Financing farm renovation: How to build resilience using a blend of capital

Published on

March 10, 2016

Root Capital releases a new learning report on financing farm renovation. This report explains how a blend of capital can help build resilience against a dwindling supply and rising demand in commodities such as coffee, cacao, and tea. 

La Roya, also known as coffee leaf rust, is a crippling crop disease that continues to spread across Latin America.  In 2016, it is expected that global consumers will drink more coffee than ever before. With growing populations and rising incomes, demand for coffee — as well as cocoa, tea, and other agricultural commodities — will continue to increase in the coming years. 

Over the past three years leaf rust has affected the lives of millions of farmers and farmworkers.  The challenges resulting from this  has started a downward cycle of low productivity, reduced income, and underinvestment that often leads to migration, deforestation, and other desperate measures

To address these many challenges, Root Capital leveraged public-private partnerships and developed the Coffee Farmer Resilience Initiative (CFRI). This report shares learnings from Root Capital's model with CFRI, what they've done over the past two years for the Initiative, and what they continue to learn. 

Download the full report to learn more on: 

  • How a devastating crop disease has threatened the world’s supply of coffee and affected the livelihoods of millions of farmers and farmworkers
  • How leading coffee companies like Cooperative Coffees, Equal Exchange, Keurig Green Mountain and Starbucks are responding
  • How these companies, along with the public sector, private foundations and pioneering impact investors are using a blend of capital to help farmers rejuvenate affected coffee farms
  • How Root Capital designed a long-term loan to support farmers who are renovating their land, and the crucial role that our clients are playing in making it happen
  • How others can deploy capital in ways that reach more of the world’s smallholder farmers, improve their incomes and ensure an adequate supply of high-quality coffee as well as other agricultural products

Learn more >>

About the Author(s)

Learning Lab Partner

Root Capital is pioneering finance for high-impact agricultural businesses in Africa, Asia and Latin America. The organization lends capital, delivers financial training, and strengthens market connections so that businesses that serve smallholder farmers can grow rural prosperity. Since its founding in 1999, Root Capital has disbursed more than $900 million in loans to over 600 businesses and has improved incomes for 1.2 million farm households. Learn more at www.rootcapital.org.

Press release: Root Capital and The MasterCard Foundation to Increase Incomes for 300,000 Farmers in West Africa

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