The Inter-American Development Bank (IDB) has approved a loan of US$85 million to improve productivity levels in Peru’s agricultural sector through greater access for producers to innovation, technology transfer and agricultural extension services.
One of the problems that the sector suffers from is its low level of productivity in the mountains and jungle, where 85% of family farmers are located. Other weaknesses that will be addressed with this project are the low investment in agricultural research and a poorly developed transfer of technology.
The loan approved by the IDB’s Executive Board will allow for strengthening research capacities to diversify the technological solutions generated by the Institute for Agrarian Innovation (INIA). It is also planned to improve the coverage of the agricultural extension service with a focus on family farming.
Transforming agriculture
The project will benefit more than 6,000 suppliers of the Agricultural Extension Service and some 92,000 producers. Indirectly, some two million family farmers in Peru will benefit, as the results of the research will be disseminated throughout the country.
When it comes to diversifying technological solutions, special attention will be paid to the challenges of climate change and the generation of opportunities for rural women and ethnic groups. The IDB loan has an 18-year amortization period and a six-year grace period.
