With a focus on financial inclusion and rural credit expansion, Finagro advances in consolidating the Agricultural Guarantee Fund (FAG) as a key tool to democratize access to financing in the countryside.
Alexandra Restrepo, president of Finagro, highlighted that the entity is also preparing the launch of an agro-export line, that seeks to strengthen the internationalization of small and medium producers, processors and marketerspromoting the competitiveness of Colombian agriculture in global markets.
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How is the FAG progressing?
We see the Agricultural Guarantee Fund (FAG), which is managed by Finagro, as the guarantee of true financial inclusion. The aim is to reach the most remote territories of the country and democratize this placement, in small, low-income producers, in medium-sized ones, without excluding large ones, but thus emphasizing small producers and associations.
The main results are that today the FAG reaches all 32 departments of the country and guarantees agricultural credit in 91% of the municipalities, that is, 1,024 municipalities. In addition, it has supported $18 billion in agricultural development loans, supporting investments totaling $25 billion, of which 45%, that is, $11.4 billion, occurred in municipalities with the highest incidence of multidimensional poverty. Also, 833,411 farmers and producers have benefited from this Fund in the last three years.
You talk about financial inclusion, how do you approach these mechanisms from that front?
Financial inclusion is one of the pillars of the Government’s policy. Since August 2022, Finagro has focused its strategy so that more women, victims, young people, farmers and small producers have access to agricultural development credit, under the best market conditions.
In this period of Government, more than 264,290 producers have obtained credit backed by the FAG for the first time, which represents a growth of 52% compared to the previous period. In addition, rural women have had a historic participation, since 320,279 of them have benefited from the FAG in this period, with $5.16 billion mobilized in development credit.
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The Agricultural Guarantee Fund (FAG) reaches all 32 departments and guarantees agricultural credit in 91% of the country’s municipalities.
Courtesy
How are disbursements and placement going?
So far in the current Government, that is, between August 2022 and September 2025, Finagro has disbursed, through financial intermediaries, more than $111.9 billion in agricultural development credit, which has benefited 870,734 peasants. 92% of all credit has been allocated to small producers.
Additionally, more than 369,563 producers have obtained agricultural credit for the first time, which has allowed us to continue closing the gaps in the most remote territories of the country. And so far this year, that is, between January and September 2025, Finagro has disbursed, through financial intermediaries, more than $35.5 billion in development loans.
With these incentives and with these tools what it does is combat the drop by drop. Help the farmer access this guarantee so that he does not resort to other methods that are not convenient for productive projects.
What is the portfolio balance?
At Finagro, there is a portfolio balance of more than $50.4 billion in development credit, through 1.1 million credit operations. 98% of all loans in the portfolio are with small and low-income producers.
Now, this does not mean that Finagro does not serve the large producers, of course it does, but in terms of the number of credits it is more focused on the small producer. In value it is different because the large producer does have an impact there.
What sectors are most requiring these resources?
We have an important situation and that is that the growth of agricultural GDP is due to coffee. For this reason, we have reached out to coffee growers with the Rural Capitalization Incentive (ICR). But in general, we work with all sectors: cocoa, rice, potatoes, bananas, among others.
Particularly, with potatoes and rice, Finagro has actively helped to have dialogues, to coordinate with the Ministry of Agriculture, to listen to the problems of the two sectors. We permanently create solutions that are agreed upon, where we can offer a line of economic reactivation, financial relief, debt forgiveness. We have even had forgiveness of up to 100% of the interest and 80% of the principal of loans that are in default. That oxygenates the agricultural sector.
111 payment agreements were reached with potato producers, forgiving more than $187.6 million in debts. Regarding rice farmers, we have made 96 payment agreements and have forgiven $325.1 million thanks to our financial relief.
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Finagro has supported $18 billion in loans that promote investments of $25 billion, benefiting more than 833,000 rural producers.
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Did they create resource bags with the rice farmers?
Currently, at Finagro we have more than $5.8 billion available to subsidize interest rates for small rice producers. With these resources, producers can access cheap financing to reactivate their projects.
How has the agricultural reactivation line behaved in those sectors you mention?
The Special Agricultural Reactivation Credit Line is aimed at producers hit by climatic phenomena, high input costs or drops in income. In that case, rice and potato growers can approach their trusted bank or cooperative and access subsidized rates between 3% and 5% EA, with long terms and grace periods depending on the production cycle.
How are the rates?
Our IBR is stable. A few years ago we had a different economic situation, so the rates were higher and many farmers were affected because they went from paying fees of one million pesos to $3 million.
Currently, we are able to intervene and reach that small producer to normalize it. We take out the economic reactivation line, for example. We are permanently reviewing the credit policies that exist and are given by the governing body, which is the National Agricultural Credit Commission, for the benefit of producers, especially small ones.
Do you have anything planned to promote agricultural exports?
Finagro will soon launch an agro-export line, which is nothing more than the packaging of our offer to promote the internationalization of the Colombian agricultural sector and turn our country into an export power of food and farm products.
With this line we will seek to energize and strengthen the internationalization of small and medium producers, processors, marketers and support service providers throughout the entire export chain. This offer will cover, among others, pre-shipment costs and expenses, investment for export competitiveness, post-shipment liquidity and enabled inputs and technologies.
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The entity will launch an AgroExporter line to strengthen the internationalization of small and medium producers in the Colombian countryside.
Courtesy
How are traditional banks promoting agricultural credit?
For Finagro as a development bank, and we articulate with first-tier banks and the public bank, it is very important to create synergies with these entities. With great pride I can say that this year we won a very important award with a financial inclusion tool that brings banks and cooperatives together.
How are you doing risk management in the field?
Finagro is a good executor of all the stock exchanges, for which the Commission sets annual objectives for us. We have practically exhausted the special lines of credit, the one for indigenous people has already been closed. There are also the blacknesses, which we are working on and there is a very important one which is the Agricultural Insurance Incentive (ISA).
During the government period, Finagro has recognized the insurance premium subsidy to promote agricultural risk management, reaching $156,626 million through 157,358 policies.
This is a key tool to protect agricultural producers from all climate issues. A decade ago we had one insurer, today we have 11 that have been integrated into this purpose and during this period of Government, the agricultural insurance premium has tripled compared to the previous government.
Development banks not only have to have this articulation with the banks, but also with the State, and we hope that in subsequent years, the governments that continue will continue to see the agricultural sector as the engine of a country’s economy.
What government entities are you working with?
We are working hand in hand with the Rural Development Agency (ADR) and the National Land Agency (ANT) because agrarian reform is supremely important for this Government. But the delivery of land has to be accompanied by productive projects and that is where we come in with financing.
Because the land may be there, but if there is no financing, subsidies, good financial tools that help improve the Colombian countryside, there is nothing. Therefore, Finagro as a development bank is vital for the country’s agricultural sector.
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DIANA K. RODRÍGUEZ T.
Portfolio Journalist
