Placing the right finance with the right farmers
Rapid adoption of sustainable agriculture requires the strategic placement of finance, directing the right financial support to the right farmers implementing the right practices. However, access to finance remains one of the agricultural sector’s greatest challenges, while weak record-keeping represents a second major constraint. Without reliable records, farmers may find it difficult to demonstrate their production history, management practices and creditworthiness. At the same time, banks and other financial institutions are willing to lend to farmers they can assess as trustworthy, but credible information is needed to manage lending risk. This project responds by creating a transparent system to record and verify farmers’ adoption of pro-biodiversity practices and connect demonstrated environmental performance with financial incentives.
About the Project and Project Objective
The Facilitating Finance for Biodiversity in Agriculture through Biotokens Project emerged from IDB Lab’s Digital Tokens for Biodiversity Innovation Challenge, a regional call for innovative solutions using digital tokens and blockchain technology to advance biodiversity conservation and climate action. The Cropper Foundation’s proposal was one of four selected from 86 submissions across 21 Latin American and Caribbean countries to receive financial support.
Through the project, a biodiversity-linked agricultural financing model will be piloted in Trinidad and Tobago. Blockchain technology will be used to support the recording and verification of farmers’ adoption of pro-biodiversity practices and connect their environmental performance with financial incentives. The pilot will also generate practical evidence on the technical, financial, institutional and monitoring requirements for a transparent, credible and scalable farm credit model.
| Project Objective The objective is to pilot a blockchain based farm credit model to incentivize farmers’ adoption of pro biodiversity agricultural practices in Trinidad and Tobago |
Project Components
| Biodiversity Framework Develop a locally relevant framework of indicators, targets and metrics for measuring and incentivizing positive biodiversity changes at the farm level. The framework will be co-designed through an action-learning network and supported by farmer recruitment, training and baseline assessments. Output: Farm Biodiversity Assessment Framework |
| Technology Solution Develop a secure blockchain-enabled system to capture, verify and track changes in farm-level biodiversity indicators and connect verified results with financial incentives. Output: Blockchain-enabled Farm Biodiversity Assessment Solution |
| Credit Facility Develop and pilot a biodiversity-linked lending product that rewards positive environmental performance through adjusted interest rates and supports working capital and sustainable farm investments. Output: Verified biodiversity gains trigger farmer incentives |
| Knowledge and Technology Transfer Document and share pilot results, lessons, innovation, impact and opportunities for replication and scaling. Output: Three knowledge products and a project scaling plan |
How the Model Works
The model is designed to direct finance towards farmers who are willing and able to implement pro-biodiversity practices, while giving financial institutions access to more credible information on farm management and environmental performance. Farm-level changes will be assessed, verified and securely recorded so that demonstrated biodiversity gains can trigger an agreed financial incentive.
Biodiversity on the Farm
What does farm biodiversity look like?
- Crop and varietal diversity
- Pollinators and beneficial insects
- Birds and other wildlife
- Soil organisms and soil health
- Trees, hedgerows and natural habitat
- Water availability and ecosystem support
- Reduced dependence on synthetic agricultural inputs
- Biodiversity-enhancing farm management practices
Our Partners
| Lead Partners | Supporting Partners |
| Inter-American Development Bank | Inter-American Institute for Cooperation on Agriculture (IICA) |
| Pinaka Consulting Ltd | NAMDEVCO |
| Farmers |
Project Timeline
36-month project period.
Expected Results
- A locally relevant method for assessing farm biodiversity
- Improved capacity among participating farmers
- A functioning blockchain-enabled monitoring and verification solution
- Evidence that biodiversity performance can be linked to lending incentives
- Lessons on farmer participation, data verification and institutional arrangements
- Knowledge to guide replication and scaling
- Greater recognition of farmers’ role as biodiversity stewards
How to Get Involved
Farmers, financial institutions, agricultural organizations, technology partners, researchers and other interested stakeholders are invited to register their interest in the project. Registration will help the project team identify prospective pilot participants and partners, share relevant project updates, and provide information on upcoming consultations, training sessions, demonstrations and knowledge-sharing activities.