Commercial capital is channeled through a facility that extends loans to farmers. These facilities often pool funding from both commercial and catalytic sources, enabling greater scale while balancing risk and return
Applicability: Well-suited for a range of asset owners (e.g., pension funds, institutional investors) who seek to support farmer financing without direct engagement
Considerations: Success is dependent on effective matching of stakeholders with different risk-return expectations
Ecosystem outcome monetization: Positive environmental outcomes (e.g., carbon sequestration) of farmers are quantified and monetized through ecosystem outcome credits (e.g., carbon credits). This creates an additional revenue stream for projects and links sustainability outcomes directly to financial returns
Coordinates relationships and transactions between buyers/ investors and farmers to incentivize and implement practices that generate high-demand environmental outcomes, by creating a voluntary carbon credit platform
No outcomes so far – 5 to 8 targeted regional pilots; aim is to have $20M funding