Opinion: We can deliver a just agricultural transition if we act now

A “just agricultural transition” — a comprehensive shift to sustainable farming that prioritizes the needs of smallholder farmers while reducing environmental impact — is essential to transform global food systems. It also requires a significant boost in dedicated climate finance to succeed. To support the implementation of climate solutions in low- and middle-income countries, we urgently need new and ambitious climate finance from high-income countries — and this need grows more critical when we look to the agriculture sector. Currently, agriculture contributes up to 22% of global emissions, yet it receives less than 3% of global climate finance. Smallholder farmers, who are key to feeding a growing population while protecting our planet’s ecosystems, receive a mere 0.3% of climate finance. So what will it take to achieve a just agricultural transition? The critical role of smallholder farmers Smallholder farms have a far-reaching impact, as they produce one-third of the world’s food. As the global population grows, the importance of these farms in meeting future food demand will become even more critical. A recent study co-authored by One Acre Fund found that boosting maize production to meet increasing demand across Africa — without changing agronomic practices — would require either the conversion of vast areas of natural land, or a reliance on expensive maize imports from overseas. Without supporting smallholder farmers to feed more of Africa's growing population, we not only risk food insecurity but large-scale biodiversity loss. Research suggests that farmers are already spending $368 billion every year on measures to adapt to climate breakdown, including through conserving and restoring biodiversity. Yet financing to protect smallholders from the devastating impacts of extreme weather events including droughts,floods, rising temperatures, erratic rainfall, and seasonal variability, isn’t enough. A comprehensive approach to supporting climate-resilient agricultural practices is needed — one that supports farmers to adapt, innovate, and thrive amid climate uncertainty Learning from South Africa’s energy transition The concept of a “just transition” is not new, and we can look to South Africa to see how this has been successfully achieved within the context of an energy transition. In 2021, South Africa secured $8.5 billion in financing from international partners to transition away from coal. Crucially, the agreement recognizes that the country’s energy workers — many of whom rely on coal for their incomes — need both financial and structural support to transition to a greener economy. This can refer to a range of systemic and institutional measures to facilitate the transition beyond financial aid. It can encompass retraining and reskilling programs, job placement services and career support, economic diversification to encourage investment in alternative industries, and social protection measures such as unemployment benefits and/or income support. South Africa’s transition framework is built on the principle that equity must be at the core of the shift toward sustainability, balancing the need to reduce emissions with protecting the livelihoods of vulnerable communities. In much the same way, a just agricultural transition — or a ‘just rural transition,’ as coined by Meridian Institute — must prioritize the needs of the millions of smallholder farmers whose livelihoods are at risk. While the contexts are different, the challenge remains the same: How can we ensure that those most affected by the transition are not left behind? Just as South Africa’s energy workers will require targeted financing and a clear transition plan, smallholder farmers need dedicated resources, infrastructure, and technical assistance to become more climate-resilient. Without this, any effort to reduce emissions from agriculture will only exacerbate inequality and poverty. Better incentives, stronger regulations South Africa’s energy transition framework demonstrates the importance of incentivizing and supporting smallholder farmers to build resilience. Increasing access to finance, technology, knowledge, and market opportunities will enable smallholders to implement climate smart farming practices, building their own capacity for transformation in the face of climate breakdown, and contributing to a wider food systems transition. However, smallholder farmers need more than incentives to achieve this transition. We must continue to emphasize the role of governments and international bodies that control the regulations that are currently holding smallholder farmers back. Policymakers can create the optimal conditions for a just transition by reforming regulations around subsidies and land rights that prioritize both the agency of smallholder farmers and the health of the planet. To support climate-smart agricultural transitions, the world needs a range of solutions with multiple sectors working together to deliver subsidized insurance schemes, new markets for climate smart crops, high quality extension services, and ecosystem service payments. We know this works, so even a small increase in the share of global climate finance directed specifically toward smallholder agriculture could have a significant impact. What next? The main topic on the table at the COP 29, the U.N. climate summit, will be climate finance — specifically, the task of setting a “new collective quantified goal on climate finance,” to replace the existing target of high-income countries delivering $100 billion per year to lower-income countries. A global commitment to substantially increasing finance for sustainable agriculture, and specifically to smallholder farmers, is key to fostering more resilient global food systems, as well as sustaining the livelihoods of millions of smallholders. The time for action is now. Global leaders must prioritize agriculture in climate finance, or risk irreversible consequences for our planet and food systems.