Innovations in the financing of oil palm replanting

While the scale of this investment is impressive, the scale of the demand for smallholder replanting finance is even greater. Millions of smallholders own oil palm plantations that will reach the end of their economic rotation over the next decade, many of whom could make long-term gains by replacing them early with improved hybrids. However, how can smallholders obtain financing for replanting and make up the income shortfall in the 3-4 years until the new plantation produces the first crop? SHARP partner SNV is working on this problem with local and international partners through the Smallholder Sustainable Transition Initiative (TSSI), which aims to assemble a portfolio of smallholder farmers who qualify for financing in Indonesia and link them with international lenders. For more information on the TSSI, watch their video here and read the full story on the SHARP website.