Why resilience pays off
For small-scale farmers, resilience isn't just about preventing loses – it's about creating lasting value. That’s why climate adaptation is the key to prosperity, stability and shared growth.
As the world looks toward COP30, we unpack why adaptation is one of the smartest investments we can make – and how bold climate action drives thriving rural communities and economies. Plus, we meet with a small-scale farmer in Malawi who is dedicated to boosting rural youth employment.
Find out more: Why resilience pays off - Episode 95
Transcript
This is Farms. Food. Future. – a podcast that’s Good for You, Good for the Planet, and Good for Farmers.
Brought to you by the International Fund for Agricultural Development.
::Welcome to episode 95. I'm Brian Thomson.
::And co-presenting this edition, I’m Michelle Tang.
::World leaders are in Belém, Brazil this week for COP 30 negotiating, climate finance and adaptation commitments.
::So we wanted to look at what those commitments actually mean on the ground: where the money goes and what it does for farmers.
::Because here's what the data shows: Every dollar spent on climate adaptation can generate up to $10 in benefits.
::That's right, ten to one returns.
And the global market for climate adaptation is already approaching two trillion dollars a year.
::But, most smallholder farmers never see it.
::So today we're looking at how that changes, what's working and what farmers in places like Malawi actually need to build resilience.
::Stay with us and as always, we want to hear from you what you think about our stories and who you want us to be talking to.
So please get in touch with us at podcast at podcasts at ifad dot org.
::You can also subscribe to this podcast via your favourite podcast platform. And please don't forget to rate us.
::Coming up, we speak to IFAD's Jahan Chowdhury about why resilience is one of the smartest investments a country can make.
::You're listening to farms, food future with me, Brian Thomson and Michelle Tang.
Over the last few years, IFAD has nearly doubled the share of its financing that targets climate action from around 1/4 of its portfolio to almost half.
::But here's what matters, that money is generating returns that go far beyond the initial investment.
::Right.
We're talking about drought resistant crops, getting into farmers hands, solar powered irrigation in regions that used to depend entirely on rainfall.
::Digital finance reaching people who have never had a bank account. Insurance that means when disaster hits, families can rebuild. Instead of starting over from scratch.
::And the economic multiplier effect is real. Every dollar IFAD that invests, mobilises up to $10 in private lending for small holders.
::Our reporter Rosa González spoke with IFAD’s Jahan Chowdhury to understand how climate finance can work as an economic engine, not just a safety net.
::Well, welcome, Jahan. Thank you for being here with us today.
::Thank you.
::Let's start with something that's at the heart of IFAD’s work, climate finance, because IFAD has scaled up climate financing from 25% to nearly half of investments today. But beyond the numbers, how does this actually translate into real impact for all communities?
::So yes, you're right.
. So that's between:00:04:47 Rosa
You mentioned how efforts approach is evolving and that brings us to your new strategy, a strategy that integrates climate, environment and biodiversity, treating them not as separate goals but as parts of one system. Can you tell us what's new about the integrated approach and how will it help countries get more impact for every dollar invested?
::We don't necessarily have to treat climate, environment and biodiversity separately, so it's about integration. It's about Co-benefits. We are trying to be smarter when it comes to our financial architecture. So, as you know, we have our core financing investment coming from IFAD’s balance sheet, but we are also mobilising supplementary funds from climate and environment funds. Now, if you take the volume into account, so far, we have mobilised over 1 billion U.S. dollars. We're also borrowing from the market. We have private placements; we are issuing bonds. So, the question is how do we integrate various different streams of financing, into one that could directly contribute to climate on the ground. We are also being outward looking, meaning that we are looking at the market, rather than just focusing on international aid rather than just focusing on development, part of that aid we are trying to see to what extent we can use the market force to incentivize our small-scale farmers.
So again, what does that actually mean? Think about carbon market. I was giving you an example of the total value of the carbon emission in terms of our impact on the ground. So, if we can connect these small-scale farmers and if we can incentivize them for better practising Land Management, for example, then it means that they have other ways of getting resources and the other ways in this case would be the market. So those are the three changes that we are trying to bring. Which is essentially a change of narrative moving away from a dependency to focusing much more on the growth agenda. And for us, it is the first time that we are doing it, but once this is approved by our Executive Board in December, then it will be the first strategy. Ever. That combines all of these three different streams into one for any international financial institution.
