Contribution to International Fund for Agricultural Development (IFAD)

$30 million*

Minimum Requirement for American Leadership

 
IFAD is the leading multilateral institution investing in the livelihoods of agricultural producers living in poverty.

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Justification for Funding

Cost of Cuts Below $30 Million

President and Congress Budget Comparison

       Congressional Budget   

       President's Budget Request (Base + OCO)

  • A reduced investment in IFAD will mean that 7 million or more rural producers will not benefit from services, including training in improved agricultural production practices, rural, financial, and business development services. 
  • The lack of access to these services will result in 3 million fewer smallholder farmers with improved production and market access. 
  • As of April 2018, the U.S. has not pledged a contribution to the eleventh replenishment of IFAD resources to support programming from 2019 – 2021. The overall program of loans and grants may be proportionately smaller as a result. 

$30 million

Opportunity to Catalyze American Leadership

 

Justification for Full Funding

  • The demand for IFAD financing and non-lending services is growing, according to IFAD's in- house analysis. Given the Fund’s current size, it cannot satisfy this demand.
  • The U.S. is the largest shareholder in IFAD, having contributed 12% of the total contributions over IFAD's history. It played a pivotal role in the establishment of IFAD and has been a preeminent Member State throughout IFAD's 40 years.
  • Around the world there is a growing need for IFAD’s targeted programs and projects. Food insecurity is on the rise, with about 815 million people suffering from hunger in 2016— 38 million more than in 2015. The rise in hunger figures is the consequence of an increasing number of conflicts and climate shocks, such as droughts and floods.

Impact of Full Funding

Since inception in 1974, IFAD has supported 1,037 programs and projects in 123 countries.

  • Based on an assessment of potential demand from borrowers and IFAD's delivery capacity, with additional funds IFAD could double the size of the three-year program of work from the current $6 billion to $12 billion.  
  • This investment could be achieved with a 20 % increase in Member State contributions and would result in a corresponding 20 % increase in the number smallholders reached.
  • In total, IFAD has supported 1,037 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.

*Enacted FY18 Omnibus Appropriation

For more information, please contact: Sara Nitz, snitz@interaction.org

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