3. LIVESTOCK INSURANCE: MORTALITY Dairy insurance farmers took livestock mortality cover for all cows purchased. An insurance product for chickens is in development 4. LIVESTOCK INSURANCE: WEATHER INDEX For all animals purchased through loan finance to protect livestock keepers from drought related asset losses. Data still being captured to develop dairy index cover 1. CROP INSURANCE: WEATHER INDEX For the first 2017 sorghum crop season, insurance provided 90% cover for crop output value and covered 4 stages of production: drought at germination, vegetative and flowering stages and heavy rain at pre-harvest stage 2. CROP INSURANCE: MUTLI-PERIL INDEMNITY Provides cover for from excessive rain, hail, frost, fire, windstorm, pest and disease INSURANCE DE-RISKING INVESTMENT WITH INSURANCE Insurance de-risks investment in the sorghum, dairy and indigenous chicken value chains. Hybrid insurance for sorghum involved 2 types of cover: weather index and multi-peril, and was taken up by 160 farmers for 300 acres of sorghum in the first 2017 cropping season. t 2. IMPROVED WATER MANAGEMENT On-farm rainwater harvesting and storage in tanks and water pans 3. FOR CROP PRODUCTION (Solar-powered) drip irrigation or microdosing 4. INTERCROPPING Intercropping with legumes to improve soil moisture conservation, nutrient management and diversity, and to diversify income ADAPTATION BUILDING RESILIENCE TO CLIMATE EXTREMES & EVENTS Grant financing to MFIs for capacity building ensures that technical assistance on climate smart approaches are provided to farmers to address climate risks in the selected value chains. 1. FOR DAIRY PRODUCTION Growing appropriate fodder crops and promoting fodder conservation through hay and silage leguminous shrubs such as calliandra, leucaena and Napier grass 2. AGROBIODIVERSITY Cash cropping, legumes, fodder trees 1. AGROFORESTRY On-farm tree cover for sustainable land use 3. NUTRIENT MANAGEMENT Farm-specific nutrient management and precise micro-dose fertiliser application MITIGATION NITROGEN SMART: REDUCING EMISSION INTENSITY Promoting nitrogen smart practices improves soil fertility and reduces emission of nitrogen oxides from the soil. Smallholders are encouraged to intercrop efficient nitrogen fixing legumes (green grams, soya) between rows of sorghum or cassava. commercial cassava commercial sorghum legume intercropping CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 CO 2 MITIGATION CARBON SMART: REDUCING EMISSION INTENSITY Promoting energy efficiency and use of renewables along the value chains. Carbon smart practices such as reduced-till systems can be used in conjunction with cover crops/organic mulches to reduce carbon emissions. 3. SUSTAINABLE PUMPS Replacing diesel pumps with solar or treadle pumps to liſt shallow water for irrigation 2. SOLAR POWER Used for milk cooling, temp. control for transporting processed chicken, lighting and water heating 1. CONSERVATION TILLAGE Applying minimum tillage practices (e.g. chisel plough) to reduce soil disturbance and increase energy efficiency 4. BIOGAS Promoting biogas in place of fossil fuels or firewood CLIMATE INFORMATION DE-RISKING PRODUCTION WITH CLIMATE INFORMATION SERVICES Downscaled seasonal weather advisories are delivered to actors along the value chain. The national forecast is downscaled to county level and analysed with agricultural specialists through participatory scenario planning to develop an agroweather advisory specific to crops and livestock. 1. DOWNSCALED WEATHER FORECAST National seasonal forecast declared by Kenya Metereological Service in advance of rains 3. SEASONAL AGRO-WEATHER ADVISORIES Delivered to farmers through SMS, public radio, meetings and word of mouth 2. AUTOMATIC WEATHER STATIONS Presence at local level allows for ground truthing of forecast SORGHUM D E L I V E R Y O F H A R V EST T O B U L K I N G C E N T R E S F A R M I NP U T S O N C R E D I T , T E C H NI C A L A S SI S T A N C E END BUYERS Including millers, food companies, animal feed and industrial processors, brewers, supermarkets, and hotels INSURANCE PROVIDER Weather index insurance and multi-peril insurance for output value S E C U R E D RE P A Y M E N T R E V O LV I N G F U N D O F L O A N S in p u t a n d o u t p u t fin a n c i n g I N S U R A N C E P O L I C Y I SS U ED TO M F I R E V O L V I N G F U N D O F L O A N S c o lla te r al a n d g u a r a n t e e s IN S U R A N C E O N B E HA L F O F FA R M E R i n s u r i n g c a p i t a l i n v e s t m e n t a g gregator and s m allholders na m ed in policy A G R O N O M Y & V E T E R I N A R Y S E R V I C E S For more information: Finance Innovation for Climate Change Fund [email protected] | ficcf.com | starckplus.com TECHNICAL SERVICE PROVIDER Support to smallholders includes capacity building on adaptive technologies and practices AGGREGATOR Linking smallholders and the formalised market, cutting out middle men and securing the market MFIs & BANKS FICCF provides repayable grants for on-lending to farmers and agribusiness aggregators to invest in climate smart commodities, tech and practices SMALLHOLDER FARMERS Contracted to produce selected commodities with innate climate resilience for identified buyers FINANCE INVESTING IN CSA ACROSS SELECTED VALUE CHAINS FICCF’s CSA intervention is a private sector response specifically targeted at poverty reduction through the selection of commodities with innate climate resilience suitable for smallholder farming essential for Kenya’s food security. Combining financial inclusion with a climate/weather lens and increased market linkages is at the heart of the innovation. The multi-layered model has been broken down into components, each of which can be independently implemented. Finance Innovation for Climate Change Fund PRIVATE SECTOR ENGAGEMENT IN CLIMATE SMART AGRICULTURE VALUE CHAINS CASSAVA SMALLHOLDER DAIRY INDIGENOUS CHICKEN C A P A C I T Y B U I L D I N G D I R E C T P A Y M E N T O R V I A M F I B U L K D E L I V E R Y I N V O I C E D I S C O UN T I N G