IFAD-funded project to help family farmers to increase productivity and recover from COVID-19

The Government of Peru and the International Fund for Agricultural Development (IFAD), the United Nations agency for rural development, signed a financing agreement for a new project to help family farmers increase their competitiveness and resilience, and to recover from the COVID-19 impact.

The five-year Extension of Public Services for Local Productive Development Project (known as the Avanzar Rural Project), is a priority in Peru’s Post-COVID 19 National Recovery Plan. It will improve family farmers’ productive capacity and access to markets in 101 districts of the Amazonas, Ancash, Cajamarca, Lima and San Martin departments.

Involving a total investment of US$71.4 million, Avanzar Rural funds include a US$23.9 million loan from IFAD and a Government contribution of US$ 41.1 million. The beneficiaries themselves will contribute the remaining US$6.3 million. The Ministry of Agriculture and Irrigation (MINAGRI) will implement Avanzar Rural through its Agrorural programme.

The project will focus on developing the competitiveness and resilience to climate change of family farmers, in particular women and youth, who have historically been marginalized in economic decisions affecting rural communities. It will also spread the use of low-cost, efficient technologies for boosting productivity, accessing markets and mitigating climate change.

“This project couldn’t be more timely: family farmers’ access to markets has been severely impacted by the pandemic and the lockdown, so we need to invest in restoring and improving food supply chains more than ever. Otherwise, we could see a health crisis turn into a food and humanitarian crisis,” said Rossana Polastri, IFAD Director for Latin America and the Caribbean.

She went on to explain that promoting resilience is essential to fighting the tragic effects of the COVID-19 outbreak and that no country can be resilient without the contribution that family farmers make to food security.

The project builds on the achievements of the Strengthening Local Development in the Highlands and High Rainforest Areas Project (known by its Spanish acronym, PSSA). By the time it closed last December, PSSA had financed 1,167 rural business plans in 85 districts of Amazonas, Cajamarca, Lima and San Martín Departments, doubling the average income of 40,000 families.

PSSA and previous IFAD-funded projects in Peru have proven that, with proper support, family farmers can increase their productive performance, gain access to markets, and ensure the long-term sustainability of their ventures.

Avanzar Rural will benefit 17,400 small agricultural producers organized in cooperatives and productive associations and their families, which represents a total number of 57,420 direct beneficiaries.

The project will also support the capacity of local and regional governments to pursue rural development, contribute to territorial planning and create strong commercial and economic corridors that will allow family farmers to sell their products not only in small local markets, but also on a larger scale.

Original source: IFAD
Published on 02 July 2020