In the midst of the economic reactivation and the favorable results of the agricultural Gross Domestic Product (GDP), the Fund for the Financing of the Agricultural Sector (Finagro) closed the year 2024 with historic results by disbursing more than $39.4 billion in development loans through financial intermediaries.
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This figure represented a growth of 50% compared to the previous year, when disbursements reached $24.8 billion, and exceeded the goal established by the National Agricultural Credit Commission (CNCA) by 154.7%.the governing body of the sector’s financing policy.
The resources channeled by Finagro They benefited more than 394,960 producers, of which 90% corresponded to peasants and small producers in the Colombian countryside.
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The president of Finagro, Alexandra Restrepo García, highlighted that “These achievements reaffirm our commitment to small producers, women, associations, young people, victims of conflict, vulnerable communities and, in general, the Colombian countryside. We continue to demonstrate that democratizing development credit is key to accelerating the productive transformation of the agricultural sector and guaranteeing its strategic role in the country’s economy.”.
Agricultural finance
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Restrepo stressed that, at the end of 2024, More than 76,852 peasants accessed credit in the financial system for the first timewith 93% of them classified as small producers.
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“This shows that we continue to deliver for the field, promoting financial solutions, incentives and guarantees that adapt to the true needs of the sector.”he added.
A key factor in the consolidation of these results was the increase in collective or associative loans, which in 2024 reached disbursements of more than $2.92 trillion, with a growth of 60% compared to the previous year.
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These credits allowed small producers to access joint financing, reduce operating costs through economies of scale, improve your bargaining power in the purchase of inputs and the sale of products, and explore new markets.
Agricultural finance
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Additionally, Finagro managed the delivery of more than $168,000 million in subsidies through the Special Lines of Credit. These interest rate subsidies made it possible to mobilize $1.22 billion in new credits, resources that contributed to boosting food production and strengthening the country’s agri-food chains.
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The Agricultural Guarantee Fund (FAG) also played a fundamental role in these results, mobilizing more than $5.06 billion pesos in agricultural credits as of November 2024.
This instrument, which acts as a guarantor for farmers and producers, continued to consolidate itself as a key tool to facilitate access to credit in the financial system.
“For this year, we will focus on prioritizing efforts to deepen credit in peasant associations, cooperatives, women, youth, victims and the Popular Economy. Our goal is to break the barriers that have limited access to credit and provide tools that promote productive projects, promote employment and dignify the work of those who work the land.”, concluded Restrepo.
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