

Most of the world’s 900 million very poor people live without the security of reliable income, shelter or food. Saving or borrowing small amounts of money can make a big difference to their lives. IFAD is one of the world’s largest lenders supporting inclusive rural finance. Projects supported by the U.S. help poor rural people gain access to financial services, including savings, payments, insurance, and remittances. IFAD’s Financing Facility for Remittances reduces the costs of remittances and promotes productive rural investment of migrants’ capital.

Results reported in 2015 include:

  • 20.8 million voluntary savers, of whom 55% were women;
  • 4.8 million active borrowers from IFAD-assisted microfinance institutions, of whom 69% were women; and
  • 18% of IFAD’s portfolio is dedicated to rural finance. 

Photo: IFAD

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