::And what does this shift in narrative from climate for aid to climate for growth look like in practise?
::I think you can frame it from 4 different perspectives, so it's about prosperity. Why are we calling it prosperity? If you're investing in climate is because imagine we are investing in climate resilient seeds. We are investing in climate resilient infrastructure. We are giving the small scale farmers access to the market, what really happens here is that the small scale farmers will be increasing their yield. That essentially means that they're increasing their income. They can expand their local community market. So, it's about prosperity. And when the small-scale farmers are resilient and they can keep the supply chain intact, even in a case of a disruption that can be caused by climate change. Which again means that if the supply change is not disrupted, you can keep the price stable in developed countries. Think about coffee or think about sugar that are being produced in developed countries. If you are disrupting the supply chain, the price of sugar is going to go up. The price of coffee is going to grow. Which essentially means eventually the consumers in all the countries that are coffee lover is going to have the impact.
The second is it's about stability. Imagine investing in adaptation is like you're buying insurance now, so you can avoid future damage and future cost. So, for governments that is extremely important because if there are future costs, if there are future damages, then this will have a major impact on their fiscal situation. And if that is the case, then the tax base is going to go down and the governments will not necessarily be able to ensure that they can attract the private sector financing. So, it's about stability, it's about fiscal stability. And the third one is about investment opportunity adaptation climate would give and is already giving a lot of investment opportunity. Think about the value chain, you know, on one hand you're looking at climate resilience, seeds distribution. There's plenty of opportunity for the private sector to play a role. You can think about whether index insurance you can think about digital advisory services. You can think about AI analytics that can be deployed for forecasting weather information into the future you can think about cold storage. You can think about renewable energy -for each of these components. There is tremendous opportunity for the private sector to come in and invest. So, this is also about an investment opportunity. So, I would say it's not only just a story about growth, but it is a story about prosperity that's shared. It's a story about investment opportunity. It's a story about fiscal stability.
::Umm, thank you. And you've also said before that resilience is the best return on investment. How do you demonstrate that, especially to ministries of finance or investors who tend to think in terms of bottom line?
::We are coming with a publication that is going to be launched at COP 30 very soon where we have demonstrated that there is really an investment case behind adaptation finance. I'll give you a concrete example, in Bangladesh if that has invested approximately 150 million U.S. dollars for a coastal resilience project.
Majority approximately 90 million years dollars was invested in building resilient road infrastructure. The return was actually quite extraordinary, I would say because of that road, the transport cost reduced by approximately 60%. The travel time reduced by 55 % and the operating cost for vehicles reduced by 45%. If you then think about the total and seller volume, it increased by approximately 60% and sales in the marketplace increased by 70% and the lease value of the market that we had built that our climate resilient have increased by 40% if you take all of these things into consideration, we are looking at an economic internal rate of return of 35%. Now these are the numbers that are very important for us to take to the finance ministries that again going back to what I was saying that this is a story about growth. This is story about prosperity, and this is a story about investment opportunities.
By increasing the resilience capacity of our target group small scale farmers, we are also ensuring that interest rate remains stable. The insurance premium remains stable and at the end of the day it also creates opportunities for the private sector to grow.
::And that connects closely with another pillar of effort's work, which is family farming. How is he fed? Making the case that family farming isn't just about feeding communities, but also an engine for jobs, markets and economic stability?
::So, the family farming is producing approximately 80% of the food value that we are getting worldwide and we need to build a pipeline of projects. It's very important for the investors to understand where the pipeline is, what value it adds and what are the business opportunities in that pipeline.
But the pipeline is not necessarily going to be sufficient if you're not de risking some of the investment that may come from the private sector. So that's where it's important for us to think about blending, how the financing from the development sector can come to derisk some of the financing of the private sector. So, you essentially deploy, you come from a development side, you derisk using instruments which is guarantee or providing grant to conduct the feasibility study or provide transitional loans and then the private sector would come when they see that the risk has been reduced with more resources.
