World Bank Launches $38.75 Million Initiative to Support Smallholder Farmers

The Global Agriculture and Food Security Program (GAFSP), hosted by the World Bank, has unveiled a significant grant of $38.75 million aimed at uplifting smallholder farmers in 27 low-income nations spread across Africa, Asia, and the Americas. This funding is focused on enhancing food security, increasing farmer incomes, and enabling farming communities to tackle growing climate and economic challenges.

Supporting Farmer-Led Development Initiatives

Founded in 2010, GAFSP is a multilateral financing platform that has successfully mobilized over $2.44 billion in donations to bolster food and nutrition security in 55 low-income countries. The latest round of funding emphasizes investments led by producer organizations, making farmer cooperatives and unions the backbone of food system advancements.

A primary goal of this funding is to improve the capacity, financial sustainability, and governance of producer organizations. By enhancing services such as aggregation, storage, and market access, these organizations can better serve their members, ultimately fostering a stronger agricultural sector.

“Producer organizations unite the many millions of people working across the agrifood sector to ensure small producers can seize new economic opportunities,” stated Shobha Shetty, Head of the GAFSP Program. “This investment will have significant positive effects on farmers’ livelihoods and long-term resilience.”

Empowering Women Farmers

This financing initiative aligns with the celebration of the International Year of the Woman Farmer, placing women at the forefront of agricultural transformation. Women, who significantly contribute to agricultural production but often face systemic barriers in accessing resources, will be prioritized across all funded projects.

For the first time, regional producer organizations have qualified for GAFSP funding, facilitating improved cross-border learning and knowledge sharing within value chains.

The funding will support 16 projects led by producer organizations (14 national and 2 regional), ultimately benefiting an estimated 175,000 smallholder farmers directly.

Enhancing Resilience Against Climate and Economic Shocks

The grants aim to provide farmers and cooperatives with essential tools to mitigate the impacts of climate volatility and market disruptions. By strengthening producer organizations, this initiative will help farmers secure better prices, access new markets, and receive training in climate-smart agriculture, alongside improved financial services.

Agnes Kalibata, co-chair of the GAFSP Steering Committee, noted, “Having served as a Minister of Agriculture, I have witnessed firsthand the vital impact of investing in producer organizations on smallholder farmers and our national food security. These grants will empower smallholders to invest, innovate, and build resilience in the face of various challenges.”

Spotlight on Beneficiary Countries

A $2.5 million grant awarded to the National Platform of Farmers’ and Agricultural Producers’ Organizations in Benin will benefit 11,000 individuals, particularly youth and women, within the vegetable and poultry sectors. This initiative is expected to indirectly reach an additional 66,000 people through training in agroecology and efforts to enhance women’s land tenure and financial access.

In Sri Lanka, the Federation of Thrift and Credit Cooperative Societies will use a $2.5 million grant to assist 10,000 smallholder families in four districts. Notably, this project will ensure that 75% of its beneficiaries are women and youth, while expanding opportunities for climate-smart agriculture and cooperative agribusiness ventures.

In northern Haiti, a $2.49 million grant to the Union of Cocoa Cooperatives will support 2,000 farmers with climate-resilient training. This involves regenerating 500 hectares of land, enhancing cooperative governance, and creating avenues for higher-value market certification.

Addressing Food Crises in Vulnerable Regions

The GAFSP initiative is particularly pivotal in West and Central Africa, where projected food insecurity is expected to affect 55 million people during the June-August 2026 lean season. By reinforcing producer organizations facing climate challenges and economic instability, these projects aim to restore food system stability and rebuild livelihoods.

Building Long-Term Resilience in Agriculture

The GAFSP funding approach focuses on empowering farmer-led institutions to overcome structural barriers in access to finance, markets, and technical support. This strategy aspires to create stronger, more resilient rural economies capable of sustaining food security and supporting climate adaptation for the long haul.

As climate impacts intensify and the need for development finance grows, the latest allocation from GAFSP demonstrates a renewed commitment to equipping smallholder farmers with the necessary strength, tools, and market access vital for their success.