The report says that governments need to repurpose harmful agricultural subsidies and reform international financial institutions
A new report revealed that $443 billion a year is needed to meet the climate adaptation costs of smallholder farmers, who produce half of the world’s food calories. The report titled “Feeding the World in a Changed Climate” by Climate Focus for Family Farmers of Climate Action, said that this investment is less than the harmful agriculture subsidies currently in place.
The report showed that farmers with 10 hectares of land or less require investment equivalent to an annual average investment of $952 for a one-hectare farm or $2.19 a day. This is less than $470 billion a year in agriculture subsidies, which the UN estimates, are spent on measures that hurt people’s health, fuel the climate crisis, degrade the environment, and drive inequality by excluding smallholder farmers.
The report revealed that global spending on climate adaptation for farmers in 2021 amounted to $1.59 billion, which is only 0.36% of the required amount. On average, farmers allocated 20-40% of their annual income to adaptive measures, amounting to $368 billion annually.
Only $150 Billion Needed to Meet the Needs of Smallholders in South Asia
According to the report, only an annual investment of $150.3 billion a year will support South Asia farmers with up to 10 hectares of land to build climate resilience and adapt. It includes $136.49 billion in adaptation support for smallholders in India. South Asia produces at least 70% of the region’s food.
The report said that this investment is needed to incentivise sustainable, resilient practices such as agroecology, introduce early warning systems and adaptive safety nets such as crop insurance, and digital services such as localised weather forecasts.
Elizabeth Nsimadala, President of the Eastern Africa Farmers Federation (EAFF) which represents 25 million smallholders said, “This isn’t charity – it’s an investment in the food security of people right around the globe. Smallholders produce half the world’s food calories, support 2.5 billion livelihoods, and are central to global supply chains of commodities such as rice, wheat, cocoa, and coffee. Investing in smallholder adaptation benefits us all.”
Adaptation- A Key Agenda at COP30
Adaptation is high on the agenda at COP30. Agreement is expected on the indicators that will track progress on the global goal on adaptation and shape national adaptation plans. However, the current list does not include specific indicators on finance flows to smallholders.
The report highlighted ongoing questions about funding for the goal, particularly whether developed nations will deliver on their promise to double adaptation finance to $38-40 billion by 2025, or if a replacement target will be agreed upon.
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