International Fund for Agricultural Development

The International Fund for Agricultural Development (IFAD) is a United Nations specialised agency that works to reduce rural poverty and hunger. It is also an international financial institution, providing finance and technical support for agricultural and rural development in developing member states.

Origin and institutional character

IFAD was established in 1977 following the 1974 World Food Conference, which called for greater investment in food production and rural development. Headquartered in Rome, it is an autonomous specialised agency linked to the United Nations system.

• Its Governing Council, comprising all member states, is IFAD's highest decision-making body.
• Its Executive Board oversees operations, while the President heads the institution.

Core mandate

Under the Agreement Establishing IFAD, its objective is to mobilise additional resources on concessional terms for agricultural development in developing member states. Its investments primarily seek to improve food production systems, nutrition and the living conditions of poor rural populations.

• IFAD provides loans and grants for programmes designed around national priorities and rural needs.
• It focuses particularly on small-scale producers, rural women, indigenous peoples and other economically vulnerable rural groups.
• It combines project finance with policy engagement, institutional strengthening and the sharing of rural development knowledge.

Relevance to agricultural marketing

IFAD promotes inclusive rural transformation by helping small producers participate more effectively in markets and agricultural value chains.

• It supports producer organisations, rural finance, storage, processing and market-linked infrastructure.
• It helps farmers improve productivity, diversify livelihoods and obtain better access to inputs, services and buyers.
• Its programmes also strengthen resilience to climate and economic risks that can disrupt production and market participation.