Agricultural and climate finance: first online FAR regional training session held in Central America
The first regional online session of the Agricultural and Rural Finance Training Programme (FAR) for finance professionals in Central America and the Caribbean has just been completed. The training aims to enable participants to better support agricultural value chain actors, particularly smallholder farmers, in a context increasingly shaped by climate change challenges. This session marks an important milestone in the rollout of FAR in the region, combining online learning with in-person peer exchanges.
The first online session brought together senior professionals from 68 organisations across 12 countries, including microfinance institutions and banks. It will be followed by an in-person session from 8 to 10 June. Part of the annual REDCAMIF conference in the Dominican Republic, the objective is to foster further peer-to-peer exchanges.
Drawing on INCAE’s regional expertise
The training provided participants with both a strategic and operational perspective on climate-related challenges in agricultural finance. The session was based on an online course developed by INCAE Business School, covering topics such as the fundamentals of climate finance, climate risks for financial institutions, adaptation and resilience strategies, as well as the design of financial products supporting climate-smart agriculture and ecosystem-based adaptation. Particular emphasis was placed on practical applications for financial institutions, including risk management, product innovation and the financing of resilient agricultural systems.
From theory to practice
To bridge the gap between theory and practice, two webinars presented practical experiences from the region. The first webinar highlighted the microfinance institution Financiera FDL’s experience in developing green financial products for farmers and livestock producers in Nicaragua. Through its “Green Package”, the institution combines tailored credit, technical assistance and financial incentives for producers adopting more sustainable agricultural practices, with the aim of strengthening climate resilience and the sustainability of farms.
The second webinar, led by the World Food Programme (WFP), presented several insurance mechanisms to help vulnerable communities better withstand climate shocks and protect their livelihoods.
The FAR training programme is jointly organised by ADA and the Food and Agriculture Organization of the United Nations (FAO), with the support of the Luxembourg Cooperation and in collaboration with the Central American and Caribbean Microfinance Network (REDCAMIF) and the Latin American Centre for Competitiveness and Sustainable Development (CLACDS) at INCAE Business School.