TIFS Community – Investing in Agroecological Food Systems

rex.r.raimondnews

On 16 June 2021 the TIFS Community discussed findings of two studies that explore financing towards agroecological food systems.

“Credit Where Due” presents findings from an initial analysis of post-Brexit agroecological financing opportunities in the United Kingdom (UK). The report is the first output from Farming the Future’s “Redirecting Finance” initiative, with particular support from The A Team Foundation, The Roddick Foundation, Bertha Earth, and Cindy Palmano. 

  • Speakers: Anna van der Hurd, Director, The A Team Foundation; Chaitanya Kumar, Head of Environment and Green Transitions, New Economics Foundation; and Joshua Humphreys, President and Senior Fellow, Croatan Institute.

  • Report

“Supporting Agroecological Enterprises (AEEs) in Africa” is a joint action research project of the Agroecology Fund (AEF) and the Alliance for Food Sovereignty in Africa (AFSA) with the support of The 11th Hour Project to analyze existing AEEs in Africa and their service providers (e.g. NGOs, banks, investors, incubators, policy makers and others). 

  • Speakers: Daniel Moss, Executive Director, Agroecology Fund; and Jen Astone, Principal, Integrated Capital Investing.

  • Reports and Resources

A few topics that cut across regions and generated lively discussions, included:

  • Disruptive financing approaches: Traditional banking or credit systems are not structured to serve agroecological transition. One challenge relates to the need for small loans (high transaction costs). Participants suggested multiple innovative financing alternatives that are emerging in France, Brazil, UK, East Africa, and elsewhere. Examples include hybrid models that combine: crowd funding + investment funds; accelerators + investment funds; social bonds; DAF funds for loan guarantees or first loss reserves.

  • Territorial markets: Territorial markets, including open air farmers markets, are critical for farmer entrepreneurs. Territorial markets offer opportunities to work with local governments on strenghtening market infrastructure (e.g., for hygiene and food safety) and better serve local AE entrepreneurs.