Seville, 30 June 2025 – At a pivotal moment during the 4th International Conference on Financing for Development (FfD4), the Global Donor Platform for Rural Development (GDPRD) hosted a high-level side event under the scorching Andalusian sun.
The session, titled “Financing Agrifood Systems for People, Planet and Prosperity,” marked the launch of a new White Paper calling for a dramatic shift in how the world invests in agrifood systems.
Links
Event recording
The central message?
Agrifood systems are at the heart of prosperity, climate resilience, job creation, health and global stability. And yet, they remain chronically underfunded.
“Transforming agrifood systems is one of the smartest investments the world can make,” said Maurizio Navarra, GDPRD Secretariat Coordinator. “It’s not a moral luxury, it’s a strategic imperative.”
The White Paper argues for a paradigm shift: from piecemeal projects to large-scale, system-level investment strategies. Moderator Jim Woodhill, GDPRD Senior Advisor, called it “a call to action to align public and private finance in a way that truly delivers transformation.”
Key messages:
- Less than 1 per cent of global climate finance supports small-scale agriculture [1] – yet agrifood systems contribute almost one-third of global greenhouse gas emissions [2] and generate US$12 trillion annually in hidden costs [3], linked to health problems, environmental harm and poverty.
- Strategic investments of US$1.2 to US$1.4 trillion per year [4] could yield tenfold economic, social and environmental returns.
- De-risking instruments like blended finance, collaborative financing agreements and systemic coordination are the way forward.
Panel highlights:
Alice Ruhweza, AGRA President, underscored the need for alignments and alliances:
“We must bring together the 4Ps: public, private, philanthropic and policy actors, to scale what works. No one player can do this alone.”
Lawrence Haddad, Executive Director, Global Alliance for Improved Nutrition (GAIN), stressed the importance of reframing the narrative and collaboration to be the change we want to see:
“Agrifood systems aren’t old-fashioned or backward – they’re the frontier. We must meet investors where they are, not drag them to where we are.”
Ron Hartman, IFAD Director of Global Engagement, Partnership and Resource Mobilization, reminded participants of the broader stakes:
“Food systems aren’t just about food. They’re about security, peace and prosperity. And they’re essential to rebuilding trust in multilateralism.”
Chris Isaac, Chief Investment Officer, AgDevCo, added:
“Private capital won’t flood in without blended finance. But if we get it right, we could see massive economic returns. We have the models. Now we need to scale.”
Roel Messie, Chief Investment Officer, IDH Investment Management, stressed the role of large-scale aggregation and local banks:
“Farmer finance can become a viable type of investment. But only if we address risk, scale and efficiency – with smart public-private partnerships.”
David Laborde, Director, Agrifood Economics and Policy, Food and Agriculture Organization of the UN (FAO), closed with urgency:
“Food systems are not just an economic sector. They’re the bedrock of civilization. If we don’t invest now, we may not have ten billion people to feed.”
What’s next?
The White Paper will inform major policy moments in 2025, including the UN Food Systems Summit Stocktake (UNFSS+4), the 30th UN Climate Change Conference of the Parties (COP30) and the next Plenary Session of the Committee on World Food Security (CFS 53). The Donor Platform will continue brokering partnerships and advocating for systemic financing strategies. As Jim Woodhill concluded:
“We must stop treating food as an afterthought in development.
It is actually the engine.”
[1] Climate Policy Initiative. (2023, 22 November). 44% drop in climate finance to small-scale agrifood systems reveals need for action. [Press Release].[2] FAO. (2023). Agrifood systems and land-related emissions. Global, regional and country trends, 2001– 2021. FAOSTAT Analytical Briefs Series No. 73. Rome.[3] The SOFI 2023 Edition (FAO. 2023. The State of Food and Agriculture 2023. Revealing the true cost of food to transform agrifood systems. Rome (Chapter 2)) estimates these costs to amount to US$12.7 trillion. The estimated hidden costs of a poorly functioning food system on health, human productivity, the environment and society vary, and further analysis is required. However, in orders of magnitude all current analyses are broadly consistent in pointing towards such costs being at least 10% of global GDP.[4] The estimated costs of transforming food systems vary substantially depending on which factors are being included and the time frame over which the investments are being made. (FAO, IFAD, UNICEF, WFP and WHO. (2024). The State of Food Security and Nutrition in the World 2024 – Financing to end hunger, food insecurity and malnutrition in all its forms. Rome. Chapter 4.1.; Laborde D., & Torero, M. (2023), as well as Modelling actions for transforming agrifood systems, Science and innovations for systems transformation. pp 105-132). In these two papers, US$ 1.2-1.4 trillion per year till 2030 is taken as an indicative level of investment that would enable substantial progress towards overcoming malnutrition in all its forms while tackling the structural constraints to more sustainable and equitable agrifood systems. It is important to note that the costs are a global total and not just for low- and middle-income countries.
