How private investment in food production can make the world less hungry

By Max Johnston

Food finances are tricky.

Funding food production in developing countries has been difficult for a number of reasons, according to Rebecca Toole, a policy expert in economics.

“Farmers may seem like risky borrowers,” Toole said. “They often don’t have a established credit history, they also might not have stores of capital they could use as collateral for loans.”

Heifer International, a global non-profit organization, uses something called impact investing. That’s where you have the private sector invest in food production, with a smaller relative return to their investment.

Bill Foreman, spokesman for Heifer International, says the return can then be used for another investment.

“The idea is that you invest capital and you don’t really expect to get the same kind of return,” he said. “So we expect to get some capital back and then we use it for another project.”

In this episode of our ongoing series, “10 ideas to make the world less hungry,” we tackle the ideas making it possible to finance food.

Listen to the episode here . And check back next week for a new episode

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