Increasing investment and spending in agricultural innovation is not enough to meet Sustainable Development Goal (SDG) targets of ending poverty and hunger because the effectiveness of investments in low- and middle-income (LMI) countries is affected by the low quality of infrastructure and services provided, and by different norms and practices that create a considerable gap between financing known technical solutions and achieving the outcomes called for in the SDGs.
Finance is a key lever for turning agriculture from a potential source of environmental harm and social inequity to a driver of conservation and social inclusiveness. Private and public sector funding for farmers to combat climate change and protect and restore nature (‘Paying for Nature’) is rapidly increasing. Yet this new funding may not reach its aims without drastically improving farm-level reward mechanisms.