In a bold move to address climate change’s impact on small-scale farming, the US nonprofit Acumen has announced plans to mobilize $1.5 billion by 2030 to support agricultural startups across the developing world. This funding will empower innovative solutions to protect the livelihood of 600 million subsistence and small-scale farmers who currently produce 30% of the world’s food. Acumen has pledged $300 million to the effort, aiming to raise an additional $1.2 billion from strategic partners.
According to Acumen CEO Jacqueline Novogratz, the program targets vulnerable smallholders who bear the brunt of climate disruptions yet receive little investment in climate adaptation. “We are not seeing climate investing go into adaptation,” Novogratz remarked, underscoring Acumen’s unique position as one of the largest private adaptation investors in emerging markets’ agricultural sectors.
The nonprofit’s commitment aligns with global efforts to close a $151 billion annual financing gap for building climate resilience in agriculture, as reported by One Acre Fund. Today, a mere $2 billion is directed toward climate financing for small-scale farmers, which Acumen aims to significantly expand through this program.
Planned for launch next year, two initial funds will start disbursing capital to pre-seed, seed, and growth-stage ventures across Pakistan, India, East and West Africa, and Latin America. The goal is to boost yields and income for 40 million farmers by supporting 100 startups, according to a recent Acumen statement. Solutions under consideration range from solar-powered irrigation systems and drying technologies to bio-digesters for manure-based cooking fuel and liquid fertilizers.
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Acumen’s past investments underscore its commitment to climate-resilient agriculture. Notable successes include Hatch Africa, which has developed a disease-resistant, water-efficient chicken breed, and SunCulture, a provider of solar-powered irrigation solutions for African smallholders.
The initiative is supported by existing collaborators, such as the Green Climate Fund, IKEA Foundation, and the UK’s Foreign, Commonwealth & Development Office. This ambitious effort represents “new money” paired with long-standing partnerships, signaling a robust, multifaceted approach to fortifying small-scale farming against climate threats.