Forest and farm producer organisations offer immense potential for channelling vital climate and nature finance to rural communities, and funders and governments should do more to support them, according to new IIED research.

IIED has published new research highlighting the potential for forest and farm producer organisations (FFPOs) to generate crucial investment finance for their members and deliver climate and nature funding to rural communities. 

Small-scale and family farmers and Indigenous Peoples are central to the sustainable management of forests and agriculture. They own or manage almost half of forests and farmlands worldwide and play an important role in protecting landscapes, supporting biodiversity and promoting food security. 

However, these rural communities have little access to external finance, limiting their ability to invest for the future. 

How FFPOs can bridge the funding gap

IIED's research suggests that producer organisations can fill this funding gap by mobilising internally generated finance to provide financial services to their members. 

Forest and farm producers often form FFPOs to collaborate to reduce costs, share knowledge, increase the scale of production and advocate for supportive government policy. FFPOs range from small sector-based cooperatives to large national organisations that link many small local networks.