Challenges

Transitioning farmers to low-emissions agriculture is essential for fighting climate change and ensuring sustainable food production. However, this shift comes with its fair share of challenges, which is why carbon finance is an ideal solution to support smallholder farmers in making this transition.  

One major hurdle is the upfront capital needed to set up the necessary infrastructure. This includes subsidizing equipment, and inputs and hiring additional labor. Farmers with small land holdings (1 to 2 hectares) face even greater challenges due to erratic weather patterns like unpredictable rainfall and cyclones, which make it hard to achieve consistent crop yields. 

Many smallholder farmers also find it difficult to learn and implement new agricultural techniques because of limited education. Switching to regenerative agriculture requires a significant behavior change and can initially result in lower yields, causing concerns about both short- and long-term benefits. Moreover, effective communication and education strategies in local languages are crucial for promoting the program’s goals, but this is often tough in diverse farming communities.

Solutions

To address these challenges, Climes has developed a comprehensive carbon finance-enabled approach that incentivizes smallholder farmers to transition from chemical-intensive practices to regenerative agriculture. This includes access to finance, subsidies for essential equipment and inputs, and capacity building to educate farmers about climate-smart practices. This approach also promotes the adoption of two water-saving rice cultivation techniques: 1) direct-seeded rice and 2) alternate wetting and drying. 

Extensive training programs in local languages educate farmers about climate-smart practices, including water conservation techniques, energy-efficient farming methods, and regenerative agriculture. By partnering with local organizations, Climeverse (Climes) offers continuous technical support and advisory services to help farmers implement and sustain regenerative techniques. Also, delivering fixed payments at onboarding along with variable income from the sale of carbon credits offers a financial safety net to encourage the adoption of sustainable practices. This integrated approach ensures that smallholder farmers can overcome obstacles related to finance, education, and infrastructure, ultimately promoting sustainable water management, energy use, and food production.