But the third thing is also about bundling. Sometimes we see that the family farms are so small that it doesn't necessarily give you enough volume for the private sector to get a return. So how can we bundle various different projects together that would have sufficient scale and sufficient volume for the private sector to come in?
So those are the three suggestions that we have come up with that we need to focus on building the pipeline. We need to blend the financing and we need to bundle various different investment project.
::So as we head towards COP 30 and Belem, what's the one message you want decision makers to walk away with about adaptation, resilience and rural investment?
::Our one message is going to be adaptation is, uh, important investment opportunity as we have highlighted in our forthcoming publication and investing in adaptation now is going to ensure that your future investment in other sectors are secured.
::Thank you, Jahan and Rosa.
::We've heard that adaptation isn't just preventing disaster, it is creating economic value.
::And this matters for national stability, too. Countries that invest early in resilience tend to lower borrowing costs and avoid the ripple effects of food price shocks, unemployment or migration.
::That's right, adaptation pays back sometimes in ways we don't expect.
::Which is why our next conversation matters, because climate resilience doesn't work in isolation. It depends on something we often take for granted biodiversity.
::You’re listening to episode 95 of Farms. Food. Future. with me Michelle Tang and Brian Thomson.
Biodiversity sits alongside climate and environment as a key nature-based solution for adaptation.
::Healthy ecosystems mean healthier farms, fertile soils, adaptable crops, animals that withstand disease and drought.
::And one of the key players in that equation is livestock. How animals are raised, where they graze, what breeds farmers choose.
All of it has direct impacts on soils, water and entire ecosystems.
::Anne Mottet is IFAD's Lead Global Technical Specialist for Livestock.
She joined Ty Beal on 'The Ty Beal Show' to talk about how animals shape our environment, and why removing livestock from marginal lands can actually harm biodiversity.
::Let's listen to part of that conversation.
::Can you tell us about biodiversity and how do livestock influence this biodiversity?
::Yes, of course. Let's first see what we consider biodiversity in the discussion here. For me, it's it's not only, you know, emblematic animals like like endangered species, and we're talking about first the the agricultural biodiversity. So, all the breeds and the species of of of crops that we grow, all the trees that we benefit from. We start with that, but then it's also the the biodiversity that. We don't see. The microbiome, all the bacteria and fungi that are again in the soil or in the in the rumen of the animals, in the stomach of the animals that allow them to digest. So, this biodiversity is, is, is very large. And and we know that we're losing biodiversity. It happened in the past because of of, you know, the Ice Age or so on. But now it's happening at a faster rate because of human activities. And the more we lose biodiversity, the less tools we have to feed ourselves and to adapt to climate change or adapt to crisis, and because we depend on very few species and varieties and they become very, very valuable if you have 10 different crops in your garden, one or two may fail, but you still have the other ones. If you put everything on wheat and maize and soy, then you equipped with very little. And you're not very resilient. You're very vulnerable. It's the same with livestock. If if we only only grow Friesian cows, black and white dairy cows everywhere in the world, they, they, they might suffer a lot from heat stress in some countries they might not be resistant to some diseases in some countries that are endemic, and we are very vulnerable. So, for me the the biodiversity is is all this, the one that we manage and the and the natural and including the one we don’t see, and livestock has impact on all of this. For example, livestock, can…. We already talked about climate and climate change impacts, biodiversity a lot. We higher temperatures, the mix of species and varieties in the grass, in those marginal areas that we talked about changes because they're not only adapted to the same temperature or the same amount of water, so you see a switch from a mix to another mix that might not be as interesting for grazing animals, as there used to be, there's also impact of climate change directly on velocity in terms of how disease vectors propagate. So there used to be diseases that were confined to some part of the world, and because temperature increases.
The vectors, for example mosquitoes or little insects that carry this disease, they go further and further away, and they arrive in places where this disease did not exist. And and now our animals are affected from diseases from the other side of the world and. So, this is also an impact, but the livestock sector also impacts biodiversity through pollution or regulation of water quality. Uh, so if you have a very highly concentrated amount of animals in one area, they will release a lot of manure and urine and there will be a lot of discharge or nitrogen and phosphate. So, components, molecules that are very important for agriculture, for crops. But if you have too many of them, then it's not balanced and it it will not be absorbed by the plants and it will arrive in in surface water, in rivers, in, in, in, in basically in water and it will contribute to water pollution some phenomenon, like eutrophication. So, you can have green algae developing and and and you know basically invading water points because of this excess of nature. But on the contrary, if you have a good amount of menu and a good stocking rate of the animals you regulate the water quality because you have roots of plants benefiting from that and they philtre water and you can have positive impacts on on on water streams. So, it's all about you know balancing because it is in the negatives. Yes.
