This report provides an analysis of investment-level, annualised impact performance data from investors contributing to the GIIN’s agriculture impact performance benchmark. The focus is on the role of non-financial support in enhancing sustainable agricultural practices and the number of farmers served. Findings are based on regression analysis, helping investors identify patterns in impact results.

The report highlights the crucial role non-financial support plays in improving the impact performance of agricultural investments. It notes that investments without non-financial support serve 807 fewer farmers on average, compared to those with support. Furthermore, investments offering non-financial assistance serve 179 more farmers and 121 more women farmers annually than those that do not. This data demonstrates that combining financial investment with capacity-building support amplifies the impact.

Sustainable farming practices, while essential for addressing climate change and biodiversity loss, often come with high upfront costs and lower initial yields. Therefore, non-financial support is key in helping smallholder farmers adopt these practices, which include soil conservation, biodiversity assessments, and water quality preservation.

Non-financial support and sustainable practices

Sustainable agriculture, when effectively implemented, can improve climate resilience, support job creation, and empower women. Yet, transitioning to sustainable farming is challenging for smallholder farmers, who often lack the necessary resources. The report notes that 96% of the analysed investments target smallholder farmers, with 87% having certifications such as Fairtrade, organic, or Rainforest Alliance.

Non-financial support helps by providing technical assistance, financial literacy training, and guidance on sustainable practices. For instance, investments that offer such support improve the quality of services provided to farmers, leading to better agricultural yields and enhanced resilience against environmental shocks.

Impact on farmers and women

The report outlines several key statistics that are relevant for finance professionals. Investments providing guidance on how to use products and services serve an additional 2,157 farmers and 592 women farmers annually. Similarly, investments that monitor stakeholder satisfaction and labour conditions show an increase in the number of farmers served by 487 annually. These findings underscore the importance of offering both financial and non-financial support to maximise impact.

Implications for investors

The report suggests several recommendations for investors looking to enhance their impact in sustainable agriculture. First, providing non-financial support alongside financial investments can strengthen the performance of sustainable practices and increase the number of farmers served. Second, embedding sustainable agricultural practices can facilitate responsible investment exits, ensuring the continuity of impact beyond the investment period. For example, Beartooth Capital’s investment in a ranch in Montana illustrates how investors can extend their impact by ensuring a responsible exit strategy.

Finally, the report makes a strong business case for investing in sustainable agriculture, noting that such investments not only reduce environmental risks but also improve long-term profitability. Non-financial support plays a critical role in this, helping smallholder farmers adopt sustainable practices and, in turn, create more resilient, equitable food systems.

Conclusion

The report highlights the significant benefits of combining non-financial support with sustainable agricultural investments. For finance professionals, the data underscores the need for a holistic approach that includes both financial and technical assistance to maximise impact, increase the number of farmers served, and enhance the long-term profitability of investments.