USA / PERU – ECNETNews reports that the Inter-American Development Bank (IDB) has sanctioned an $85 million loan aimed at boosting productivity within Peru’s agricultural sector. This funding is set to enhance farmers’ access to innovation, technology transfer, and essential agricultural extension services.
The IDB’s loan features an 18-year repayment period along with a six-year grace period, positioning it as a strategic investment in Peru’s economic future.
As the second largest sector in total exports, agriculture plays a crucial role in Peru, employing 25.6 percent of the nation’s workforce as of 2022. However, the sector faces significant challenges, including low productivity, particularly in highland and jungle regions that house 85 percent of family farms. This initiative aims to address not only productivity but also low investments in agricultural research and underdeveloped technology transfer systems.
With this newly approved funding, the Institute for Agricultural Innovations will enhance its research capabilities to deliver a broader array of technological solutions. Additionally, agricultural extension services will be expanded with a focus on supporting family farms.
The project is poised to directly benefit over 6,000 agricultural extension service providers and approximately 92,000 farmers, with around two million smallholders set to gain indirectly from nationwide dissemination of research findings.
Specifically targeting challenges posed by climate change, the initiative will also aim to create employment opportunities for rural women and ethnic groups. Investments will fund a network of six agricultural experiment stations located across Peru’s diverse ecosystems: jungle, highlands, and coast, including areas such as Andenes, Baños del Inca, el Porvenir, Illpa, Santa Ana, and Vista Florida.
Furthermore, the project will enhance the technology transfer capabilities of the Institute for Agricultural Innovation and will finance the development, implementation, and validation of six technology transfer and six agricultural extension models for the institute.
