To support the development of profitable, sustainable agriculture, farmers around the world need greater access to financial services. Financial inclusion serves as an enabler for seven of the 17 UN Sustainable Development Goals and is considered to be a key element for reducing poverty. As financial inclusion expands, more people can access financial services like banks and savings accounts, and can begin to use lending from public and private financial institutions. Improved access to financial services allows farmers to invest in adaptation strategies that can build their climate resilience – such as the use of new crop varieties or improved irrigation systems – that they may not have adopted before due to financial constraints or lack of a safety net. While excessive debt in a household or economy can be dangerous, the widespread use of lending services is a good indicator of financial options. According to the World Bank, 22% of adults worldwide borrowed from a financial institution in 2017. This number increased to 28% in 2021.
To support the development of profitable, sustainable agriculture, farmers around the world need greater access to financial services. Financial inclusion serves as an enabler for seven of the 17 UN Sustainable Development Goals and is considered to be a key element for reducing poverty. As financial inclusion expands, more people can access financial services like banks and savings accounts, and can begin to use lending from public and private financial institutions. Improved access to financial services allows farmers to invest in adaptation strategies that can build their climate resilience – such as the use of new crop varieties or improved irrigation systems – that they may not have adopted before due to financial constraints or lack of a safety net. While excessive debt in a household or economy can be dangerous, the widespread use of lending services is a good indicator of financial options. According to the World Bank, 22% of adults worldwide borrowed from a financial institution in 2017. This number increased to 28% in 2021.
