Investment Thesis
The Hemispheric Fund for Agricultural Resilience and Sustainability in the Americas of the Inter-American Institute for Cooperation on Agriculture (IICA) seeks to mobilize, manage and execute new resources, both reimbursable and non-reimbursable, to strengthen the institutional, business and technical capacities needed to implement programs and projects that enhance the resilience and adaptive capacity of agricultural enterprises and, in turn, of agrifood systems in the Americas. Specifically, the reimbursable investment component will contribute to climate change adaptation and resilience by investing in sustainable and resilient practices in agribusinesses and their supply chains, with a view to reducing risks and increasing yields and productivity.
This investment thesis maintains that supporting businesses that foster climate change adaptation and resilience through technological innovation, regenerative agricultural production and efficient resource management will create a positive impact on both the sustainability of food production agribusinesses and agrifood systems, while offering attractive business opportunities for investors that are committed to sustainable development.

Context
Agriculture in the Hemisphere faces a dual threat: climate change and global market instability. Changes in rainfall patterns and the increasing frequency of extreme weather events causing droughts, floods and soil degradation have reduced the productive capacity of the region, thereby endangering food security. Additionally, this variability creates favorable conditions for the spread of pests and diseases. The volatility of prices for key commodities -driven by factors such as changing trade policies, global demand shifts and supply chain disruptions- creates income uncertainty for farmers and ranchers, who may struggle to recover costs or invest in future production.
Effective management of these crises requires a combination of constant monitoring, scientific research and the implementation of sustainable agricultural practices to protect crops and animals to ensure long-term food production. Moreover, small and medium-sized producers, who represent a significant part of the agriculture sector, have limited access to technology, financing, and training, which restricts their capacity to adapt to these adverse circumstances.
Investment Opportunity
The fund is positioned to capitalize on the following trends:
Growing demand for sustainable food
Global demand for sustainable agricultural products is rising, driven by conscious consumers and regulations that favor environmentally responsible practices. Investing in regenerative or sustainable production models facilitates access to premium markets with more stable prices.
Technological innovation in agriculture
The development of agricultural technologies, such as precision farming, web applications, data analysis to optimize production, as well as new techniques for irrigation, fertilization, and climate monitoring, creates opportunities to significantly improve crop productivity and resilience.
Increased resilience in agricultural supply chains
Investing in practices that improve the resilience of both small farmers and agribusiness companies helps to stabilize supply chains, reducing risks associated with price volatility and global market disruptions.

Investment Strategy
The fund will invest in projects that meet the following criteria:
Strengthening local capacities
Facilitating access to financing, training, and technology for small and medium-sized farmers, improving their capacity to adapt to climate change.
Public-private partnerships
Promoting collaboration with governments, NGOs, and private companies that can provide technical knowledge, financial resources and markets for sustainable products.

Sustainable technologies
Financing initiatives that promote the use of technologies that reduce the environmental impact of agriculture, foster climate change adaptation and resilience, as well as improve the efficient use of resources, such as water, energy, and fertilizers.
Soil and ecosystem regeneration
Supporting practices that restore soil fertility, capture carbon and preserve biodiversity, promoting nature-based solutions and regenerative agriculture as a profitable and sustainable business model.
The investment logic establishes that companies that do not meet these criteria will receive the necessary technical cooperation from IICA to achieve the required levels of investment eligibility.