::OK, so I'm hearing that there's, uh, there's an impact from livestock that can be harmful. If it's not, you know, if these animals are not managed properly, there's too much of the the waste that ends up into the water streams and can pollute, cause cause destruction. But they can be. They can be sort of managed in a way that helps the environment, is that right? Am I hearing that do do…
::Absolutely yes.
::The livestock then in these contexts where they're produced. Is there always a way to manage them in a in a way that is sustainable? Or is there sometimes is the solution? You know what we need to probably not have livestock on this land.
::I think there's no part of the world where you cannot have livestock and and if you think about it, there's no part of the world where humans arrived and didn't start or had already animals.
::I think there's no part of the world where you cannot have livestock and and and if you think about it, there's no part of the world where humans arrived and didn't start or had already anpmals. The question is really how many and and for how much resources that you have locally and what you do with you know the the the venue basically. So, for me it's it's really a question of stocking rates. Rather than, you know, some, some ecosystems, ecosystems cannot have livestock. But when you say livestock, we need to think about all again. Biodiversity, all the types of animals. So, in some cases, grazing animals are better because you. Has rangelands, pastures all these marginal land that you cannot do anything else with? In some cases it will be chicken and and and pigs because for example you have a very, I mean locally diverse agroecosystem lots of of different crops. And a growing period that is very long, for example, around the tropics, all the mixed crop livestock farming systems around the the tropics where you have a large diversity. You, you, you, you, you have a lot of biomass to recycle. Uh. Household waste, for example. All the all the, the the crop residues, the peeling from the vegetables from all these things, they can be recycled by being fed to to chicken or pigs. So it depends on on, on where and. And in which context? But there's always an optimum. It has to do with the number of livestock and the type of livestock to be adapted to the context.
::Thank you, Anne and Ty.
You can listen to the full interview in ‘The Hidden Story of Livestock’ episode of ‘the Ty Beal show’.
::And while you're subscribing to shows catch up on our recent episodes, if you missed them, episode 92 for World Mental Health Day explored mental health and farming from climate anxiety to healing through agroecology.
::Episode 93 for Rural Women's Day featured women farmers and entrepreneurs reshaping our food systems.
::And in episode 94, we investigated school meals and food policy, asking how food systems can actually deliver safe, nutritious, sustainable food for everyone.
::Now to wrap up episode 95. Yes, 95, we're heading to Malawi to meet Clara Kamlomo, founder of Amazing B Projects.
::You’re listening to Farms. Food. Future. with me Brian Thomson, and Michelle Tang.
Everything we've been talking about: the finance, the resilience, the returns… it all depends on people choosing to stay in agriculture.
::Particularly young people, because without them, none of these investments matter.
::Our next guest, Clara Kamlomo, is turning that challenge into opportunity.
In rural Malawi, she's leading Amazing B Projects… creating jobs, mentoring young farmers, and making agriculture look like an actual career option.
::Especially for young women who might otherwise face early marriage or migration to cities for work.
::Our reporter Kat Velastegui spoke with her.
::Good morning, Clara. Thank you very much for being a part of this episode of the Farms Food Future Podcast. To begin with, we'd like to ask you what inspired you to start farming, and how did that lead to creating jobs and training opportunities in your community specifically?
::Thank you so much for having me on this programme. It's a great honour to show to share my story with the rest of the world. So, what inspired me to start farming was the high unemployment rates in Malawi, especially among young people. I saw that while we were importing a lot of high value horticulture crops like garlics, ginger, green peppers, button mushrooms. We had the land and water right here at home to grow them ourselves, and that gap, that's what drove me to take farming seriously. Not just as a person of venture, but as a way to create jobs and train others by utilising the excess land, land and water I've been able to involve others, especially youth and women, in production, agriculture activities that generate incomes and improve life routes. So, in the process I also created a job for myself, as well as young people in Malawi.
