Rural finance
With access to finance, rural people can produce more, grow their enterprises, earn more and get through hard times.
Risk and uncertainty are inherent to agriculture. Common risks include climate change, disease and shocks – from financial crashes to natural disasters. Other risks relate to logistics, infrastructure, public policy and the political situation. The climate crisis and volatile markets have made some risks more severe in recent years.
Small-scale farmers are especially vulnerable to risk. They may have difficulty assessing and managing risk. Often, they cannot benefit from opportunities to improve their businesses and strengthen their resilience and livelihoods.
Holistic Agricultural Risk Management (ARM) is an innovative approach for improving rural resilience, as well as for leveraging finance and investment in agriculture. ARM increases small-scale farmers’ capacity to assess, prepare for, manage and adapt to risks.
PARM combines quantitative and qualitative data to analyze agricultural risks. It generates evidence on key risks that significantly impact the entire economy or specific value chains. PARM quantifies and prioritizes these risks, and recommends appropriate tools to manage them.
When requested, PARM provides technical assistance to translate the proposed ARM tools into actionable investments in projects or programmes.
PARM facilitates dialogue between governments and stakeholders to:
Launched in 2013, PARM is a G20 initiative which is hosted and managed by IFAD. It is co-financed by the European Commission, the French Development Agency, the Italian Government and IFAD. PARM partners with the African Union Development Agency New Partnership for Africa's Development, as well as multiple international and regional partners.
Technical Specialist, Platform for Agricultural Risk Management
[email protected]Knowledge Management Specialist, Platform for Agricultural Risk Management
[email protected]