The Food and Agriculture Organization of the United Nations (FAO) brought together 70 representatives from governments, regional integration mechanisms, international cooperation agencies, development banks, financial institutions, the private sector, and family farming organizations from Latin America and the Caribbean on August 18 and 19. This regional meeting helped identify conditions, instruments, and partnerships to transform productive opportunities into concrete investments and advance the scaling up of financing for agrifood systems.

The region plays a strategic role in global food production and, at the same time, faces high exposure to climate risks. However, the financing reaching its agrifood systems remains insufficient and fragmented in relation to the magnitude of its challenges and opportunities.

“Latin America and the Caribbean is a global agrifood powerhouse, but 32 million people still suffer from hunger, and nearly 70% of food producers face barriers to accessing formal finance,” said Rene Orellana Halkyer, FAO Assistant Director-General and FAO Regional Representative for Latin America and the Caribbean.

“We have an opportunity and a shared responsibility: to transform the region’s agrifood potential into concrete investments that strengthen food security, climate resilience, and rural development opportunities,” he added.

For his part, the Chilean Minister of Agriculture, Jaime Campos Quiroga, who participated in the closing of the event, stated: “In our view, financial solutions must take into account different scales of production, the particular characteristics of the territories, and the special conditions that farmers face every day.”

From Financial Inclusion to Impact Investments

During the two-day event, five priorities were identified to strengthen financing for agrifood systems in Latin America and the Caribbean. Among them was the need to move beyond isolated projects and build territorial investment portfolios that integrate production, value chains, infrastructure, connectivity, technical services, markets, evidence, and financial instruments tailored to the characteristics of each territory.

The meeting also highlighted the importance of investing in human and organizational capacities in rural communities through financial education, technical assistance, business management, and collective organization. Furthermore, the need to consolidate collaborative ecosystems among governments, development banks, financial institutions, cooperatives, businesses, investors, academia, international cooperation agencies, and territorial organizations was emphasized.

Another priority identified was placing climate action at the heart of investment decisions, translating environmental commitments into bankable portfolios aimed at promoting sustainable production practices, restoring ecosystems, developing resilient infrastructure, improving water management, and expanding access to agricultural insurance. 

Finally, participants agreed that small and medium-sized family farmers, their organizations, and rural communities must occupy a central place on this agenda. To this end, they proposed moving toward financial solutions tailored to their needs and integrated into territorial financial ecosystems capable of combining financing, technical assistance, information, risk management, market access, and partnerships.

The role of FAO

During the event, FAO highlighted its work with countries in the region to help create the conditions that link the needs and opportunities of territories with financial resources, knowledge, innovation, and investment.

“Currently, FAO manages more than USD 1 billion in over 400 projects across the 32 countries of the region,” noted Orellana Halkyer. This presence enables FAO to work at the local level and, at the same time, connect public policies, technical capacities, evidence, and partnerships with financial institutions and development partners.

The meeting also contributed to a longer-term regional conversation about the need to build local financial ecosystems capable of supporting the diverse needs of producers, organizations, cooperatives, and agrifood businesses, and of transforming opportunities into viable, sustainable, and inclusive investments.

A regional dialogue among governments, development banks, investors, and organizations

The event included the participation of government authorities from the region, among them Jaime Campos Quiroga, Minister of Agriculture of Chile; Vanderley Ziger, Secretary of Family Farming and Agroecology of the Ministry of Agrarian Development and Family Farming of Brazil; Enrique Estuardo Maldonado, Undersecretary of Investment for Development of the Secretariat of Planning and Programming of the Presidency of Guatemala (SEGEPLAN); and Julián Arias, Administrative Vice Minister of the Ministry of Agriculture and Livestock of Costa Rica.

Representatives from public banks, development banks, and regional financial institutions included the Agricultural Credit Agency (CAH) of Paraguay, the Bank of the Northeast of Brazil, the Productive Development Bank of Bolivia, the Central American Bank for Economic Integration (CABEI), and the Development Bank of Latin America and the Caribbean (CAF).

The event also brought together representatives from the private financial sector and investment and financial inclusion organizations, including Cresol, Fundación PROFIN, Aliados de Impacto, BBVA, and Vox Capital.

Representatives from international organizations and regional integration mechanisms also participated, such as the Amazon Cooperation Treaty Organization (ACTO), the Caribbean Community (CARICOM), the World Bank, the MERCOSUR Specialized Meeting on Family Farming (REAF/MERCOSUR), and the Office of the Resident Coordinator of the United Nations System.

The dialogue highlighted the need to move toward a new generation of investments capable of combining productivity, inclusion, climate resilience, and territorial development, and to strengthen collaboration between public and private actors to expand financing opportunities in rural areas.