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  • FTA at Asia-Pacific Rainforest Summit: Empowering smallholders

FTA at Asia-Pacific Rainforest Summit: Empowering smallholders


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Originally published at CIFOR’s Forests News

Mediating the push and pull of agricultural expansion and conservation is no easy task. Add to that smallholders – who play a crucial role in producing agricultural commodities but whose economic disenfranchisement can incline to unsustainable practices – and the situation becomes even more complex.

With increasing corporate commitments to eliminate deforestation from supply chains, the integral, and precarious, situation of smallholders must be addressed. But how can companies help to empower them, disincentivizing deforestation and unsustainable practices? What must government, civil society and the financial sector do? And, what would a successful smallholder empowerment project look like?

At the upcoming Asia-Pacific Rainforest Summit in Brunei from 3 to 5 August, these questions will be discussed by diverse representatives from government, business, civil society and the research community.

Pablo Pacheco is principal scientist with the Center for International Forestry Research (CIFOR) and coordinator of the Trade, Investment and Governance theme of the CGIAR Research Program on Forests, Trees and Agroforestry. He will be chairing the smallholder session at the summit. In an interview on the sidelines of the recent Global Landscapes Forum: The Investment Case he addressed the thorny question of smallholders, investing and sustainability.


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  • How can the financial services sector strengthen the sustainability and inclusivity of smallholder farming in the supply of global commodity crops?

How can the financial services sector strengthen the sustainability and inclusivity of smallholder farming in the supply of global commodity crops?


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Also read White Paper
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White Paper for The Global Landscapes Forum: The Investment Case, London, 6 June 2016, related to the discussion forum Smallholder finance – evidence from the tropics, organized by Pablo Pacheco, coordinator of Flagship 5 of the CGIAR Research Program on Forests, Trees and Agroforestry.

Authors: Noemi Perez, FAST International; Jan Willem van Gelder, Profundo; Hans Smit, SNV; Pablo Pacheco and Sophia Gnych, CIFOR

Smallholder farmers play a key role in the production of agricultural crops for local, national and, increasingly, international markets, including high-value tree crops.1 As commercial-scale agriculture has expanded and markets have seen greater integration, smallholders are forced to compete with agribusiness to meet a rising demand for food, fiber and fuel. But smallholders remain disenfranchised, often facing economic, financial and institutional constraints that make the adoption of more efficient practices and technologies more difficult and limit productivity and local livelihoods.

A good example of this are oil palm smallholders in Indonesia, whose participation in the sector is growing rapidly. Despite their important contribution to national production, oil palm smallholders risk exclusion from global markets as agricultural standards evolve, and they struggle to adopt improved production practices.4 Finance has the potential to play a significant role in supporting the upgrading of production systems and delivering more effective resource management5 , as well as helping to fulfill a growing demand for agricultural and tree-crops that meet sustainability standards.

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