About Isidro

Isidro is a blended finance initiative with an innovative approach to investing in smallholder agriculture and the land.

The real risk is not lending farmers the support they need.

The Challenge

Smallholder farmers produce almost half of the world’s food. But they often lack capital; they struggle to link to formal markets; and their production is increasingly threatened by climate change.

Small and medium enterprises provide a bridge to markets for smallholders and their agricultural goods. They are drivers of economic activity and employment in rural areas; they can also be climate leaders, scaling regenerative agriculture practices within the supply chain.

Despite the sector’s importance, there is a USD $170 billion financing gap for smallholder agriculture. “This gap cuts across all geographic regions and financing types, but is particularly concentrated in long-term agricultural finance, for which 98% of global demand remains unmet.”

500 million smallholder farms produce almost half of the world’s food.

Farming and agribusinesses account for about 20% of GDP in the “least developed countries.”

A gap exists for financing needs between $25,000-$500,000, especially medium-term loans/investments for fixed assets.

Increasing access to finance to improve farmer livelihoods and the land

Isidro targets a vital but underserved class of agricultural enterprises, including farmer organizations. The fund offers two debt products with a third being developed. We also provide pre and post investment technical assistance to our clients.

Solidarity:

Short-term (12-months) loans of between $25k-$100k for first-time borrowers, to develop a track record of credit management, generate more value for their farmer suppliers, and subsequently move onto our Common Good product or graduate to other financial providers.

Common Good:

Medium-term (3-7 years), equipment and infrastructure investments of $100k-$500k, in farmer-run organizations or agricultural enterprises, which strengthen organizational capacity, support modest growth, and deliver benefits to farmers and the land.

Nature-positive (under development):

Medium- to long-term (5-7 years), subordinated (variable repayment structures) loans of +$500k in agricultural enterprises, to scale regenerative agriculture and land restoration practices which strengthen livelihoods, improve water quality and soil health, reduce deforestation, and build resilience to climate change.

Isidro's Geographic Presence

Active Countries

Expansion Countries

A lending culture committed to the needs of smallholder agriculture

Isidro prepares promising SMEs to qualify for loans, then manage the invested capital while meeting growth and impact targets. Our technical team addresses the distinct needs of clients related to production, quality control, marketing and sales, and management and accounting best practices – all necessary business elements to qualify for formal market-based financing. By understanding the business models and value chains of our clients, and making loans accordingly, we help turn farming enterprises into economic engines that elevate rural communities.

Local Relationships

Extensive on-the-ground network of partners positioned to source pipeline opportunities for the fund, and to support clients as they grow their business.

Technical Assistance

Comprehensive technical assistance to prepare underserved and informal enterprises for investment and set them on the road to growth and bigger impact.

Multiple Financial Products

One targets first time borrowers. Another more established enterprises operating in diverse value chains and seeking a mix of working capital and fixed asset financing. The new product will be for nature-positive investments.

Impact Management & Measurement

Coaching to strengthen an enterprise’s impact thesis, set clear targets, and generate robust impact data on livelihoods and the land, utilizing best in class tools.

When agricultural SMEs thrive, farmers flourish

Across Latin America, Africa and Asia, CRS draws on long-standing relationships with rural communities and local private sector networks to aid in identifying prime SME candidates for our pre-investment readiness program. Isidro leverages our global reach, agribusiness expertise and partner capacity-building experience to reduce risk and position clients for economic gain. Strengthened agricultural SMEs not only buy more product from farmers, they connect them to high-value specialty food and beverage markets, which prize sustainably-sourced product. As these businesses grow, they scale good environmental practices, generate employment in rural communities, and improve farmer livelihoods.