Small farmers in nine Mexican states will receive support to enhance their resilience against extreme weather through an $8 million investment grant from the Inter-American Development Bank (IDB). The grant, approved by the IDB’s Board of Executive Directors, will finance nature-based agricultural projects that protect soils, water, and ecosystems while strengthening farm-level resilience, safeguarding rural livelihoods, and promoting food security.
The IDB grant will provide partial credit guarantees via Mexico’s Agricultural Trust Funds (FIRA), a public financing mechanism managed by the Central Bank of Mexico. These guarantees share financial risks with participating banks, making it easier for them to fund projects that might otherwise be considered too risky.
The project is expected to mobilize approximately $30 million in guaranteed loans, benefiting around 3,000 small farmers in vulnerable, high-poverty regions. By reducing risk for financial intermediaries, the initiative aims to encourage ongoing participation of the rural financial system in adaptation lending, offering smallholders improved access, longer loan terms, and better financing conditions.
The Inter-American Development Bank, founded in 1959, works across Latin America and the Caribbean to support sustainable and inclusive development. By combining financing, technical expertise, and knowledge, the IDB promotes economic growth and well-being in 26 member countries.
