Agriculture is on the frontlines of climate change impacts. Droughts, floods, erratic rainfall and seasonal changes are already affecting crop yields, livestock productivity and rural livelihoods, particularly in developing countries. Many adaptation solutions already exist.
Farmers can become more resilient by practicing conservation agriculture and agroforestry, adopting drought-tolerant crop varieties, improving grazing and soil management, and building more water-efficient irrigation infrastructure. Yet, investment in these solutions is lacking.
Private investment in climate-resilient agriculture is often constrained by real and perceived risks. For farmers, adopting new practices can require significant upfront costs, while the benefits may take years to materialize or could be wiped out by a single failed rainy season. For lenders and investors, agricultural markets can appear too unpredictable. With weather patterns changing, supply chains may be fragmented, and there is often limited data to help assess climate risks or estimate returns.
To be able to attract investments in climate-resilient agriculture, we need to de-risk them, reducing the barriers and uncertainties that discourage investment and creating confidence in long-term returns. Derisking can take many forms. Governments can provide incentives that lower costs for farmers, insurance products can help absorb climate shocks, better weather and risk data can strengthen decision-making, and certification systems can help producers access premium markets. Together, these measures can make climate-resilient agriculture more viable, affordable and attractive to investors.
Drawing from our work under the UNDP-FAO SCALA programme, here are three practical approaches for de-risking climate-resilient agriculture. Read full blog here.
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