Acumen Commits $300 Million to Agricultural Adaptation in Developing Markets

Acumen, a nonprofit impact investor, has announced a $300 million commitment over the next five years to advance agricultural adaptation efforts across East and West Africa, India, Latin America, and Pakistan. This initiative positions Acumen among the largest investors addressing agricultural adaptation for small and vulnerable farmers in developing markets.

The investment seeks to address significant funding gaps in climate finance. Although global climate finance reached $660 billion, only $7 billion—or 1%—was allocated to agricultural adaptation. Acumen’s goal is to mobilize an additional $1.2 billion to support nature-based solutions, climate-resilient farming practices, adaptation technologies, and innovative financial mechanisms.

Acumen founder and CEO Jacqueline Novogratz emphasized the importance of closing the adaptation funding gap, stating that while the investment is a significant achievement, it underscores the global failure to address the imbalance in climate finance. She expressed hope that this commitment would inspire greater ambition and demonstrate that agricultural adaptation is feasible.

Acumen’s strategy focuses on smallholder farmers, who play a critical role in global food systems yet are among the most vulnerable to climate change. These farmers produce one-third of the world’s food, support the livelihoods of two billion people, and contribute up to 25% of GDP in developing economies. Despite this, many live on less than $3 per day and face significant challenges in adapting to climate impacts. By 2030, Acumen aims to help 40 million farmers increase their incomes and yields, transition 25 million farmers to regenerative practices, and improve crop diversity for 10 million farmers, with efforts expected to enhance the resilience of 25 million hectares of farmland.

The $300 million commitment will be distributed across 100 companies, targeting various stages of development through pre-seed equity and technical assistance for climate solutions and energy-efficient agricultural innovations, as well as seed and growth-stage equity for scaling climate businesses in sub-Saharan Africa and Pakistan.

Chris Wayne, Acumen’s Associate Director of Agricultural Investments, highlighted the urgent need for greater adaptation funding. He noted that smallholder farmers, who supply 30% of global food, remain among the poorest populations, with many earning less than the cost of production. He stressed that scaling solutions to the climate crisis will require larger commitments from both the private and public sectors.

Acumen has a 20-year history of supporting agricultural adaptation in emerging markets. Notable investments include Hatch Africa, which enhances poultry productivity; Victory Farms, promoting sustainable tilapia farming; Kentaste, providing steady incomes for coconut farmers; and S4S, which supplies solar dehydrators to reduce post-harvest waste.

Founded in 2001, Acumen invests in transformational companies and markets to address poverty and inequality. The organization has impacted over 500 million lives globally by fostering sustainable solutions in challenging environments. For more information, visit acumen.org.