PRIVATE SECTOR ROLE
- Companies work with small producers to ensure that they receive incentives/value in producing sustainable commodities at or above legal requirements, when needed to achieve truly sustainable commodities.
- Companies provide small producers with better inputs for planting to increase yield, to avoid expansion and deforestation.
ROLE OF OTHER ACTORS
- Financial sector and companies pursue activities to mitigate risk of lending to smallholders and issue loans at reasonable interest rates to alleviate small producers' financial burden.
- Civil society and governments develop support programs for small producers and their organizations to increase their capacity to produce sustainable, deforestation-free soft commodities.
- TFA works at the regional level to engage with small producers to better understand their needs and help to make connections with companies, at the landscape and jurisdictional level.
- Researchers predict that smallholders will double their production capacity and will for instance manage a 60% share of Indonesia’s total palm oil production area by 2030. This makes it increasingly important for small producers to stop deforesting and converting forest land.
- National organizations and networks of small producers play an important part in climate change mitigation and adaptation, through both political and practical action.
- Small producer organizations contribute to innovative and successful climate action by building on their particular strengths, and by harnessing both the support of the membership base and organizational alliances in multi-actor networks.
- Smallholders face difficulties in meeting the expected requirements of sustainable production, collateral and sufficient cash flow, while Financial Service Providers are constrained by the high risks involved in lending to smallholders.
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