::On that same sense, we know you're working closely with women and young people in Mitundu. What have you seen as the most important things that rural communities need to build better and more secure livelihoods?
::So, from my experience, the rural communities need practical models. OK, someone that they can look up to. And see that agriculture is a real career, not just a fall back. You know what? Kat. In these rural communities, most of the people are uneducated, so a girl child will be growing there, or a youth will be growing in that village without admiring someone without anybody in the community who admire all the girls do get married. At a very tender age, maybe 15,16,17,18 because they haven't seen the other side of life, they haven't seen other girls, because how they are doing, so it's important that we parade models in this community to change the mindset about agriculture. So, when people see someone from their own village succeed in farming, it changes their perspective. And beyond that, the access to loans, hands on trainings and strong policies that protects them and supports smallholder farmers are very essential. So, these elements can help empower rural families to build better and more secure livelihoods. Through this, we can make agriculture more appealing to them, and we can change their lives by attracting them to agriculture.
::So, it's evident that you're clearly passionate about changing how people see farming and especially young people. So, how are you shop helping shift that mindset and show that agriculture can also be a real path to success?
::So, because I am based right in a very rural community. I make sure that I participate in agricultural activities, football matches, gathering of young people so that I make friendship with them, and then they see that I'm different from them, how they are living their lives, and they they admire. I also focus a lot on social media because that's where young people are. I share pictures and videos of myself working on the farm. But also enjoying the rewards of that hard work, whether it's a harvest, a new achievement or just moments of of success, this helps show the full picture that farming is not only fulfilling but also profitable. So, I want to make agriculture cool again, especially for young people who think success only exists in offices. So, sharing my story every day is what I am doing to really shift the mindset and show that agriculture can be real. A real path to to success. I have to be the first example to make agriculture appealing to young people.
::That's true, and it's very inspiring. And finally, we wanted to know, looking ahead, what is your vision for rural agriculture in Malawi more broadly and also how can organisations like IFAD, for example and international partners support change makers like you and scaling up your impact?
::On the same question, let me take an opportunity to thank IFAD for the great impact they have brought to my life, and they have really pushed me. I'm a role model now in Malawi because of the support that I'm getting in at effort and it's really important that we also discuss how. If it can further, you know, influence such and change a lot of things in in different countries. So, my vision is to establish a fully established registered hub that trains people. Right now, I'm training a lot of people, but we want it to be officially established and recognised. OK, so that, especially those without formal education on practical farming in agri-business I want to form cooperatives that I can mentor support with, access to markets and help grow into sustainable businesses. I also dream of upgrading my farm with high technology irrigation systems so that I can increase production and become one of the leading young horticulture suppliers. In below and even beyond. So, to scale this this vision, organisations like IFAD and international partners can support by providing funding, funding, mentorship and market linkages, as well as helping advocate for policies, policy involvements that favour youth led agriculture.
::You can find out more about Amazing B Projects on their Facebook page – just search Amazing B Projects Malawi.
::And that brings us to the end of this episode.
::Thanks as always to our producers and editor here in Rome, Rosa Gonzalez, Katie White, Francesca Prima Villa Anto, our reporter, Kat Velastegui.
::But most of all thanks to you for listening to this episode of Farms Food Future brought to you by the International Fund for Agricultural Development.
::We’ll be back in two weeks with our Life Stories series.
This time, we’re cooking with cocoa from Peru!
::And on the second Monday in December, we'll be shining a light on disability inclusion in farming.
::Stay tuned.
::This is farms, food, future, a podcast that's good for you, good for the planet, and good for farmers brought to you by the International Fund for Agricultural Development. You can find out more about all of our stories at www.ifad.org/podcast.
Remember, we want to hear from you what you think about our stories and who you want us to be talking to. So please get in touch at podcasts at ipad.org. Send us your voice or text messages to this address and we'll be happy to play you out in the next show. Also, don't forget to subscribe to this podcast via your favourite podcast platform and please rate us and once again we'll be trying to be good for you, good for the planet and good for the farmers. Until then from me, Brian Thompson and the team here at IFAD. Thanks for listening.
