The International Fund for Agricultural Development (IFAD) has announced the signing of an agreement with the government of China, which will see $235.2 million invested into sustainable agricultural development in Hunan Province.
According to IFAD, the Hunan Specialized Forestry Industry Development Project (HuSFID) will benefit 128,000 smallholder farmers in the province over the next six years.
HuSFID will promote enterprise-led green agricultural investments that ‘combine improved production, market access, environmental sustainability and climate resilience’, it noted, adding that the total cost of the initiative is comprised of a $80 million loan from IFAD, and a $155.2 million loan from the Chinese government, private sector, and local communities.
‘Rural revitalisation’
“This investment in Hunan supports China’s rural revitalisation agenda and builds climate resilience,” commented Nii Quaye-Kumah, IFAD’s representative in China. “By promoting sustainable agricultural practices, the programme will empower smallholder farmers and ensure lasting economic and environmental benefits.”
Around a quarter (24.7%) of China’s population, particularly in rural areas, still lives in poverty – under the $6.85 daily income threshold – with climate change continuing to threaten development gains made in these areas. Hunan in particular is one of China’s most disaster-prone regions, with heavy rains, floods, snow, and freezing temperatures among the extreme weather events taking place last year.
Green value chains
HuSFID will develop three green value chains – for bamboo, tea seed oil (Camellia oleifera), and medicinal herbs – as part of the agreement.
‘[HuSFID] is designed to integrate smallholder farmers into these value chains, promoting inclusive, enterprise-led business models, helping farmers adopt climate-smart agricultural practices, encouraging entrepreneurship and employment among women and youth, and ensuring that all groups benefit including ethnic minorities,’ IFAD noted.
Since 1981, IFAD has financed 36 projects in China, amounting to a total investment of $3.66 billion, benefitting some 4.6 million rural households. Read more here.
