Mobilising internal finance: how forest and farm producer organisations upscale financial access

Access to finance for rural communities composed of smallholders, family farmers and indigenous peoples is very limited. Smallholder farmers and family farmers account for 90% of the world's farms and are estimated to be responsible for 80% of global food production.

The funding gap makes it difficult for these rural communities to act effectively in relation to climate, nature, livelihoods and food security. 

This research report delves into the critical role that Forest and Agricultural Producer Organizations (OPFHs) play in mobilizing domestic funding to close this gap. By examining case studies from six countries, this report sheds light on how OPFH can effectively leverage domestic resources to provide financial services to their members, ultimately enabling sustainable development.

It outlines a set of practical steps that FFPOs follow to establish internal financial mechanisms, such as savings groups and financial cooperatives. These are accessible, trust-based financial mechanisms that meet the diverse needs of members, strengthen solidarity, empower women, increase resilience to climate change, and finance sustainable and productive activities, often on a large scale.