UN Launches $40M Fund to Stop COVID-19 Fuelled Rural Food Crisis
The UN’s International Fund for Agricultural Development (IFAD) has sprung into action with a $40 million boost to save the world’s most vulnerable farmers from a looming food crisis sparked by the COVID-19 pandemic and economic slump.
New Fund to Shield Farmers from COVID Fallout
IFAD’s brand-new COVID-19 Rural Poor Stimulus Facility aims to keep rural communities growing and selling food despite lockdowns and market chaos. This multi-donor fund will tackle disruptions hitting food production, market access, and rural jobs head-on. Along with its initial $40 million investment, IFAD is scrambling to raise another $200 million from governments, charities, and businesses.
“We need to act now to stop this health crisis transforming into a food crisis,” warned Gilbert F. Houngbo, IFAD President. “The fallout from COVID-19 may push rural families deeper into poverty, hunger and desperation—a threat to global stability. Immediate action can give rural people the tools to recover faster and avert a humanitarian disaster.”
Farmers Locked Out of Markets and Supplies
Small-scale farmers are trapped by movement restrictions, unable to buy seeds or fertiliser, or sell produce. Transport shutdowns and export blocks are wrecking food supply chains. The hardest hit include daily labourers, small traders, informal workers—many of whom are women and young people.
Adding fuel to the fire, migrant workers returning from locked-down cities strain rural households that are also losing crucial remittances.
Rural Poverty Hits Hardest—Millions at Risk
- 80% of the world’s poorest, food-insecure people live in rural areas.
- Over 820 million already suffered hunger before COVID-19 struck.
- A UN study warns the pandemic could plunge an extra 500 million into poverty.
“This pandemic threatens years of progress in reducing poverty,” Houngbo said. “To avoid crashing rural economies, agriculture and food markets must keep moving.”
“Many of the poorest also battle climate change and conflict. The crisis risks sparking more hunger and instability, especially in fragile nations.”
How the Stimulus Facility Will Help
- Provide seeds, livestock, and fishing inputs so farmers can withstand the economic shock.
- Support market access, including logistics and storage, despite lockdown fences.
- Offer emergency funds and ease loan repayments to keep rural businesses afloat.
- Use digital tools to share vital info on weather, finance, and markets fast.
Proven Crisis Support, Ready to Roll
IFAD has a track record of stabilising rural economies during epidemics. During Ebola in Sierra Leone, IFAD-backed banks were the sole financial lifeline, helping communities recover swiftly.
Even before COVID-19, IFAD was ramping up rural development funding to meet the UN’s goal of ending hunger by 2030.
“The pandemic offers a chance to rebuild food systems with resilience and fairness,” Houngbo stressed.
To date, over 65 governments have asked IFAD for help responding to the COVID crisis, prompting the organisation to adapt projects and redirect funds immediately.
